Four Accused of Embezzling Tsunami Relief Funds

From the Living Church-

Police are seeking two former employees of the Church of South India (CSI) on charges of embezzling money given to the church for post-tsunami development. Police have arrested two other people — the daughter of the former employees and her nephew.

The charges of embezzling relate to about $1.6 million of nearly $3.8 million given to the CSI by Episcopal Relief & Development to help tsunami survivors in coastal Chennai.

“Two years ago, Episcopal Relief & Development raised concerns with the church authorities when CSI failed to complete the financial reporting and required audits outlined in our agreement,” ERD said in a statement issued late Monday afternoon. “Since then, we have suspended programs with CSI as we work to appropriately account for funds allocated in the aftermath of the 2004 Indian Ocean tsunami.”

The four people are accused of embezzling nearly half of the money donated to help tsunami survivors. Police are seeking Dr. Pauline Sathiamurthy, former general secretary of the CSI, and her husband. Their daughter, Benatikta, and a relative, Robert Sunil, have both been arrested.

ERD’s statement added: “In keeping with board policy, we routinely hire international accounting and auditing firms to assess multi-year and long-term program partnerships. This audit process ensures the proper use of donated funds. In the case of CSI, we did not receive the required audits and as is our policy, we suspended programs immediately in order to gain clarity about the work completed. After two years, we were forced to pursue legal action. We expect our lawsuit to be filed in India within the next few days.”

http://www.livingchurch.org/news/news-updates/2009/10/13/four-accused-of-embezzling-tsunami-relief-funds