Use of donor funds

Who should have the right to control the use of the donors' money for the earthquake victims in Sichuan province last year? That 80 percent of the 76 billion yuan ($11.2 billion) donated for the earthquake victims was reported on Wednesday to be under the government's management has touched off this debate.

The Ministry of Civil Affairs (MCA) responded to the debate yesterday, saying that the country's non-governmental organizations (NGOs) do not have very good credibility, the feedback on their use of donor contributions is not transparent enough and hence, donors do not want them to handle the money.

The official from the MCA also said that the government faces a lot of pressure in managing such funds because of its financial system. Once the money has entered State treasury, a budget must be made for its use, and with a budget, it takes time to put the money to the right use. But it is not without merit for the donation to be kept in State treasury before being used. Strict audit will ensure that the money is not misappropriated or embezzled.