[an 18 page grant performance report is at www.theglobalfund.org/search/docs/1UGDH_574_65_gpr.pdf]
Global Fund Report details
Exclusive
By Henry Mukasa and David Mukholi
LAST week, the Global Fund to Fight AIDS, Tuberculosis and Malaria suspended grants to Uganda after a probe revealed gross mismanagement of its funds.
The funds, accessed through the Ministry of Finance, are disbursed through the Project Management Unit (PMU) in the Ministry of Health.
The Sunday Vision can now reveal the details of what the organisations local fund agent, PWC an international audit firm uncovered that bothered the Geneva-based, Global Fund.
PWC was appointed to undertake an in-depth review of the Principal Recipient (Uganda) and a sample of the sub-recipients (projects run by NGOs), following the completion of Quarter Eight, Phase 1 of the AIDS/HIV grants. This was after Uganda failed to submit annual reports as requi
red in
the grant agreement.
Sunday Vision has separately established that the information that triggered the investigation was provided to the Fund by Aidspan, the publisher of Global Fund Observer, the Funds newsletter, after a Ugandan reader, acting as a whistle blower emailed the editor of the newsletter in June, describing abuse of funds.
Although of the $201m (about sh360b) earmarked by the Fund for Uganda for two years, only $45m (sh81b) had been disbursed, the investigation revealed financial, procurement, governance and management structure irregularities. The first flout was PMUs disregard of a finance ministry directive that programme accounts with commercial banks (DFCU and Stanbic) be closed and funds be transferred to Bank of Uganda.
The report stat
ed
sh517,150,000 was lost when PMU used lower exchange rates at its accounts in DFCU and Stanbic.
- PMU disregarded directive that programme accounts with commercial banks be closed and funds be transferred to Bank of Uganda
- Sh517,150,000 lost when PMU used lower exchange rate.
- Over sh291,520,150 for implementation of programme activities not accounted for
- Numerous expenses not allocated to any expenditure category
- Expenses amounting to sh12,417,248 for workshops and courses lack documentation
- Sh106,947,000 lost in irregular allowances
- Cheques made in the names of individuals instead of the institutions
- Sh210,651,550 questioned as unreasonable or abnormal payments
It is normal practice for beneficiaries to negotiate better rates when the volume of dollars translat
ed is
large. We would therefore have expected the GF to have benefited from exchange rates that would have been even better, the report states.
Irregular finances
The report states that activities meant to be implemented by the private sector were undertaken by the public sector and disbursements to the public sector exceeded the budget, while those to the private sector were slightly below budget.
Whereas disbursements to the public sector were planned to be $2,643,267, $3,028,139 was expended and while $8,033,317 was meant for the private sector $7,904,592, was disbursed.
In another discrepancy sh106,947,000 was lost in irregular allowances. PMU staff got allowances for routine work and night allowances for workshops held within Kampala.
While the Project Implementation Manual (PIM) dictates that all travel costs and allowances must follow government regulations, allowances were given at rates higher than the Governments prescribed rates.
PMU staff who were part of an interviewing panel for the Monitoring and Evaluation Specialist were paid sh300,000 per day while out of pocket allowance was also more than the prescribed sh10,000. Staff were also paid abnormal allowances such as; facilitation, professional and hardship allowances.
Administration staff that photocopied contracts for five days received sh100,000 per day. The explanation given for this was that the staff worked outside office hours. However, the Government provides payment of overtime and not allowances.
The probe also found out that allowances were inflated by increasing the number of days over which activities are supposed to have happened. An example is the Grants Approval Committee that sat for one day but received allowances for six days i.e. sh600,000 each. The rate that should have been used was sh50,000 per day, which is the approved government rate.
The audit also questioned the following: funds given for hosting a Thai medical team (sh8,459,200) and a Rwanda Ministry of Health delegation (sh949,500) and purchase of air tickets and allowances for Prof. Francis Omaswa to attend Global Fund meetings in Oslo, Paris, Geneva and Rochester, New York (sh39,744,852).
Other things questioned were; charter of a plane to Arua on behalf of Medecins Sans Frontiers (sh4,873,392), funds for opening of a government-aided maternity in Kashari a non GF related activity (sh1,886,000), communication allowance (sh800,000), Christmas package to PMU staff (sh2m) and funding of Ms. Catherine Omaswas trip to attend a American Telemedicine Association course (sh12,418,806). (Omaswa this, Omaswa that, is GF a family business?)
