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The Global Fund to Fight AIDS, Tuberculosis and Malaria has temporarily suspended all grants to Uganda after an investigation by PriceWaterhouseCoopers (PWC), a business services firm.
In a statement issued on Wednesday, the Fund said it believed its Project Management Unit (PMU) and certain sub-recipients in Uganda were responsible for the "serious mismanagement" of allocated funds.
The Global Fund said it was concerned that the mismanagement had reduced the effectiveness of the Unit, and urged the Ugandan government to reorganise its mechanism for receiving and distributing the money to exclude the PMU.
In the meantime the Fund would work with the Ministry of Finance, Planning and Economic Development, the principle recipient, to identify the elements of funded programmes not implicated by the findings of the investigation.
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