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Top philanthropist tangled in fraud accusations

May 6, 2011  Filed under News  

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By Xinji Letu
Chen Guangbiao, the renowned philanthropist famous for his high-profile approach to charity, said the recent censure for his charitable behavior was a blow to altruism.
China Business Journal, a Beijing-based newspaper, said in a report that some of Chen’s 2010 donations were either fake or questionable. The report was carried by many other media groups across the country.
Two reporters with the journal said they investigated Chen’s major charitable activities in 2010 and found that some recipients’ names appeared fabricated.
In response to the accusations, Chen, 42, president of Jiangsu Huangpu Recycling Resources Company, provided the receipts and paperwork from past donations during an interview broadcast last Monday on China Central Television.
Chen said the incident served only to damage the burgeoning charity industry.
“If they keep doing this, no one in China will want to do charity work,” Chen said during the interview.
Reporters with the journal countered that public figures should be open to oversight, and that “any donation must face public scrutiny.”
Unlike Zhang Ziyi and other celebrities who have been caught up in accusations of donation fraud, Chen has enjoyed wide support.
Director Feng Xiaogang posted six messages on his Sina microblog in support of Chen. “It is unfair that donors are attacked repeatedly and forced to show evidence of their innocence. It seems that donating money is like committing a crime,” he wrote.
“As long as Chen has not used his charity work to gain economic or political leverage at the expense of poor people, we should be kind to him – even if he likes to show off or brag,” said Yu Jianrong, a professor at the Chinese Academy of Social Sciences.
“Honesty may be important but you cannot use vanity alone to paint him as a hypocrite. China has many people who are richer than Chen, but how much have they donated?” Yu said.
Many of Chen supporters say his acts benefit the poor, and that to question that only discourages other would-be donors. Chen said he worried that the negative reports could cause millions of willing donors second-guess their altruism.
But many critics insist that transparency is essential to philanthropy, and that credibility is more important than charity.
As the country’s “top philanthropist,” a “role model of morality” and leader of Chinese philanthropy, Chen certainly should be subject to oversight, one commentator said.
Chen was reported as one of the most generous givers in China according to Hurun Research Institute. Last year, when Bill Gates and Warren Buffett came to China calling on the rich to give, Chen pledged to donate all his money when he dies.
The 42-year-old has long been criticized for his high-profile manner of donation, preferring to press bills directly into the hands of the needy rather than leaving distribution up to established charities.
Chen Guangbiao's flamboyant approach to charity is bringing him unwanted scrutiny. IC Photo

Chen Guangbiao's flamboyant approach to charity is bringing him unwanted scrutiny. IC Photo

By Xinji Letu

Chen Guangbiao, the renowned philanthropist famous for his high-profile approach to charity, said the recent censure for his charitable behavior was a blow to altruism.

China Business Journal, a Beijing-based newspaper, said in a report that some of Chen’s 2010 donations were either fake or questionable. The report was carried by many other media groups across the country.

Two reporters with the journal said they investigated Chen’s major charitable activities in 2010 and found that some recipients’ names appeared fabricated.

In response to the accusations, Chen, 42, president of Jiangsu Huangpu Recycling Resources Company, provided the receipts and paperwork from past donations during an interview broadcast last Monday on China Central Television.

Chen said the incident served only to damage the burgeoning charity industry.

“If they keep doing this, no one in China will want to do charity work,” Chen said during the interview.

Reporters with the journal countered that public figures should be open to oversight, and that “any donation must face public scrutiny.”

Unlike Zhang Ziyi and other celebrities who have been caught up in accusations of donation fraud, Chen has enjoyed wide support.

Director Feng Xiaogang posted six messages on his Sina microblog in support of Chen. “It is unfair that donors are attacked repeatedly and forced to show evidence of their innocence. It seems that donating money is like committing a crime,” he wrote.

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Chen Guangbiao’s show – Top philanthropist criticized for seeking publicity

February 1, 2010  Filed under Debate  

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By Zhang Dongya

A photograph of philanthropist Chen Guangbiao standing beside a wall of 100-yuan bills is spreading online. He recently raised 40 million yuan, 3 million of which he donated, for poor families in five provinces.

He received praise for his generosity, as well as criticism for the publicity tied to his gift. Chen said he is not afraid of being criticized for putting on a show. “I want to make the ‘show’ bigger so that more people will get involved and emulate me,” Chen said.

 

Chen Guangbiao stands behind a wall of banknotes and announces his new charity trip to the west next month. CFP Photo

Chen Guangbiao stands behind a wall of banknotes and announces his new charity trip to the west next month. CFP Photo

Last Friday Chen, 42, president of Jiangsu Huangpu Renewable Resources Company, constructed a “money wall” at the Industrial and Commercial Bank of China’s (ICBC) Jiangsu Branch to collect donations. The wall had 330 “bricks” made up of 100-yuan bills worth 100,000 yuan.

Earlier this year, Chen organized the charity event National Entrepreneurs’ Spring Festival Consolation to Five Western Provinces to raise money so poor families in Guizhou, Sichuan and Yunnan, as well as Tibet and Xinjiang Autonomous Region, would have something to celebrate in the new lunar year.

That event raised 43 million yuan: 3 million from Chen and another 40 million from 127 entrepreneurs.

The money is to be placed inside 80,000 envelopes, each containing 1,000 to 2,000 yuan. The donors will form five groups to distribute money in one province.

Acts of philanthropy have traditionally been anonymous, so Chen’s behavior is making waves. He is, by nature, a showman: during his fundraising drive last week he performed a magic trick before the cameras.

“I’ve been a philanthropist for 10 years. Although there are people saying I’m putting on a show, I’m hoping more will emulate my ‘performance.’ If more people did, more needy people would get help,” Chen said.

The entrepreneurs also collected grain, oil, quilts and warm clothing. Chen said he and his family would spend Spring Festival with recipients of his charity in the west. The group has coordinated their project with respective local governments.

Chen caught the public eye when he brought 60 heavy-duty vehicles and more than 100 machine operators to Sichuan’s earthquake zone a day after the temblor struck in 2008.

He also distributed cash to quake victims he saw along the road. On his first day, he handed out at least 10,000 yuan.

Chen, to date, has donated 1 billion yuan to charity, which makes him the country’s top philanthropist. However, he is best known for his brand of philanthropy: pressing cash into the palms of the needy.

Chen said this does not mean he does not trust intermediary groups such as non-government organizations, but that he wanted to give help directly and quickly.

The tycoon has released his company’s financial report and total donations in 2009. According to the documents, he donated 70 percent of the firm’s profits. “I ensure that all the donated money can be accounted for, and we welcome inquiry from the media and the people.” Jiangsu Huangpu Renewable Resources is engaged in developing renewable resources and in recycling. 

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