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Ministry wants random inspections for China’s non-governmental organisations

Civil affairs bureau proposes greater scrutiny of nation’s 675,000 non-profit groups

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The Red Cross in China saws its reputation damaged by a 2011 corruption scandal. Photo: Xinhua

China’s Ministry of Civil Affairs may start randomly inspecting non-governmental organisations.

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The bureau had been seeking public input until last Friday over its proposal to conduct such inspections of domestic NGOs. The proposal covers community groups, trust foundations, industry organisations and other non-profit groups that are registered under civil affairs authorities.

At least three per cent of all registered organisations would be inspected, with a focus on their information disclosure, management and finances.

According to Xinhua, there were 675,000 registered domestic NGOs as of September of last year. However, there are also many groups focused on sensitive areas like human rights or labour disputes that are not registered with civil affairs authorities, and are subject to frequent crackdowns.

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A 2011 scandal over corruption at the Red Cross in China saw the credibility of domestic charitable organisations diminished.

Currently, NGOs are required to submit annual reports to the relevant authorities. The proposed random inspections would be overseen by the Ministry of Civil Affairs, but accounting or law firms could be appointed to assist with them, the ministry said. The results of the inspections would affect the NGOs’ eligibility for tax incentives, it added.

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