Actor's charity accused of dodgy dealings

A cultural foundation managed by Li Yapeng, a famous actor, was recently accused of getting involved in the real estate industry in the name of philanthropy. Li responded on Sunday that local civil affairs authorities have concluded their investigation of the issue.

Whistle-blower Zhou Xiaoyun reported to the Beijing Municipal Bureau of Culture and the Beijing Municipal Bureau of Civil Affairs in a letter on December 17 that Li's foundation is involved in illegal operations. One day later, Zhou released his letter on the Internet, he told the Global Times on Sunday.

Li has served as the legal representative of the Shuyuan China Culture Development Foundation since May 2012 and also the legal representative of Beijing Fair Spring Cultural Spreading Co. Ltd since it was founded in June 2001, people.com.cn reported Thursday.

According to China's regulations on foundation management, a legal representative should not represent other organizations at the same time.

Zhou suspected that Li had made use of the foundation to invest in real estate industry.

"This clause is set to prevent people from money laundering. With two identities, a person could use this to transfer money between companies and foundations," Zhou said.

The Beijing civil affairs bureau said on its Sina Weibo account Friday that Li registered the private foundation according to law. The bureau said it has investigated the case, adding that it will punish Li according to the law if the accusation is confirmed.

The bureau told people.com.cn that Li has promised that he was not a legal representative of other organizations when registering.

"The civil affairs bureau has informed us of its investigation result during the past two days. It will publish it to the public soon according to their working procedures. It's not convenient for me to talk about it," Li said at a press conference held in Beijing on Sunday afternoon.

He said the foundation is dedicated to promoting traditional Chinese culture. In the last year, the 2.4 million yuan ($395,280) spent on the foundation was donated by himself, Li said, adding that none of his companies has business with the foundation.

"I'm very disappointed with Li's response. He lacks sincerity to face the public's suspicions," Zhou said. "He should publish the financial records and the annual report on the foundation."

The bureau tells anyone registering a foundation about the clause forbidding holding two positions, Wang Zhenyao, head of China Philanthropy Research Institute under Beijing Normal University, told the Global Times.

Wang said that the clause targets philanthropy since it was a brand-new field in 2004, when the regulation was implemented.

"Currently, philanthropy had better development and the regulation is outdated," Wang said.

Liu Zhouhong, secretary-general of Narada Foundation, agreed with Wang, adding that commerce and philanthropy should be closely combined together.

By Sunday evening, 41.8 percent of 2,193 respondents in an online poll by Sina Weibo said they support Li and 23.2 percent believe Zhou is right.