Wall Street Journal (01.30.12) - Wednesday, February 01, 2012
The new leader of the Global Fund to Fight AIDS, TB and
Malaria said he plans to establish "a disciplined private-
sector governance process" for managing grants, improving risk
management from country to country, and raising funds.
Noted for transparency, the fund last year disclosed that a
small portion of its grants had been misused. A report it
commissioned suggested retooling grant management, financial
practices, and business relationships with grant recipients.
The fund also is working to recover the misspent money.
Its new general manager, Gabriel Jaramillo, is a specialist in
corporate turnarounds and served last year on a panel that
recommended some of the changes now in process. He takes the
helm on Feb. 1 for one year, with a salary of $1. Executive
Director Michel Kazatchkine, who endorsed the report's
recommendations, will step down in March.
In light of the euro currency crisis and other economic issues
that slowed government donor support, the fund's $11.7 billion
target between 2011 and 2013 was "aggressive," said one person
familiar with its operations. It included a $4 billion pledge
from the US government subject to annual Congressional
approval; however, Congress has authorized just $2.1 billion
for fiscal years 2011 and 2012 combined.
Last November, the fund announced a freezing of new grants
until 2014. It has received $2.64 billion from all donors so
far for 2011-13 but expects $10 billion.
"This should never have happened," said Jaramillo, adding that
he will strengthen funding forecasts. "Uncertainty is a
reality. You have to project the most likely scenario and the
most horrible scenario. That's what we do in business every
In a strong signal of its commitment, the Bill & Melinda Gates
Foundation, which has given the fund $650 million since its
inception, on Thursday pledged an additional $750 million.