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Controversy over Global Fund grant to KZN

Reposted courtesy of IRIN PlusNews, 19 July 2002
The Global Fund to Fight AIDS has insisted that money earmarked for the South African province of KwaZulu-Natal must be spent locally, following concern that the South African government intended to use some of the US $72 million donation for national programmes.

"As long as the money that has been approved for KwaZulu-Natal goes to KwaZulu-Natal then it's fine," Fund spokeswoman Melanie Zipperer told PlusNews. She added that the Fund had no problem with the provincial health authorities collaborating with the South African National AIDS Council (SANAC), "as long as they spend the approved sum" as agreed.

The Fund approved the money for KwaZulu-Natal based on a proposal submitted by the provincial health authorities before South Africa's Country Co-ordinating Mechanism (CCM) was established, a role eventually assumed by SANAC. With a 36 percent HIV prevalence rate, KwaZulu-Natal is South Africa's worst affected province.

But Health Minister Manto Tshabalala-Msimang criticised KwaZulu-Natal for not submitting its proposal through SANAC. South African news reports alleged on Thursday that her insistence that the US$72 million should be spread across all of the country's nine provinces had jeopardised the KwaZulu-Natal grant. The Fund had made a separate donation of US$92 million for national AIDS programmes.

However, the health authorities in KwaZulu-Natal this week agreed to jointly manage with SANAC the disbursement of the local grant, Zipperer said.

But the issue has ignited fresh controversy over the government's attitude to HIV/AIDS, with Anglican Archbishop of Cape Town Njonkonkulu Ndungane calling this week for Tshabalala-Msimang's resignation.

"There is a lot of pent-up frustration within the country," an AIDS activist who asked not to be named told PlusNews. "People are saying we have a good AIDS policy, the fundamentals are there, but the manner in which it is being implemented is very haphazard and people are frustrated over the delays." Pointing to Tshabalala-Msimang's decision earlier this year to fight a court ruling that the government should provide nevirapine to pregnant mothers, the source said: "The minister is seen as hampering the response to HIV/AIDS ... The division between the government and civil society is growing day by day."

Meanwhile, the Fund this month made its second call for proposals under revised guidelines [http://www.globalfundatm.org/proposals.html]. This time around, following NGO complaints that the first round was too rushed, CCMs have until 27 September to submit and the Board will make its final decision in January next year.

In April, the Fund awarded US $616 million over two years for 58 projects aimed at fighting AIDS, TB and malaria. More than 60 percent of the total was for HIV/AIDS initiatives, mainly in African countries. It is estimated that US $10 billion is needed annually to fight AIDS alone. However, the Fund points out that it was set up last year as an additional mechanism to complement existing financing.

"It is not possible for the Fund to raise all the money," Zipperer said. She added that there would be a Board meeting in October when the Fund would examine HIV/AIDS financing needs.

[This item is delivered to the English Service of the UN's IRIN humanitarian information unit, but may not necessarily reflect the views of the United Nations.]

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