Chinese provincial authorities are examining one of the country’s biggest foundations over its spending and alleged loans to private companies controlled by officials of the charity, according to China Daily.
The Soong Ching Ling Foundation, in the central province of Henan, spent $22-million on charitable projects last year after collecting $94-million in 2009. Chinese law requires nonprofit groups to spend at least 70 percent of the previous year’s donations on their missions.
Officials in Henan are also looking into loans made by the foundation and the construction of private luxury apartments on property the charity began to develop four years ago as a children’s activity center.
The Henan charity said it was waiting for guidance from the China Soong Ching Ling Foundation, in Beijing, to clarify the situation. But the national organization said it has only minimal ties with similarly named local charities and is not involved in the Henan foundation’s finances or management.