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Red Cross to probe alleged misuse of donations

Xinhua, July 3, 2011

Guo uploaded photos of expensive sports cars, designer handbags and a villa, claiming that all of the items depicted belonged to her.

Her posts provoked the ire of the country's netizens, who speculated that Guo might've funded her lifestyle by embezzling money from the Red Cross Society.

The Red Cross Society had earlier responded to the allegations with a statement in which it said that there was no such institution as "Red Cross Commerce," adding that the Red Cross Society does not currently employ anyone named Guo Meimei.

Infuriated netizens then directed their anger toward the China Business System, believing that Guo might have confused the group with the "Red Cross Commerce" group she mentioned on her microblog.

Netizens and media organizations have accused the China Business System of using its charity affiliation as a guise for embezzlement.

Media investigations have shown that the group has cooperative agreements with several businesses and that the group's leaders also work as the heads of several enterprises. The group has been given discretionary power over the use of donations raised through some of its charitable activities.

The group will cease operations until the results of the audit are made public, the society said in its statement.

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