Red Cross in the Crosshairs
Written by Buxi on Thursday, May 22nd, 2008 at 11:01 pm
For the many Chinese critical of their government, their number one concern isn’t “human rights” or “freedom of expression”… instead, it’s corruption pervasive throughout Chinese society. In the aftermath of the earthquake, this issue is again on prominent display.
The Chinese Red Cross is playing a critical role in managing relief donations for victims of the earthquake. However, along with great authority comes great responsibility. The Red Cross is now being hit with allegations of corruption from every corner.
Within 24 hours of the earthquake, CCTV (and all other news organizations) began to redirect all donations to the Chinese Red Cross. Chinese Red Cross account numbers has been a regular presence on the scrolling banner on the bottom of every TV station ever since. Although this isn’t clear, I suspect the donations being collected by government-affiliated overseas Chinese groups (including the Chinese embassy) is also largely being directed to the Chinese Red Cross. Even the money collected by many independent funds (like Jet Li’s One Foundation) are ultimately being redirected into the Chinese Red Cross.
Most Chinese are unfamiliar with the Red Cross; public charity on this scale has simply never been done in China before. Therefore, many have been shocked by a few ugly facts that the West is more familiar with… including the heavy processing fee the Red Cross can claim for itself. (For example: the American Red Cross CEO has an annual salary of more than $650k).
In China, the law regulating charitable organizations allows charities to take up to 10% of all donations as a “processing fee”, to pay for operations. The Chinese Red Cross apparently takes 5% off the top of all donations. For many in China, the realization that the Red Cross isn’t a volunteer organization, but instead is in effect making a living off of donations intended for earthquake victims, has been very difficult to stomach.
http://blog.foolsmountain.com/2008/05/22/red-cross-in-the-crosshairs/