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Teenage drug addicts having a meal together in a drug treatment centre run by the Christian Zheng Sheng Association on Lantau Island. The decades-old charity is reeling from a scandal that has seen four directors arrested. Photo: SCMP Pictures
Opinion
Editorial
by SCMP Editorial
Editorial
by SCMP Editorial

Hong Kong charities can ill-afford to break public trust

  • Concern over donations to a decades-old city Christian NGO reveals the need for greater transparency from such groups
SCMP Editorial
SCMP Editorial
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Charity is one of the most resilient sectors of Hong Kong’s economy. It is also pivotal to the city’s reputation for compassion for people at home and abroad in times of dire need and distress.

Charity is dependent on public and corporate support. Without effective regulation and transparency, this support is founded on trust.

It would be a heavy blow to the sector, and the causes it helps sustain, if that trust is seen to be abused or not respected, prompting donors to keep their hands in their pockets.

We are reminded of this by reports of allegations concerning HK$50 million in donations raised to support the operations of a decades-old Hong Kong Christian charity. Supporters, students and staff of the Christian Zheng Sheng Association have been shocked by the arrests of four directors and warrants for three others including the principal and one of the founders, following alleged transfers of funds to overseas bank accounts.

Police displays the evidence in a HK$50 million fraud case involving decades-old Christian Zheng Sheng Association at a media conference. Photo: Sam Tsang

The non-profit association was set up almost 40 years ago to help drug addicts. Chui Hong-sheung, a spokesman for a subsidiary, the Christian Zheng Sheng College, has said the case involves a “misunderstanding” that will eventually be clarified.

If that is so it cannot happen soon enough.

The case unfairly affects a group of innocent, caring people including volunteers. Also, sadly, such a scandal must surely affect the public’s willingness to make donations, while funds already raised may be frozen.

Nonetheless the college, which operates at Ha Keng, a remote valley on Lantau Island, would continue operations, Chui said. Following a critical Audit Commission report years ago, the government announced measures to make charitable fundraising and the use of donations more transparent.

There appears to be room to make it even more so. The association is tax-exempt, but there are no laws supervising fund flows.

Hongkongers gave millions to scandal-hit charity. They are owed an explanation

This case should serve as a wake-up call for a review of NGO governance rules.

Meanwhile, regrettably, it also does nothing to ease the wariness of donors when giving to causes such as drug rehabilitation as opposed to caring for homeless children, for example.

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