News (Updated November 27, 2011)

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Global Fund for world health halts new programs

By JOHN HEILPRIN, Associated Press – 25 November, 2011 

GENEVA (AP) — The world's biggest financier in the fight against three killer diseases says it has run out of money to pay for new grant programs for the next two years — a situation likely to hit poor AIDS patients around the world.

An official with the Global Fund to Fight AIDS, Tuberculosis and Malaria said Thursday that its has been forced to cease giving new grants until 2014 because of global economic woes brought on by debt crises in the U.S. and Europe .

An independent panel recommended in September that the fund must adopt tougher financial safeguards after it weathered a storm of criticism and doubts among some of its biggest donors.

The fund created the panel — chaired by former U.S. Health and Human Services Secretary Michael Leavitt and ex Botswana President Festus Mogae — in March to address concern among donors after Associated Press articles in January about the loss of tens of millions of dollars in grant money because of mismanagement and alleged fraud.

Germany , the European Commission and Denmark withheld hundreds of millions of euros in funding pending reviews of the fund's internal controls. Germany — the fund's fourth-largest donor— has since restored its funding.

The Geneva-based fund was set up in 2002 as a new way to coordinate world efforts against the diseases and to speed up emergency funds from wealthy nations and donors to the places hardest hit. Outside of its donor nations and celebrity backers, the biggest private donor is the Bill & Melinda Gates Foundation that has pledged $1.15 billion and provided it with $650 million so far.

Since its creation, the fund, which is strictly a financing tool, has disbursed some $15 billion for programs — $2.8 billion this year alone, including to pay for treatment for around half the developing world's AIDS sufferers.

With donations now harder to come by, the fund says it can only afford to keep existing AIDS programs going, but not expand its services or add new patients.

"We're not cutting back — we're not expanding," the fund's board chairman, Simon Bland, told The Associated Press from Accra, Ghana, where the board has been meeting this week.

The fund had to make some "tough decisions to protect some of the gains that have already been delivered," he added.

Among those decisions were that $800 million to $900 million in grants planned for China , Brazil , Mexico and Russia will now be used for other purposes, fund officials said.

"It is deeply worrisome that inadvertently the millions of people fighting with deadly diseases are in danger of paying the price for the global financial crisis," the fund's executive director, Dr. Michel Kazatchkine, said in a statement.

But the fund has $4 billion on hand to meet all of its current commitments and the "presumption" is that people in China , Brazil , Mexico and Russia won't suffer because their governments will commit their own resources to take over the next phase of the fund's programs, said Dr. Christoph Benn, the fund's external relations manager.

He said the fund's financing picture for the next two years, however, could affect about 9 to 10 million new patients who are in need of HIV treatment in developing nations.

The board has also decided to create a new general manager position after the panel found unhealthy friction between Kazatchkine and the fund's internal watchdog, Inspector General John Parsons's office, whose teams of auditors and investigators have been documenting losses.

The fund released 12 reports on its website earlier this month that turned up an additional $20 million of mismanagement, alleged fraud and misspending. Earlier probes had detected about $53 million in losses, according to fund documents.

Some of the reports have led to criminal cases, and some countries — mirroring the fund's own efforts — say they have begun putting new financial safeguards in place.

Copyright © 2011 The Associated Press.

 

AIDS, TB, Malaria fund forced to cut grants

Nov 23 2011

By Kate Kelland

PhotoLONDON (Reuters) - The world's largest backer of the fight against AIDS, tuberculosis and malaria said on Wednesday it was cutting new grants for countries battling the diseases and bringing in a new manager to ensure better administration.

The move by the Global Fund to Fight AIDS, TB and Malaria takes management responsibility away from Michel Kazatchkine, currently executive director, and means the fund will make no new grants or funding until 2014.

Until then, any low and middle-income countries who have Global Fund grants that expire can apply for emergency maintenance funding to tide them over, a spokesman said.

"Substantial budget challenges in some donor countries, compounded by low interest rates, have significantly affected the resources available for new grant funding," the Global Fund said in a statement after its board met in Accra , Ghana .

"As a result, the Global Fund will only be able to finance essential services for on-going programs that come to their conclusion before 2014."

The public-private Global Fund, based in Geneva, accounts for around a quarter of international financing to fight HIV and AIDS, as well as the majority of funds to fight TB and malaria. Founded in 2002, it raises money from donors every three years.

To date, it has committed $22.4 billion in 150 countries to support large-scale prevention, treatment and care programs against the three diseases. But in recent years it has struggled to persuade international donors to pledge enough money for its work, and has faced accusations of lax regulation of money.

The Fund commissioned a review of its procedures in March after reporting "grave misuse of funds" in four recipient nations, a move that prompted some donors such as Germany and Sweden to freeze their donations.

Among other recommendations, the review committee said the Global Fund should adopt a risk management approach to financing program which would take proper account of which countries could be most trusted with its money.

In Wednesday's statement, the Fund said a new general manager would now be appointed "to work alongside the executive director" and help "take the organization through its transformation phase over the next twelve months."

A spokesman said a decision on this post would be taken "fairly quickly" and the person appointed would be a "tried and tested manager with a background in this sort of work."

