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New York Times
Director Quits After Changes at Global Fund
Donald G. Mcneil Jr.
January 24, 2012
The New York Times - January 24, 2012

The executive director of the Global Fund to Fight AIDS, Tuberculosis and Malaria resigned Tuesday, culminating two months of struggle over the future direction of the fund.

Dr. Michel Kazatchkine, a French AIDS specialist who helped set up the fund 10 years ago and had overseen it for the last five years, said he was leaving because the fund's board announced in November[http://www.aegis.org/news/nyt/2011/NYT111104.html] that it would appoint a general manager to oversee day-to-day operations and a new transition plan. That effectively reduced Dr. Kazatchkine's role to that of chief fund-raiser and public advocate.

"He felt there wasn't room at the top for two people and the best thing he should do is step aside," a fund spokesman, Jon Lid´┐Żn, said.

On Tuesday, the board named as general manager a retired bank executive, Gabriel Jaramillo. A Brazilian citizen educated in California, Mr. Jaramillo was on a panel that recently looked at the fund's auditing controls, found them flawed and proposed a reorganization plan. He said his goals would be "to achieve maximum efficiency, accountability and concrete results that save lives." The fund has had a hard time raising money in the last two years because of the global recession and corruption scandals. Although only a fraction of the fund's grants appeared to have been stolen and the thefts were uncovered by its own inspector general, they took place in several countries. Some countries threatened to stop contributing unless reforms were made.

In late 2010, after saying it needed a minimum of $13 billion, the fund was able to raise only $11.7 billion. In November, it said it would continue existing grants but make no new ones.

In his annual letter to the world[http://www.impatientoptimists.org/Posts/2012/01/My-2012-Ann ual-Letter], drafted before Dr. Kazatchkine resigned and released on Tuesday evening, Bill Gates, founder of the Bill and Melinda Gates Foundation, noted the fund's troubles. "Given the places where the Global Fund works," he said, "it was not surprising that some of the money was diverted for corrupt purposes."

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