Global Fund suspends contracts in Cambodia, reports financial wrongdoing

Two suppliers of mosquito nets say they are working to improve financial controls after their contracts in Cambodia were suspended by a $24-billion health fund that uncovered evidence of bribery.

The two suppliers, Vestergaard Frandsen of Switzerland and Sumitomo Chemical Singapore, said in separate statements Friday they were working to correct what they described as employee misconduct.

The Geneva-based Global Fund to Fight AIDS, Tuberculosis and Malaria, which has committed aid to 151 countries since its creation in 2002, said late Thursday the companies paid two Cambodian officials about $410,000 to gain contracts for insecticide-treated nets that prevent the spread of malaria, between 2006 and 2011.

The fund says it suspended contracts with the suppliers, pending a full review.