Thursday, January 27, 2011

Germany suspends payments to global health fund

Germany's development ministry said Wednesday it will halt all payments to a $21.7 billion global health fund until it gets answers about corruption allegations raised in articles by The Associated Press.

The ministry said its pledge of euro200 million ($270 million) will be withheld from the Global Fund to Fight AIDS, Tuberculosis and Malaria pending a full investigation by Germany into the corruption that the fund's own investigators are turning up.

"We obviously look very closely at the (donated) money now. It's the money of German taxpayers, so we have to make sure that it was rightly used," a ministry spokesman told the AP, speaking on condition of anonymity in line with German government policy.

The spokesman said it was demanding that the fund shed more light on the $34 million in losses due to forged documents, improper bookkeeping and other widespread fraud and has summoned a Global Fund representative to discuss the reports.

The AP reported Sunday that the fund's new investigative unit found high percentages of contract money eaten up by corruption. Germany is the fund's third largest government donor behind the U.S. and France, having pledged euro600 million for 2011-13.

The Global Fund's chief spokesman did not immediately respond to requests for comment Wednesday.

Germany's Development Minister Dirk Niebel said in a statement late Tuesday that the serious questions raised in two AP articles on Sunday and Monday require a thorough investigation.

Niebel, of Germany's pro-business Free Democrats, has been known to be less enthusiastic about the Global Fund than his Social Democratic predecessor Heidemarie Wieczorek-Zeul, from whom he took over in fall 2009.

Germany's parliament has approved euro200 million for the fund in 2011, meant to be the first portion of the euro600 million Germany pledged for 2011-13.

But Niebel, who has said the Global Fund was only one of many good programs, has not yet asked for next year's euro200 million to be set aside in his ministry's budget.

"I take the allegations of corruption and breach of trust carried by media against the Global Fund very seriously and I expect that the fund will promptly clear them up," said Niebel. "I have halted all further payments to the fund until it is fully cleared up."

The fund has been exposing corruption in its own ranks more frequently since last fall when the fund's inspector general, John Parsons, hired Robert Appleton, a highly decorated ex-U.S. federal prosecutor, to head up a newly beefed up investigative unit.

Sweden said in November it was suspending its $85 million annual donation until the fund's problems are fixed. Last week, the fund's executive director, Dr. Michel Kazatchkine, a French immunologist, flew to Stockholm to try to assure officials there the problems would be fixed.

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Associated Press reporter Juergen Baetz contributed to this report from Berlin.

Wednesday, January 26, 2011

Contractor files against UNDP in Southern District Court

finally a contractor who was for more than 5 years played by UNDP (United Nations Development Programme) and its Administrator Kemal Dervis - has finally filed with the Southern District Court in New York.

Sadikoglu v. United Nations Development Programme

as 1:2011cv00294
Plaintiff: Kahraman Sadikoglu
Defendant: United Nations Development Programme
Presiding Judge: P. Kevin Castel
Cause Of Action: Diversity-Other Contract

UNDP's Helen Clark fails to disclose gifts given to her on her official trips from leaders

The leader of UNDP and former Socialist Prime Minister of New Zealand has failed to disclose "gifts" that were given to her while traveling on business as UNDP Administrator. Staffers close to 21st floor say that the value of those gifts vary from few hundred dollars to maybe a thousand each.

But at UNDP there is no public register to record "gifts" to its many USGs, ASGs, or Resident Representatives. As a matter of fact no Resident Representative or Resident Coordinator report any-longer the gifts they receive while servicing the World Body in a respective country. Many of them also have turned down the minimum financial disclosure required from such positions by UN's Secretary General himself.

So on top of the VIP First Class tickets and double DSAs (per diem), as well as salaries that for USG's like Helen Clark are even higher than that of Hilary Clinton or any European Parliamentarian, these UN high officials can also keep the "gifts" because they serve UN well.

We bet Mr. Stephan Dujarric, UNDP's Spokesperson will call the above a "fanciful statement".

But can Mr. Dujarric prove the contrary? Can Mr. Dujarric point a UNDP database of Gifts that is public and shows all gifts received from Helen Clark and UNDP's ambassadors in 160 plus countries?

