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Red Cross Criticized for Announced Intention of How They Would Handle 09/11 Donations

Aired November 15, 2001 - 08:46   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JACK CAFFERTY, CNN ANCHOR: Ever since the terrorists attacks on America on September 11th, the American people have opened their hearts, and more importantly perhaps to the victims of those attacks, their wallets. They have gave hundreds and millions of dollars to help the victims and their families. In fact, over $500 million went to the Red Cross Liberty Fund. The agency helped 25,000 people, and $137 million to date, but there has been a good deal of criticism for the Red Cross for the announced intention of how they would handle all that money. It became almost an embarrassment of riches. They took in much more money than they expected.

Harold Decker is the new CEO of the American Red Cross and he's here now to talk about a big reversal in the policy of the Red Cross.

Nice to have you with us. Good morning.

HAROLD DECKER, CEO, AMERICAN RED CROSS: Good morning, Jack. Nice to be here.

CAFFERTY: Let me read this to you. This is "The Daily News" editorial here in New York City, under the headlines "About Face Saves Face." After weeks of trying to defend the indefensible, the American Red Cross has been shamed into doing the right thing. Is that unfair? Well, we are not immune from criticism. As an organization, we want people to comment on what we're doing. The decision that was made early was that we would fund three specific programs we felt were relevant following the terrorist attacks, the strategic blood reserve, aide to armed forces people and a community outreach program. We have now pulled those back, and we are going to fund those in other ways. We are not backing away from it, but we are going to fund it in another way, so that none of the money form the Liberty Defense Fund will be used for those programs.

DECKER: The original announcement had something to the effect of 300 plus million dollars would go to the victims and their families, and a couple of hundred million dollars was going to be used by the Red Cross for other purposes.

CAFFERTY: How much damage has been done to what is arguable the most pristine of reputations of any of the charitable organization anywhere in the world?

DECKER: When we receive calls from people asking us about what we were doing during the past 8 weeks, and we walk the people through what we are going to do now, as we look forward, the people are understanding and they're supportive of what we're doing now.

CAFFERTY: Is it coincidental that the about-face or the change of policy has to do with two events recently, one the change in the leadership of the Red Cross, and two, the threat of legal action that was voiced loud and clear by the New York State attorney general?

DECKER: We've heard from America, we have heard loud and clear, we heard from our chapters, we heard from private citizens, and we've heard from public agencies and the representatives of our private citizens, but we've got the message loud and clear, and we are going to honor what America's donative intent, and that's the way we are going to do.

CAFFERTY: What sort of timetable for the distribution of more than a half billion dollars?

DECKER: We'll have distributed something approximating $275 million by the end of this calendar year. The balance of that money will be handled very prudently. We need to use our case workers to get out and meet with the families, the victims' families, meet with be the people affected by the events of September 11th and make sure that those funds are used appropriately, and they get to the people who need them the most.

CAFFERTY: Mr. Decker, I appreciate you coming in. I appreciate your candor.

DECKER: Thank you very much.

CAFFERTY: CEO of the American Red Cross Harold Decker, thank you.

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