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October 20, 2011

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Red Cross denies WWII fund claims

THE Red Cross Society of China has been accused of misusing 500 million yen (US$6.5 million) it was entrusted to distribute among former inmates of a Japanese labor camp.

The humanitarian group was appointed by Japanese contractor Kajima Corp to manage a fund it had set up to support Chinese forced laborers it used in World War II.

However, only about 500 out of 986 victims or their family members received cash, and the Red Cross refused to publish accounts and records, Beijing-based Legal Weekly reported yesterday.

The Red Cross denied dipping into the trust fund, but refused to say how the money was used, the report said.

These accusations are a further blow to the charity which faced questions about transparency in the summer when a young woman claiming to be a general manager flaunted her extravagant lifestyle online. The Red Cross denied any link, but public confidence was damaged.

Eleven people, representing Chinese survivors from the labor camps and relatives of the deceased, filed a lawsuit against Kajima in 1995, demanding an apology, memorial halls to be built and 5 million yen for every victim.

They accused Kajima of abusing them and making them work in appalling conditions in Hanaoka, in Japan's Akita Prefecture.

In 2000, the two parties reached a settlement at the Tokyo High Court, in which Kajima agreed to set up a 500 million yen "Hanaoka Peace and Friendship Fund" but denied any legal responsibility.

Kajima appointed the Red Cross as the fund regulator.

The management committee decided to distribute half of the fund to victims or relatives, with the remainder helping with the education of their families.

Li Min, who wrote a book about what took place in Hanaoka, told the newspaper that the Red Cross said it found more than 500 victims, but did not say how the remainder would receive payouts, according to the report.




 

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