Ros-Lehtinen Statement on Urgent Need for U.N. Reform

Click here to view this story on US House of Representatives Committee on Foreign Affairs page

Tuesday, January 25, 2011

(WASHINGTON) – U.S. Rep. Ileana Ros-Lehtinen (R-FL), Chairman of the House Foreign Affairs Committee, issued the following statement for today’s Committee briefing titled, “The United Nations: Urgent Problems that Need Congressional Action.” Chairman Ros-Lehtinen was unable to attend the briefing due to a family emergency. Her statement was read by the Honorable Jean Schmidt (R-OH), who presided over the briefing. Full statement attributable to Ros-Lehtinen:

“As I said at this Committee’s last hearing on United Nations reform, ‘With significant leadership by the United States, the United Nations was founded on high ideals. The pursuit of international peace and development, and the promotion of basic human rights are core, historic concerns of the American people. At its best, the U.N. can play an important role in promoting U.S. interests and international security, but reality hasn’t matched the ideals.’

“Accordingly, U.S. policy on the United Nations should be based on three fundamental questions: Are we advancing American interests? Are we upholding American values? And are we being responsible stewards of American taxpayer dollars?

“Unfortunately, right now, the answer to all three questions is ‘No.’

“Here’s some simple math: With no strings attached, we pay all contributions that the U.N. assesses to us—20 percent of their annual budget—plus billions more every year. According to the OMB, in Fiscal Year 2009, the U.S. contributed well over 6 billion dollars to the U.N.—at a time of high unemployment, skyrocketing deficits, crushing debt, and other great economic and fiscal challenges to our nation.

“What have we gotten in return from the U.N.? Here are a few examples.

“The U.N. Development Program fired a whistle-blower who revealed that UNDP’s office in North Korea was not being managed properly, and was being exploited by Kim Jong Il’s regime.

“In 2008, a Senate subcommittee found that: UNDP’s local staff was selected by the regime, and UNDP paid staff salaries directly to the regime—in foreign currency—with no way to know the funds weren’t being diverted to enrich the regime; UNDP prevented proper oversight and undermined whistleblower protections by limiting access to its audits and refusing to submit to the U.N. Ethics Office’s jurisdiction; the regime used its relationship with UNDP to move money outside North Korea; and UNDP transferred funds to a company tied to an entity designated by the U.S. as North Korea’s financial agent for weapons sales.

“The UNDP briefly pulled out of North Korea, but now they’re back, and this time they can select staff from a list of three candidates hand-picked by the regime, not just one candidate.

“That’s what passes for reform at the U.N.

“U.S. taxpayers are also paying one-fifth of the bills for the U.N.’s anti-Israel activities, including the U.N. Human Rights Council, a rogues’ gallery dominated by human rights violators who use it to ignore real abuses and instead attack democratic Israel relentlessly. The Council was also the fountainhead for the infamous Durban Two conference and the Goldstone Report.

“One more example: an independent Procurement Task Force uncovered cases of corruption tainting hundreds of millions of dollars in U.N. contracts. In response, the U.N. shut down the Task Force. When the head of the U.N.’s oversight office tried to hire the chairman of the task force, former U.S. prosecutor Robert Appleton, as the top investigator, the U.N. Secretary-General blocked it.

“Well, the U.N. may not want him, but we’re pleased to have Mr. Appleton here today.

“Ironically, the U.N.’s current chief investigator—who has reportedly failed to pursue cases—is now under investigation himself for retaliating against whistle-blowers!

“Ambassador Susan Rice says that the U.S. approach to the U.N. is, ‘We pay our bills. We push for real reform.’ Instead, we should be conditioning our contributions on ‘reform first, pay later.’

“In the past, Congress has gone along by willingly paying what successive Administrations asked for—without enough oversight. This is one of the first true U.N. reform hearings held by this Committee in almost 4 years, but it won’t be the last.

“Right now, the vast majority of countries at the U.N. General Assembly pay next to nothing in assessed contributions, creating a perverse incentive because those who make decisions don’t have to pay the bills. So I am going to reintroduce legislation that conditions our contributions—our strongest leverage—on real, sweeping reform, including moving the U.N. regular budget to a voluntary funding basis. That way, U.S. taxpayers can pay for the U.N. programs and activities that advance our interests and values, and if other countries want different things to be funded, they can pay for it themselves.

“This will encourage competition, competence, and effectiveness.

“The voluntary model works for UNICEF and many other U.N. agencies, and it can work for the U.N. as a whole.

