The Global Fund to Fight AIDS, Tuberculosis and Malaria will undergo a series of changes this year, starting with the fund’s forecasting.
The funding agency projected to receive $11.7 billion in contributions between 2011 and 2013. But it had to cancel its 11th financing round due to a funding shorfall. To date, only $2.64 billion has been received.
Gabriel Jaramillo, the fund’s new general manager, said the shortfall should “never have happened,” the Wall Street Journal reports. He said he will strengthen the fund’s forecasting in the one year he will be taking the job, starting on Feb. 1.
“Uncertainty is a reality. You have to project the most likely scenario and the most horrible scenario. That’s what we do in business every day,” he said. Jaranillo, however, did not say how he intends to strengthen the fund’s forecasting.
Jaramillo seemed seasoned for this kind of work. He, after all, served as chairman and CEO of Sovereign Bank, and has 35 years of experience in high-level posts in the financial sector. He also knew very well the management issues that plagued the fund as he was part of the independent panel that did a review last year. The report commissioned by the fund said it needs to do an overhaul of its grant management and financial practices, and redefine the way it does business with recipient countries.
Apart from improving projections, Jaramillo said he will establish a disciplined private sector governance process for managing grants, improve risk management from country to country, and “try to raise new money.” He said he hopes to hold a fundraising conference late this year.
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