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Student Puts the Spotlight on Red Cross' Spending in Haiti
Critics are beginning to question how the American Red Cross is spending the $430 million raised by donors. The group, in turn, says that it's shifting to a long-term recovery plan after an initial flurry of spending.
Fred Sajous, a Haitian earthquake survivor armed with a video camera and a cause, is a man on a mission: to figure out how the American Red Cross spent the $430 million it raised for the disaster.
Fred Sajous is in Haiti and questions the spending by NGO's there. American Red Cross CEO Gail McGovern says they are investing for the long term. (Miami Herald Staff)
The former
Broward Community College student visited the tent city across the
street from the American Red Cross' Pétionville headquarters. Tent city
leaders said they had not received anything from the Red Cross. With
the organization's monthly report in hand, he went to a dozen more
settlements.
"I couldn't find the $106 million,'' said Sajous, a 29-year-old mechanical engineer who left Fort Lauderdale for Port-au-Prince after being laid off last year. "I didn't see a single sticker or anything.''
More than three months since the American Red Cross raised hundreds of millions to aid Haiti in the aftermath of the 7.0 earthquake that killed an estimated 300,000 and left 1.3 million homeless, the organization says it has spent about a quarter of the money.
But after consuming $106 million in the first 60 days, the Red Cross in the past month has tapped just $5 million more and has come under fire for what critics call anemic spending.
Other aid groups, members of Congress, bloggers and even a former board member are among the growing chorus asking what the Red Cross is doing with such a massive amount of money raised in such a short time.
Red Cross records are not public, so Sajous settled on registering a watchdog organization called Kontrol Aid and making a video about his hunt for Red Cross relief supplies, which he posted on YouTube. American Red Cross President and CEO Gail J. McGovern last week countered with an Internet video of her own, responding to those who say the organization lacks visibility.
She also scheduled a conference call with members of Congress, underscoring the agency's sudden drive to explain how it funded 43 percent of the global Red Cross efforts that assisted 2 million people, gave tarps and other supplies to 450,000 and distributed almost 24 million gallons of water.
"Slapping our logo on people's temporary homes just didn't seem right,'' McGovern said in the video."I can assure you that our presence is being felt by the people of Haiti. We have to answer not just to our donors; we have to answer to the people of Haiti.''
The Red Cross said that expenses so far have included $55 million for emergency relief, such as food and supplies, including $30 million to the World Food Program; $43.6 million for shelter, including tarp; $5.5 million for water and sanitation, and $1.5 million for health costs.
RECOVERY PLAN
The organization says that after an initial flurry of spending, operations have slowed as the American Red Cross shifts to a three- to five-year recovery plan. Rather than spend donations distributing water bottles, the Red Cross says it will fund water sanitation systems instead.
"That's not disaster relief, that's long-term recovery, and that's not the Red Cross' mission and not the donor intent either,'' said former board member Victoria Cummock, a longtime Red Cross advocate and volunteer who has given the organization over $300,000.
The Coral Gables resident resigned from the national board of governors in 2008 after it disbanded the disaster oversight committee. She was disappointed in what she said were tepid responses she got from Red Cross officials when she asked about its operations in Haiti, so she decided to donate $25,000 each instead to Project Medishare and UNICEF.
"You have to start to take credence in the outcry of the people saying their needs are not being met,'' she said. "If there are hungry people across the street from the Red Cross, what is that about?''
A lot of the grumbling in Port-au-Prince comes from other aid groups, which covet the organization's largesse and first lady Michelle Obama's public appeal on its behalf.
"Everybody is saying the same thing. People are going: 'Where did that money go?' '' said Eric Klein, CEO of CAN-DO, a small disaster relief agency that prides itself on cutting through red tape. "Show me one thing you have done. Show me a village or location of the camp. Are they going to show a pie chart?
"People are starting to scratch their heads.''
REPORT: $111M SPENT
According to Red Cross reports, the organization spent "or allocated'' $80 million the first month after the quake, and another $26 million the second month.
The latest report says the group has spent$111 million, and it no longer differentiates between what was spent and what was allocated.
"I get a little cranky when people suggest we aren't spending the money,'' said Nan Buzard, senior director of international response and programs, 60 days after the quake. "That is a lot of money to spend in two months. In an emergency, you can spend 30 percent more because everything is expensive and you are racing against the clock and not being efficient. You can't spend $300 million in two months wisely.''
According to the report, the American Red Cross expects to spend about half its donations this year, and will use the rest for long-term recovery issues such as disaster preparedness, transitional shelters, housing in rural areas, economic development, sanitation and cash grants.
Nine cents of every dollar will go toward overhead, and the organization has promised not to divert the funds to other disasters.
In her video, McGovern said the organization lacked visibility because it chose not to spend money flying in thousands of volunteers who consume resources for shelter and food -- and it decided against delaying supplies by labeling them.
But Red Cross officials also acknowledge that $20 million of the money spent went for the materials to build 30,000 shelters, which are stuck in storage while the Haitian government finds land with clear property title for them.
"This is not a normal disaster where there is an emergency and then you move to recovery,'' Buzard said. "We can't do recovery without people in homes. If the land piece isn't worked out, it is going to be like a big African refugee camp.
"I FEEL GOOD'
"I feel good about what we have spent and where we are going,'' she said.
Sajous insists that despite the reports, there is no evidence of the donations in Haiti.
"Did they distribute a high-energy cookie from the United Nations and then say they fed so many families?'' he said. "I am looking for transparency, I am not looking for them to rebuild Haiti.''
