If you were trying to find out where $488,000,000 in Red Cross donations went, after the Haiti earthquake, it’ll be a harder version of “Where’s Waldo”. According to a glaring report done by NPR, the organization seems to has mismanaged funds and did much of nothing for the area.
The report cites a lack of expertise in managing large construction projects, high turnover and overhead as well as land title issues as reasons for the massive shortfall in permanent housing. And to top it off, only 6 houses have been built!
The Red Cross says it has provided homes to more than 130,000 people. But the actual number of permanent homes the group has built in all of Haiti: six…
Other groups also ran into trouble with land titles and other issues. But they also ultimately built 9,000 homes compared to the Red Cross’ six.
Also listed in their budget shelter, allegedly $170 million was spent, that means each house was $28,000,000. Which is highly unlikely.
The report also claims the organization misrepresented how people were receiving the homes:
For example, while the Red Cross says it provided more than 130,000 people with homes, that includes thousands of people who were not actually given homes, but rather were “trained in proper construction techniques.” (That was first reported by the Haiti blog of the Center for Economic and Policy Research.)
The figure includes people who got short-term rental assistance or were housed in several thousand “transitional shelters,” which are temporary structures that can get eaten up by termites or tip over in storms. It also includes modest improvements on 5,000 temporary shelters.
Looks as though the Red Cross has some explaining to do. Read the rest of the report here.