Red Cross defends handling of Sept. 11 donations
Via CNN (11/06/2001):
Charities swung into action after the September 11 terrorist attacks, raising more than $1 billion. But questions are being raised about where and how and how much of that money is being distributed.
Bearing the brunt Tuesday during a hearing of the House Energy and Commerce Committee’s oversight panel was outgoing Red Cross President Dr. Bernadine Healy.
The Red Cross has raised more than $564 million for the Liberty Fund, which was set up in response to the attacks on the World Trade Center and the Pentagon.
While the agency states on its Web site that it is spending more than any other relief agency responding to the terrorist attacks, it has distributed only $154 million.
Healy was hammered by one New York official for the Red Cross’ decision to put aside nearly half of the money raised for future needs that may include terrorist attacks.
“I see the Red Cross, which has raised hundreds of millions of dollars that was intended by the donating public to be used for the victims of September 11 — I see those funds being sequestered into long-term plans for an organization,” testified New York Attorney General Eliot Spitzer.