This was an ICT related course and the relevance of the course could not be established. The basis of selection of who qualified for training could not be established, the report said.
The report also found that the following were funded yet they were outside GF activities; top-up allowances for health ministry officials for time spent on GF activities (sh120,469,800) and money advanced to the Ministry of Health Permanent Secretary for a 60-day inspection of GF activities (sh190,000,000).
Payments that were not supported by invoices and receipts, especially communication and photocopying amounted to sh12,417,248 while unaccounted for advances amounted to sh311,303,150.
Breaking the rules
The review found out that disbursement of funds to sub-recipients didnt strictly follow the designated plan. Funds were disbursed with no instructions issued to sub-recipients resulting in spending on ineligible activities.
It was also discovered that agreements signed with the PMU required sub-recipients to submit financial and monitoring reports on a monthly and quarterly basis as a primary criteria for deciding whether additional funds can be disbursed but some of them received second disbursements despite not having complied with the requirement. The Inter Religious Council and some districts were cited. The report said disbursement of funds to the Aids Control Programme (ACP) was carried out in an uncoordinated manner.
One would have expected funds to have been disbursed to the ACP and managed from there. However, funds were also disbursed to individuals based on requests received from there. The payments to ACP staff were made either in cash or in cheques made in the names of
the
individuals.
Sub-recipients named in report
- Lijac Promotional Services
- Apac District
- Aids Control Programme
- National Council of Sports
- Uganda Private Medical Practitioners Association
- Datamine Technical Business School
- Uganda Youth Development Link
- Health Consult
- Entebbe United Development Organisation
- Uganda Youth Anti-Aids Association
- Medical Specialist Centre
- Buso Foundation
- UWESO Entebbe
- Campus Alliance to Wipe Out Aids
- Making Positive Living Attractive to Youth
- Murumba Uganda Inc
- Mildmay Jajjas Home
- NGEN+
- Solicitor Generals Office
- Prime Info Group
- Top One Week Investments
- Uganda National Farmer Federation
- Rukungiri Gender and Development Association
- Integrated Community Based Initiative
- Uganda Network for AIDS Support
- Kifamba Zukuka Programme
- Malaria TB HIV Concern
- Uganda Chamber of Com
merce
Valued Heath
- Uganda Centre for Accountability
Fishy procurement
The report said while procurement of HIV test kits valued at $545,300 was supposed to be by international bidding it was carried out by restricted bidding.
In the procurement of IT equipment, the report said Kiyingi, a Ministry of Health official made the specifications in all tenders and participated in the evaluation process, thereby undermining the objectivity of the evaluation process. Considering that he has been implicated in creating Dell-specific specifications to favour the Dell-dealer, MFI, it seems that this process was compromised.
Structural problems
The review reveals that while under PMU was supposed to have reported to the Permanent Secretary, Ministry of Health through the Commissioner, Health Services, the PMU reported directly to the Permanent Secretary or to the Director General of Health Services who was also the Country Coordinating Mechanism (CCM) chairman.
The audit firm recommended that the PMU undertake a capacity audit to ascertain the adequacy of the numbers and skills present in the PMU in executing their mandate and the capacity to manage a multimillion and multi-implementer programme.
According to the audit, poor coordination at district level caused accountability problems. This led to sub-recipients operating without supervision from the districts. (and it wasnt due to lack of money)
The audit revealed that the Ministry of Health had developed a formula for allocation of funds to districts but this information was not used in disbursement of money. The consequence, says the report, was some problematic districts receiving funds and delaying in utilising the funds and providing the relevant accountabilities.
Of the 31 sub-recipients, the report said 23 has suspect expenditures. In addition 24 had unsupported expenditure/ unaccounted for funds. There were two, which were not legally registered and 10 that did not meet eligibility criteria approved by the CCM.
For instance the report cites Lijac Promotional Services as an organisation that is not registered. The only documentation that is available as a reflection of their legal status was that they had reserved a name at the time of applying for funding. This organisation does not have a physical address, says the audit. In spite of that Lijac was given sh41,920,000 for a TV educational quiz and discussion programme. (who owns Lijac?)
Apac District got sh16,945,000 for activities reflected in the work plan and budget. However, four months later only sh5,429,105 had been used. The district did not submit quarterly monitoring and evaluation reports and monthly financial reports to the PMU.
