Legal Settlement Addresses Fund Mismanagement for Chinese Dissidents
Recent developments unveiled serious mismanagement within the Laogai Research Foundation, which served as a nonprofit partner for the Yahoo Human Rights Fund (YHRF). An investigation revealed that the Foundation, led by the late Harry Wu, allocated merely 4% of the approximately $650,000 raised to directly support Chinese dissidents, who often face extreme consequences for their political beliefs.
Background of the Lawsuit
In 2017, a group of six Chinese dissidents filed a lawsuit against not only the Laogai Foundation but also Yahoo and key figures within its management team. The suit stemmed from allegations of financial misuse, where funds intended for the support of imprisoned individuals were diverted to the personal projects of Wu, who maintained considerable influence within the organization.
Settlement Details
As a result of the lawsuit, the involved parties, including the Impresa Legal Group, a law firm associated with Laogai, agreed to a settlement. The terms entail that five plaintiffs will receive $50,000 each, while the lead plaintiff is to collect $55,000. The settlement funds, after addressing legal fees and reimbursements, will be redirected into a new fund aimed at supporting individuals in China who have been imprisoned for exercising their freedom of speech.
New Management Initiative
This newly established fund will be managed by Humanitarian China, a nonprofit founded in 2004 by activists from the 1989 Chinese democracy movement. The organization has a strong track record, having provided over $2 million in assistance to dissidents and their families, primarily sourced from caring individual donors.
The Importance of Continued Support
Political prisoners often encounter significant obstacles upon their release, facing health issues and a lack of relevant job skills in a modern economy. This added layer of difficulty is exacerbated by state security monitoring, which further diminishes their chances of being employed, as local businesses remain hesitant to hire individuals with a political history.
Xu Wanping, one of the plaintiffs involved in the lawsuit, has articulated the challenges that many former prisoners face. “It’s a difficult situation… the sense of isolation and that kind of helplessness we feel,” he stated, emphasizing the meaningful nature of the lawsuit’s impact on restarting supportive initiatives.
Concluding Notes
While the terms of the settlement restrict the parties from making extensive statements to the media, Times Wang, the lawyer representing the plaintiffs, highlighted the significance of the fund: “In addition to the crucial financial support, it is a source of comfort to them [the dissidents] to know that there are people outside of China who stand with them.”
This case underscores the pressing need for continued financial and moral support for political dissidents in China, who often find themselves in precarious situations long after their release from prison.
For further insight into the mismanagement of YHRF and its implications, view the complete analysis from MIT Technology Review.
