Sh700m Global Fund cash refunded
Oct 13, 2007
CLOSE to sh700m has been recovered from individuals and institutions implicated in the misappropriation of the Global Fund to fight Malaria, Tuberculosis and HIV/AIDS. The biggest single refund was from dfcu Bank, which paid back sh455m.
By John Eremu
CLOSE to sh700m has been recovered from individuals and institutions implicated in the misappropriation of the Global Fund to fight Malaria, Tuberculosis and HIV/AIDS. The biggest single refund was from dfcu Bank, which paid back sh455m. The refund was apparently the commission paid to an individual who linked the bank to handle the multi-million dollar project account.
Information received by The New Vision indicates that the finance ministry has also paid back sh172m in different installments while sh40m was also refunded by an unidentified Government department.
The refunds made between April and November last year show the Ministry of Education and Sports paying back sh22.2m; Multi-purpose Art Studio sh2m and the Uganda National Chamber of Commerce and Industry sh0.9m of the sh99m it is supposed to pay back.
Bank of Uganda spokesman, Yusuf Walusimbi, declined to disclose the status of account. “These were government clients and it is only the Government or the Ministry of Finance that can give such information,†Walusimbi said.
Bwoch Lujwero, the Accountant General in the Ministry of Finance, said he had not been informed of any further refunds other than the sh692m.
President Yoweri Museveni in September 2005 appointed the Principal Judge, Justice James Ogoola, to head a probe into the allegations of mismanagement of the funds meant to fight Malaria, Tuberculosis and HIV/AIDS. The Global Fund secretariat in Geneva had suspended funding to Uganda after PricewaterHouse Coopers, an audit firm, issued a damning report on misappropriation of the programme funds.
The commission’s report, already adopted by the Cabinet, unearthed several cases of influence peddling, inflated payments, ineligible expenditures and outright embezzlement. It made wide-ranging recommendations including recovery of the misappropriated funds and criminal prosecution of those responsible.
The commission findings resulted in the disbanding of the Global Fund Project Management Unit (PMU) headed by Dr. Tiberius Muhebwa. The PMU staff alone were supposed to refund close to sh1bn. However, records show that only Mary Musoke, the former PMU management accountant, had so far refunded sh2m.
The Ogoola commission had recommended that the over 300 sub-recipients and individuals be further audited with a view to recover the monies, but records show that only nine, mainly institutions, have paid. Over sh3bn that was either misappropriated or advanced to the project recipients, but remain unaccounted, is supposed to be reimbursed.
The commission recommended that all the former three health ministers — Maj. Gen. Jim Muhwezi, Mike Mukula and Alex Kamugisha — be further investigated with a view to prosecution for involvement in the saga.
Among the agencies that were supposed to refund Global Fund money for lack of accountability include Kampala district sh369m; Malaria Control Programme sh200m; the Uganda Centre for Accountability headed by Teddy Cheeye, the director economic affairs in the Internal Security Organisation (sh120m); Aids Control Programme sh120m; Solicitor General’s Office sh60m; National Council of Sports sh60m; Mukono district sh45m; Integrated Community Based Initiative sh55m; Malaria, TB and AIDS Concern sh29m and Mbarara district sh27m.
Others are Prime Info. Group sh27m; Kavuma Ssalongo of the President’s Office sh22m; Rukungiri Gender and Development Association sh17.4m; Buso Foundation sh13m and Quality Chemicals sh11m.
Chronology of the Global Fund saga
The Global Fund, to fight HIV/AIDs, TB and Malaria, was established in 2002, under the auspices of the United Nations, to mobilise resources and give them to developing countries for fighting these three diseases. The first Chairperson the Global Fund was Dr. Crispus Kiyonga, now Minister of Defence. Kiyonga’s term expired and he was replaced by an American.
Uganda received the first grant in March 2003. To-date, over $150million has been disbursed to Uganda, according to a progress report published on the Global Fund website, www.theglobalfund.org.However, in August 2005, the Global Fund suspended its grant to Uganda, citing mismanagement. Below is the chronology of events:
August 24, 2005: Global Fund suspended grants to Uganda over mismanagement of the fund.
September 22, 2005: Justice James Ogoola announced the start of the probe into the mismanagement of Global Fund money.
September 26, 2005: Health minister Maj. Gen. Jim Muhwezi flew to Geneva to defend Uganda’s position at the board’s 11th meeting, on the usage of Global Fund money.
September 26, 2005: The Government asked the Auditor General (AG) to carry out inquiries into the Global Fund on HIV/AIDs, TB and Malaria.
October 3, 2005: Jon Liden, the Global Fund’s spokesperson announced that the suspension of the Fund’s five grants was still on.
October 6, 2005: Justice James Ogoola was appointed to head a judicial commission of inquiry into the Global Fund saga.
October 15, 2005: The National Political Commissar, Dr. Crispus Kiyonga, was summoned as a witness to the commission probing the mismanagement of the Global Fund on HIV, Tuberculosis and Malaria on October 19.
September 25, 2006: The Minister of Health, Dr. Stephen Mallinga, revealed World Health organisation was to procure antiretroviral drugs (ARVs) for Uganda under the Global Fund arrangement.
November 26, 2006: Cabinet instructed the finance ministry officials to refund over sh200m borrowed from the health ministry for alleged supervision and coordination of the project.
April, 2007: The Government gave Police additional resources amounting to sh960m to carry out investigations into those implicated in the Global Fund scandal within six months.
May 9, 2007: The Inspector General of Government (IGG) scoffed at attempts by former health minister Brig. Jim Muhwezi to block his impending arrest.
May 29, 2007: Global Fund director of operations, Nosa Orobaton, revealed that Uganda would receive $26m (sh442b) from the Global Fund to fight tuberculosis.