“One more point: some of the U.N.’s defenders like to cite some good U.N. activities to gain support for funding bad ones. However, we’re not here to play ‘Let’s Make a Deal’ with hard-earned U.S. taxpayer dollars. Each U.N. office, activity, program, and sub-program, country by country and function by function, must be justified on its own merits.

“UNICEF programs to help starving children cannot excuse the United Nations Relief and Works Agency’s having members of Hamas on its payroll. The World Health Organization’s vaccination programs cannot excuse the Human Rights Council’s biased actions.

“My colleagues, reforming the U.N. should not be a Republican or Democrat issue. It is in the interest of all Americans. And so I hope and trust that U.N. reform efforts will be strongly bipartisan.”

Tuesday, January 25, 2011

GOP Puts U.N. Reform Back on Agenda as 'Urgent' Problem

Fox News - Fair & Balancedclick here to view this on FoxNews

By George Russell

Published January 25, 2011

| FoxNews.com

FILE: In this photo taken Nov. 9, 2010, Rep. Ileana Ros-Lehtinen, R-Fla., talks to a reporter in Miami Beach, Fla.

AP

FILE: In this photo taken Nov. 9, 2010, Rep. Ileana Ros-Lehtinen, R-Fla., talks to a reporter in Miami Beach, Fla.

Once again, the United Nations is in the cross-hairs of a U.S. congressional committee today, and the themes from its critics are all too familiar: wastage of U.S. taxpayer dollars, institutionalized corruption, a “culture of impunity,” covert assistance to America’s enemies and a bias on human rights issues in favor of dictatorships and autocracy, and against Israel.

On the other side, equally familiar themes, as supporters of the world organization argued, in the words of one, that the U.N. “is not a perfect institution, but it serves a near-perfect purpose”: to bolster U.S. interests abroad and “allow our nation to share the burden of promoting international peace and stability.”

As Washington awaited President Obama’s State of the Union speech, the House Foreign Affairs Committee, chaired by Florida Republican Ileana Ros-Lehtinen, was clearly making a bid to add the U.N.—and what the U.S. should do about it—to the crowded domestic political agenda. The title of the full-committee session—dubbed a “briefing” rather than a full-fledged hearing—said it all: “The United Nations: Urgent Problems that Need Congressional Action"

The meeting gives a strong stamp to Ros-Lehtinen’s own priorities: it is her first full meeting since the Foreign Affairs Committee was reorganized under the new Republican majority little more than two weeks ago. (At the last moment, however, Ros Lehtinen herself was unable to preside, as she left Washington on an urgent family matter.)

There is little doubt that meeting’s ultimate aim is to build support for withholding U.S. financial contributions from the U.N. as leverage to help bring reform to the world organization’s myriad ingrained problems, which even many of its most loyal supporters acknowledge—and which some of them think have worsened under Secretary General Ban Ki-moon.

That strategy, however, is unlikely to get much help from the Obama Administration, which has loudly and often proclaimed its support for the United Nations—and even backed that up by joining the U.N.’s notoriously authoritarian-friendly Human Rights Council.

Nonetheless, “if the U.S. does not press this issue, no other nation is likely to step forward,” warned Brett Schaefer, an expert on U.N. financial affairs at the conservative Heritage Foundation. “The failure to reform the U.N. has resulted in a system that remains bureaucratic, costly, cumbersome, lacking in oversight and often incapable of fulfilling the responsibilities placed on it.”

One of the biggest reasons for the morass is also one of the most obvious. As Schaefer put it, “the bulk of the U.N. member states simply do not pay enough to the U.N. for waste, or corruption to trouble them.” The combined payments levied on 128 of 192 U.N. members “totals less than 1 percent of the regular budget and less than one-third of 1 percent of the peacekeeping budget,” he told the committee, even though they have enough votes to approve the budget and block U.S. attempts at reform.

So Byzantine has the U.N. become, in fact, that Schaefer says no-one in Washington really knows how much the U.S. spends on it. The U.N.’s biennial “regular” budget has more than doubled in the past decade from $2.49 billion to$$5.16 billion, Schaefer said, and the U.S. pays 22 percent of that.

But the peacekeeping budget has jumped higher and faster, from $1.7 billion in 2000-2001 to $7.2 billion in 2010-2011, and the U.S. pays 27 percent of that. Moreover, new missions could yet be added in Cote d’Ivoire or Somalia.

