How Global Fund aid corruption report was watered down to remove mention of double billing for staff and computers

Allegations involving British cash uncovered by Global Fund investigators

Money sent by charity to non-profit group on behalf of UK government

Medicam accused of charging £61,000 for consultants never employed



Claimed firm also double billed for staff and billed for hotels never used



But leaked paper 'shows all but one accusation removed from final report'

A report on the corrupt use of British aid money in developing countries has been watered down to remove nearly all of the allegations, an investigation found today.

The alleged misappropriation of tens of thousands of pounds was discovered by investigators working for the Global Fund, into which the UK government recently pledged £1billion.

However, a leaked internal document has reportedly revealed how all but one of the original accusations had been removed from the official report.

Global Fund said only 'evidence that can be confirmed as fact' was included in the final version.

Cover-up? An official report looking at corruption in projects funded by the Global Fund in Cambodia (above, file picture) had erased all but one of the original allegations against a non-profit organisation

They include claims relating to money sent by a British charity working on behalf of the UK government to a non-profit group accused of double billing for staff and computers.

Medicam was also accused of charging more than £61,000 for consultants who were never employed, submitting bills for hotels that were never used and falsifying documents on the office computer of its director, Dr Sin Sumony.

The allegations were reportedly contained in an earlier draft from within the fund, seen by the BBC's Panorama programme.

But the final report looking at corruption in Cambodia contained just one of the four allegations when it was published two weeks ago.

Bea Edwards, from the Government Accountability Project in Washington, told the BBC: 'The fact that a report is suppressed for almost a year and then is somewhat less detailed than the original version, that is a cover-up.

Saving lives: The Geneva-based Global Fund is backed by governments and private donors such as rock star Bono (left) and Microsoft founder Bill Gates

The Global Fund says it is 'transparent and has zero tolerance of corruption' and that only 'evidence that can be confirmed as fact is included in the final version'.

Dr Sumony, who sits on the Global Fund committee that oversees its projects in Cambodia, said: 'Number one, we did not commit that corruption.



'Number two, through the Global Fund support, their financial management system has improved.'

He confirmed the group was due to receive more than $720,000 (£440,000) from the fund this year.



Panorama also claims to have uncovered a separate unpublished report by Global Fund into an alleged scam in Burkina Faso involving an £8.3million contract that possibly left two million people more at risk of contracting malaria.

The leaked document, which was completed a year ago but has still not been published, reportedly shows that a company took the money and then bought cheaper mosquito nets from China that had not been properly treated with insecticide.

The Global Fund said the nets did give protection, but had distributed replacements.