The Chinese Red Cross Foundation is investigating a claim that an affiliate donated inferior bicycles to inappropriate recipients.

Zhang Dongliang, an official with the publicity department of the foundation, told China Daily on Thursday that the Red Cross had been informed of the claim and had started an investigation.

"We do have an affiliate called the Charity Fund, but the leader named (Shi Jinlong of the Charity Fund Volunteer Work Office) is not on our regular staff. Our investigation will focus on both the person and the affiliate's activities," Zhang said.

The Charity Fund Volunteer Work Office of the Chinese Red Cross Foundation was set up on Feb 4, 2009, in Xi'an, capital of China's northwestern Shaanxi province.

According to its website, since 2010 the office has donated 14,950 bicycles, 13 ambulances, and accessories valued at some 1.8 million yuan ($285,500), of which most went to large State enterprises and the veterans bureaus of local governments.

However, Xi'an Aircraft Company (XAC), one of the large State-owned enterprises that received the donations, complained that the 2,000 bicycles it received were inferior.

Wu Jiwen, president of XAC's labor union, said the firm received the donated bicycles in August 2011 and gave them to model workers and staff and needy workers.

"The workers who received the first 200 bicycles complained to us, saying that the bicycles were of poor quality and did not ride properly," said Wang Feng, vice-president of the union.

The Charity Fund took back the 1,800 bikes which had not been given away and promised to replace them with better-quality ones. However, XAC has not yet received the replacements, Wang said.

Chen Xuemin, director of the veterans bureau of Weinan city in eastern Shaanxi, said that his bureau received 700 bicycles from the Charity Fund, which the bureau gave to retired officials.

"We did not ask for the donation. Some people complained about the quality of the bicycles, but I think we should not complain as we did not pay for them," Chen said.

According to Chen, the donated bicycles were said to be valued at728 yuan ($115) per bike. The total cost of the bicycles they received was 550,000 yuan ($86,900).

The Xi'an-based Huashang Daily revealed that the donated bicycles were made by a small workshop in Tianjin. Workshop owner Zhao Dalong said that he sold some 10,000 bicycles worth 130 to 160 yuan to a buyer who said he was from Chinese Red Cross last year, according to the newspaper.

The paper found that the donated bicycles had Zhao's trademark.

A male staff member of the Charity Fund Volunteer Work Office of the Chinese Red Cross Foundation, who refused to give his name, told China Daily that office director Shi Jinlong left the province on Wednesday and could not be contacted.

In addition to the poor quality of the bicycles, some residents questioned why the office donated the bicycles to large, State-owned enterprises that enjoy good benefits and to retired officials who have large pensions.

The Charity Fund, a special public fund launched by Chinese Red Cross Foundation, focuses on helping poor students and the disadvantaged, and on improving health conditions in poverty-stricken rural areas.

Li Aimin, 57, a retired teacher in Xi'an, told China Daily that she learned of the donations from local media and wondered why the office made the donations to those who did not really want or need them.

"Six of the 13 ambulances they donated went to Shaanxi Coal and Chemical Group. I have a relative working there and I know they are a rich firm with good benefits," Li said.

Cheng Yingyan, a lawyer in Xi'an, also said he considered the donations contrary to the Charity Fund's stated objectives of helping disadvantaged groups.