UNDP WATCH: Germany unblocks part of Global Fund donation

Tuesday, July 5, 2011

Germany unblocks part of Global Fund donation

BERLIN (AP) — Germany is unblocking half of the funding it withheld from a multibillion-dollar fund that fights three killer diseases following revelations of corruption earlier this year.

Development Aid Ministry spokesman Sebastian Lesch says Berlin has decided to release euro100 million ($145 million) of the euro200 million ($290 million) that it originally pledged for 2011 to the Global Fund to Fight AIDS, Tuberculosis and Malaria.

The money was blocked amid a donor backlash in January.

Lesch said Monday that Berlin wants to ensure that aid can be released but used in a "corruption-free" way.

Germany is stipulating that its money be used in countries where the fund tasks international organizations, such as the U.N. Development Program, with delivering aid.

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1. UNDP’s partnership with the World Bank needs to be more effective, particularly in fragile and crisis-affected countries. 2. UNDP’s near universal mandate means its technical resources are spread very thinly. The Board does not provide strategic direction. HR management is weak. It has a weak results chain. 3. There is limited evidence of active senior management consideration of cost control. Country evidence points to mixed progress on demonstrating cost-efficiency. 4. The Executive Board is politicised and there is a lack of consensus on the key areas for reform. It is not clear that current plans for change will deliver the required depth and breadth of reform. 5. Evidence gathered at country level was highly critical of UNDP’s ability to deliver results. Its delivery can be undermined by staffing issues and bureaucratic processes. 6. Its performance in fragile states is mixed. It has reasonable training and a range of guidance and analytical tools but struggles to fill posts. 7. There is no evidence that the Climate Strategy was directly guiding resource allocation decisions

H.E. Dirk Niebel - German Development Minister

"I take the accusations made in the media concerning corruption and breach of fiduciary duty at the Global Fund very seriously and I am sure that the Fund will clarify the matter without delay. Germany is one of the biggest donors to the Global Fund. I have therefore seen to it that a special review will be held. I have frozen all further disbursements to the Fund until matters have been fully clarified, and I will ask a representative of the Fund to come to the BMZ to discuss the matter."

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