The disciplinary commissions of the Communist Party and Youth League have launched an investigation into alleged financial irregularities by the China Youth Development Foundation, South China Morning Post said. Accusations were made by Liu Yang, formerly the foundation’s accountant. The foundation oversees the charity Project Hope, which promotes education in povertystricken areas.
According to the allegations, some units of the foundation have lent money from donations in the hope of earning interest. In addition, a 1997 audit found that the foundation had lost a lot of money through risky investments. The accusations have raised alarm among members of the Politburo Standing Committee, and Liu said one senior official told her that the case affected the reputation of the party and the country.