The repercussions of an expensive reception dinner by the Shanghai branch of the Red Cross Society of China (RCSC) in the city's Luwan district are far more extensive than the violation of administrative rules, which is how the branch is describing this scandal.

The bill for the dinner, which was published online and confirmed as genuine, shows that it cost nearly 10,000 yuan for just 17 people, more than 500 yuan each for a working dinner, which is much higher than the ceiling of 150 yuan per person.

Despite the fact that the diners have already been ordered to repay the 7,000 yuan they spent over the limit, the incident has dented the credibility of the RCSC.

The explanation that the money does not come from charity donations but from the fees for administrative affairs and is nothing but a violation of administrative rules has done little to alleviate the damage the scandal has caused to the reputation of the Shanghai branch of RCSC.

That the expenditure for the RCSC's administrative affairs is allocated from the State coffers does not alter the fact that it is taxpayer's money and should be used strictly according to the rules.

If those paid with taxpayers' money to manage public donations for charity have the nerve to flout the rules governing the use of administrative fees, how can they be trusted not to disobey the rules in the use of public donations?

This is the question the public has a right to ask.

The Shanghai branch of the RCSC has already released a notice severely criticizing the Luwan district branch and has called on all its branches to strictly follow the rules in the use of their administrative fees.

Such a notice is far from enough to repair the damage this scandal has caused to the credibility of the RCSC, as it fails to touch on the root cause of the scandal - the transparency of its budgets and its use of charity donations.

For many years, the RCSC's lack of transparency in the use of its charity donations has been a matter of concern to the public.

Now when public pressure has been exerted on governments at all levels for transparency of their budgets, particularly regarding expenses to finance overseas trips, procurement and maintenance of vehicles and official receptions, the RCSC should be no exception, especially when it comes to the use of donations intended for those in need.

The implications of this scandal should propel the establishment of a mechanism for more effective supervision over the use of donated money for charity purposes and more transparency in the charity funds managed by the RCSC.

That would be the best way to re-establish its credibility and reputation.

(China Daily 04/19/2011 page16)