Dalai Lama’s associate in money laundering scandal

Reports of Lodi Gyari and his son-in-law’s alleged money laundering have captured the media’s interest

On June 3, 2016, news broke that one of the people close to His Holiness the Dalai Lama has been arrested on suspicions of money laundering. This is just the latest in a series of financial scandals to rock the Tibetan leadership who, over the last two decades, have been accused of facilitating all levels of financial misdirection from corruption and embezzlement, to money laundering.

Whenever it comes to finances, there is never good news from the Tibetan leadership. Having left behind in Tibet centuries of accumulated wealth, when they entered exile the Tibetan leadership found that they could rebuild their coffers by tapping into the sympathy and resources of the West. Thus began 60 years of fund-raising, without any accountability or transparency to the donors.

All levels of the Tibetan leadership have been implicated in some kind of financial scandal. For example:

  1. In 2011, Indian investigators raided Gyuto Monastery where they found USD1mil in 26 foreign currencies, in cash. This resulted in Indian prosecutors initiating criminal proceedings in 2015, charging His Holiness the 17th Karmapa Orgyen Trinley with money laundering (one such report can be found here)
  2. Since 2012, questions have been asked about Penpa Tsering’s connection to one Thinley Kelsang who is accused of operating a human trafficking and visa brokering ring. Penpa Tsering is accused of abusing his position in Dharamsala to obtain visas from the American Embassy in Delhi. He is alleged to have received financial compensation for this (one such report can be found here)
  3. In 2014, the Tibetan exile Prime Minister Lobsang Sangay refused to answer questions about how he had managed to pay off a $227,000 mortgage just four years after buying a house in Boston, USA. Just a week later, he became Prime Minister (the publicly available document that triggered these investigations be found here)
  4. In March 2015, Penpa Tsering stormed out in the middle of a Parliamentary session after he was accused of murder. In the same session, two of his colleagues Dolkar Lhamo and Dawa Tsering were reminded of their involvement in embezzlement schemes and taking public property (one such report can be found here)
  5. In June 2015, Maura Moynihan wrote a widely-circulated letter addressing the International Campaign for Tibet’s (ICT) fondness for huge fundraising efforts, with little difference made seen in the Tibetan situation. In the letter, Ms Moynihan stated that “ICT is hardly a cost-effective model of a non-profit organization representing a small, penniless refugee community… Many Tibet support groups are concerned that ICT has no clear purpose other than self-preservation, raising funds to pay for trips to Asia, comfortable salaries and maintenance of an elegant townhouse in Dupont Circle officially assessed to be worth $2.7 million. Many activists groups have done far more on far less, but ICT remains the top-funded Tibet organization in America.” (her report can be found here)
  6. In May 2016, His Holiness the 41st Sakya Trizin announced major changes in the succession plan of the Sakya throne holders. In the announcement and directive, he noted that people have accused him of taking advantage of and benefiting from the office and position. (the Sakya Trizin’s announcement can be found here)

Lodi Gyari Rinpoche, the Dalai Lama’s former Special Envoy to Washington has a history of questionable financial dealings.

As anyone can clearly see, these are not minor accusations on the level of a teenager robbing a mom-and-pop store in Dharamsala. They are sophisticated schemes involving connections, power and large sums of money…and these are just the scandals that we know of. Such major financial irregularities have not gone unnoticed by the international community. In 2012, Congressman Dana Rohrabacher wrote to the Tibetan Prime Minister Lobsang Sangay, noting that there have been “serious accusations the US funding meant for Tibetans may have been misspent.”

A large portion of this US funding has come not only from the American government but from private donors, channeled through organisations such as the aforementioned International Campaign for Tibet (ICT). It so happens that the ICT’s previous director was Lodi Gyari Rinpoche whose son-in-law, Phakchok Rinpoche, is implicated in the latest money laundering scandal to hit the Tibetan leadership.

From 1999 to 2014, Lodi Gyari was director of the ICT. To this day, ICT remains one of the largest Tibetan non-governmental organisations (NGOs) in the world, and it certainly the top-funded in the USA. Lodi Gyari’s role as director gave him access to millions of dollars in donations as well as connections to wealthy Tibetan supporters in the United States. When he was the Dalai Lama’s Special Envoy to Washington, DC, his connections in Dharamsala also gave him the uncontested access to money-making opportunities for himself and his relatives. It would seem that Phakchok Rinpoche has been one such beneficiary.

Messages have been circulated on social media about the involvement of Lodi Gyari Rinpoche’s son-in-law in the latest financial scandal to hit the Tibetan establishment. Lodi Gyari is the Dalai Lama’s former Special Envoy to Washington and comes from a wealthy, powerful Tibetan family. He has very close links to the Dalai Lama.

