Bastille's Report: Why 5% Administrative Fees for Wang Fuk Court Donation?

The devastating fire at Wang Fuk Court destroyed countless homes. As a vital disaster relief group in Hong Kong, the Hong Kong Red Cross engaged in rescue operations within two hours of the fire breaking out, receiving a sea of donations. Nevertheless, the issue of a "5% administrative fee for donation" has triggered discussion. In the interview with Bastille Post, Ms. Ling Ching Yin, the Director of Hong Kong Red Cross, stated that the 5% cap was based on the guidelines of the HKSAR Government's Disaster Relief Fund. She assured that actual expenditures would be far lower than the cap.

Ms. Ling Ching Yin, the Director of Hong Kong Red Cross, and Mr. Terry Wong, Manager (Local Disaster Relief) of the Hong Kong Red Cross, Photo by Bastille Post

The Hong Kong Red Cross has raised over HKD$530 million to date. Ms. Ling stated that over half of the donations will be directly distributed in cash to disaster-stricken families, and another 40% will be used for a 3- to 5-year community recovery program.

No Other Use for Donations; 5% Cap Based on Government Guidelines

The large donation total has made the 5% fee a significant sum, drawing public scrutiny. Ms. Ling said the expenditures would follow the principle of "designated usages with reimbursement of actual expenses." In other words, only additional costs directly related to the disaster relief effort will be covered. Other regular donations will continue to support the Red Cross's daily operations, and the funds allocated for the Tai Po fire will not be diverted.

Ms. Ling said the expenditures would follow the principle of "designated usages with reimbursement of actual expenses." Photo by Bastille Post

She illustrated with examples: In the first two days after the fire, the Hong Kong Red Cross's official website was overwhelmed by a surge in donations, requiring expenses for immediate server capacity upgrades. Similarly, to handle the spike in assistance inquiries, multiple temporary hotlines had to be set up. The rental fees for these lines, she noted, fall under the "service support costs" category for the Wang Fuk Court donations.

Asked about the 5% administrative cap, Ms. Ling clarified that the benchmark is set in accordance with the HKSAR Government's Disaster Relief Fund guidelines. While the early stages of the fire disaster involved many uncertainties, she assured that through rigorous cost control, the actual "service support" expenses would remain substantially below the 5% threshold.

The Red Cross has three emergency service teams: local relief team, first aid team, and psychological support team, each with approximately 100 to 500 volunteers for quick mobilization in the disaster. Photo source: the Hong Kong Red Cross

Independent Agency to Oversee Donation Use

Responding to questions about other charitable organizations waiving administrative fees, Ms. Ling stated that she respects the diverse operational approaches of different groups, while acknowledging that all charitable initiatives inevitably entail necessary expenses in their execution. The fundamental question, she stressed, is whether the related costs are clear, reasonable, transparent, and necessary—and whether donors can be given a complete explanation of how their contributions are used.

The Red Cross has commissioned an independent third-party audit agency to comprehensively oversee the use of all donations, including service support expenditures. The findings will be made fully transparent to the public. Mr. Terry Wong, Manager (Local Disaster Relief) of the Hong Kong Red Cross, said that in addition to on-site inspections, the audit agency can access the database at any time for random checks. The Red Cross believes that by clearly presenting how each donation is allocated and implemented, public trust in humanitarian relief work can be sustained over the long term.

Mr. Terry Wong, Manager (Local Disaster Relief) of the Hong Kong Red Cross, said that in addition to on-site inspections, the audit agency can access the database at any time for random checks. Photo by Bastille Post

No Immediate Disbursement of Aid Due to Time for Assessment

In the aftermath of the fire, the Red Cross refrained from immediately distributing one-off aid, opting instead to reach a decision following a three-to-four-day assessment period. Ms. Ling elaborated: "Our approach is not merely to disburse one-off cash payments, but to formulate support programs that address the varying needs of different disaster victims." Working with limited information, she explained, the team had to assess critical factors for decision, including appropriate tiered assistance levels and the long-term sustainability of support, etc.

Even with meticulous preparation, not all variables can be anticipated. After the decision to distribute emergency cash assistance was made, a flood of inquiries poured in. Although the Red Cross quickly produced a Q&A list, many questions proved far more complex than expected. Ms. Ling said that some colleagues felt immense pressure when fielding calls, unable to immediately provide satisfactory answers to those seeking help. "When disaster victims call again for help," she said, "we have to listen more attentively, understand more carefully, and continuously review and improve our work."

The Hong Kong Red Cross has been involved in local emergency relief work since the Shek Kip Mei fire in 1953. During the interview, Ms. Ling and Mr. Wong also shared the disaster relief challenges posed by the Tai Po fire.

"When disaster victims call again for help," Ms. Ling said, "we have to listen more attentively, understand more carefully, and continuously review and improve our work." Photo source: the Hong Kong Red Cross

On Scene Within Two Hours in Unceasing Relief Effort

Within two hours of the fire breaking out, the Red Cross activated its emergency response mechanism, raising the alert level to the highest—Level 4—on the same day. Ms. Ling, who served as the overall commander of the rescue operation, explained that this meant the vast majority of staff would be prioritized for disaster relief efforts. On the night of the fire, the Red Cross's local relief team, first aid team, and psychological support team rushed to the scene to assist. First aid stations and psychological support points were set up at six temporary shelters and information centers, two of which were equipped with mattresses, bedding, and other overnight supplies. During the emergency response phase, the Red Cross held two cross-team coordination meetings each week.

