Political news , opinions and views for 2010 Presidential election

February 13, 2010

Binay seeks probe into $85-M AIDS fund ‘misuse’

from The Daily Tribune

United Opposition (UNO) vice presidential candidate, Makati City Mayor Jejomar Binay yesterday called for a probe into the alleged mismanagement of the $85-million HIV/AIDS grant provided by the Global Fund for HIV/AIDS, Malaria and Tuberculosis.

Binay said an investigation by the Office of the Inspector General in the United States led to the discovery that nearly $1 million of the fund was spent for purposes other than those allowed under the terms of the grant agreement.

“This is appalling, particularly since Global Fund is one of the biggest donors to the country’s health program,” he said.

According to Binay, the suspected misuse of the funds led to the cancellation of five grants to the Philippines. He said the Philippines is starting to become a pariah before the international community due mainly to corruption in government.
“...(T)his has given the country another black eye (before the international community). Accountable officials must be made to pay for this financial infidelity. We should get to the root of the problem and solve it. $1 million is no small amount. It could have helped save thousands of lives,” he said. “With the rising number of HIV cases in the country, we cannot afford to lose this grant,” he added.

Just last year, the World Bank (WB) deferred a loan it was to grant the Philippines for the second phase of the National Road Improvement and Management Program (NRIMP 2) after it was discovered that there was an anomaly in the contracting of the project for the first phase of the program.

The WB withheld its scheduled granting of a $232-million loan for the NRIMP 2 after it conducted an investigation into the reported anomaly and found out that there were indeed irregularities in the procurement process of the Department of Public Works and Highways as the bidding for the project’s contract had been rigged to favor a construction firm in cahoots with DPWH officials.

With the discovery of the anomaly, seven contractors were suspended for several years from participating in any WB-funded project.

The Global Fund for HIV/AIDS, Malaria and Tuberculosis, one of country’s biggest donors for local HIV and AIDS programs, reportedly suspended all five of its grants to the Tropical Disease Foundation (TDF) in the Philippines after it received reports of the fund being used for unauthorized expenditures.

Based on an investigation by the Office of the Inspector General, around $1 million out of the total $85 million disbursements were spent on activities that were not in the terms of the grant agreement.

The TDF is supervised by the Department of Health through the Global Fund Country Coordinating Mechanism and is co-headed by the Philippine Health secretary.

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