The China Youth Corps had assets totaling NT$5.69 billion (US$185.77 million) in the form of cram schools, youth activity centers and fitness centers as of the end of last year, the Cabinet’s Ill-gotten Party Assets Committee said.
The committee in October last year said it suspected that the corps was as an affiliate organization of the Chinese Nationalist Party (KMT), which the party has denied.
However, it has confirmed the affiliation through investigations and will move to freeze the corps’ assets this month, the committee said.
The most recent financial report from the corps showed that it is in possession of NT$850 million in cash and savings, NT$2.4 billion in property assets and investment funds of NT$2.61 billion, the committee said.
The corps has 65 continuing education centers and cram schools nationwide that last year generated revenue of NT$1.09 billion, with cram schools being the corps’ single greatest source of revenue, the committee said, adding that overall revenue for last year was NT$2.8 billion.
Fitness centers, which have grown in popularity, are also a major revenue generator for the corps, with facilities in places such as Taipei’s Neihu (內湖), Xinyi (信義) and Daan (大安) districts, as well as on Chaoma Road in Taichung, that earned the corps NT$880 million last year, it said.
Youth activity centers generated NT$680 million in revenue for the corps last year, the committee said.
The corps reported high labor expenses for last year, even though it only had eight offices, one committee and a small number of staff, the committee said, adding that corps director Ger Yeong-kuang (葛永光) reported a monthly salary of NT$180,000.
One committee member, who spoke on condition of anonymity, said it was concerning that the corps paid NT$123.2 million in interest subsidies last year for retirees who receive an 18 percent preferential savings rate.
Corps retirees, many of whom are KMT members, were receiving better benefits than public servants, the committee member said, adding that the committee would work with the corps to eliminate the preferential savings rate accounts.
While its revenue has risen dramatically over the past four years through private ventures, as a social welfare organization the corps pays no tax, the committee said, adding that the only exception was in 2014, when it paid NT$2.05 million in taxes.
The corps last year paid NT$370 million in salaries to fitness center staff and NT$490 million in cram school teacher salaries, but only spent NT$38 million on youth-related activities, which are its founding purpose, the committee said, adding that only NT$1.77 million was spent on children in need and youth scholarships.
“With such a disparity in spending, how much does the China Youth Corps really care about youth?” the committee member asked.
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