Oireachtas Joint and Select Committees

Thursday, 20 December 2012

Public Accounts Committee

2011 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Chapter 19 - Official Development Assistance
Vote 28 - Foreign Affairs and Trade
Vote 29 - International Co-operation

10:40 am

Mr. Brendan Rogers:

Plumpy'nut is a highly nutritious biscuit used in emergencies to bring children back from the brink of death. In a week, it can save a life. It is an important element of our emergency operations. We do not deliver it ourselves, but use NGOs and the UN system to distribute it. It was being delivered by UNICEF in Sierra Leone in this instance when its supply chain monitoring system identified a number of gaps. UNICEF knew a certain amount of the food was missing and we dispatched our evaluation and audit representatives who determined approximately $700,000 worth was missing from the system of distribution in remote areas. We took a very hard line. We do not tolerate fraud. UNICEF is a very good organisation which works very hard and we acknowledge that it works in difficult areas, but our policy is one of no tolerance. We worked carefully with UNICEF to identify the amount involved. I was in New York and met with senior UNICEF management to explain our no tolerance policy and the need to give back the food. The food was replaced in the warehousing system and we worked with UNICEF to ensure that monitoring systems were strengthened. On receipt of assurances, we continued the programme. To date, there has been no problem. It has been a useful case study in which a problem was identified and reacted to quickly. A no tolerance policy was applied, the food was replaced and we have ensured the systems are working.

The Global Fund is the world's largest development fund designed approximately ten years ago to address HIV and AIDS. Since its inception, it has spent approximately $22 billion. Approximately, two years ago the fund determined there were a number of gaps in its own monitoring systems. It was not only a question of money being taken through fraud, but also of money being unaccounted for or used in different projects. The inspector general provided a clear analysis of what happens and determined that approximately €43 million was not fully accounted for, of which €19 million has been returned, leaving a gap of approximately €20 million. Of the $22 billion which has been disbursed by the Global Fund, Ireland has provided approximately $140 million. The amount of our money that would be represented in the unaccounted for figure would be a few thousand euro. The Global Fund has been significantly strengthened over the last two years and we should note that it is the organisation most responsible for turning the tide on HIV/AIDS, TB and malaria over the last five years. It is the most successful fund ever established for that purpose. The tide is turning.