China punishes children's charity over donation fraud

BEIJING, June 11 (Xinhua) -- The Ministry of Civil Affairs has handed an administrative penalty to a children's aid foundation over a donation fraud case that led to nearly 10 million yuan (about 1.4 million U.S. dollars) in losses.

The China Charities Aid Foundation for Children, a public fundraising foundation under the charge of the ministry, has been barred from carrying out charity activities for three months and blacklisted as a dishonest social organization due to a serious law violation, said the ministry in a circular on Tuesday.

An investigation found that from June to August in 2023, a person surnamed Ke, who had been engaged in services at a local aid station since November 2022, illegally raised funds from patients in the name of an aid program for seriously ill children.

In September 2023, Ke was slapped with compulsory measures for inspected fraud. The case has now been transferred to the judicial authority, according to the ministry.

The management within the foundation was found to be non-standard, said the ministry, adding that the organization had also failed to disclose relevant information.

In response, the deputy secretary general of the foundation, who was in charge of the serious illness aid program, was subject to an investigation by supervisory agency over allegations of duty crimes and the case has been transferred to the judicial authority, read the circular.

The ministry vowed to protect the legitimate rights of the juvenile patients currently covered by the foundation's aid, launch a thorough rectification within the organization, and further strengthen supervision and law enforcement over charity organizations and activities.