Introduction to the Case
In the years following the establishment of a fund to support Chinese dissidents, the chosen nonprofit partner, the Laogai Research Foundation, badly mismanaged the fund. Instead of using the money to support the dissidents, the foundation spent less than $650,000, or 4%, on direct support. The majority of the money was spent by the late Harry Wu, the leader of Laogai, on his own projects and interests.
The Lawsuit
A group of dissidents sued in 2017, naming Laogai, its leadership, and Yahoo, as well as senior members of Yahoo’s leadership team, as defendants. The lawsuit claimed that the defendants had mismanaged the fund and failed to use the money for its intended purpose. The defendants agreed to pay the six formerly imprisoned Chinese dissidents who filed the suit, with five of them receiving $50,000 each and the lead plaintiff receiving $55,000.
The New Fund
The remainder of the money, after legal fees and other expenses, will go towards a new fund to continue the original mission of supporting individuals in China imprisoned for their speech. The fund will be managed by Humanitarian China, a small nonprofit organization founded in 2004 by three participants in the 1989 Chinese democracy movement. Humanitarian China has given away $2 million in cash assistance to Chinese dissidents and their families, funded primarily by individual donors.
The Importance of the Fund
The assistance provided by the fund is often vital for political prisoners who are released after years or decades in prison. They often face health problems and struggle to find steady work in the modern job market. They are also frequently monitored and penalized by state security, making it difficult for them to find employment. The fund provides a sense of comfort and support to the dissidents, knowing that there are people outside of China who stand with them.
The Settlement
The terms of the settlement bar the parties from providing more than a cursory statement to the media. However, the plaintiffs’ lawyer, Times Wang, previously stated that the fund is a crucial source of financial support and comfort for the dissidents. The settlement is a step towards restarting the program and providing support to those who need it.
Conclusion
The mismanagement of the fund by the Laogai Research Foundation is a unfortunate example of how money intended to support a good cause can be misused. However, the establishment of a new fund managed by Humanitarian China provides hope for the future. The fund will provide vital support to Chinese dissidents and their families, and serve as a reminder that there are people outside of China who care about their well-being.
FAQs
- What was the purpose of the original fund?
The original fund was established to support Chinese dissidents who were imprisoned for their speech. - How much of the fund was spent on direct support for the dissidents?
Less than $650,000, or 4%, was spent on direct support for the dissidents. - Who will manage the new fund?
The new fund will be managed by Humanitarian China, a small nonprofit organization founded in 2004. - How much money has Humanitarian China given away to Chinese dissidents and their families?
Humanitarian China has given away $2 million in cash assistance to Chinese dissidents and their families. - What is the importance of the fund for the dissidents?
The fund provides vital financial support and a sense of comfort and support to the dissidents, knowing that there are people outside of China who stand with them.
