Accusations of corruption are still lingering for Red Cross volunteers. They are being accused of diverting relief supplies, failure to follow Red Cross procedures for supply tracking and distributions, and use of felons as volunteers (which is against Red Cross policy).
Specific problems include the disappearance of:
- rented vehicles
- 3,000 air mattresses
- computer equipment that could be used to add funds to debit cards
Estimates of the dollar value of misappropriation are not available, but it is known that the Red Cross received about 60% of the $3.6 billion donated by Americans. The investigation is being done by the Red Cross ethics and compliance department.
Read my article about the potential for financial statement fraud related to Hurricane Katrina.