US$ 11 Million in Donations Disappear from Brazil’s Red Cross Coffers

Brazilian Red CrossMillions of dollars earmarked for disaster relief operations are suspected of having been embezzled from Brazilian Red Cross. The suspicions, which fall on former management, emerged from an audit carried out by an international consultancy hired by the charity’s board of directors.

In a statement released Friday, July 25, the Brazilian Red Cross reported finding unproven expenses and suspicious transactions amounting to US$ 11.21 million.

The issues are traced to donations to conflict and drought relief efforts in Somalia; a tsunami in Japan; flooding in the mountainous region of Rio de Janeiro, and a campaign on dengue fever.

Concerns were raised with the organization’s regional offices in the states of Maranhão and Ceará as well as in Petrópolis, Rio de Janeiro, between 2010 and 2012.

“There are violations which may turn out to be felonies in some cases whereas others would classify as misdemeanors, while still carrying liabilities,” the organization said. The issues found in the audit include poor internal controls and undocumented deals.

Brazilian Red Cross has promised to take all necessary – including legal – steps to recover the monies and allocate them to the beneficiaries. In addition to submitting copies of the final report to the Ministry of Justice, the board of directors promised to file suit with Public Prosecution on state and federal levels.

As a result of the audit, the consultancy has also returned an account recovery plan, which Red Cross has promised to fully implement. The International Federation of Red Cross and Red Crescent Societies (IFRC) – with which the Brazilian organization is affiliated – has set up a special committee to oversee the implementation.

“The current board is implementing changes and will make every effort to find a permanent solution that can match the importance of an organization like Red Cross, renowned for its principles and relevance of its humanitarian action,” the statement went on to read.

In February last year, the Brazilian Red Cross was found to owe approximately US$ 40.36 million to public coffers and the former employees seeking labor damages.

The president of the organization at the time, Nício Brasil Lacorte, put the situation down to “20 years’ mismanagement”. In the course of these years, Brazilian Red Cross had several accountability issues in some administrations.

ABr

Tags:

You May Also Like

The Scent of God

It’s a pity we can’t talk by phone on Sundays any more. It’s a ...

FIFA Mad at Brazil For Asking Too Much and Giving Too Little to the 2014 World Cup

Five-time world champion Brazil, according to International Federation of Football Association (FIFA) has been ...

David Goldman Went to the Ends of Earth, Spent Every Penny. But Got His Son Back

Finally the wheels are up and Sean Goldman is home. In case you’re living ...

Brazil Seeks More Investments from Spain

Brazil and the region of Catalonia (Spain) will exchange information about investments that may ...

Optimism Tide Raises Economy Ship in Brazil

Brazilian and Latin American markets advanced, due to strength on Wall Street, lower oil ...

Finn Country

What matters is that you’re going to die. I don’t know how, but you’re ...

Tunisia Wants Brazil’s Technology on Growing Wheat

Gathered in Brazilian capital BrasÀ­lia, researchers of the Ministry of Agriculture of Tunisia and ...

Brazil Publishes List of 222 Products for Retaliation Against the US

The Brazilian government is getting ready to retaliate against the United States for the ...

Easier Credit Gives Brazil Record Year in Vehicle Production

Brazil has broken records in sales and production of vehicles in November and in ...

Brazil Police Raid the Amazon Forest in Search of Invaders of Public Land

Brazil’s Federal Police (PF) agents went on a raid last week exercising 22 search ...

WordPress database error: [Table './brazzil3_live/wp_wfHits' is marked as crashed and last (automatic?) repair failed]
SHOW FULL COLUMNS FROM `wp_wfHits`