Environmental organization Greenpeace has acknowledged that a staff member lost a record $5.1 million in currency speculation. The group offered apologies, saying the finance employee was fired, but acted 'in the best interest of the organization.'
In a statement released by Greenpeace on Sunday, the
organization said that its soon to be published 2013 annual
report will show a budget deficit of 6.8 million euros (US$9.2
million) for the year. "This deficit includes the loss of 3.8
million euros ($5.1 million) from an ill judged contract aimed at
managing foreign currency exchange costs," explained
Greenpeace, saying it "understands that supporters and donors
will rightly be surprised and disappointed by the loss."
The contracts, which were a "serious error of judgment"
by the organization's international finance unit employee,
speculated on a weak euro. Euro strengthening later in the year
resulted in the huge loss of donation money, which Greenpeace had
to file into its 2013 accounts.
It is indeed a sensitive amount for Greenpeace International,
which had an income of 72.9 million euros ($98.9 million) in
2013, out of a global budget of around 300 million euros (over
$400 million). Like many big charities, it usually agrees
fixed-rate currency exchange deals with third-party brokers, not
to be affected by market fluctuations.
In its statement, the organization said it understands that it
can only exist thanks to supporters' trust and contributions,
adding that it is "determined to ensure their trust is not
misplaced."
The organization said those responsible for the miscalculation
acted "beyond the limits of their authority and without
following proper procedures." It offered a "full
apology" to its supporters, but said there was "no
evidence of personal gain." An independent audit of the
error will be conducted.
Greenpeace reassured its donors that none of its frontline
environmental campaigning would be financially affected, as
adjustments for the losses would be made through "amending
planned infrastructure investments" in the next couple of
years.
It remains unknown whether the organization's supporters will
overlook the lost funds. Greenpeace exists through donations from
individual supporters rather than governments or corporations.
Small donations of under 100 euros make up 90 percent of
Greenpeace's funding – meaning nearly 40,000 of its supporters
may have had their money lost in the speculation.
A Greenpeace rich enough to blow €3.8m on currency gamble rather makes mockery of its claim to be altruistic do-gooders fighting Big Bad Biz
— A Libertarian Rebel (@A_Liberty_Rebel) June 16, 2014
Greenpeace took millions it received as private donations and blew it on high-risk casino-grade investments http://t.co/AOQXT6zpEI
— Craig Rucker (@CJRucker) June 16, 2014
Hippies don't make good traders, Greenpeace bet against euro loses millions http://t.co/moS2OdW0Hh
— ForexLive (@ForexLive) June 16, 2014
Greenpeace has recently faced criticism from those who believe
it's the small things that make a big difference. When a giraffe
was killed and dissected publicly at a zoo in Copenhagen
in February, Greenpeace kept silent. "Maybe that’s because
Marius [the giraffe] was, in all senses, a poor
giraffe," some disappointed social media users suggested.