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Lu Xingyu: "Guo Meimei" or model philanthropist?

2011-08-19 15:30    Ecns.cn     Web Editor: Su Jie
Lu Xingyu, 24, is the executive chairwoman of the China-Africa Hope Project and secretary-general of the Global Chinese Business Future Leaders Club.

Lu Xingyu, 24, is the executive chairwoman of the China-Africa Hope Project and secretary-general of the Global Chinese Business Future Leaders Club.

(Ecns.cn)--Lu Xingyu is the executive chairwoman of the China-Africa Hope Project and secretary-general of the Global Chinese Business Future Leaders Club. Only 24 years old, she has recently become the center of an Internet sensation with echoes of the "Guo Meimei Incident," triggered in part by the recent closure of many migrant schools in Beijing.

The Guo Meimei scandal brought China's charities, particularly the dubious practices of the Red Cross, into a harsh spotlight. Now the focus is on how exactly a wealthy second-generation girl has come to manage a multi-billion yuan international project--and also why money is going to build schools in Africa, while China shuts down its own.

According to Lu, the project plans to raise 2 billion yuan ($313 million) to establish 1,000 primary schools in Africa within 10 years.

However, the state-run Xinhua News Agency reported on Wednesday that Beijing authorities had closed 24 schools for the children of migrant workers just before the start of a new semester, affecting more than 14,000 children, mostly in the outlying areas of Haidian, Chaoyang and Daxing districts.

Insufficient qualifications

Lu soon came under fire over how she had gotten appointed executive chairman of such a big project and whether she was qualified for the job.

Web users speculated that her father, Lu Junqing, chairman of the China-Africa Hope Project and one of its organizers (the World Eminence Chinese Business Association, or WECBA)£¬might have had something to do with it.

Lu countered in her microblog that she has so far been in charge of various tasks, including promotions, communication and organizing, which have proven that she is competent at her position.

"The executive chairman suggests responsibilities, not an official rank," said Lu.

Lu admits to being a rich second-generation girl born in the 1980s, who inherited a fortune.

However, Lu noted that she has never spent a penny from the China Youth Development Foundation (CYDF)£¬another organizer of the project.

"All the expenses for travel to Africa and fund-raising activities are paid by my father," explained Lu, adding that she has donated 1 million yuan ($157,000) and her father 100 million yuan($15.7 million).

Questionable commissions

Another question was raised about the high commissions collected from the project fund. Lu was revealed to have claimed a 10% commission, stirring suspicions among Internet users about whether there were dirty deals between Lu and the charity organizations.

"A little girl born in 1987 is now running a 1.5-billion yuan [sic] project to build 1,000 hope schools in Africa. The daughter of a billionaire is getting as much as 10% commission as a management fee for a charity, which totals 150 million yuan," said a tweet.

At this, Lu explained that "donations from the businessmen were wired to the CYDF directly and would be kept there according to related laws and regulations. The CYDF, also responsible for the construction, collects 10% commission as management overhead."

Lu added that primary estimates show that 10% may not even be enough, since it is an international project that costs more than domestic ones.

The CYDF said that they will set up a special account for the project and release the audit report to the public, adding that donators are all able to track their money and the funding for each school is 1.5 million yuan ($235,000).