UK should pay more into Global Fund, say MPs

22 May 12
The UK should speed up a promised additional contribution to The Global Fund to Fight AIDS, TB and Malaria, MPs said today.

By Nick Mann | 22 May 2012

The UK should speed up a promised additional contribution to The Global Fund to Fight AIDS, TB and Malaria, MPs said today.

The Department for International Development is committed to paying £384m to the fund between 2012 and 2015. Last year it also promised a ‘significant increase’. The extra funds were announced by International Development Secretary Andrew Mitchell after a multilateral aid review by the DFID praised the standards of financial management and audit at the Global Fund.

But the House of Commons international development select committee found that both the timing and amount of this additional funding had yet to be confirmed. Mitchell indicated to the committee that the additional money was unlikely to be provided until 2013.

Malcolm Bruce, chair of the committee, 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.’

In its report, the committee noted that the delay in allocating the additional funding had coincided with the ‘most difficult period’ in the Global Fund’s history. Lower than expected donor contributions, negative publicity around fraud and the resignation of its executive director culminated in the November 2011 decision to cancel a £930m round of grant-making.

MPs said, however, that the fund had made good progress under its new management in reforming its structures and improving its financial risk monitoring. In light of this, the UK’s additional funding could be announced next month.

‘The Group of Twenty meeting in Mexico in June provides a good opportunity for the DFID to announce new funds, but only if the department’s conditions are met and UK taxpayers’ money is adequately safeguarded,’ the report said.

According to the DFID, the fund’s board aims to have a new funding model in place by April 2013.

Responding to the report, Mitchell said sustained progress needed to be made with these reforms before the UK allocated any additional funds.

‘The past two years have been difficult for the fund but I am encouraged that strong leadership is now in place and action is being taken to begin a process of clear reform,’ he said.

‘The UK is prepared to agree a significant increase in our contribution to the Global Fund – but it must show that the reform programme remains on track and is having an impact. We will need to be absolutely clear that British taxpayers are getting value for money for their support to the fund.’

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