Allegations harm Iraqi humanitarian group

BAGHDAD, Sept. 25 (UPI) -- Allegations of embezzlement and mismanagement have virtually paralyzed the Iraqi Red Crescent, Iraq's leading humanitarian group, officials say.

Among the complaints, critics cite the expenditure of more than $1 million on Washington lobbying firms in an unsuccessful effort to attract U.S. funding, The Washington Post says.

Allegations also arose over reported lack of competitive bidding for some contracts and lack of transparent spending.

Said I. Hakki, the group's former president, left Iraq this summer after arrest warrants regarding the allegations were issued for him and his aides. They deny the allegations, calling them politically motivated. Hakki was accused of embezzlement in a grant controversy but the warrant was rescinded.

The Red Crescent oversees the largest humanitarian operation in the country, with thousands of employees and an annual $60 million budget, But, nearly all its humanitarian work has ceased in recent months after the government froze Red Crescent assets.

The agency, which distributed more than 35,000 emergency food packages in June, handed out 2,000 in July.