GFO Issue 53, Article Number: 1
The decision to suspend Uganda's five grants - totalling US$367 million - sent shock waves through a country whose robust response to AIDS is a point of national pride... "The major challenge is to create credibility," says Chris Kassami, Permanent Secretary in the Ministry of Finance, Planning, and Economic Development, who spearheaded the Ugandan response to the suspension. "We want to demonstrate that this project can be managed well. To us that is the most important thing." The reputation of the GFATM will be affected, too. Besides Uganda, there have been just two other grant suspensions to date: Burma, in which the grant was terminated outright; and Ukraine, where the Fund has removed all decision-making power from the government and handed it over to an international NGO. So far, Uganda is the only country which has been allowed to remain at the helm during and after the suspension process. Now that its accounts are unfrozen, it has become a test case for the feasibility of country-driven reform... [The agreed new] financial controls are designed to prevent the types of financial misconduct identified in the [investigation] report that triggered the suspension, which included inflated "sitting allowances" for individuals attending meetings; irregularities in procurement processes; falsified receipts; and sub-recipients with little or no prior experience in HIV/AIDS.
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2005-12-11
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2004-12-11
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