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The Chronicle of Philanthropy
News Updates

August 10, 2007

Controversy Erupts Over Aid to Schools in China

A Japanese businessman says an official of the Chinese Education Ministry cheated him out of more than $600,000 in money intended for charitable purposes, reports the Los Angeles Times.

After making his fortune setting up an exam school, Yomei Matsuoka decided to establish schools in rural China. However, he says he was convinced by Ben Yongzhong, a Chinese Education Ministry official then working in Tokyo, to lend money to Tianjin University at a low interest rate to rebuild an exchange-student dorm with the promise that the money would be paid back.

The money instead went to the son of Mr. Ben’s senior colleagues at the Ministry and used for a hotel near the university. Mr. Ben denies any wrongdoing and claims he, too, was a victim.

Mr. Matsuoka still says that he plans to build the Chinese schools if he gets his money back.

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