Aid suspension threatens disease fight-Global Fund

BRUSSELS, (Reuters) – Donors’ decision to suspend  $180 million of aid to the Global Fund to fight AIDS,  Tuberculosis and Malaria could hit efforts to combat the  diseases, the fund’s chief said yesterday.

Germany, Spain and Denmark temporarily stopped payments to  the Geneva-based fund earlier this year after hearing reports  donations had been misused.

The Global Fund said health authorities in recipient  countries might fear donations were running out and rein in  disease-fighting programmes.

“I think the money will be paid, but there will be a  psychological effect,” the fund’s executive director Michel  Kazatchkine told reporters in Brussels.

“If you are a health minister in a developing country, it  will make you hesitate,” he added before meeting European  Development Commissioner Andris Piebalgs at the European  Parliament.

The Global Fund has said $34 million is unaccounted for in  four countries — Djibouti, Mali, Mauritania and Zambia.

It has suspended further payments to those countries and set  up an independent panel to review its financial controls. The fund accounts for about a quarter of international  financing to fight HIV and AIDS and the majority of global money  to fight tuberculosis and malaria.