Ros-Lehtinen Gives Opening Statement at Red Cross Hearing

I am very pleased that our Committee, as the committee of jurisdiction in the House of Representatives on this matter, has the opportunity to review internal governance structures at the American Red Cross and consider reforms that would ensure good governance for a very important organization.

After all, it is the American Red Cross which has been assigned the responsibility by the federal government of fulfilling the obligations of the United States under the Geneva Conventions for carrying out peace-time disaster relief functions.

These are unique responsibilities, which is evidence of the high regard with which the Red Cross is held in the minds of Members of Congress.

My colleague, Chairman Lantos is, in fact, considering possible legislation to support such changes and has consulted with me and my staff on his efforts to date.

I am hopeful that his efforts will result in a bipartisan measure that this Committee and this Congress can support.

The Red Cross has been helping the victims of war and natural disasters since its founding in 1881.

As a Member of Congress from Florida's 18^th District, I particularly note its efforts to respond to numerous hurricanes and tropical storms that have afflicted the residents of my state.

On January 12^th, 2006, the Red Cross reported that it had raised $2 billion for Hurricane Katrina relief alone, the largest sum of money ever raised by one charity.

Its efforts, together with those of other nongovernmental organizations, faith-based organizations, other non-profits and private sector initiatives were and are crucial to helping those in need.

Certainly, concerns have been raised concerning Red Cross operations and its response to Hurricane Katrina and other disasters.

I am hopeful, however, that this hearing and subsequent actions by this Congress will focus on the best ways by which we can move forward, pursuing bipartisan reform of a national, non-governmental organization that has played and can play a tremendously constructive role when disasters strike.

With that in mind, I hope that our distinguished witnesses will be able to address several important issues regarding governance reform.

First, past and present legislative proposals have included provisions to create an American Red Cross office of the ombudsman to report annually to Congress on "any trends or systemic matters . . . confronting the corporation."

I would ask our panelists if they believe such an office would be effective in improving governance?

What specific reforms are needed to ensure an ombudsman's independence from internal pressure?

The performance and accountability of federally-funded organizations is often enhanced by the presence of an Inspector General, whose duties include:

• conducting and supervising audits and investigations;

• providing leadership and coordination and recommending policies to promote economy, efficiency, and effectiveness and prevent and detect waste, fraud, and abuse; and

• providing a means for keeping the organization's head and Congress fully and currently informed about problems and deficiencies.

If so, is he tasked with the responsibilities I mentioned?

If not, did the governance review procedure contemplate the addition of an inspector general's regime within the Red Cross?

Congressional oversight and forthcoming legislation on this matter should assist the American Red Cross to encourage proactive behavior and original thinking that anticipates the challenges of the future.

For example: What governance reforms would, in your opinion, provide incentives for out-of-the-box, creative thinking within the organization on possible responses to possible future mass disasters?

What measures has the American Red Cross taken to date to encourage such thinking?

In appreciating the unique and invaluable nature of this organization, it is important to note the words of the founder of the Red Cross, the great humanitarian and Civil War nurse Clara Barton: