New Report Accuses Red Cross of Mishandling $500M in Donations to Help Haiti
Following the massive earthquake that stuck Haiti in 2010, a new report from ProPublica and NPR revealed that the American Red Cross (ARC) has only managed to build six permanent homes with the $500 million in donations that they raised toward the Haiti relief effort.
The ARC claims to have provided homes for more than 130,000 people in Haiti within the last four years. However, the damning news report revealed that as of today, only six homes have been built despite the nearly half a billion dollars that the organization collected in donations.
According to the report, the mishandlings were in part due to "an overreliance on foreigners who could not speak French or Creole."
ProPublica also reported that just a few Haitians have been promoted into leadership positions within the Red Cross, which has thus slowed the projects while costing the organization more money.
"Lacking the expertise to mount its own projects, the Red Cross ended up giving much of the money to other groups to do the work," according to ProPublica. "Those groups took out a piece of every dollar to cover overhead and management. Even on the projects done by others, the Red Cross had its own significant expenses -- in one case, adding up to a third of the project's budget."
A congressional staffer who helped oversee Haiti reconstruction also told ProPublica, "They collected nearly half a billion dollars. But they had a problem. And the problem was that they had absolutely no expertise."
In response to the report, the Red Cross has a released statement saying, "It is particularly disappointing to see our work misrepresented, considering we answered more than 100 questions in writing and provided an interview with the head of our international programs."
The Red Cross also negates the claim that it has only built six new homes. Instead, the agency said it "has provided more than 132,000 people with safe and durable housing."
"When we could not secure land to provide new housing, we focused on safe housing with a wide spectrum of choices, not a one-size-fits all plan (rental subsidies, repairs and retrofitting of existing homes, as well as teaching people how to repair their homes)," reads the statement.
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