Malawi: Global Fund Audit Finds World Vision Malawi Liable for K576 Million in Non-Compliant Malaria Grant Spending

An audit conducted by the Global Fund's Office of the Inspector General (OIG) has determined that World Vision Malawi (WVM) is liable for approximately K576 million (US$125,901) in non-compliant expenditure related to a K151 billion (US$33 million) malaria grant. The audit, dated June 5, 2025, found that WVM's management of the grant between 2020 and 2022 was compromised by fraudulent practices, weak oversight, and inadequate record-keeping.

The OIG identified four areas where WVM's conduct breached Global Fund grant regulations. The most significant issue was K316 million (US$69,044) in fraudulent payments that WVM failed to prevent or detect, primarily due to a fraudulent vehicle hire scheme involving local supplier Planet Car Hire. This issue alone accounted for K215 million (US$46,922) in fraudulent payments.

Additionally, WVM was found responsible for K101 million (US$22,122) in internal fraud, resulting from the creation and processing of two fictitious payment requisitions. The audit also revealed K260 million (US$56,857) in expenditure that could not be verified as compliant due to poor record-keeping and a lack of supporting documentation.

Overall, the audit found that WVM lacked uniform controls for reconciling and supervising suppliers, with some vehicles used during the grant period not appearing in inspection reports. The findings highlight the core requirements for Principal Recipient status under Global Fund regulations, which include safeguarding funds, maintaining adequate records, ensuring supplier compliance, and operating effective oversight mechanisms.

WVM has since taken action to dismiss implicated staff and overhaul its internal systems, but the audit does not determine any criminal liability.