ACP accessed funds with only a work plan and budget; it did not have any proposal. The work plan that was submitted amounted to sh13b and this budget was revised down to sh5b. Since the budget for the public sector amounted to about sh4.5b, we found it unusual that the PMU would approve the ACP budget for six months at sh5b since the ACP on its own exceeded the anticipated public sector spending, the audit observes.
The report reveals that sh180m was budgeted for ACPs national sero behavioural survey but the PMU advanced it sh240m. There were also several payment effected to individuals relating to the survey that went over sh100m.
According to the audit, there are cases where ACP staff held funds for a period of over two months without undertaking activities. An example is Dr. Musinguzi who received sh68m in early June and has not implemented activities to date, says the report. (are these evil people are just picking on poor Dr. Musinguzi, who is only still counting his
money?)
The audit notes that ACP staff had not accounted for over sh1b. Of this amount it questions sh85,427,104 in allowances and payments amounting to sh36,448,200 without third party supporting documentation. There is also sh65,629,000 paid in instances of questionable signatures.
There are also unique cases showing overspending on the advanced amount with no refund claims made. For instance Dr. Tirwomwe undertook a study on HIV/AIDS and he spent sh1,221,200 over what was advanced to him but he never claimed the over expenditure, the reports says. (why cannt these evil people figure out that patriotic Ugandans regularly donate their time and skills For God and my Country?)
There were laboratory training workshops in HIV undertaken in Mbarara and the amount advanced for the hotel costs was sh6,554,000. However, a receipt was attached for sh9,350,000. This officer did not request a refund. (See? When will these evil people figure out that patriotic Ugandans regularly donate their own money For God and my Country?)
Query upon query
The report also queries sh14,660,000 g
iven to
the National Council of Sports. The Uganda Private Medical Practitioners Association has to account for sh10,685,100. (I pitty these GF people who dont seem to realize that playing sport makes you immune to AIDS and malaria!)
Datamine Technical Business School has accountability problems regarding over sh41m. Its payment vouchers which are not sequential are also being queried. The report points out that voucher 77 was issued on 10/3/2005 while voucher 170 was issued on 9/3/2005. (Tsk! Tsk! Once again, a voucher is a voucher is a voucher!)
Datamine is being queried for paying staff per diems amounting to sh8.4m contrary to government standards. In total, according to the report, the school is yet to account for sh32.5m. The report is is also querying Uganda Youth Development Link over sh20m. Health Consult is being queried over sh18m; Entebbe United Deve
lopment
Organisation over sh18m and Uganda Youth Anti-Aids Association, sh36m.
The report questions whether Medical Specialist Centre benefits an average Ugandan. It notes that it is a private clinic that attracts clientele that can afford to pay yet it received a grant of sh50m. (now, who runs this center?)
Also questioned are Buso Foundation over sh8.8m; UWESO Entebbe, sh591,000; Making Positive Living Attractive to Youth, sh2m and Murumba Uganda Inc., sh12m. Also queried is Maj. Rubaramira Rurangas National Guidance and Empowerment Network of People Living with HIV/AIDS for lack of financial accountability reports.
The Solicitor General was given sh60m but the bank statement reflects sh81m, notes the report. A total of sh21m for the Ministry of Justice is intact and none of the planned activities implemented. (I told you! These evil peoplecan never figure out that patriotic Ugandans regularly donate their own money For God and my Country?)
The report questions Top One Week Investment Ltds profit entities. It was, according to the audit, recommended as an sub-recipient by the Minister of State for Primary H
ealth
Care. (These fools also. Its all there in the name! What do they think One Week Investment means?)
Others under scrutiny are: Uganda National Farmers Federation over sh200m; Rukungiri Gender and Development Association which has to account for sh56m; Integrated Community Based Initiative over sh102m; Uganda Network for AIDS Support Organisations sh32m; Kifamba Zukuka Programme sh15m; Malaria, TB, HIV Concern, sh26m; Uganda Chamber of Commerce sh101m; Value Health Ltd sh 25m and Uganda Centre for Accountability, sh1.2m. (Now, thats poverty alleviation for
you.)
Meanwhile the Government has suspended all PMU staff pending investigations. In a statement by Damoni Kitabire, Micro-advisor, Ministry of Finance, Planning and Economic Development, the Government has ordered a full audit of the project to be carried out by the Auditor General.
To avoid interruption of critical saving activities funded by the Global Fund, a caretaker team has been appointed, the statement said.
Ends
Sunday Vision: Sunday, 28th August, 2005
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