Germany Suspends Global Fund Contributions

Citing allegations of massive corruption involving grants from the Global Fund to Fight AIDS, Tuberculosis and Malaria, Germany has canceled the payment of its contributions to the funding organization, German Federal Minister for Economic Cooperation and Development Dirk Niebel has announced.

As much as two-thirds of grants provided by the fund end up in corrupt activities, according to a report by The Associated Press. The Global Fund has refuted the report, saying misappropriated funding has amounted to only USD34 million out of a total disbursement of USD13 billion since 2002.

>> Global Fund: Grant Misuse Report Reveals Nothing New

In a Jan. 25 statement, Niebel said the suspension of German contribution to the fund is pending a complete review of the allegations. He said he had ordered a special review and will invite a representative of the fund for a talk at the German Federal Ministry for Economic Cooperation and Development.

Sweden earlier said it would cut financing to the Global Fund, unless the fund bolsters measures to ensure funding is not siphoned off.

>> Citing Corruption Fears, Sweden Threatens Withholding Global Fund Contribution

About the author

  • Ma. Rizza Leonzon

    As a former staff writer, Rizza focused mainly on business coverage, including key donors such as the Asian Development Bank and AusAID.