(Image source: China Review News)

 

BY STEVEN HSIEH

 

You're watching multisource video news analysis from Newsy.

 

Allegations of corruption in China’s Red Cross have led to a a big decline in donations to the biggest non-profit organization in the country.

 

Fueling the fire -- this woman -- 20-year-old Guo Meimei (Goo-uh May-May). Claiming to work for the Chinese Red Cross as a General Manager, she posted these pictures of herself online, seen with designer handbags and luxury cars. (NTDTV)

 

But media are speculating that Ms. Guo is having an affair with Wang Jun, VP of the Chinese Red Cross.  Further allegations claim Wang embezzled charity funds to pay for his mistress’ lavish lifestyle.

 

In an interview on Hong Kong’s Phoenix TV, Guo denied that she’s dating Wang.  Instead -- she says the 53-year-old VP plays a more “fatherly-role” in her life.

 

And about that title of -- “general manager” -- she claims its a running joke between the two.

 

“GUO: “When I had dinner with my ‘papa’, he said that I could be the manager of China Red Cross Commerce. I believed that he did it just because he wanted to spoil me. At that time I didn't even know what China Red Cross Business was.”     

 

A writer for Asia Times points out -- there’s already a crisis of credibility among non-profits in China.  And this scandal isn’t helping.

 

“The scandal involving the Red Cross Society has been fueled by already deep-seated public suspicion of state-run charity organizations, amid a general lack of transparency and openness in the sector.”

 

Some are calling for an internal investigation into the Red Cross --

 

But INFZM spoke with a former government worker says that won’t be easy, noting this conflict of interest.

 

“Zhenyao Wang, a former Civil Affairs officers, points out that China Red Cross is both a charity organization and a department of government. He believes it would be a big challenge to reform the charity system in China.”

 

But a representative for the International Committee of Red Cross says the media’s focus on the scandal undermines the underlying problem.

 

“This is not the type of story you should concentrate on...   I think its very important for the public, of course, to know what their contributions are being used for.  And how they’re being used to become more transparent to its own public. (CNTV)

 

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Transcript by Newsy

World News: China Red Cross Scandal

China's Red Cross Faces Embezzlement Allegations

August 31, 2011
(2:02)
Allegations of corruption in China's Red Cross have led to a a big decline in donations to the biggest non-profit organization in the country.
   
TRANSCRIPT

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