Florida Democrat Rep. Debbie Wasserman Schultz told a Florida radio station earlier this month that she'd think twice before advising people to donate to the Red Cross.
"We were actually pretty struck by the fact that we didn't see the Red Cross anywhere, at all,'' Wasserman Schultz said on WTFL radio after a visit to Haiti.
But Wasserman Schultz toned down her remarks after getting an explanation from McGovern, the Red Cross president.
"They could have gone the route of spending quickly and getting out,'' Wasserman Schultz said in a telephone interview. "If they had spent it all fast, we'd all be saying, `Where did it go?' Instead, everyone is saying, `Why aren't they spending it?'
"I think they struck a balance.''
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13 Comments so far
Show AllLiving in the heart of Katrina-destruction-land, I had a lot of first-hand experience with the Red Cross. Here was the conclusion I reached a few months after the storm: Red Cross spends $100 to do $10 worth of good. Red Cross is so large, that a lot of good still gets done. There are some good, dedicated, caring people who volunteer for Red Cross, but on the other hand, there are a lot of sight-seers who volunteer (they come and hang around, but never work and complain about the lack of basic services - DUH - we have no basic services). I could neither work for nor volunteer for Red Cross, but if I can meet the right person from Red Cross after a disaster, I will work with that person and Red Cross.
I still remember veterans from WWII talking about being charged by Red Cross for cookies and coffee in war zones and the intense hatred and dislike those practices raised.
But I could be wrong !
Your memory is correct.
I too heard that from my father in law.
Joe
RedCross is a huge bureaucratic monster. I believe they are the largest or at least one of the very largest charities by far. Their massive numbers of executives collect huge salaries. What a shame, most people don't know anything about them, but donate their hard-earned money expecting it to help others. Every day that money stays in RedCross's accounts, they bank huge $.
There are always better charities to donate to, no matter the disaster.
PERFECT SOLUTION -- EXPECT ALL TO LIE, CHEAT AND STEAL
Having grown up in the slums of Milwaukee, Minneapolis and LA,
and having never seen or heard of the Red Cross doing anything
for those who live in the slums, may I suggest that you do more
harm then good by donating to such a class bias organization.
For those of the Red Cross are all of the intelligent middleclass, most all their donations come from their class and most all their services are reserved for their class alone.
For in our entire life we encounter but a small hand full of people who are honest, most everyone feels they deserve more so always take all they can take, so let the highest law of society be,
“Perfect love forbids all trust.”
First it was ACORN that was evil, now it's the Red Cross.
Excuse me - do a Google News search on Red Cross. Do you see any other charitable organization even trying to do the same thing?
Economic terrorist CEO Goldman Sachs Blankfein destroyed the economy, stole hundreds of billions of OUR dollars, and killed over 8 million jobs.
But how the Red Cross spends donations is a news story? Do you see any Red Cross execs flying their personal jets? Or paying off Senators and Congresspeople so they can continue their massive frauds and thefts? Buying 15 houses and 7 yachts and $5,000 shower curtains?
Jesus Christ this country is f**ked upside down and sideways...
I think the American Red Cross is really a GOP organization. They often collect for a big disaster but spendd it on 'other things' through the year.
Doctors without Borders is a much better charity.
Scandal and self dealing and misdirected funds are old stories with the Red Cross.
In the early 40's my parents, brother and I spent 2 1/2 to 3 years in two different concentration camps in the Philippine Islands. While I don't remember the any details, forever after my parents despised the Red Cross and they talked about the Red Cross keeping money that had been given to help us and all other POWs in the Philippine Islands. They never gave a dime again to the Red Cross.
I understood better when I needed several litres of blood following a placenta previa due to triplets. I had given blood prior to pregnancy being told and expecting if I needed blood I would get blood and for free. Not so. We paid literally thousands of dollars for my several or 3 litres of blood.
Then as an older person I looked up the perks and the salaries of the administrators of the Red Cross. Millions, literally millions for sitting on a board. Just the same as American Cancer Society.
I give nothing to the Red Cross and I believe nothing they say. Anybody can lie about anything with statistics.
I am 76yrs old and have been hearing these stories about Red Cross and other, after every single major disaster. This all happened after Katrina actually i thought mcgovern had been fired.. check out hers and others' salary and their overhead. do the math. I agree that they are quasi-gov, ditto Salvation Army A day or two after the Earthquake the Salvation Army guy was on Public Radio and slipped and said they had warehouses that were full! Huh? Shouldn't they be empty? I think they only give to Christian groups or people who will convert. Dr Paul Farmer is my fave his Partners in Health were already there as they are in many other countries. Based in Massachusetts they get my $ every time and yes Docs w/o borders too. Another fantastic group that has been there is S.O.I.L. they build composting toilets. Checkout where your $$ go!
**** frank1569 April 28th, 2010 12:06 pm
First it was ACORN that was evil, now it's the Red Cross.
Excuse me - do a Google News search on Red Cross. Do you see any other charitable organization even trying to do the same thing?
Economic terrorist CEO Goldman Sachs Blankfein destroyed the economy, stole hundreds of billions of OUR dollars, and killed over 8 million jobs.***
Donations given with the intent to help those in need is not the same issue as shareholders wanting more for themselves.
"The city of Geneva with 2000 years of history and culture, is set amidst beautiful scenery on the shores of the magnificent Lake Geneva. It is the headquarters of many international organisations including the Red Cross .."
Beautiful place to live..just delightful.. but, it costs and donations are needed.