Red Cross vows to share control of disaster aid

Agency was faulted for Katrina response

April 04, 2006|Hope Yen, Associated Press

WASHINGTON -- Criticized for its Katrina response, the American Red Cross will overhaul the way it handles future disasters by relinquishing control over some aid dollars and cracking down internally on waste and abuse.

The nation's largest charity promised the changes in a statement to a Senate panel yesterday, following its acknowledgment last year that its $2 billion response to the Gulf Coast storm fell short.

Responding to allegations of waste, the Red Cross said it was moving to standardize financial controls, hire more investigators to review whistleblower complaints, and cede control to religious groups in some underserved areas.

''Could the Red Cross and the entire nonprofit community have done better? Undoubtedly," wrote Red Cross chairwoman Bonnie McElveen-Hunter to Senate Finance Chairman Charles Grassley, Republican of Iowa, whose committee is leading a congressional inquiry.

''There is no excuse for the instances of improper conduct which impacted on our performance and response during Hurricane Katrina and on our continued relief and recovery efforts along the Gulf Coast," McElveen-Hunter said.

The proposals come as some lawmakers, including Representatives Jim McCrery, Republican of Louisiana, and Bennie Thompson, Democrat of Mississippi, have questioned whether Congress should rethink its national disaster response plan that gives the Red Cross the primary role and the dollars that flow with it.

Some critics have said the Red Cross failed to respond quickly enough in some low-income, minority areas, while internally some volunteers and employees have questioned whether charity dollars are being put to their best use.

Signaling a major shift, the Red Cross told the Senate committee that it will partner with other charitable groups by funneling money, training, and resources so they can establish shelters in areas where Red Cross local chapters have less presence.

It acknowledged the potential difficulties in ceding this power, but the Red Cross said it was committed to change and had hired a new vice president for diversity to coordinate the effort.

''These would be shelters the Red Cross would recognize and support financially but would not necessarily run," according to McElveen-Hunter, who said the specifics had yet to be hammered out. ''The Red Cross understands that partnership does not mean assisting the Red Cross in its mission, but helping others achieve the shared mission of serving the affected community."

The Red Cross, however, would not release the details of hundreds of internal complaints made by employees and charities that allege fraud, safety violations, and employment disputes. It cited the confidential nature of its phone complaint line.

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