State-backed charity in Wuhan under fire over coronavirus donations
- Local branch of the Charity General Association funnelled more than US$387 million to the city government
- Critics say it should have done its job and distributed the money itself
A state-backed charity in the coronavirus epicentre Wuhan is under fire for handing over donations for the outbreak to the city government instead of managing the funds itself.
Donors and academics have questioned the Wuhan Charity General Association’s handling of the money after it was revealed that it gave over 2.7 billion yuan (US$387.3 million) in donations to the local authorities. The charity is under the city’s Civil Affairs Bureau.
The controversies highlight a long-standing problem that has plagued social welfare organisations in China for decades – how to manage public donations in a transparent and accountable way.
An administrative change in 2018 further complicated the situation by reducing the government’s role in managing such donations, especially during a public health crisis.
The Charity General Association and Red Cross Society of China are two of the country’s biggest charities and both are government-backed, with local branches around the country.