Head of Small Relief Agency Blasts Red Cross "Money Pit"

The American Red Cross is facing increasing complaints about its response to the victims of Hurricane Katrina. The criticism comes from many corners; African-American activists have charged that in New Orleans, the organization provided better services in white areas than black areas. Katrina survivors have complained that they tried in vain for hours to get through to the Red Cross telephone hot lines. And others have criticized the Red Cross" policy of not sharing funds with groups focusing on longer term recovery and re-building efforts. These charges come amid reports that The Red Cross has so far raised almost one billion dollars in private funds for Katrina victims which is about 70% of all donations made since the hurricane hit, devastating the Gulf Coast.

* Richard Walden, President and founder of Operation USA, a Los Angeles-based nongovernmental organization specializing in disaster relief as well as international health and economic development projects.

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