July 04, 2007: The High Court refused to hear an application by the former health minister, Maj. Gen. Jim Muhwezi, in which he challenged the Global Fund report.
CLOSE to sh700m has been recovered from individuals and institutions implicated in the misappropriation of the Global Fund to fight Malaria, Tuberculosis and HIV/AIDS. The biggest single refund was from dfcu Bank, which paid back sh455m. The refund was apparently the commission paid to an individual who linked the bank to handle the multi-million dollar project account.
Information received by The New Vision indicates that the finance ministry has also paid back sh172m in different installments while sh40m was also refunded by an unidentified Government department.
The refunds made between April and November last year show the Ministry of Education and Sports paying back sh22.2m; Multi-purpose Art Studio sh2m and the Uganda National Chamber of Commerce and Industry sh0.9m of the sh99m it is supposed to pay back.
Bank of Uganda spokesman, Yusuf Walusimbi, declined to disclose the status of account. “These were government clients and it is only the Government or the Ministry of Finance that can give such information,†Walusimbi said.
Bwoch Lujwero, the Accountant General in the Ministry of Finance, said he had not been informed of any further refunds other than the sh692m.
President Yoweri Museveni in September 2005 appointed the Principal Judge, Justice James Ogoola, to head a probe into the allegations of mismanagement of the funds meant to fight Malaria, Tuberculosis and HIV/AIDS. The Global Fund secretariat in Geneva had suspended funding to Uganda after PricewaterHouse Coopers, an audit firm, issued a damning report on misappropriation of the programme funds.
The commission’s report, already adopted by the Cabinet, unearthed several cases of influence peddling, inflated payments, ineligible expenditures and outright embezzlement. It made wide-ranging recommendations including recovery of the misappropriated funds and criminal prosecution of those responsible.
The commission findings resulted in the disbanding of the Global Fund Project Management Unit (PMU) headed by Dr. Tiberius Muhebwa. The PMU staff alone were supposed to refund close to sh1bn. However, records show that only Mary Musoke, the former PMU management accountant, had so far refunded sh2m.
The Ogoola commission had recommended that the over 300 sub-recipients and individuals be further audited with a view to recover the monies, but records show that only nine, mainly institutions, have paid. Over sh3bn that was either misappropriated or advanced to the project recipients, but remain unaccounted, is supposed to be reimbursed.
The commission recommended that all the former three health ministers — Maj. Gen. Jim Muhwezi, Mike Mukula and Alex Kamugisha — be further investigated with a view to prosecution for involvement in the saga.
Among the agencies that were supposed to refund Global Fund money for lack of accountability include Kampala district sh369m; Malaria Control Programme sh200m; the Uganda Centre for Accountability headed by Teddy Cheeye, the director economic affairs in the Internal Security Organisation (sh120m); Aids Control Programme sh120m; Solicitor General’s Office sh60m; National Council of Sports sh60m; Mukono district sh45m; Integrated Community Based Initiative sh55m; Malaria, TB and AIDS Concern sh29m and Mbarara district sh27m.
Others are Prime Info. Group sh27m; Kavuma Ssalongo of the President’s Office sh22m; Rukungiri Gender and Development Association sh17.4m; Buso Foundation sh13m and Quality Chemicals sh11m.
Chronology of the Global Fund saga
The Global Fund, to fight HIV/AIDs, TB and Malaria, was established in 2002, under the auspices of the United Nations, to mobilise resources and give them to developing countries for fighting these three diseases. The first Chairperson the Global Fund was Dr. Crispus Kiyonga, now Minister of Defence. Kiyonga’s term expired and he was replaced by an American.
Uganda received the first grant in March 2003. To-date, over $150million has been disbursed to Uganda, according to a progress report published on the Global Fund website, www.theglobalfund.org.However, in August 2005, the Global Fund suspended its grant to Uganda, citing mismanagement. Below is the chronology of events:
August 24, 2005: Global Fund suspended grants to Uganda over mismanagement of the fund.
September 22, 2005: Justice James Ogoola announced the start of the probe into the mismanagement of Global Fund money.
September 26, 2005: Health minister Maj. Gen. Jim Muhwezi flew to Geneva to defend Uganda’s position at the board’s 11th meeting, on the usage of Global Fund money.
September 26, 2005: The Government asked the Auditor General (AG) to carry out inquiries into the Global Fund on HIV/AIDs, TB and Malaria.
October 3, 2005: Jon Liden, the Global Fund’s spokesperson announced that the suspension of the Fund’s five grants was still on.
October 6, 2005: Justice James Ogoola was appointed to head a judicial commission of inquiry into the Global Fund saga.
October 15, 2005: The National Political Commissar, Dr. Crispus Kiyonga, was summoned as a witness to the commission probing the mismanagement of the Global Fund on HIV, Tuberculosis and Malaria on October 19.
September 25, 2006: The Minister of Health, Dr. Stephen Mallinga, revealed World Health organisation was to procure antiretroviral drugs (ARVs) for Uganda under the Global Fund arrangement.
November 26, 2006: Cabinet instructed the finance ministry officials to refund over sh200m borrowed from the health ministry for alleged supervision and coordination of the project.
April, 2007: The Government gave Police additional resources amounting to sh960m to carry out investigations into those implicated in the Global Fund scandal within six months.
May 9, 2007: The Inspector General of Government (IGG) scoffed at attempts by former health minister Brig. Jim Muhwezi to block his impending arrest.
May 29, 2007: Global Fund director of operations, Nosa Orobaton, revealed that Uganda would receive $26m (sh442b) from the Global Fund to fight tuberculosis.
July 04, 2007: The High Court refused to hear an application by the former health minister, Maj. Gen. Jim Muhwezi, in which he challenged the Global Fund report.