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American Morning

George Mitchell To Oversee Red Cross 9-11 Accounts

Aired December 31, 2001 - 08:17   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.
LEON HARRIS, CNN ANCHOR: Seventeen minutes after the hour now, and we turn to controversy and the Red Cross. The Red Cross is going to be disbursing hundreds of millions of dollars to September 11 attack victims over the next year, but the organization's credibility has been bruised badly since 9/11 for the way they've handled the money that was raised.

It's now asked Former Senate Majority Leader George Mitchell to oversee its 9/11 accounts. The senator is in Florida this morning and he joins us live right now.

We thank you very much for your time today. Happy holidays to you, senator. Good to see you again.

GEORGE MITCHELL, FMR. SENATE MAJORITY LEADER: You too, Leon, thanks.

HARRIS: Well, I have to ask you this. Are things so bad there at the Red Cross that they had to call in the man who has been able to solve peace in Ireland -- Northern Ireland -- and the Middle East? What's going on?

MITCHELL: Well, there were problems, which the Red Cross to their credit have forthrightly acknowledged. I have not been asked to conduct an inquiry into the past activities, so I neither criticize nor defend those actions. But rather just to make sure that the very large sums of money to be spent in the future are spent in a fair and proper way.

There's about $360 million left in the fund. It could rise with further contributions to as much as $400 million. And I will do the best I can to make certain that it's done in a fair and appropriate way for the benefit of the families.

HARRIS: Yeah, we -- you mentioned that amount. We have been hearing that funds are still pouring into the Red Cross. Do you know that to be true?

MITCHELL: I've been told that there are about $360 million left; that contributions are still coming in and that they could reach as high as $400 million left. In other words, an additional $40 million. But that's simply information that I've been provided and have no way of verifying that. HARRIS: OK. So you say you don't seen right now, you have not, at this point, been asked to conduct any kind of an inquiry into what's happened in the past. But do you think it's necessary for you to do so?

MITCHELL: No, I don't think it's necessary. I think that the Red Cross has done a lot of good. Remember, over $300 million has already been dispensed. Over $100 million of that directly to the more than 3,000 families who lost people in the tragedy or who have family members severely injured. A total of 34,000 families have been served, so they've done an awful lot of good.

At the same time, as they themselves have acknowledged, they made mistakes. And they've stepped up, acknowledged that, changed their policies in the face of criticism. I think the most important thing now is to look to the future. To make certain that this large amount of remaining money -- as I said, it could be as much as $400 million -- is expended in a fair and proper and accountable way.

HARRIS: All right. Speaking of the future then, how long do you think these families of these victims -- or the families of survivors here who have suffered from all of this -- how long do you think they're going to have to wait to see any money from this fund?

MITCHELL: Well, they've already seen payments. The -- it's about 3,125 families that have received over $100 million -- have received three payments totaling one year of living expenses. And that distribution will continue. So they've already received substantial sums, and they'll be continued to be paid out over the coming year.

HARRIS: Do you think in some way this is going to lead to some other reorganization there at the Red Cross?

MITCHELL: It already has, of course. The previous director resigned. There is now an acting director. And there's been a great deal of soul searching. But I don't think that the bad publicity and the mistakes that were made leading to that publicity should detract from the really good things they've done.

And, particularly, the work of the men and women who are the heart and soul of the Red Cross, and that's the thousands of volunteers, ordinary citizens from all over America, who join in and pitch in at a moment's notice to help people who've suffered some kind of tragedy.

HARRIS: How closely did you follow the case of the special master, Mr. Feinberg in Washington, who was -- who was appointed to decide exactly how much people were going to be getting form the federal money that was being put up. And how in the wake of his decision making -- even though it seemed like he went through a very well thought out process, though, no one seems to be completely happy with what happened there.

MITCHELL: I think it's one of those situations where it will be impossible to fully satisfy everyone, because there will be conflicting interests involved. But I know Ken Feinberg, and I have a very high regard for him. He's an intelligent, thoughtful person, and I think he'll do a good job. That situation is somewhat different, since they are directly governed by a law that has been passed by the Congress and signed by the president. So there are specific instructions, in effect, to him from the law which he must adhere to.

Our situation is somewhat different without a governing law. Now, obviously, we are looking at what he's doing, and we look at every interest. I'll meet with families; I'll meet with as many interest groups as I can, and we'll review the plan carefully.

HARRIS: Well, here's hoping that you don't really have that same problem and we see any criticism whatsoever. What you're doing is a great -- it's a great thing to step in at this particular time. We certainly do wish you luck on that -- that endeavor.

MITCHELL: Thank you very much, Leon.

HARRIS: Happy holidays and Happy New Year to you, Senator George Mitchell.

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