Then there are so-called “voluntary” funds where the U.S. contributions to a variety of sprawling U.N. funds, programs and agencies have also risen fast: according to sources cited by Schaefer, reaching $3.5 billion last year. (There are also independent funds, in such areas as climate change, that U.N. agencies also spend and manage.)

To combat the wasteful sprawl, Schaefer suggested that “Congress should not be shy in suggesting budget cuts.” Among other things, he proposed reinstating a long abandoned U.S. policy of pushing for “zero growth” for the U.N. regular budget, but also suggested pruning a variety of U.N. organizations, like a flock of U.N. regional economic commissions, that could be financed by their regional members.

Seemingly eternal U.N. mandated activities—there are more than 9,000 mandates in all—should also be chopped, he said.

Just how badly the U.N.’s ability to police internal corruption had already weakened was underscored by Robert Appleton, for three years head of a special investigations unit within the U.N., created five years ago in the wake of major U.N. procurement scandals (exposed, in part, by Fox News).

At the end of 2008, the special unit was shut down, its funding cut off, Appleton reported—after “we identified at least 20 major fraud schemes, hundreds of millions in losses and waste, and more than $1 billion in tainted UN contracts.”

Even in its final month of operation, he added, "we completed five major corruption reports, including a report on fraud in Iraq, elections, roads and rebuilding in Afghanistan, fraud and corruption in the Economic Commission of Africa in Addis Ababa, and in several matters involving high value contracts for transportation in Africa.”

When his unit disbanded, Appleton told the committee, it left behind eight more draft corruption reports, and “175 cases we could not reach because of time constraints.”

“As I understand, more than two years later, these cases have largely not been advanced.”

Moreover, Appleton testified, staffers from his procurement task force were subsequently passed over for jobs in a new U.N. financial crimes unit that was supposed to replace it, or were“forced out of the U.N.” As one result, he said, in public reports for 2009 and 2010 of the U.N.’s watchdog Office for Internal Oversight Services (OIOS), which houses the anti-fraud investigations unit, “no significant fraud or corruption investigation is reported.”

“In short,” he concluded, “the incentives in the UN are perverted, the support for true investigations and oversight is lacking, and the philosophy of the leadership is to reward inaction rather than action, suppression rather than exposure, and punishment of whistle-blowers and investigators, rather than protection.”

The same see-no-evil philosophy applies to the U.N.’s 47-member Human Rights Council, according to Hillel Neuer, head of a Geneva-based non-governmental watchdog, Human Rights Watch. With a handful of exceptions, he told the committee, “the council has systematically turned a blind eye to the world’s worst human rights violations. The council has failed the victims who are most in need of international attention.”

There have been no Human Rights Council resolutions against China, Cuba, Saudi Arabia orZimbabwe, he declared, Nor has there been any against Iran “even as it massacred its own citizens while the council was in session.” Moreover, he testified, “no resolution has even been proposed regarding these gross violators.”

Israel, on the other hand, gets plenty of attention. In all, Neuer testified, the council has adopted 35 resolutions condemning alleged human rights abuses in Israel, and “a little over a dozen against the rest of the world combined.”

Some of the council’s special sessions have even been used to legitimize violations, he said. One example Neuer cited: a special session on Sri Lanka, after the alleged government massacre of 20,000 people, ended, he said, in a draft resolution that praised the Sri Lanka government for “promotion and protection of all human rights.”

The Human Rights Council’s favored experts also came in for scorn. One of them, Richard Falk, who has a permanent mandate to report on Israel’s alleged transgressions, is known as a 9/11 “denier” who has called for investigations of the U.S. governments role in the terrorist attacks. On the eve of the Foreign Affairs Committee hearing, Secretary General Ban Ki-moon suddenly declared that Falk’s 9/11 remarks were “preposterous,” and “an affront to the memory” of the victims.

The Human Rights Council’s record is supposed to be reviewed by U.N. members this year, on the fifth anniversary of its founding. Neuer’s judgment is already in. He told the committee, “according to the U.N.’s own standards, the promises of the council’s founding resolution—improved membership, action for victims, an end to politicization and selectivity—have not been kept.”

At the same time, Neuer had kind words for the Obama Administration, and its Ambassador to the U.N. Susan Rice, for their efforts to push back against the council extremists—even though the same Administration made the controversial decision to end a U.S. boycott of the institution from its inception. And at no point in his prepared testimony did he push for a new U.S. walkout.

