Is the problem with the Red Cross in general, just the American Red Cross, this particular project of the Red Cross, or with charity projects in Haiti? Because I think I've heard of other NGOs who spent a lot of money to accomplish nothing in Haiti.
I'd really like to see some more in-depth reporting on this.
I think it is very plausible that the Red Cross didn't bribe the right people or underestimated the depth of bribes it would take to get anything done. By the time they looked up, the money was gone and nothing was done and they dug their hole deeper by lying, probably expecting the local officials to back up their story. Instead, they threw them under the bus in order to attract more spending.