Tycoon donated less than promised
By Wang Xiang |
02:01 UTC+8 July 23, 2010
|
Print Edition
Print Edition
A TYCOON ranked as the 11th richest man on Chinese mainland is facing questions after media found a charity foundation he set up with a promised donation of 8.3 billion yuan (US$1.22 billion) is worth only 160 million yuan.
Chen Fashu, chairman of Fujian-based Xinhuadu Group, announced in October that he would set up Xinhuadu Charity Foundation and would personally put in 90 percent of all the Xinhuadu shares he owned.
Chen said the stake was worth 8.3 billion yuan, which would make it the largest charity foundation in China.
But reporters found that the foundation only received 160 million yuan from Chen, Guangdong based Time Weekly reported yesterday.
Chen holds large stakes in listed companies like Tsingtao Brewery Co Ltd, Yunnan Baiyao, and Zijin Mining Group.
The regulator of charity funds in Fujian Province said Chen paid only 100 million yuan when he announced he would register the fund. He put in another 60 million yuan soon after, but that was it.
Neither Chen nor representatives from the Xinhuadu Group could be reached for comment yesterday.
Lin Danniang, the company's secretary of board, explained to the weekly newspaper that Chen only promised to invest 8.3 billion worth of shares but never said when he would make the donation.
"Not one cent was put into the fund afterwards," said an official with the fund regulator Dai Weiwen.
"In fact, Chen's promise was ridiculous because we cannot allow stakes into the fund."
When Chen announced that he would make the donation last year, speculation swirled that he was only trying to avoid tax fraud charges with the philanthropic move.
Tang Jun, the CEO of Chen's Xinhuadu Group, who organized the establishment of the fund, is currently enmeshed in a fake credential scandal, accused of faking his doctoral degree in the United States.
Similar charity scandals embroiled Chinese actress Zhang Ziyi and Shanghai writer Yu Qiuyu last year after the massive earthquake hit Sichuan Province in 2008.
Chen Fashu, chairman of Fujian-based Xinhuadu Group, announced in October that he would set up Xinhuadu Charity Foundation and would personally put in 90 percent of all the Xinhuadu shares he owned.
Chen said the stake was worth 8.3 billion yuan, which would make it the largest charity foundation in China.
But reporters found that the foundation only received 160 million yuan from Chen, Guangdong based Time Weekly reported yesterday.
Chen holds large stakes in listed companies like Tsingtao Brewery Co Ltd, Yunnan Baiyao, and Zijin Mining Group.
The regulator of charity funds in Fujian Province said Chen paid only 100 million yuan when he announced he would register the fund. He put in another 60 million yuan soon after, but that was it.
Neither Chen nor representatives from the Xinhuadu Group could be reached for comment yesterday.
Lin Danniang, the company's secretary of board, explained to the weekly newspaper that Chen only promised to invest 8.3 billion worth of shares but never said when he would make the donation.
"Not one cent was put into the fund afterwards," said an official with the fund regulator Dai Weiwen.
"In fact, Chen's promise was ridiculous because we cannot allow stakes into the fund."
When Chen announced that he would make the donation last year, speculation swirled that he was only trying to avoid tax fraud charges with the philanthropic move.
Tang Jun, the CEO of Chen's Xinhuadu Group, who organized the establishment of the fund, is currently enmeshed in a fake credential scandal, accused of faking his doctoral degree in the United States.
Similar charity scandals embroiled Chinese actress Zhang Ziyi and Shanghai writer Yu Qiuyu last year after the massive earthquake hit Sichuan Province in 2008.
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