Children's charity face public criticisms

The destination of charity donations has been put under the spotlight recently, as reports surfaced suspecting the China Charities Aid Foundation for Children of being involved in money-laundering. The charity is facing demands to clarify details of their financial transactions.

One staff said, "We have explained that we don't have a money laundering problem."

People said, "Any professional accountant can discover the mistake, why didn't the accountant in your foundation?"

A fierce debate, but still no explanation from the beleaguered charity as to how they used the 4 billion plus yuan in donations. And this of course left informer Zhou Xiaoyun unsatisfied.

He said, "Their explanation is always the same, and can't clear my doubts at all."

Back in October, Zhou received information that the China Charities Aid Foundation for Children was experiencing severe financial problems. The freelance journalist sniffed a scandal.

Along with two professional accountants and three lawyers, he looked into the foundation's financial logs.

He said, "On their financial statement, we saw 4.75 billion yuan - a huge amount of money, being paid out on so-called relevant activities, that's all there was."

Details of the subsidiary ledger and bank statement has been demanded for public disclosure.

Jiang Ying, Spokesperson of China Charity Aid Foundation for Children, said, "We went to the People's Bank of China this morning, and what I have now is the bank statement of our cash flow in 2011, and all of them are ture."

The spokesperson for the charity did not reveal the bank statement on the talkshow debate, but promised to put it on the website the next day.

To the public's disappointment, she failed to deliver. She explained they would give the statement to auditors instead. But, building trust is never as easy as breaking a word.