Phakchok Rinpoche, whose real name is Tenzin Jigmey Drakpa, is married to Lodi Gyari’s daughter. He holds a number of positions, including the abbotship of Ka-Nying Shedrup Ling Monastery in Nepal and President of Rangjung Yeshe Shenpen Nepal, an NGO. From Phakchok Rinpoche’s various bank accounts, Nepali authorities recently seized NPR15 crores (approx. US$1.4mil). This followed their previous seizure of US$375,000, an act which had alerted them to the even larger sums of money he had been receiving. In this case, the US$375,000 had been sent from the USA to his bank accounts, on the pretext of raising funds for victims of the 2015 Nepali earthquake.

Phakchok Rinpoche, Lodi Gyari’s son-in-law, is suspected of being involved in money laundering.

It requires an active imagination to conjure up reasons why Lodi Gyari and Phachok Rinpoche would need to fatten their wallets. It is well-known in the Tibetan community that the Gyari family is extremely wealthy and powerful, and have been so even when they were back in Tibet.

What this incident shows for certain is that there has been no change to the feudal system of Tibet where the rich and nobility get richer, while the poor continue to languish in poverty. After all, it is definitely not news that the Tibetan leadership exploits and abuses their people. After 60 years in exile, there has been little change to the Tibetan situation – their standard of living has hardly improved, considering the millions they have received in donations. In this case, Lodi Gyari and Phakchok Rinpoche have even abused the goodwill of the international community, raising funds from Western donors for earthquake victims, when the funds never made it to the intended recipients.

Nepali media coverage of this financial scandal, which involves Lodi Gyari Rinpoche’s son-in-law, Phachok Rinpoche being accused of being involved in money laundering. Click to enlarge.

The Tibetan leadership is an old hand at allowing their people to continue to suffer, by stealing money that was intended for their welfare. After all, the Tibetan leadership’s aim is not the betterment of their people but rather to accumulate as much money and power for themselves as possible so that when His Holiness the Dalai Lama enters clear light, they can easily disappear to the West with their foreign passports, checkbooks and American Express cards.

And if the money laundering is taking place at such a high level, it is impossible that His Holiness the Dalai Lama is not aware of what is going on. It seems that His Holiness has somehow become surrounded by people who have been implicated in one financial scandal or another – from his chosen Karmapa Orgyen Trinley, to his Special Envoy Lodi Gyari, to the Speaker of his Parliament Penpa Tsering, to his Prime Minister Lobsang Sangay. Clearly those in the Dalai Lama’s inner circle have made it a habit to exploit the Dalai Lama’s name, reputation and their closeness to him, in order to pad their bank accounts.

With such a bevy of financial scandals under their belt, it is particularly galling that the Tibetan leadership would see it fit to accuse Dorje Shugden practitioners of receiving money from the Chinese leadership. While they accuse Dorje Shugden practitioners of “eating Chinese money”, they themselves “eat” their own people’s funds. Surely stealing from your own family is a more hurtful action, when you abuse their clearly misplaced trust in you.

Whether or not Dorje Shugden practitioners receive support from anyone is a private matter, and there has never been any proof or evidence to support these allegations. In the 20 years Dorje Shugden devotees have been used as a scapegoat for the Tibetan leadership’s failure, not one shred of evidence has been produced to show that Dorje Shugden lamas and their disciples receive Chinese funding. No receipts, no bank statements, no photographs, no check stubs. There has been however, plentiful proof to support allegations that the Tibetan leadership has been stealing from their people, and have engaged in serious financial malpractice – some have even been prosecuted by the Indian government!

While the Tibetan leadership have been accusing Dorje Shugden practitioners of taking money from the Chinese leadership, they themselves have been rather busy stealing from their own people.

Therefore the fact that the Tibetan state and its agents are engaged in money laundering and embezzlement should be of greater concern. The leadership serves everyone, not themselves and they certainly should not be exploiting their people’s unquestioning faith in order to profit from it. The Tibetan leadership also represents their entire people. If they are being consistently implicated in financial scandal, it stains the name of the entire Tibetan people and not just a small subsection of practitioners from such and such a lineage.

The Tibetan people should be similarly concerned that their leadership steals money meant for their welfare, and that they spend it on activities and programs to suppress their community. For example, the leadership has spent money on anti-Dorje Shugden websites to promote a negative view about the deity and suppress their religious freedoms. It is astonishing that a ‘democratic’ government would set up an anti-anything website when it is not the job of the state to police private religious beliefs.

But it is hardly surprising that the Tibetan leadership would fund such activities because the concept of a real democracy has yet to ripen in their minds. For example, in real democratic nations, leaders declare all sources of their income and their financial dealings are constantly under scrutiny, with watchdogs give the authority to oversee all of their funding. There is no such measure in Tibetan society where the leadership acts with impunity, in an authoritarian and dictatorial manner designed to abuse their community.

