Tuesday, July 2, 2013

It's always harder to accomplish things at a 17% performance rate


Three years later, USAID has only spent half of the $651 million Congress gave to help Haitians recover from devastaing earthquake

The earthquake that hit Haiti in 2010 was a disaster.  U.S. efforts to help rebuild the tiny island nation are turning into one as well.

The U.S. Agency for International Development, or USAID, was placed in charge of $651 million for Haiti relief efforts.  Three years after the earthquake, the oft-criticized agency spent less than half of that,according to a report by the Government Accountability Office that has raised bipartisan ire on Capitol Hill.

USAID not only been slow to spend money, it's cutting back on its original promises.  The original plan was to build 15,000 houses for those people displaced by the earthquake.  But now, USAID has had to revise that number and expects to complete 2,600 houses - just 17 percent of the original goal.  

The number of people being helped has also dropped dramatically.  The houses were suppose to shelter between 75,000 and 90,000 people.  Now they're going to help just 13,000 to 16,000 people.

For letting taxpayer money sit unused for three years after a devastating earthquake and for botching ongoing reconstruction efforts, USAID wins this week's Golden Hammer, a distinction awarded by the Washington Guardian to examples of wasteful spending and fiscal incompetence in government.

The earthquake that hit Haiti in January 2010 was a magnitude 7 quake that killed an estimated 316,000, making it the second deadliest earthquake in history, according to the U.S. Geological Survey. (Haiti was only surpassed by a quake in China in the 1500's).

USAID said it is focusing on making the ongoing reconstruction effort a success.

"Mid-point reviews such as this one are helpful to us to see how we can be more effective," a USAID spokesperson said.  "It is important to bear in mind that the report is a snapshot of progress to date, and that work in housing, energy, port construction and other areas is ongoing."

But Congress isn't likely to let the agency off easily.  Rep. Ed Royce, R-Calif., the chairman of the House Foreign Affairs Committee, said a delegation is going to visit Haiti to survey reconstruction efforts.  Then a congressional hearing will be held to find out why aid has been so slow.

The top Democrat on the committee, Rep. Eliot Engel of New York, said USAID must be held accountable.

"This report shows a significant and sobering disconnect between what was originally promised for the Haitian people, and what it appears USAID is now prepared to deliver," he said.  "The Haitian people, as well as the US taxpayer, deserve better answers about our assistance than we have received to date."

The GAO also questioned USAID's help to a port project on the northern shore of Haiti that was supposed to employ thousands and boost the nation's economy.  But only 6 percent of the U.S. funds for the project have been spent, leading to serious delays.

"USAID officials had initially estimated that port construction would take 2.5 years; however, USAIDofficials have since learned that port construction may take up to 10 years, depending on the complexity of the port designed," the GAO said.

The port serves an industrial park, and the USAID spokesperson said the agency was able to complete the first phase of a power plant for the park under budget and quickly enough to get electricity to the first tenants that moved in.

The GAO, meanwhile, recommended Congress renew the State Department's requirement to report on the situation in Haiti so lawmakers can be kept aprise of relief efforts.

"Although most funds have not been disbursed, State's reporting requirement ended in September 2012," the report said. "As a result, Congress lacks information on the amounts of funds obligated and disbursed and program-by-program progress of U.S. reconstruction activities."


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