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this post was submitted on 18 Apr 2011
12 points (75% like it)
18 up votes 6 down votes
all 13 comments

[–]rocketvat 3 points4 points 7 days ago

The fact that he made up some anecdotes doesn't worry me nearly as much as the possible fraud and misappropriation of funds. Im not going to be pissed that he tricked people into helping girls in pakistan, but ill be really pissed if the schools are a lie.

[–]furyg3 4 points5 points 7 days ago

You should never give money to a charity that doesn't have it's financial records audited by an independent external auditor. Apparently in all the years that Mortenson's non-profit has existed, they've only done this once. :( The kind of things that the non-profit is accused of (acting like a personal ATM for Mortenson) are pretty hard to hide from an auditor.

[–]winepoetryvirtue [S] 2 points3 points 7 days ago

Jon Krakauer, author of Into the Wild and former Greg Mortenson supporter, has released an eBook called Three Cups of Deceit. Looks like it might be an interesting read...

Available free here (for at least the next 24 hours).

[–]zayzay 3 points4 points 6 days ago

Relevant reddit post concerning Greg Mortenson's reply

[–]rack88 -1 points0 points 7 days ago

I think we should have a lively discussion about this.

My personal belief is that Greg hasn't lied about his story and his work in Pakistan and Afghanistan, while it may be possible that his nonprofit's finances aren't amazing. Mismanagement of finances for small philanthropic groups happens. Good people are not necessarily good accountants and with the amount of continent-hopping Greg does, it's not horribly surprising.

The group has also noted that CBS may have gone to some of the schools during their break period (i.e. you wouldn't find American students in school over the summer either). I have a fairly close personal connection to the Mortensens through my grandparents' good friends the Simonsons (who were also African missionaries and knew the Mortensens well in Greg's early years). I'm sure that the Mortensens are just as good and caring as the Simonsons, and trust Greg in his storytelling.

[–]nudebeach 1 point2 points 7 days ago

While I agree with your general sentiments, I think you are basing too much of your opinion on your close connection. I think there are other facts that could be argued here in favor of the work Mr. Mortenson does that are more concrete.

He has raised awareness of the plight of a very needy population. He has been inspiration to others who hope to do the same, or at least the same as the presentation given to them by Mortenson, even if it isn't totally true. It is interesting that his book is "required reading for U.S. servicemen bound for Afghanistan." It shows that at very least, his book is powerful and has the ability to do some good in that it may help people see a situation in a different light.

That being said, people don't like to be duped. Mortenson's nonprofit is not "small" like you mention. It is huge and that makes it a target for gross, somewhat slimy pieces like this. I hate when an interviewer asks fucking questions like "Why would Mr. Mortenson write this [that he was kidnapped by the taliban]?" Response, exactly what interviewer was looking for: "To sell his books."

I think the size of Mortenson's nonprofit calls for super-high transparency, professional accounting services and direct communication with donors demonstrating how their money is used. It's not a little tiny group globe hopping anymore, he's hit on something that really means something to people. And I think now, unfortunately, people are suspicious of what are likely mostly good things he has done because they feel taken advantage of. It's bad for nonprofits.

[–]rack88 -1 points0 points 7 days ago

I agree, he really needs to hire a couple good folks to really run the charity from a financial standpoint, but if you read the books you do feel his pain in placing trust in folks to do the work he normally takes on himself. He speaks a little bit about worrying for the safety of anyone else he might send to Afghanistan/Pakistan in his stead.

While the charity may not be "small", it's not a mega-charity like the Red Cross or something like that. Greg has a salary of about $150k which is reasonable for something he basically does 24/7 (compared to fmr. Red Cross director's $300k). On the other hand, I agree with 60 min that more of the institute's $14 mil in funding should go to the Middle East and less to Greg's book touring.

[–]winepoetryvirtue [S] 1 point2 points 7 days ago

I think what worries me the most from the 60 Minutes report is the notion that many of the schools that CAI has built are either non-existent or not in use. While I cannot independently verify that this is true, I am concerned about the quality of service delivery that the CAI provides. Are they indeed "going the last mile" and providing comprehensive education to children in Afghanistan or Pakistan? Or are they just constructing buildings?

It also troubles me quite a bit that Mr. Mortenson is publicly lying about his nonprofit's accomplishments. Like Jon Krakauer says, why would he tell Charlie Rose that CAI built 11 schools in a particular region when they only in fact built 3? The lack of accountability, both fiscal and programmatic, is greatly suspect, especially for a 501(c)3 with a $23 million annual budget.

[–]rack88 0 points1 point 7 days ago

I think there are a lot of factors in play and we can't have certainty right now. There is the fact that CBS may have hit the schools when school was out, or there may have been fighting in certain areas and school wouldn't be safe, or the government had closed a school (perhaps temporarily) due to finicky local government issues. I think there are a lot of possibilities for why CBS couldn't find more of them in use and they told the story they felt they saw. It'd be nice to have more independent confirmation before I condemn the group too much.

