How the Red Cross Raised Half a Billion Dollars for Haiti and Built Six Homes

05 Jun, 2015 by Greg Campbell

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There are few things as “American” as giving to another nation in their time of need. Unfortunately, the process of giving to charity is rife with the possibility for corruption, incompetence, or both, as demonstrated by the fact that though they raised a half billion dollars, the Red Cross appears to have done precious little to help the people of Haiti after their devastating earthquake.

In late 2011, the Red Cross launched a multimillion-dollar project to transform the desperately poor area, which was hit hard by the earthquake that struck Haiti the year before. The main focus of the project — called LAMIKA, an acronym in Creole for “A Better Life in My Neighborhood” — was building hundreds of permanent homes.

Today, not one home has been built in Campeche. Many residents live in shacks made of rusty sheet metal, without access to drinkable water, electricity or basic sanitation. When it rains, their homes flood and residents bail out mud and water.

The Red Cross received an outpouring of donations after the quake, nearly half a billion dollars.

The group has publicly celebrated its work. But in fact, the Red Cross has repeatedly failed on the ground in Haiti. Confidential memos, emails from worried top officers, and accounts of a dozen frustrated and disappointed insiders show the charity has broken promises, squandered donations, and made dubious claims of success.

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.

After the earthquake, Red Cross CEO Gail McGovern unveiled ambitious plans to “develop brand-newcommunities.” None has ever been built.

Aid organizations from around the world have struggled after the earthquake in Haiti, the Western Hemisphere’s poorest country. But ProPublica and NPR’s investigation shows that many of the Red Cross’s failings in Haiti are of its own making. They are also part of a larger pattern in which the organization has botched delivery of aid after disasters such asSuperstorm Sandy. Despite its difficulties, the Red Cross remains the charity of choice for ordinary Americans and corporations alike after natural disasters.

One issue that has hindered the Red Cross’ work in Haiti is an overreliance on foreigners who could not speak French or Creole, current and former employees say.

In a blistering 2011 memo, the then-director of the Haiti program, Judith St. Fort, wrote that the group was failing in Haiti and that senior managers had made “very disturbing” remarks disparaging Haitian employees. St. Fort, who is Haitian American, wrote that the comments included, “he is the only hard working one among them” and “the ones that we have hired are not strong so we probably should not pay close attention to Haitian CVs.”

The Red Cross won’t disclose details of how it has spent the hundreds of millions of dollars donated for Haiti. But our reporting shows that less money reached those in need than the Red Cross has said.

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. 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.

In statements, the Red Cross cited the challenges all groups have faced in post-quake Haiti, including the country’s dysfunctional land title system.

“Like many humanitarian organizations responding in Haiti, the American Red Cross met complications in relation to government coordination delays, disputes over land ownership, delays at Haitian customs, challenges finding qualified staff who were in short supply and high demand, and the cholera outbreak, among other challenges,” the charity said.

The group said it responded quickly to internal concerns, including hiring an expert to train staff on cultural competency after St. Fort’s memo. While the group won’t provide a breakdown of its projects, the Red Cross said it has done more than 100. The projects include repairing 4,000 homes, giving several thousand families temporary shelters, donating $44 million for food after the earthquake, and helping fund the construction of a hospital.

“Millions of Haitians are safer, healthier, more resilient, and better prepared for future disasters thanks to generous donations to the American Red Cross,” McGovern wrote in a recent report marking the fifth anniversary of the earthquake.

In other promotional materials, the Red Cross said it has helped “more than 4.5 million” individual Haitians “get back on their feet.”

It has not provided details to back up the claim. And Jean-Max Bellerive, Haiti’s prime minister at the time of the earthquake, doubts the figure, pointing out the country’s entire population is only about 10 million.

“No, no,” Bellerive said of the Red Cross’ claim, “it’s not possible.”…

The Red Cross ultimately raised far more than any other charity.

A year after the quake, McGovern announced that the Red Cross would use the donations to make a lasting impact in Haiti.

We asked the Red Cross to show us around its projects in Haiti so we could see the results of its work. It declined. So earlier this year we went to Campeche to see one of the group’s signature projects for ourselves.

Street vendors in the dusty neighborhood immediately pointed us to Jean Jean Flaubert, the head of a community group that the Red Cross set up as a local sounding board.

Sitting with us in their sparse one-room office, Flaubert and his colleagues grew angry talking about the Red Cross. They pointed to the lack of progress in the neighborhood and the healthy salaries paid to expatriate aid workers.

“What the Red Cross told us is that they are coming here to change Campeche. Totally change it,” said Flaubert. “Now I do not understand the change that they are talking about. I think the Red Cross is working for themselves.”

The Red Cross’ initial plan said the focus would be building homes — an internal proposalput the number at 700. Each would have finished floors, toilets, showers, even rainwater collection systems. The houses were supposed to be finished in January 2013.

None of that ever happened. Carline Noailles, who was the project’s manager in Washington, said it was endlessly delayed because the Red Cross “didn’t have the know-how.”

Another former official who worked on the Campeche project said, “Everything takes four times as long because it would be micromanaged from DC, and they had no development experience.”

Shown an English-language press release from the Red Cross website, Flaubert was stunned to learn of the project’s $24 million budget — and that it is due to end next year.

“Not only is [the Red Cross] not doing it,” Flaubert said, “now I’m learning that the Red Cross is leaving next year. I don’t understand that.” (The Red Cross says it did tell community leaders about the end date. It also accused us of “creating ill will in the community which may give rise to a security incident.”)

Whether it’s the public or private sector, large bureaucracy simply does not work. Yes, organization is needed, but it seems clear that the Red Cross not only thoroughly bungled the Haiti recovery effort, but appears far more interested in spinning their results than getting back to work to help people.