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August 27, 2011

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Donations dive after charity scandal

DONATIONS to Chinese charitable organizations during the summer nosedived nearly 90 percent compared to the March-May period, after the Red Cross Society of China was embroiled in a trust crisis.

The amount the charitable organizations received from June to August stood at 840 million yuan (US$131 million), compared with 6.26 billion yuan recorded in March to May, according to the Ministry of Civil Affairs.

The credibility of the Red Cross was put on the line after a young woman boasting her wealth and lavish lifestyle online claimed to be the general manager of the "Red Cross Commerce" in June.

Reflecting people's distrust in charitable groups, donations made directly to people in need shot from 39 million yuan in March-May to 127 million yuan in June-August, an official with the ministry was quoted by the Beijing Times yesterday.

"After the scandal broke out, the total donations made to the government, including charitable organizations or individuals, remained flat, meaning people's willingness to help others wasn't affected. But the target of the donation changed a lot," the official said.

The Red Cross Society of China has been accused of malpractice in charitable work and corruption after the 20-year-old Guo Meimei apparently flaunted her rich and extravagant life online.

Although the Red Cross denied any links with the young woman, the lack of supervision and transparency of its charity work put the organization deeply mired in a crisis.

Other issues involving the Red Cross have come to light following the online scandal. Red Cross provincial branches, for example, have been found charging learner drivers a fee for non-existent "rescue training."

In another case, a land plot allocated to a branch of the Red Cross in Wuhan, capital of central China's Hubei Province, for storing disaster relief items is said to have been rented to a company for business use.




 

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