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March 1, 2014

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China Red Cross bid to audit Smile Angel flayed

By Zhao Wen | March 1, 2014, Saturday | Print Edition

THE Smile Angel Foundation, a charity set up by actor Li Yapeng and his former pop star wife Faye Wong, is back in the news with reports that China Red Cross has authorized an accounting firm to audit the troubled charity foundation.

It was the latest setback for the actor ever since prominent whistleblower Zhou Xiaoyun began targeting Li, alleging that the actor had siphoned off money from the foundation.

Li had misappropriated more than 55 million yuan (US$8.95 million) from donations made to the charity and turned a 53 million yuan non-profit hospital into his personal property, Zhou claimed.

Yesterday, he questioned the credibility of the auditing results, saying China Red Cross was paid 5.4 million yuan by Smile Angel as management fees.

“China Red Cross backed Smile Angel many times before,” Zhou said on his microblog.

He compared the relationship between China Red Cross and Smile Angel as similar to a grandfather and grandson.

“How can the grandfather find out the truth about his grandson?” Zhou asked.

He also called the National Audit Office to investigate the foundation.

Li, meanwhile, hasn’t responded to the auditing reports yet. Media reports claimed he was vacationing in Taiwan.

Li previously said Zhou’s allegations had severely hurt him and the foundation. He said he would like to invite Zhou and other agencies to visit his foundation.

But if Zhou was only keen on creating an online sensation, he would approach the law.

Last Thursday, the Beijing Civil Affairs Bureau said in a statement that it had received Zhou’s report and ordered the Chaoyang District Civil Affairs Bureau to disclose all information according to government regulations.

The statement also said the Chaoyang District Civil Affairs Bureau had sent letters to Smile Angel, requiring it to disclose information according to regulations.

Li and Faye Wong launched the foundation in 2006 to help children with cleft lips and palates after their daughter was diagnosed with it. Wong’s friends, all A-list stars and social celebrities, have backed the foundation.

Zhou first targeted Li in December 2013, alleging that Li had planned to defraud Wong’s star friends, and that nearly 70 million yuan in donations were misused.

Records show celebrities, including veteran Hong Kong actress Carina Lau and Wong’s former agent Katie Chan raised nearly 5 million yuan, mostly through charity auctions held by the Smile Angel Foundation.

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