Private charities draw skepticism
Private charities draw skepticism
08:18, November 03, 2009 
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An official scrutinizing the nation's charity affairs said Monday that misinterpretation and speculation would only discourage the burgeoning private charity sector, days after the country's largest private foundation came under fire for its possible inability to cough up a promised 8.3 billion yuan of funds.
The call was made as skepticism persists toward the motivations behind huge philanthropic donations in China, where personal wealth accumulation has become increasingly quick for some since the late 1970s, as they reap the fruits of the nation's economic transition.
Zheng Yuanchang, an official at the office of social welfare and promotion of charities of the Ministry of Civil Affairs, called on the public to not "ill-interpret the goodwill" of those corporations or individuals who donate.
"Charity relies on benevolence, which means we should also use goodwill to judge beneficence and therefore boost the development of charity in China," Zheng told the Global Times.
His remarks came as the 8.3-billion-yuan New Huadu Philanthropic Fund, set up by Fujian-based billionaire Chen Fashu, was put under scrutiny as reports in State media suggest he could be trying to win public favor in order to avoid facing tax-fraud charges.
Chen is the chairman of Fujian New Huadu Industrial Group and ranked 15th in the 2009 Hurun Rich List, with a wealth of 25 billion yuan.
All the foundation's funds are tradable shares personally held by Chen, including shares in New Huadu, Zijin Mining Group, Tsingtao Brewery and Yunnan Baiyao Group.
In separate statements, however, New Huadu and Yunnan Baiyao denied Chen's shares in their companies would be donated, according to the China News Agency.
A staff member with Zijin Group, who asked to remain anonymous, told the Global Times that they had never heard of any exact information about Chen donating his stake to a charity foundation.
"We will inform our shareholders publicly once the information is confirmed, " the staff member said.
Chen began building his fortune by selling groceries in the 1980s but became a billionaire by investing early in Zijin Mining, China's largest gold miner. Chen later bought a 12 percent stake in Chinese traditional-medicine maker Yunnan Baiyao and acquired a 7 percent stake in Tsingtao Brewery, the Financial Times reported.
According to a report by the Straits Herald Friday, Dai Xiongwen, of the Department of Civil Affairs of Fujian Province, said that the New Huadu Philanthropic Foundation was a legally registered charity according to the Regulation on the Administration of Foundations and other relevant laws.
Source:Global Times
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The call was made as skepticism persists toward the motivations behind huge philanthropic donations in China, where personal wealth accumulation has become increasingly quick for some since the late 1970s, as they reap the fruits of the nation's economic transition.
Zheng Yuanchang, an official at the office of social welfare and promotion of charities of the Ministry of Civil Affairs, called on the public to not "ill-interpret the goodwill" of those corporations or individuals who donate.
"Charity relies on benevolence, which means we should also use goodwill to judge beneficence and therefore boost the development of charity in China," Zheng told the Global Times.
His remarks came as the 8.3-billion-yuan New Huadu Philanthropic Fund, set up by Fujian-based billionaire Chen Fashu, was put under scrutiny as reports in State media suggest he could be trying to win public favor in order to avoid facing tax-fraud charges.
Chen is the chairman of Fujian New Huadu Industrial Group and ranked 15th in the 2009 Hurun Rich List, with a wealth of 25 billion yuan.
All the foundation's funds are tradable shares personally held by Chen, including shares in New Huadu, Zijin Mining Group, Tsingtao Brewery and Yunnan Baiyao Group.
In separate statements, however, New Huadu and Yunnan Baiyao denied Chen's shares in their companies would be donated, according to the China News Agency.
A staff member with Zijin Group, who asked to remain anonymous, told the Global Times that they had never heard of any exact information about Chen donating his stake to a charity foundation.
"We will inform our shareholders publicly once the information is confirmed, " the staff member said.
Chen began building his fortune by selling groceries in the 1980s but became a billionaire by investing early in Zijin Mining, China's largest gold miner. Chen later bought a 12 percent stake in Chinese traditional-medicine maker Yunnan Baiyao and acquired a 7 percent stake in Tsingtao Brewery, the Financial Times reported.
According to a report by the Straits Herald Friday, Dai Xiongwen, of the Department of Civil Affairs of Fujian Province, said that the New Huadu Philanthropic Foundation was a legally registered charity according to the Regulation on the Administration of Foundations and other relevant laws.
Source:Global Times
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