"It's an all-absorbing job, and frankly for the executive director to do this alongside his other roles would be very challenging," spokesman Andrew Hurst told Reuters.

At its last fund-raising conference in 2010, the Global Fund failed to secure the $13 billion minimum it said it needed to sustain the global fight against the three killer diseases.

The $11.5 billion in pledges it did win was also way below the $20 billion it had asked for to be able to scale up its efforts in the hardest-hit countries.

The international medical charity Medecins Sans Frontieres said it was concerned about the Global Fund's unprecedented decision to cut new grants, especially at a time when latest data on HIV and AIDS are suggesting that getting AIDS drugs to more people earlier could turn the epidemic around.

"There's a shocking incongruence between both the new HIV science and political promises on one hand, and the funding reality that is now hitting the ground on the other," said MSF's Tido von Schoen-Angerer. "Donors are really pulling the rug out from under people living with HIV/AIDS at precisely the time when we need to move full steam ahead."

In its latest report Monday, the director of the United Nations AIDS program said the past 12 months had been a "game-changing year" in the fight against the pandemic and voiced optimism that life-saving AIDS treatment is starting to bring down the rate of new infections. [ID:nL5E7ML10P]

(Reporting by Kate Kelland; Editing by Janet Lawrence)

 

HIV numbers hit new high as AIDS drugs save lives

Nov 21 2011

By Kate Kelland

PhotoLONDON (Reuters) - More people than ever are living with the AIDS virus but this is largely due to better access to drugs that keep HIV patients alive and well for many years, the United Nations AIDS programme (UNAIDS) said on Monday.

In its annual report on the pandemic, UNAIDS said the number of people dying of the disease fell to 1.8 million in 2010, down from a peak of 2.2 million in the mid-2000s.

UNAIDS director Michel Sidibe said the past 12 months had been a "game-changing year" in the global AIDS fight.

About 2.5 million deaths have been averted in poor and middle-income countries since 1995 due to AIDS drugs being introduced and access to them improving, according to UNAIDS.

Much of that success has come in the past two years as the numbers of people getting treatment has increased rapidly.

"We've never had a year when there has been so much science, so much leadership and such results in one year," Sidibe said in a telephone interview from UNAIDS in Geneva.

"Even in this time of public finance crises and uncertainty about funding, we're seeing results. We are seeing more countries than ever before (achieving) significant reductions in new infections and stabilising their epidemics."

Since the beginning of the AIDS pandemic in the 1980s, more than 60 million people have been infected with the human immunodeficiency virus (HIV) that causes AIDS. HIV can be controlled for many years with cocktails of drugs, but there is as yet no cure.

TREATMENT FOR PREVENTION

The UNAIDS report said 34 million people around the world had HIV in 2010, up from 33.3 million in 2009.

Among the most dramatic changes was the leap in the number of people getting treatment with AIDS drugs when they need it.

Of the 14.2 million people eligible for treatment in low- and middle-income countries, around 6.6 million, or 47 percent, are now receiving it, UNAIDS said, and 11 poor- and mid-income countries now have universal access to HIV treatment, with coverage of 80 percent or more.

This compares with 36 percent of the 15 million people needing treatment in 2009 who got AIDS drugs.

"In just one year we have added 1.4 million people to treatment," said Adrian Lovett of the anti-poverty campaign group ONE. He said the figures showed "huge progress" but also underlined "the major push needed now in order to turn the corner in this epidemic".

Major producers of HIV drugs include Gilead , Bristol Myers Squibb, Merck, Pfizer and GlaxoSmithKline. Improved access to drugs from these and other manufacturers means not only that fewer people are dying of AIDS each year, UNAIDS said, but also that the risk of new HIV infections is reduced.

A series of scientific studies have shown that getting timely treatment to those with HIV can substantially cut the number of people who become newly infected with the virus.

Sidibe said this was starting to show in new case numbers.

There were 2.7 million new HIV infections worldwide in 2010, 15 percent fewer than in 2001, and 21 percent below the number of new infections at the peak of the epidemic in 1997.

"The big point for us is the number of new infections --that's where you win against the epidemic," Sidibe said.

Medical charity Medecins Sans Frontieres (MSF) said the growing number of averted AIDS deaths was important progress. However, it added that the number of people on treatment needed to increase dramatically to reap the benefits of science.

"Never, in more than a decade of treating people living with HIV/AIDS, have we been at such a promising moment to really turn this epidemic around," said MSF's Tido von Schoen-Angerer.

"Governments in some of the hardest hit countries want to act on the science, seize this moment and reverse the AIDS epidemic. But this means nothing if there is no money to make it happen."

Despite progress on HIV treatment and prevention, sub-Saharan Africa is still by far the worst hit area, accounting for 68 percent of all those living with HIV in 2010 despite its population accounting for only 12 percent of the global total.

Around 70 percent of new HIV infections in 2010, and almost half of all AIDS-related deaths, were in sub-Saharan Africa .

Sidibe said that with many international donor countries struggling with slow economic growth and high debt, the global AIDS fight had to become even more focused on high impact interventions to deliver progress in the places worst hit.

"We need to maintain our investment, but ... in a smarter way. "Then we'll see a serious decline in the epidemic," he said.

(Reporting by Kate Kelland; Editing by Janet Lawrence and David Stamp)


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