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China bans illegally-operated organization CHC

(Xinhua)
Updated: 2011-05-18 11:21

BEIJING -- The China High-tech Industrialization Cooperation Organization (CHC), an unregistered organization that had been operating illegally to profit from unauthorized authentication and project cooperation, was banned, the Ministry of Civil Affairs (MCA) announced on Tuesday.

According to a statement posted on the MCA's official website, the CHC had gained the public's trust by claiming to be "a cooperation consortium of nine ministries," although it in fact had no affiliation to any ministry.

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"It has been wantonly obtaining money under false pretenses by offering so-called services of evaluation, training authentication, project cooperation, conference and exhibition in the areas of economy, technology, food, health, agriculture, construction and intellectual property rights," the statement said.

The ministry said the CHC had formed a complicated web of subsidiaries comprising more than 40 "commissions, centers or institutes" in sectors such as health, construction and food, and even several hundred more sub-branches.

Besides undermining the image of the government agencies with whom it claimed affiliation, the CHC's illegal operation also jeopardized the market economy, the system of registration for social organizations and posed a threat to social stability, the statement said.

The ministry said the leaders of the organization will be dealt with in accordance with law, and the ban will help create a favorable environment for economic development and safeguard social stability and the legitimate rights and interests of the public.