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:

Ads

You May Also Like

Rolling Stone Chooses the 100 Best Brazilian Albums Ever

Rolling Stone Brazil, the magazine, has made a list of the 100 best Brazilian ...

Blacks Become Majority in Brazil, But Power Remains with Whites

The news is out. Brazil, with a population of 191 million people, is no ...

Brazil’s Most Important Shoe Fair Hopes to Sell More Overseas

Francal, Latin America's largest shoe fair, due to start next Tuesday, July 10, in ...

License to Kill

With the appointment by President Luiz Inácio Lula da Silva of Mr. Luiz Eduardo ...

Why Is Brazil Afraid Vice Alencar Will Become President?

A common denominator unites all the political, business and union forces in Brazil: the ...

No Pork and Daily Prayers. Brazilians Get Their First Muslim Soccer Team

In soccer country Brazil, religion usually stays off the playing field. The teams, their ...

Chí¡vez Says in Brazil His Socialism Will Help All of South America

Venezuelan President Hugo Chávez said this Thursday, Janeiro 18, in Rio de Janeiro, during ...

Lula’s Plan to Make Brazil a First World Country

In today’s edition of “Breakfast with the President,” Brazilian President Luiz Inácio Lula da ...

Let Brazil Have Its Nukes, Says Rice in Moscow

In and interview with Aleksey Venediktov of Russian radio Ekho Moskvy Radio, U.S. Secretary ...

Brazil: Spreading Small Business Incubators

After spreading across the main economic centers in Brazil, incubators will now start motivating ...