The U.N. institutions that had been so roundly flayed by the majority of committee “briefers” could hardly be recognized, in the testimony of Peter Yao, a sometime senior State Departmentofficial who now heads the Better World Campaign of the U.N. Foundation, the not-for-profit champion of the world organization originally founded by billionaire Ted Turner.

After dubbing the U.N. “not a perfect organization” but with a “perfect purpose,” he told the committee that the world organization had, in fact, “greatly improved its ability to identify and correct waste, fraud, and abuse.” It has “made procurement investigations a permanent feature,” and has “moved aggressively to strengthen the ethical culture of the institution.”

Over the past two years, he added, “the U.N. has taken important steps to ensure that it has the most productive and effective work force possible,” and has taken “numerous initiatives to strengthen peacekeeping operations.”

The U.S. decision to join the U.N. Human Rights Council, he said, “had already produced tangible results,” starting with a successful campaign to keep Iran from winning a council seat.

Nevertheless, he admitted, “some of the most serious and challenging human rights violations continue to go unaddressed, and the council itself places undue focus on Israel.” The five-year review of the council’s performance, he added, “is an opportunity for the U.S. and other countries to improve the work of the council.”

When it comes to international action, Yao argued, the U.N. has been a vital U.S. partner. It has crafted its “toughest-ever” sanctions on Iran, “partnered with America” to battle the Iranian nuclear threat, “joined American forces to promote security” in Afghanistan, and “battles mightily to stabilize and reconstruct earthquake-shattered Haiti” (where more than 1 million people are still homeless). U.N. institutions like the World Health Organization and UNICEF “have worked hand-in-hand with the U.S. government and American service organizations to save and improve the lives of millions of children.”

The U.N., Yao argued, is even an important job creator. “For every $1 invested by the United States into the United Nations,” he argued, “American firms receive approximately $1.50 in contracts.” One example he cited: “almost every contract associated with the ongoing renovation of the U.N. headquarters in New York has gone to an American firm, creating jobs here at home.”

(The master contract for that renovation—a $1.8 billion project whose costs virtually trebled before the contract was awarded—was, in fact, bestowed on the U.S. subsidiary of a Swedish-based firm.)

Yao’s dollars-and-cents argument soon reached its main point: “we must pay our U.N. dues on time, in full, and without threats of withholding our contribution. When we act otherwise, we send a strong and provocative signal that we are more interested in tearing down the U.N. than making it better, in going it alone rather than working with others.”

Moreover, he argued, such a stand was also popular, citing a Pew research poll from September, 2009 that said 61 percent of Americans viewed the U.N. favorably, and that his own lobbying group’s research showed that 63 percent of Americans favored his “in-full, on-time” dues-paying advice.

Those Americans with similar views may not make up 63 percent of Ros-Lehtinen’s Foreign Affairs Committee—but they are very well represented indeed in the Obama Administration. Where the opinion-taking really matters—in the back-rooms and lobbying corridors of Washington—the struggle over which views of the U.N. will prevail has just begun.

As Ros-Lehtinen put it in an opening statement to the hearing, delivered in her absence: “This is one of the first true U.N. reform hearings held by this committee in almost four years, but it won’t be the last.”

George Russell is executive editor of Fox News

UN Officials Refusing Financial Disclosure Range from Sudan to Security, Abidjan to Lebanon, Ban's Friends & UNtrue Claim

By Matthew Russell Lee, Exclusive

@InnercityPress.com

UNITED NATIONS, January 25 -- In the run up to UN corruption hearings in the US House of Representatives today, Secretary General Ban Ki-moon angrily answered questions about lack of transparency by claiming that 99% of his officials publicly disclose their finances. This is not true, as Inner City Press has said and now documents.

On the UN's website for such disclosures, numerous Ban officials simply state “I have chosen to maintain the confidentiality of the information disclosed by me in order to comply with the Financial Disclosure Program.” This is not public disclosure of finances: it is its opposite.

Those Ban officials refusing make even the most basic disclosure -- as simple as in what country they own property, such as the one line disclosure by top UN lawyer Patricia O'Brien that she owns “farmland, Ireland” -- ranging from both of Ban's envoys in Sudan, Ibrahim Gambari and Haile Menkerios to UN officials with outside jobs that might conflict, such as Terje Roed-Larsen (Lebanon and IPI), Peter Sutherland (migration and BP) andRay Chambers (malaria and hedge funds).

