A new regulation that stipulates the legal liabilities of the Red Cross Society and its staff if they “do not give feedback to donors in accordance with the law” is being added to the revised draft of the Red Cross Society Law, reported China News Service on February 22.
In 2011, Guo Meimei stirred national outrage by flaunting her wealth on Twitter-equivalent Weibo: living in a big Beijing villa and driving a Maserati under the name of a general manager of Red Cross Commerce.
The credibility of the Red Cross Society of China (RCSC), to which Guo had claimed her company was affiliated, was affected, as people questioned how a young woman working for a charitable organization could be so wealthy, according to wiki.china.org.cn, a website run by news portal china.org.cn.
The scandal also exposed the problems with state-run charity organizations as such organizations are often criticized as monopolizing philanthropy and lacking transparency. After the scandal, the RCSC took measures to ensure better management and its local branches started disclosing to the general public what happens to donations.
The new regulation added to the Red Cross Law marks the first time the authorities have legislated to guarantee disclosure of information on where donations go.
In cases where donors are not updated or given a receipt, the Red Cross Society and its staff shall be instructed to correct the error by the auditing of civil affairs departments of the people's government.
In cases of gross violations of this rule, supervisors and other persons directly in charge shall be punished according to law; if damage is caused, they should bear civil liabilities, and if the violation constitutes a crime, they shall be held criminally responsible, according to the revised draft.