Only $5b out of $10b pledged spent; some governments have yet to hand over cash


TWO years after the Indian Ocean tsunami killed almost a quarter of a million people and devastated the region, half the money that was donated by countries and relief groups worldwide has yet to be spent to help the victims.
Some US$6.7 billion (S$10.3 billion) was pledged, but only US$3.4 billion has been used so far, according to United Nations estimates.

The UN figures showed that Red Cross organisations alone received some US$2.2 billion, but US$1.3 billion remained in their pockets.

In a report on its website, the Asian Development Bank (ADB) said relief operations were moving ahead, but also admitted more could be done.

Tens of thousands of people in the four worst-hit countries - Indonesia, Sri Lanka, Thailand and the Maldives - remained empty-handed and even without shelter.

New homes had not been built for some 65 per cent of those who lost everything, the UN's tsunami envoy, former US president Bill Clinton, said earlier this month.

'Only 30 per cent to 35 per cent of the people have been put back into permanent housing,' he said. 'We have to do better than that.'

A spokesman for the International Red Cross reacted to this concern: 'We said a few weeks after the tsunami that, for us, this was a five-year effort. Anyone who talked about it being completed in two or three years was totally unrealistic.'

The International Red Cross pledged to build 50,000 permanent homes in Indonesia, Sri Lanka and the Maldives. So far, only about 8,000 had been completed, Britain's Newsnight reported.

But the international director for the British Red Cross defended its performance.

Mr Matthias Schmale told the BBC. 'We said from the beginning, this is happening in very difficult circumstances. We raised the money knowing it was difficult. It will take time to spend this money in a responsible manner.'

But he admitted that the British Red Cross had thus far finished only 16 of the 2,000 homes it had promised. A further 265 were ready to be handed over, and 400 more would have their foundation laid by the end of this month.

The tsunami also swept away roads, bridges and more on Dec 26, 2004, but repairs had yet to begin on many major infrastructure projects.

Less than 10 per cent of repairs in Indonesia had been completed, according to the UN Development Programme website, which tracks thousands of projects.

Critics have blamed delays on poor planning, red tape and the fact that some governments and charities have withheld the money promised.

According to figures obtained by the BBC, the database compiled by the UN Department for Aid and Development showed that several foreign governments had given only a small proportion, and at times none, of the money they promised.

One of the biggest offenders was China. It promised US$305 million in reconstruction aid, but had given only US$5 million so far.

The European Commission (EC) owed about US$70 million, and Britain US$12 million. The US government had come up with less than half of the US$350 million it pledged for relief so far.

The World Bank had spent only about 25 per cent of US$250 million pledged and the ADB only 20 per cent of some US$600 million, according to figures compiled by The Guardian.

On the plus side, it reported that Poland, Portugal, Switzerland, Iceland, Ireland, Malaysia and New Zealand had spent all they promised in Sri Lanka.

ADDITIONAL INFORMATION FROM AGENCE FRANCE-PRESSE

the Straits Times/Asia News Network