Bali survivors renew attack on Red Cross

By NICK SQUIRES in Sydney

A group of Bali bombing survivors renewed calls yesterday for the Red Cross to hand back millions of dollars donated by the Australian public in the aftermath of last October's terrorist attacks.

The forum of survivors and their relatives accuse the Red Cross of mismanaging the more than A$14 million ($16 million) raised by the Bali Bombing Appeal and failing to distribute it quickly enough.

They also claim that money is being spent on Red Cross projects which have little to do with the Bali attacks.

Of the A$14.4 million ($16.5 million) raised, only A$5 million ($5.7 million) has so far been handed out, eight months after the blast.

The Red Cross says that of the total, A$10.4 million ($11.9 million) has been allocated to Australia, A$3.6 million ($4.1 million) to Bali, and A$400,000 ($458,570) has so far been spent on administration.

The charity says 95 per cent of the funds earmarked for Australia will go directly to the surviving victims and their families. It is preparing to announce the distribution of a further A$2.6 million ($3 million) in coming weeks.

The money allocated to Bali has been pledged to a tuberculosis prevention project, the upgrade of a blood bank in Bali, and the purchase of three ambulances, which were recently handed over to the Indonesian Red Cross.

About A$500,000 ($573,000) has been allocated to a programme designed to improve the treatment of future burns victims using spray-on skin.

Barry Hugeunin, whose daughter Lynley received burns to 30 per cent of her body in the attack on the Sari Club, said: "I think [the Red Cross] has been arrogant [and] deceptive."

A spokesman for the group, the Reverend Bill Crew, demanded that the charity relinquish control of the remaining funds and questioned the allocation of some of the appeal money. "There's been no consistency in the amount different survivors have received ... The Red Cross hasn't broken any laws, they just haven't been totally upfront."

Controversy over the funds has damaged the reputation of the Red Cross, which has been in Australia for 90 years. Some members of the public have been so angered with the charity that they have demanded the return of their donations.

The Red Cross has defended its handling of the appeal, saying it continues to provide financial help to about 480 survivors and their families.

A spokesman said: "It is only a small number of relatives and victims who are unhappy with what we have done. We were damned if we did and damned if we didn't. If we had spent the money too quickly we might have found people coming to us later with unmet needs."

The charity said three independent audits, including one by accountancy firm PricewaterhouseCoopers, would show that the money had been properly distributed. Some victims and relatives have expressed support for the Red Cross.

Brian Deegan, whose son Joshua was killed in the bombings, said: "It is my belief that Australian Red Cross have done their utmost to support those most in need and in a totally transparent fashion. I was alarmed when I heard a suggestion to the contrary."

Herald Feature: Bali bomb blast