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Storm brews over Sept. 11 funds ($200 million goes to other Red Cross programs)
Thw Toronto Star ^ | Oct. 29, 2001 | William Walker

Posted on 10/29/2001 8:40:54 AM PST by CommiesOut

Storm brews over Sept. 11 funds
$200 million goes to other Red Cross programs
William Walker
WASHINGTON BUREAU
WASHINGTON - Generous North Americans who gave more than half a billion dollars (U.S.) to the Red Cross expected their donations would go directly to surviving family members and victims of the Sept. 11 terrorist attacks.

Canadians opened their wallets to donate $10 million (Cdn) to the New York, Washington and Pennsylvania victims, Suzanne Charest of the Canadian Red Cross said last night.

But in a growing scandal which threatens to rock the foundation of the 120-year-old American Red Cross, it now appears that of the $530 million (U.S.) total donated, more than $200 million is being diverted to the blood agency's long-term goals and administrative costs.

That includes (all figures in U.S. dollars):

  • $109 million for improving the Red Cross' telecommunications, accounting and database management systems.

  • $50 million for the agency's blood reserves program.

  • $26 million for "community outreach."

  • $29 million for "indirect" or administrative relief costs.

  • $11 million for international assistance.

    "That's fine for afterwards, but their priorities seem to be a little mixed up here," Mike McLaughlin of Pelham, N.Y., who lost his brother, Rob, in the World Trade Center North Tower, told The Star.

    His sister-in-law Liz, who is now a widow, has been frustrated by her inability - as have been many of the families of the 5,000 dead, including 7,000 children who lost a parent and 50,000 people who lost their jobs - to access relief assistance.

    Liz McLaughlin did receive a cheque from the Red Cross, "but I would expect there will be more and I hope it will not take too long," her brother-in-law said.

    Just last Wednesday night, former Red Cross president Elizabeth Dole delivered a speech in Toronto in which she said Americans will "never forget" the outpouring of affection and support from Canadians.

    Last Friday, Dole's successor as president in 1999, Dr. Bernadine Healy, suddenly and tearfully announced her resignation from the Red Cross as the scandal over Sept. 11 donations began to break open publicly.

    So far, only about $40 million (U.S.) of the $530 million total raised has been distributed to victims' family members, the Red Cross says.

    Last night, Mike McLaughlin said in an interview that he wasn't aware of the millions the Red Cross was planning to spend in areas unrelated to the victims' families.

    He said donors thought they were giving money which would go to those families.

    "We've been trying to see to it that Liz gets all the benefits that are available to her. We started the process as soon as we came to the realization Rob wasn't going to return," he said of his brother, who worked at the bond trading firm Cantor-Fitzgerald. "But this is the first I've heard of this ... it's not where I would have expected donations to the Red Cross would end up."


    `It's been rough, but we're trying to get through it, little by little ... You probably never really get over it.'

    Mike McLaughlin


    Victims' families are supposed to be contacted by the Red Cross call centre, just outside Washington in Falls Church, Va., to receive three months of living expenses for each family.

    The Red Cross had initially promised the cheques would be sent out within 48 hours of a family being contacted.

    But more than six weeks after the horrific tragedy, thousands of families have not been contacted and have not received any assistance. Red Cross officials now admit the Falls Church call centre is overwhelmed, has a shoddy records-keeping system and is awash in confusion.

    "I was turned into a widow on Sept. 11 and a single mother and now they're turning me into a beggar," one woman told the New York Times, asking that she not be named for fear her cheque might be cancelled.

    Some say the $530 million (U.S.) outpouring of public support for the Sept. 11 victims' families was just too much for the Red Cross to possibly manage. In the entire fiscal year of 2000, the agency raised just over $600 million (U.S.)

    When the half-a-billion dollars arrived in just a few weeks after the terrorist arracks, Red Cross president Healy became embroiled in nasty infighting with her 50-member board of directors over use of the donations.

    Healy, former dean of the Ohio State medical school and a cardiologist, choked back tears on Friday at a Washington news conference, saying she'd been "forced out" by the board.

    American Red Cross board chairman David McLaughlin (no relation to Mike or Liz McLaughlin) said simply that the board had differences with Healy on "various issues."

    Now it appears the Red Cross will use millions of dollars raised on the basis of Sept. 11 for purposes that have nothing to do with the victims or their families. Instead, critics say, the Red Cross is using the money to expand its own empire.

    "In recent weeks, questions have been mounting over whether the Red Cross and Dr. Healy have been candid about how much of the money raised after the attacks will really go to the victims, their families and rescue workers," noted the publication Chronicle of Philanthropy, which monitors U.S. charitable organizations.

    "Many people both inside and outside the Red Cross have expressed concern that Dr. Healy was focused more on raising extra money to expand the Red Cross's reach through long-term blood and anti-terrorism programs than on accurately evaluating the needs of the Sept. 11 disaster victims."

    One former Red Cross employee told the publication: "Dr. Healy's attitude seems to be `If the money is there, we'll find a program to spend it on'."

    In the American Red Cross' defence, spokesperson Dana Allen said the Sept. 11 disaster is unlike anything the agency had dealt with.

    "The Red Cross has been responding to disasters for 120 years, but this was a completely different type of disaster," she said. "The Red Cross is not only responding in one disaster-struck region. It is responding all over the country because the entire nation is suffering as a result of these attacks."

    But for Mike McLaughlin, it's all about ensuring his brother's widow gets the support generous North American donors wanted her to have.

