You are here: Home > China > Nation

Prosecutors raise questions over charity fundraising

: 0 Comments Print E-mail China Daily, May 5, 2011

Adjust font size:

Pan Kaihong, a well-known entrepreneur in Nanjing and deputy director of the Nanjing Charity Federation, was recently arrested after being accused of illegally collecting public savings.

Pan Kaihong.[File photo]

The Beijing-based Procuratorial Daily reported on Wednesday that the 43-year-old entrepreneur, who runs a cosmetics company in Nanjing, was accused by police of illegally collecting at least 4 million yuan (US$616,000) from nearly 290 households in the city. Police said he committed the misdeeds between September 2010 and January 2011.

And the case is likely even bigger. A prosecutor, surnamed Sun, who is working on the case in the Baixia district prosecutor's office, told China Daily that the actual amount of money in question is larger than the reported 4 million yuan.

"This case is becoming more complicated as more victims come to us," Sun said. "It has now been transferred to the economic crimes investigation team with the Baixia district police."

Pan pledged to give 30 million yuan to the Nanjing Charity Federation in December 2010. If all of that is ever given, it will be largest donation the organization has ever received. So far he has produced 1.2 million yuan.

But in return for the generous promise, Pan was elected deputy director of the organization.

An official with the Nanjing Charity Federation, who refused to give her name, told China Daily that Pan's election to the deputy director position was in accordance with the organization's rules.

The money for the donation was to come from a cosmetics company, Nanjing Huangpu Lingluzi Biopharmaceutical Company that Pan had established in 2008. He said the company would give 20 to 30 percent of its annual revenue to the charity.

1 2 Next