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

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Capitalizing on the disaster, Lewis Lucke, a high ranking USAID relief coordinator, met twice in his USAID capacity with the Haitian Prime Minister immediately after the quake.  He then quit the agency and was hired for $30,000 a month by a Florida corporation Ashbritt (known already for its big no bid Katrina grants) and a prosperous Haitian partner to lobby for disaster contracts.  Locke said "it became clear to us that if it was handled correctly the earthquake represented as much an opportunity as it did a calamity""  Ashbritt and its Haitian partner were soon granted a $10 million no bid contract.  Lucke said he was instrumental in securing another $10 million contract from the World Bank and another smaller one from CHF International before their relationship ended.

 

Six.  A fair amount of the pledged money has never been actually put up. 

 

The international community decided it was not going to allow the Haiti government to direct the relief and recovery funds and insisted that two institutions be set up to approve plans and spending for the reconstruction funds going to Haiti.  The first was the Interim Haiti Recovery Commission (IHRC) and the second is the Haiti Reconstruction Fund (HRF).  

 

In March 2010, UN countries pledged $5.3 billion over two years and a total of $9.9 billion over three years in a conference March 2010.  The money was to be deposited with the World Bank and distributed by the IHRC.  The IHRC was co-chaired by Bill Clinton and the Haitian Prime Minister.   By July 2010, Bill Clinton reported only 10 percent of the pledges had been given to the IHRC.

 

Seven.  A lot of the money which was put up has not yet been spent. 

 

Nearly two years after the quake, less than 1 percent of the $412 million in US funds specifically allocated for infrastructure reconstruction activities in Haiti had been spent by USAID and the US State Department and only 12 percent has even been obligated according to a November 2011 report by the US Government Accountability Office (GAO).

 

The performance of the two international commissions, the IHRC and the HRF has also been poor.  The Miami Herald noted that as of July 2011, the $3.2 billion in projects approved by the IHRC only five had been completed for a total of $84 million.  The Interim Haiti Recovery Commission (IHRC), which was severely criticized by Haitians and others from its beginning, has been effectively suspended since its mandate ended at the end of October 2011.  The Haiti Reconstruction Fund was set up to work in tandem with the IHRC, so while its partner is suspended, it is not clear how it can move forward.

 

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