    "It's been rough, but we're trying to get through it, little by little," he said last night. "You probably never really get over it."



TOPICS: Front Page News; News/Current Events
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To: Ada Coddington
And you worried about innocent civilians.
21 posted on 10/29/2001 8:56:46 AM PST by CommiesOut
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To: ARA
Yeah . . . FReep these self-important, dishonest scum bags !!!
22 posted on 10/29/2001 8:57:13 AM PST by GeekDejure
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To: CommiesOut
What a disgrace! What a disgrace!
23 posted on 10/29/2001 8:58:03 AM PST by Bounceback
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To: EggsAckley
Justice Dept could go after them for criminal fraud but that would take too long. IRS could put their non-profit status, again could take too much time but is a BIG STICK threat to strike fear in the heart of any non-profit.

Public rage is the best and fastest way to convince Red Cross to mend their ways. STEALING FROM 9/11 VICTIMS comes to mind as a good slogan.

24 posted on 10/29/2001 9:00:41 AM PST by JD86
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To: CommiesOut
7.5% of all donations that were expected to go directly to the families have been disbursed. 92.5% of these monies are evidently to be used for other purposes. Great, just fantastic. Hard-working people (many who probably did without just to send this money to hurting fellow-citizens) most likely expected every family to get an equal share, minus a discrete amount for administrative costs. Instead, the discrete amount is for the survivors.

Well, we are freezing terrorist assets...might as well freeze Red Cross assets too. They may not be terrorists, but they are scam-artists without equal.

I'll just keep sending my money to the Salvation Army.

25 posted on 10/29/2001 9:01:27 AM PST by LeeMcCoy
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To: CommiesOut
I posted the other day my prediction that the Red Cross president, Bernadette Healy resigned because a scandal was brewing and about to break. This looks like it. Smart lady. I'll bet she was bucking the same entrenched, slimy directors, department heads and bureaucrats that infest all our institutions today.

Leni

26 posted on 10/29/2001 9:03:27 AM PST by MinuteGal
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To: LeeMcCoy
Freezing their assets is an excellent idea. Does anyone have a list of the Board of Directors?
27 posted on 10/29/2001 9:05:47 AM PST by JD86
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To: CommiesOut
The Red Cross is $tealing. I do not support thieves.
28 posted on 10/29/2001 9:06:22 AM PST by B4Ranch
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To: B4Ranch
So what are we going to do about protecting the $500 million they already have? and making sure it gets to the right people?
29 posted on 10/29/2001 9:11:42 AM PST by JD86
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To: CommiesOut
This is not atypical. My wife's family has refused to support the red cross for years. When her grandfather was in WWII, he was wounded in Poland with a sucking chest wound. Conditions were so cold that the blood soaking his clothing froze into a compress that stopped the bleeding and bubbling.

While he was contemplating which would kill him first -- bleeding or freezing to death -- a reportedly cute red cross worker came up and asked him if he would like a cigarette. He said yes and she gave him a pack only after emptying out his pockets of all his money. He heard another RC helper doing the same to the guy next to him who had been dead for a few hours. Apparently that didn't stop the RC from giving cigarettes to the corpse in exchange for some cash.

Salvation Army all the way.

30 posted on 10/29/2001 9:11:43 AM PST by FateAmenableToChange
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To: MinuteGal
This is EXACTLY why she quit; she was against this policy.

The money donated for 9-11 should go to ONLY the victims and emergency personnel; figure up the number and divide it into 540 million and give it to them!

31 posted on 10/29/2001 9:11:55 AM PST by Howlin
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To: CommiesOut
Maybe that's why (What's her name?) resigned.
32 posted on 10/29/2001 9:12:02 AM PST by jerod
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To: MinuteGal
Did you hear that she made 450K per year?
33 posted on 10/29/2001 9:12:18 AM PST by biblewonk
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To: Dudoight
Sadly, you are correct. ARC is a bureaucracy no different from any department in Jimmy Carter or Bill Clinton's government.
34 posted on 10/29/2001 9:12:52 AM PST by Eric in the Ozarks
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To: zip
ping
35 posted on 10/29/2001 9:14:59 AM PST by JD86
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To: Howlin
Last week she was on O'Reilly defending the Red Cross
36 posted on 10/29/2001 9:16:55 AM PST by JIM O
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To: CommiesOut
And they wonder why we are "accidently" bombing Red Cross centers in Afghanistan. Then again, maybe if they didn't put those BIG RED CROSSES on top their buildings, it wouldn't be such an easy target to hit.
37 posted on 10/29/2001 9:18:29 AM PST by toupsie
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To: Howlin
How about getting help from Libby Dole? As a past President she could come in as the white hat and shame them into dispersing the funds appropriately. Wouldn't hurt her campaign either.
38 posted on 10/29/2001 9:18:52 AM PST by JD86
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To: CommiesOut
WE SHOULD BASE OUR VIEW OF THE RED CROSS ON A BETTER SOURCE THAN THE SOCIALIST TORONTO STAR BEFORE WE START HURLING ACCUSATIONS AROUND.

DOES ANYONE HAVE A STORY TO THIS EFFECT FROM A LEGITIMATE NEWSPAPER?

39 posted on 10/29/2001 9:20:31 AM PST by Praxeologue
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To: JD86
No wonder we keep hitting that Red Cross facility in Afghanistan.
40 posted on 10/29/2001 9:21:03 AM PST by rwt60
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