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Tzu Chi faces backlash over $33 million fraud, accused of tolerating corruption

From Liberty Times · () Chinese

Translated from Chinese, summarized and contextualized by DistantNews.

At a glance

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  • Buddhist charity Tzu Chi is facing criticism for its handling of a $33 million fraud case involving a fake BNT vaccine procurement deal.
  • Critics, including academic Shen Rong-chin, accuse the organization's leadership of lacking self-renewal ability and appearing to tolerate corruption.
  • The charity's response, including a statement and legal actions, has been deemed inadequate, raising questions about accountability and the oversight of donations.

The Buddhist Compassion Relief Tzu Chi Foundation is under fire following revelations of a $33 million fraud related to a purported procurement of BNT vaccines. The scandal has sparked outrage, with critics questioning the organization's leadership and its response to the significant financial loss.

From the media's exposure of Tzu Chi being defrauded of NT$1.06 billion to this day, apart from a flawed statement and entrusting lawyers to shirk responsibility, Tzu Chi has not established an investigation team. Senior management, including CEO Yen Po-wen, remains unmoved.

— Shen Rong-chinCriticizing Tzu Chi's lack of internal investigation and leadership accountability after the fraud.

According to reports, lawyers Chen Yu-hsuan and Li Yi-ru allegedly defrauded Tzu Chi during the COVID-19 pandemic. They claimed to have access to BNT vaccine channels and falsely stated they had assisted major corporations with vaccine purchases. Tzu Chi reportedly entrusted Chen's company, Yu Da Enterprise Management Consulting Co., to procure 5 million BNT vaccine doses, paying a commission of $30 million USD, approximately $1.06 billion New Taiwan dollars. The funds were allegedly lost, and the procurement never materialized.

More than five years after the alleged fraud, the situation has come to light, and Tzu Chi's reaction has drawn sharp criticism. The organization has not initiated an internal investigation, and its public statements have been accused of deflecting responsibility. This perceived lack of urgency and accountability has led to strong public condemnation regarding the leadership's role and the oversight of charitable funds.

NT$1.06 billion is just loose change compared to hundreds of billions.

— NetizenComment on the scale of the fraud relative to Tzu Chi's overall assets.

Canadian academic Shen Rong-chin has voiced strong disapproval, stating that Tzu Chi's leadership appears to have lost its capacity for self-renewal and is prepared to "rot to the core." He noted that beyond a "flawed statement" and attempts to shift blame through lawyers, no internal investigation team has been formed. Senior figures, including CEO Yen Po-wen, remain in their positions, leading to accusations that the organization is indifferent to the substantial loss and unwilling to hold its leadership accountable.

This might also be one of their methods of money laundering.

— NetizenSpeculating on the motives behind the alleged fraud and lack of investigation.
DistantNews Editorial

Originally published by Liberty Times in Chinese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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