When Chambers took the job, Inner City Press asked him about his outside interests. Now Chambers simply states, “I have chosen to maintain the confidentiality of the information disclosed by me in order to comply with the Financial Disclosure Program.”

There are other ways to not disclosure. Philippe Douste-Blazy, whom Inner City Press has exposed as wasting millions of dollars through the “MassiveGood” scheme, discloses no finances, only service for the Millennium Foundation.

Alexander Downer, Ban's man on Cyprus, makes no financial disclosure although he lists he works at the business consultancy Bespoke Approach. And do its clients, in Turkey for example, raise conflicts? There is no way to know.

Ban's close ally and Cote d'Ivoire envoy Choi Young-jin states that “I have chosen to maintain the confidentiality of the information disclosed by me in order to comply with the Financial Disclosure Program,” as does Ban's UN Security chief Gregory Starr.


UN's Ban & chief of staff Nambiar in Dept of Management: empty forms not shown

These refusals are noteworthy given how superficial even the “public disclosures” are. Peacekeeping logistics deputy Anthony Banbury, who famously said that “only” three rapes in a Haitian IDP camp “elated” him, lists “Nil” for both assets and liabilities, as does General Assembly Affairs chiefShaaban Shaaban.

Some officials are listed, but there is no link to any form, even one refusing to disclose. These include Achim Steiner of UNEP and former UN lawyer, still listed as adviser Nicolas Michel, who took money from the Swiss government for his housing while serving as the UN's lawyer. Since that scandal, there are issues about Ban officials receiving housing subsidies through their spouses, not disclosed on the “public” disclosure forms.

Other Ban officials stating “I have chosen to maintain the confidentiality of the information disclosed by me in order to comply with the Financial Disclosure Program” include West Africa envoy Said Djinnit, Middle East and Lebanon specialist Michael Williams, UNDP Asia boss Ajay Chhibber(in charge, another other places, of Myanmar), Jan Mattsson of UNOPS, where Ban's son in law got a contested promotion, and Cheick Sidi Diarra, whose brother has been Microsoft's Ambassador to Africa, allowed to use a UN dining room for this purpose.

In another display of non - transparency, Ban's spokesman Martin Nesirky on January 21 told Inner City Press he would not answer any more questions until Inner City Press acted “appropriately.” This outburst came after Inner City Press asked for the second day in a row how UN Staff Regulation 1.2 applies to UN official's outside political activity.

Ban named Jack Lang as his adviser on piracy, reporting to the Security Council today. But Lang continues to write letters as an official of a political party in France, for example regarding Ivory Coast (where, again, Ban's envoy Choi Young-jin refuses to disclose his finances). The UN has refused to apply its Regulation 1.2 to this or other case, or to even answer questions about it.

One wonders how this will be dealt with at today's US House of Representative hearings and afterward. Click here for footage of Ban's claims from a recent piece on Swedish TV including Inner City Press and a hearing witness.

Ban's main claim to transparency, the 99% of his officials make public financial disclosure, is simply not true, and his spokesman refuses to answer any questions. Watch this space.

Monday, January 24, 2011

AP Enterprise: Fraud plagues global health fund

GENEVA (AP) — A $21.7 billion development fund backed by celebrities and hailed as an alternative to the bureaucracy of the United Nations sees as much as two-thirds of some grants eaten up by corruption, The Associated Press has learned.

Much of the money is accounted for with forged documents or improper bookkeeping, indicating it was pocketed, investigators for the Global Fund to Fight AIDS, Tuberculosis and Malaria say. Donated prescription drugs wind up being sold on the black market.

The fund's newly reinforced inspector general's office, which uncovered the corruption, can't give an overall accounting because it has examined only a tiny fraction of the $10 billion that the fund has spent since its creation in 2002. But the levels of corruption in the grants they have audited so far are astonishing.

A full 67 percent of money spent on an anti-AIDS program in Mauritania was misspent, the investigators told the fund's board of directors. So did 36 percent of the money spent on a program in Mali to fight tuberculosis and malaria, and 30 percent of grants to Djibouti.

In Zambia, where $3.5 million in spending was undocumented and one accountant pilfered $104,130, the fund decided the nation's health ministry simply couldn't manage the grants and put the United Nations in charge of them. The fund is trying to recover $7 million in "unsupported and ineligible costs" from the ministry.

