One of China’s wealthiest tycoons recently announced the formation of the country’s largest-ever private charity. His decision was met with skepticism from even the official media. From the Financial Times:
…When Chen Fashu, the 15th richest man in China this year, with a personal fortune of about $3.7bn, announced last week he would donate roughly Rmb8.3bn ($1.2bn, €821m, £744m) to his new charitable foundation, state media responded by questioning his motives.
Even the People’s Daily, the designated mouthpiece of the Chinese Communist party, suggested the charity might be used to evade a possible tax investigation and questioned whether the funds would all be used for charitable causes.
According to Tang Jun, Mr Chen’s spokesman and chief executive of the new charity, the Xinhuadu Philanthropic Foundation, Mr Chen is not under investigation and speculation over his motives is completely unfounded.
China’s state administration of taxation refused to comment but a senior government official in charge of overseeing charitable donations expressed reservations about the donation.
