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Red Cross in hot water again over bike scandal

The Chinese Red Cross Foundation found itself in the media spotlight again after it donated nearly 15,000 inferior bicycles to state-owned enterprises and retired government officials in northwestern Shaanxi Province.

The exposure sparked a public outcry because CRCF claimed its aid all went to the minorities and children in underdeveloped areas instead of government organizations and state-owned enterprises, including Yanchang Petroleum Group, a major company in the province.

CRCF also raised complaints from retired officials who received the shoddy bicycles, a local newspaper, Chinese Business, reported today.

The Xi'an Aircraft Industry Company received 2,000 bikes last August and distributed 200 to its outstanding workers.

Overwhelmed by criticism, CRCF has recalled 1,800 bikes and agreed to replace them with new ones, the report said.

The bike supplier, Zhao Dalong, said all the bikes were assembled in a 100-square-meter workshop in Tianjin, each costing about 140 yuan (US$22). However, CRCF claimed the bikes were priced at about 700 yuan each, according to the report.

"They neither signed an contract with me nor asked for an invoice," Zhao said.





 

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