The report follows a nearly yearlong investigation by the Iowa Republican and his staff, launched after coverage by NPR and ProPublica of the Red Cross' Haiti response. The venerated charity raised nearly $500 million after the disaster, more than any other nonprofit — but an ambitious plan to build housing resulted in just six permanent homes, NPR and ProPublica found.
Other findings in Sen. Grassley's report:
The charity insisted to congressional investigators that $70 million spent on "program expenses" included funds to oversee and evaluate its Haiti programs. But Grassley's office found that the charity "is unable to provide any financial evidence that oversight activities in fact occurred."
Red Cross CEO Gail McGovern told Grassley's office the charity "gave [the Government Accountability Office] everything that they asked for" during an earlier review. The report, however, says the organization did not provide everything requested, "contrary to Ms. McGovern's multiple claims that it did."
The Red Cross has kept the charity's own internal investigations and ethics unit "severely undermanned and underfunded," the report says, and the charity "appears to be reluctant to support the very unit that is designed to police wrongdoing within the organization."
We have been seeing signs of the red Cross's greed for years now. The game is simple, use the red Cross brand to garner all the money. Spend 25% administering that money, and then " give" some to a sister organisation which has to skim off a percentage to pay for their overhead. You would think that with 25%going to overhead, they wouldn't underfund their auditing department... Unless they didn't want to know the answer.
What's really disheartening is that sites like charity navigator haven't updated their ratings that take into account the failings of the red Cross.