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DFID's contribution to the Global Fund: report published

22 May 2012

MPs on the International Development Committee are urging the UK to increase funding to the Global Fund to fight AIDS, TB and Malaria - the international financing mechanism set up ten years ago by donor countries which has helped save millions of lives in developing countries.

Ministers had committed over a year ago to increase funds to the Global Fund but this money has not yet been delivered nor the amount of the increase confirmed. The Committee is concerned by the delay in delivering funds and is calling for the UK to increase its contribution to the Global Fund significantly - over and above the current £384m pledge for 2012 to 2015 - subject to reform.

Chair of the Committee the Rt Hon Malcolm Bruce MP said:  

"The UK has been a reliable partner to the Global Fund but we are concerned at the continued delay in providing additional funds. We strongly urge the Department for International Development to do all possible to commit funds earlier than 2013. A significant increase by the UK could help to catalyse contributions from other donors.

 

There has been some welcome news since we completed our report with the Global Fund announcing £630 million in new funds. It is also reassuring to see other countries such as Japan stepping up to the plate with their largest ever annual contribution. Other donors - including the UK - also must commit new funds in the coming months if the Global Fund is to return to full operation speedily and carry on doing what it does best - saving lives."

The Global Fund has had a difficult year, with financial problems, corruption scandals and the resignation of its director. Confidence in the Fund was affected with some countries temporarily suspending payments and the Global Fund had to cancel a round of grants totalling some £930m.

 

However, the MPs say that the Global Fund has made good progress under its new management to reform the organisation’s structures and financial risk monitoring.

The Rt Hon Andrew Mitchell MP, Secretary of State for International Development, indicated to the Committee that the additional funds were unlikely to be delivered until 2013.

Chair of the Committee the Rt Hon Malcolm Bruce MP said:

"The Global Fund is invaluable. It has been highly effective over the past decade in tackling AIDS, TB and malaria in developing countries. It needs to get over its problems and get back to business as soon as possible. My Committee is pleased that the new General Manager is taking forward the necessary reforms required to restore confidence in the Global Fund."

The Committee says that the G20 meeting in Mexico provides a good opportunity for the UK to announce new funds, but only if conditions are met and UK taxpayers’ money is adequately safeguarded.

Since its creation, programmes supported by the Global Fund have provided AIDS treatment for 3.3 million people, anti-tuberculosis treatment for 8.6 million people and 230 million insecticide-treated nets for the prevention of malaria.

Background

The Global Fund to Fight AIDS, Tuberculosis and Malaria was created in 2001 to increase funding to tackle three of the world’s most devastating diseases. It has approved £14.1 billion for programmes in 150 countries and is estimated to have helped save millions of lives.

The UK is the Global Fund’s third highest donor since its creation. DFID’s Multilateral Aid Review, published in March 2011, rated the Global Fund as one of the highest-performing multilateral organisations, which gave “very good value” to the taxpayer and had “very high standards for financial management and audit”. Following this positive assessment, the Secretary of State announced that the UK would “significantly increase” its contribution to the Fund.

In November 2011 the Global Fund cancelled its eleventh round of grant-making (“Round 11”), which would have involved some £930m in expenditure, due to fears of inadequate funding. The global economic downturn, negative media coverage regarding fraud by some grant implementers, and forecasting inaccuracies contributed to the Global Fund reducing its estimate of likely contributions from donors. In May 2012 the Global Fund announced some £630 million in new funds.

Further Information

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