[–]winepoetryvirtue [S] 1 point2 points 7 days ago

Here's an excerpt from pg. 48-49 of Jon Krakauer's book:

Even more alarming is the fact that a significant number of CAI schools exist only on paper. The CAI website, for example, lists eight schools that have been completed in Afghanistan’s Konar Province; during his Charlie Rose interview, Mortenson claimed he’d built eleven schools there. At that time, he had built only three schools in Konar; in the months since, he has built a fourth.

Many CAI schools that actually did get built, moreover, were later abandoned due to lack of CAI support. “Ghost schools,” they’re called by the disillusioned residents of Baltistan, where at least eighteen CAI buildings now stand empty. No one, not even Mortenson, knows exactly how many CAI projects exist as ghost schools, or simply never existed in the first place, because he has repeatedly subverted efforts by his Montana-based staff to track effectively how many schools have been built, how much each school actually costs, and how many schools are up and running. For the CAI staff to gather such crucial information, Mortenson would have to accurately account for how he spends CAI funds—something he has never been willing to do.

[–]nudebeach 0 points1 point 6 days ago

It is weird that he's portrayed as "subvert[ing] efforts" and avoiding Kroft at the book signing in that article. I wonder if that's truly what happened or if Krakauer and Kroft are bending the truth to strengthen their case against him.

[–]nudebeach 0 points1 point 6 days ago

You're right to look at other factors that weren't covered or acknowledged in that article. And I agree about wanting an independent confirmation. However, I feel like this has been a big hit to his group. I hope that it is not true, but even if it is indeed not true, I worry that his group has been too tarnished. I say that I worry because of other groups and people that were inspired by his story and work, not because of what he will necessarily experience.

[–]GodisScottCard 0 points1 point 5 days ago

Krakauer's article repeated shows that many people historically have been hired by this charity to manage money and programs and have been driven away by Mortenson.

Hornbein's resignation:

I am devastated by what has happened…. While my belief in CAI’s mission is undiminished, I can no longer believe that Greg, in spite of his unswerving commitment, has the attributes demanded to lead CAI into its next phase…. Communication is essential to trust. Accountability with transparency underpins trust…. Many of the Board’s efforts to achieve this accountability have been thwarted by Greg, simply by his not responding. It was Greg’s vision and courage that created CAI and caused us to commit our energies. He is a unique individual with many precious attributes. Now, sadly, it is other aspects of Greg, ones I don’t understand, that leave me doubting the future viability of his dream.

Resignation of Gordon Wiltsie,

I asked Wiltsie, who had served as the board treasurer, why he left. “Greg,” he replied, “regards CAI as his personal ATM.”

And the longest and most damning, Debbie Raynor.

By the summer of 2004, however, Mortenson’s conduct made it impossible for Raynor to continue working for CAI in good conscience. As she explained in a memo to the CAI board of directors, there were no meaningful financial policies or procedures in place when I started my employment. I endeavored to rectify that situation and bring about necessary and much needed financial controls…. These new policies were fully discussed and implemented with full approval by Mr. Mortenson. The staff readily complied with these new policies ensuring an accurate account of expenses. However, Mr. Mortenson has failed to comply in any meaningful manner with these policies…. Since the start of my employment, Mr. Mortenson has spent over $100,000 on CAI’s credit cards. Mr. Mortenson has never provided any receipts for these expenses, and repeatedly ignored my requests for their submission…. Mr. Mortenson has refused to submit even one travel voucher…. In order to allocate indirect expenses, it is imperative that I receive time sheets from all employees. Since March 2004, Mr. Mortenson has failed to submit a time sheet…. On May 27, 2004, I again reported to the Board the serious situation as it related to overseas expenses. At that time, there was over $100,000 in unaccounted overseas expenses. Mr. Mortenson agreed to provide all documentation for overseas expenses. To date, he has not produced the promised documents in any meaningful manner. In fact, currently CAI has spent over $270,000 in cash and wire transfers [emphasis by Raynor] without proper documentation as to the disbursement of this money. There is no record to who ultimately received these monies or the manner in which it was spent. Mr. Mortenson has reported that measures have been implemented to resolve the unsubstantiated overseas documentation; however, no specifics have been forthcoming. In August 2004, I learned that information given to me to be placed in the Annual Report is untrue and therefore fraudulent. Unfortunately, Mr. Mortenson has determined that he has no need of providing financial information to the CFO. These circumstances are untenable. I am unable to fulfill the duties and responsibilities as CFO and Staff Supervisor. Thus, I had no alternative but to resign from CAI effective September 3, 2004.

There are others.