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Haiti: Seven Places Where the Earthquake Money Did and Did Not Go

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Four.  A large percentage of the money went to international aid agencies, and big well connected non-governmental organizations (NGOs). 

 

The American Red Cross received over $486 million in donations for Haiti.  It says two-thirds of the money has been contracted to relief and recovery efforts, though specific details are difficult to come by.  The CEO of American Red Cross has a salary of over $500,000 per year.

 

Look at the $8.6 million joint contract between the US Agency for International Development (USAID) with the private company CHF for debris removal in Port au Prince.  CHF is politically well-connected international development company with annual budget of over $200 million whose CEO was paid $451,813 in 2009.  CHF's connection to Republicans and Democrats is illustrated by its board secretary, Lauri Fitz-Pegado, a partner with the Livingston Group LLC.  The Livingston Group is headed by the former Republican Speaker-designate for the 106th Congress, Bob Livingston, doing lobbying and government relations.  Ms. Fitz-Pegado, who apparently works the other side of the aisle, was appointed by President Clinton to serve in the Department of Commerce and served as a member of the foreign policy expert advisor team on the Obama for President Campaign.  CHF "works in Haiti out of two spacious mansions in Port au Prince and maintains a fleet of brand new vehicles" according to Rolling Stone.

 

Rolling Stone, in an excellent article by Janet Reitman, reported on another earthquake contract, a $1.5 million contract to the NY based consulting firm Dalberg Global Development Advisors.  The article found Dalberg's team "had never lived overseas, didn't have any disaster experience or background in urban planning" never carried out any program activities on the ground-- and only one of them spoke French.  USAID reviewed their work and found that "it became clear that these people may not have even gotten out of their SUVs."

 

Presidents George W. Bush and Bill Clinton announced a fundraising venture for Haiti on January 16, 2010.  As of October 2011, the fund had received $54 million in donations.  It has partnered with several Haitian and international organizations.  Though most of its work appears to be admirable, it has donated $2 million to the construction of a Haitian $29 million for-profit luxury hotel. 

 

"The NGOs still have something to respond to about their accountability, because there is a lot of cash out there," according to Nigel Fisher, the UN's chief humanitarian officer in Haiti.  "What about the $1.5 to $2 billion that the Red Cross and NGOs got from ordinary people, and matched by governments?  What's happened to that?  And that's where it's very difficult to trace those funds."

 

Five.  Some money went to for profit companies whose business is disasters. 

 

Less than a month after the quake hit, the US Ambassador Kenneth Merten sent a cable titled "THE GOLD RUSH IS ON" as part of his situation report to Washington.  In this February 1, 2010 document, made public by The Nation, Haiti Liberte and Wikileaks, Ambassador Merten reported the President of Haiti met with former General Wesley Clark for a sales presentation for  a Miami-based company that builds foam core houses.

 

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Bill Quigley is a human rights lawyer and professor of law at Loyola University New Orleans.
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