Red Cross in scandal again
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China.org.cn, July 15, 2011
The Red Cross Society of China is hit by another two alleged scandals after a young female microblogger "Guo Meimei Baby," who claimed to be the general manager of "Red Cross Commerce," stirred national outrage by flaunting her extravagant lifestyle online.
In one of the two latest scandals, the Red Cross Society of China in Wuhan, capital of central China's Hubei Province, is said to lease a land plot to a company for business use.
According to China National Radio, the Red Cross leased the land, which should be used for storing disaster relief items, to Wuhan Zhiyou Electromechanical Engineering Co for 50 years at 100,000 yuan (US$15,486) annually in 1998.
The land was later subleased by Zhiyou and became the site of office buildings and sports venues.
Wuhan's land resources authority has launched an investigation.
In a separate case, the Red Cross Foundation is said to charge hospitals 600,000 yuan for a medical device claimed to be worth several million yuan, although insiders say its value is just 120,000 yuan.
Through a program launched by the Red Cross Foundation, Zhongxin Ruijin Technology Development donated a medical device to hospitals and promised to offer free cancer treatment to 30-50 patients a year.
But hospitals were required to pay 600,000 yuan to cover transport, installation, maintenance, training and other expenses, the National Business Daily reported.
A source in medical appliance sales said the machine only cost 120,000 yuan.
An insider said the foundation took 20 percent of the money and the rest went to Zhongxin Ruijin.
According to the foundation, the project has been implemented in around 100 hospitals nationwide so far.
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