The “matching donation” as a front … Henan civil servants fake public welfare fraud cancer children millions of dollars to save their lives

For a family with relatively ordinary financial conditions, the medical costs of treating leukemia are a bottomless pit. (taken from China Philanthropist magazine)

Wang Yanan, a civil servant in Henan Province, used the name of the Henan Provincial Charity Federation and the 21st Century Foundation to defraud parents of leukemia children in Hubei, Guangxi and Zhejiang of millions of dollars in life-saving money under the guise of a “matching donation program. The case broke out in January this year, Wang Yanan was suspended from his job and was formally arrested by police last week. The medical insurance bureau in Tongbai County, Henan Province, where Wang Yanan works, the Henan Provincial Charity Federation and the 21st Century Foundation all drew a clear line, saying they had no relationship with Wang Yanan.

According to media reports, the cost of medical care for patients with serious illnesses is a very heavy burden for their families, who often turn to private charities for assistance because of the limited resources provided by Chinese officials.

Matching donations are usually initiated by public interest organizations and foundations, and are matched by public donations at a certain ratio. For example, a matching ratio of 2:1 means that the public donates 20,000 yuan (RMB, same below, about US$3,092) and the charity matches 10,000 yuan.

The victim, Mr. Liu, whose son was diagnosed with neuroblastoma three years ago, was introduced to Yanan Wang. Initially, Wang Yanan helped Mr. Liu match two organizations, raising 15,000 yuan (about $2,319) and 9,000 yuan (about $1,391) respectively, gaining Mr. Liu’s trust.

A few days later, Wang Yanan told Mr. Liu that there was a fundraising project that “raised more money and paid faster,” but he needed to raise 80,000 yuan (about $12,000) himself first. Wang Yanan explained that when netizens see people donating money to the project, it will inspire them to continue to donate, “otherwise, when people see that there is not much money in the fundraising project, they naturally will not donate to you”. Based on the trust built up by the first two fundraisers, plus the urgent need for money, Mr. Liu gave 80,000 yuan of “life-saving money” to Wang Yanan. After repeated questions, Wang Yanan only transferred him 20,000 yuan, saying that it was “raised money”.

The leukemia patient’s family transferred the bill to Wang Yanan. (taken from China Philanthropist magazine)

Mr. Liu said he chose to trust Wang Yanan out of recognition of her status as a public official and her fame in the circle of major disease relief.

Not long after, Wang Yanan told Mr. Liu that there was a rare opportunity for a project with a matching ratio of up to 1:1, and that he could get his money back in 20 days. In order to pay for his child’s medical treatment, Mr. Liu borrowed money from friends and relatives and raised 230,000 yuan (about $35,000), which he transferred to Yanan Wang. Several months passed, but Mr. Liu still hadn’t seen the shadow of the “money back”.

Today, Mr. Liu’s son is still being treated in Beijing Children’s Hospital for advanced cancer. For more than a year, Mr. Liu has given Wang Yanan a total of 313,000 yuan, but has only received 40,000 yuan in “refunds”.

For a family with relatively ordinary economic conditions, the medical costs of treating leukemia are a bottomless pit. (taken from China Philanthropist magazine)