US Red Cross spent 25% of Haiti donations on itself

An American Red Cross volunteer carries a weary child to a first aid post in Haiti. | Photo: American Red Cross

A report released earlier this week by a U.S. Republican Senator has questioned the reliability of the American Red Cross, one of the most respected non-profit institutions in the United States, during its relief works in Haiti after the 2010 earthquake.

Iowa Senator Charles Grassley conducted a year long investigation resulting in a 300-page document that has revealed the organization had a huge surplus in internal expenses during its relief efforts in Haiti following the 2010 earthquake.

At least 25 percent of the US$487.6 million went to management, general expenses and fundraising, as well as program costs and a contingency fund, according to the report. The information contrasts with what the ARC has repeatedly told the public, which is that 91 percent of its funding is used on relief efforts and the rest for internal expenses.

The Red Cross has responded to the allegations with the following statement:

"The American Red Cross strongly disagrees with the findings. We have accounted for every penny spent in Haiti. Chairman Grassley's memo does not note a single finding of fraud or abuse."

Following the 7.0 magnitude earthquake in Haiti in January 2016 that killed more than 200,000 and displaced nearly 2 million people, the ARC announced it had allocated US$314.7 million for its relief and recovery efforts. One month later it increased the amount.

Grassley's office also found that of the 20,000 people employed by the Red Cross, only three of them work for the company's internal investigations department.

If the allegations of mismanagement of relief funds are true, the ARC would have spent more than US$124 millions on its operations from federal taxpayers money.

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