The fund is pulling or suspending grants from nations where corruption is found, and demanding recipients return millions of dollars of misspent money.

"The messenger is being shot to some extent," fund spokesman Jon Liden said. "We would contend that we do not have any corruption problems that are significantly different in scale or nature to any other international financing institution."

To date, the United States, the European Union and other major donors have pledged $21.7 to the fund, the dominant financier of efforts to fight the three diseases. The fund has been a darling of the power set that will hold the World Economic Forum in the Swiss mountain village of Davos this week.

It was on the sidelines of Davos that rock star Bono launched a new global brand, (Product) Red, which donates a large share of profits to the Global Fund. Other prominent backers include former U.N. secretary-general Kofi Annan, French first lady Carla Bruni-Sarkozy and Microsoft founder Bill Gates, whose Bill and Melinda Gates Foundation gives $150 million a year.

The fund's inspector general, John Parsons, said donors should be reassured that the fund is serious about uncovering corruption: "It should be viewed as a comparative advantage to anyone who's thinking about putting funds in here."

But some donors are outraged at what the investigators are turning up. Sweden, the fund's 11th-biggest contributor, has suspended its $85 million annual donation until the fund's problems are fixed. It held talks with fund officials in Stockholm last week.

Swedish Foreign Ministry spokesman Peter Larsson said in a statement that his country is concerned about "extensive examples of irregularities and corruption that the fund has uncovered" in nations like Mali and Mauritania.

"For Sweden, the issues of greatest importance are risk management, combating corruption and ultimately ensuring that the funds managed by the Global Fund really do contribute to improved health," he said.

The investigative arm of the U.S. Congress also has issued reports criticizing the fund's ability to police itself and its overreliance on grant recipients to assess their own performance.

Fund officials blame the misspending on the lack of financial controls among the grants' recipients, many of which are African health ministries whose budgets are heavily supported by the fund. Others are nations or international organizations without the resources to deal with pervasive corruption. The fund finances programs in 150 nations in all.

Among the corruption uncovered by Parsons' task force:

—Last month, the fund announced it had halted grants to Mali worth $22.6 million, after the fund's investigative unit found that $4 million was misappropriated. Half of Mali's TB and malaria grant money went to supposed "training events," and signatures were forged on receipts for per diem payments, lodging and travel expense claims. The fund says Mali has arrested 15 people suspected of committing fraud, and its health minister resigned without explanation two days before the audit was made public.

—Mauritania had "pervasive fraud," investigators say, with $4.1 million — 67 percent of an anti-HIV grant — lost to faked documents and other fraud. Similarly, 67 percent of $3.5 million in TB and malaria grant money that investigators examined was eaten up by faked invoices and other requests for payment.

—Investigators reviewed more than four-fifths of Djibouti's $20 million in grants, and found about 30 percent of what they examined was lost, unaccounted for or misused. About three-fifths of the almost $5.3 million in misappropriated money went to buy cars, motorcycles and other items without receipts. Almost $750,000 was transferred out of the account with no explanation.

—Investigators report that tens of thousands of dollars worth of free malaria drugs sent to Africa each year by international donors including the Global Fund are stolen and resold on commercial markets.

—The U.N. Development Program manages more than half of the fund's spending, but U.N. officials won't release internal audits of their programs to the fund's investigators. Parsons said that has blocked him from investigating programs in the more than two dozen nations, including some of the most corruption-prone.

UNDP spokesman Stephane Dujarric said Sunday that the program's policy bars it from sharing internal audit reports with the Global Fund, but that it is reassessing that policy.

"UNDP does, as a standing practice, inform the Global Fund about key audit findings and recommendations resulting from internal audits of Global Fund grants managed by UNDP," he said.

The Global Fund was set up as a response to complaints about the cumbersome U.N. bureaucracy, and is strictly a financing mechanism to get money quickly to health programs. In just eight years it claims to have saved 6.5 million lives by providing AIDS treatment for 3 million people, TB treatment for 7.7 million people and handing out 160 million insecticide-treated malaria bed nets.

People should focus on those results, said Homi Kharas, a senior fellow at the Brookings Institution and formerly the World Bank's chief economist for East Asia and the Pacific.

"Without a spotlight, without investigations, and without some sort of accountability, it's impossible to root out corruption," he said. "But just simply withdrawing donations, I do believe, would condemn millions of people who are not involved in the corruption to terrible fates."