The Red Cross mobilized more than 1,600 staff and volunteers for the disaster relief operation. Mr. Wong emphasized that sufficient manpower was essential to sustaining rescue efforts, as many services were "time-consuming" and operated around the clock. The psychological support team, for instance, worked 24-hour shifts for several consecutive days, simultaneously handling hotline calls and on-site support. Meanwhile, the first aid team established a command center at headquarters to allocate manpower in real time, ensuring the six service centers continued to function normally.

He noted that the early stages of disaster relief require continuous shifts between staff and volunteers to provide nearly round-the-clock support.

The psychological support team worked 24-hour shifts for several consecutive days, simultaneously handling hotline calls and on-site support for the Tai Po fire. Photo source: the Hong Kong Red Cross

Long Recovery Road for Fire Victims

The public generally assumes that once fire victims have been allocated temporary housing, they simply need to wait for the government's permanent housing arrangements to achieve full recovery. However, Mr. Wong noted that according to the international Disaster Management Framework—which comprises three phases: emergency response, recovery, and preparedness—the residents of Wang Fuk Court are currently in the transitional stage between emergency response and recovery. "More than 1,900 households were directly affected by the fire," Mr. Wong said, "and each household has different needs."

The fire took away not only the houses of the victims, but also the warmth of their homes. True recovery, Mr. Wong emphasized, is not merely about "giving victims a place to live"—it is about restoring families to their original, or even better, condition across multiple dimensions: housing, livelihood, mental and physical health, and social reconnection, etc. He estimates that the full recovery process for Tai Po fire victims will take at least three to five years.

Red Cross psychological support volunteers also accompanied bereaved families during the body identification process. Photo source: the Hong Kong Red Cross

Residents of Wang Sun House in Wang Fuk Court started returning to their fire-damaged units today to retrieve their possessions, with many feeling anxious as the true scale of the destruction remains unclear.

Mr. Chung, Photo by Bastille Post

Mr. Chung, who lives on a lower floor of Wang Sun House, said his family members had already left with a truck after collecting their belongings. Today, he focused on retrieving items such as a laptop, photos of his son, some paintings, and other valuables. Clothes of little worth were left behind for now.

He admitted he feels lost about his future life. "I took my things, but I don't know where to put them," he said. His own unit was fortunate not to have been severely burned, allowing him to pack up relatively quickly and retrieve everything he needed. He noted that some other units were almost destroyed by fire, and their residents would need much more time to collect their belongings.

Wang Sun House, Photo by Bastille Post

Describing the conditions inside the building, Mr. Chung said that although blackened, the stairwell was in better shape than he had expected. The windows had been burned out, but ventilation remained good. He praised the on-site personnel as very enthusiastic and helpful. Inside his unit, he saw only a few bugs, and everything else was relatively intact. The smell was not overwhelming, though it felt extremely hot.

Looking ahead, Mr. Chung expressed deep sadness over resettlement. With property prices now soaring, he doubts whether he can afford a new home. His current unit is over 400 square feet, but he fears he may have to move into one of just over 300 square feet. He hoped the government could offer more help in the future. "The compensation may only cover the house itself; there's no money left for renovations," he said. Even if he changes homes, it would be difficult for him to start a new life if he cannot afford the cost of interior decoration. He hoped the government or frontline groups could provide renovation allowances or other forms of support.

Wang Fuk Court, Photo by Bastille Post

Another resident, Mr. Ng, said he and one family member were allowed upstairs to collect belongings, accompanied by a social worker. Due to the regulations, only two people are allowed to enter the unit at a time. With pre-registration, they put on protective gear before going upstairs to their burned household. From photos that had been sent to him earlier, Mr. Ng said the walkway leading to his home was blackened, and both the floor and ceiling had been severely burned. However, due to the layout of the unit, the kitchen and living room are not visible from the entrance, so the true scale of the damage inside still remains unclear. His greatest concern is for valuables and items of sentimental value, especially souvenirs he and his wife had collected together over the years. "I hope we can retrieve the valuables," he said.

He revealed that his family had been renting the unit for some time, but after the fire, they had to find a new place to live. Although he was feeling a bit down, he tried to maintain a calm mindset. "I have now adjusted myself," Mr. Ng said. He mentioned that he mainly brought protective gear and plastic bags for going upstairs to collect belongings, estimating that it might take one or two more times for him to retrieve all the things he needed.

As for future resettlement, Mr. Ng had no clear plan yet and could only take things step by step. Though he worried about the risk of burglary in his burnt unit, he acknowledged, "There's no way to control that." For now, his priority is to assess the damage to his unit as quickly as possible and arrange for the safekeeping of valuable belongings.

Residents of Wang Sun House in Wang Fuk Court returned to their fire-damaged units to retrieve their possessions. Photo by Bastille Post

Another resident, Sister Wan, was allowed back to her fifth-floor flat to collect her belongings. She said that while she "wanted to retrieve everything," she had to prioritise small and important items because she would have to climb the stairs and worried that she and her family might not have enough physical strength to carry heavy loads. Having undergone some physical training before, she said she believed the fifth floor would be manageable and that with her family's help, she should be able to cope.

She added that a social worker had previously sent her a photo of her unit, but it was hard to make out the actual interior damage. She was most worried about keepsakes, especially those tied to memories of her husband and son, noting that she would be heartbroken if she couldn't take them all away.

Photo by Bastille Post