So what the Tibetan people should be more worried about is the ongoing lack of transparency regarding their leadership’s finances, and how no one is being held accountable for these scandals. And it needs to be asked – why is the Dalai Lama remaining silent in all of this, allowing his community to suffer the actions of the leadership, when he is aware of everything that is taking place? Why does he speak up more about Dorje Shugden and the lamas who refuse to give up the practice, than he does about his inner circle stealing and his people self-immolating?

Dolkar Lhamo, the Member of Parliament accused of embezzlement admitted to her crimes. Rather unsurprisingly, the link that this Facebook post refers to is no longer working, with the article having been removed.

With such overwhelming evidence of the Tibetan leadership’s misdeeds, it is only a matter of time before international support for their works draws to a close. Why make personal donations and direct federal funds towards a regime that has consistently failed to disburse the contributions to the rightful recipients, the Tibetan people? If Western leaders direct funds to the Tibetan leadership thinking that Dharamsala shares their interests (that is, to be an effective thorn in the side of the Chinese), they are sorely mistaken.

China’s popularity and economic strength eclipses anything the Tibetan leadership can do to them and from the already-long and growing list of financial malpractices that the CTA is very quickly adding to, soon it will be clear for all to see what many have known for decades. Ultimately, the Tibetan leadership is and always has been about looking after No. 1 and no matter what they may profess, they have only their own (and no one else’s) interests in mind.

 

Examples of the Central Tibetan Administration’s financial malpractice

 

2011 – His Holiness the Karmapa Orgyen Trinley Dorje (money laundering)

2011 – the Karmapa Orgyen Trinley Dorje prosecuted on charges of money laundering. Click to enlarge.

 

2012 – Penpa Tsering (human trafficking)

2012 – Penpa Tsering implicated in human trafficking ring. Click to enlarge.

 

April 2012 – Chithue Dolkar Lhamo (embezzlement)

April 2012 – Dolkar Lhamo, former President of the Tibetan Women’s Association, admits to embezzlement. Unfortunately, but not unsurprisingly, the original article on TibetSun.com is no longer available. Click to enlarge.

 

November 2012 – the Central Tibetan Administration (financial mismanagement)

November 2012 – US Congressman Dana Rohrabacher writes to the Central Tibetan Administration (CTA) to highlight their financial mismanagement and involvement in the Radio Free Asia issue. Click to enlarge.

 

2014 – Prime Minister Lobsang Sangay (corruption / embezzlement)

2014 – publicly available records show that Lobsang Sangay took out a $227,000 mortgage on his home in 2007. It was discovered that he paid off the entire mortgage just four years after purchase, and one week before he was sworn in as the Tibetan exile Prime Minister. Click to enlarge.

 

March 2015 – Penpa Tsering (murder), Dolkar Lhamo (embezzlement), Dawa Tsering (privatising public property)

March 2015 – in the middle of a Parliamentary session, the Speaker Penpa Tsering abruptly resigns and storms out of the session after being accused of murder. In the same meeting, his colleagues were accused of embezzlement and the unauthorised privatization of public property. Click to enlarge.

 

June 2015 – Lodi Gyari (wastage of public funds, financial mismanagement)

June 2015 – Maura Moynihan, the daughter of Senator Daniel Moynihan and a long-time Tibet supporter, accuses the International Campaign for Tibet (ICT) of wasting public donations and financial mismanagement. ICT was under the directorship of Lodi Gyari between 1999 and 2014. Lodi Gyari’s son-in-law is now accused of money laundering. Click to enlarge.

 

July 2015 – Prime Minister Lobsang Sangay and the Central Tibetan Administration (financial mismanagement)

July 2015 – Ms Moynihan questions Tibetan Prime Minister Lobsang Sangay’s other financial dealings. Click to enlarge.

 

May 2016 – His Holiness the 41st Sakya Trizin (corruption)

May 2016 – His Holiness the 41st Sakya Trizin announces major changes to the succession plan of the Sakya throne holders. In the directive, he also addresses accusations that have been directed at him regarding the benefit he has received in his position as the Sakya Trizin. Click to enlarge.

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  1. By now, it should already be clear to all that the entire ‘TibetanCause’ and its casts – the Dalai Lama’s coterie, the CTA and their cronies and affiliates and a whole network of accomplice, are all one huge money making scam.

    The real Tibetan Cause died a natural death a long time ago when the Dalai Lama decided unilaterally to abandon Tibetan independence. From that point on wards, around the 1980′s the ‘Tibetan Cause’ became a business with the Dalai Lama’s family being the biggest shareholders and the CTA, it’s management team with fat cheques and bonus schemes.

    Why on earth would the CTA ever want to give all that up and return to Tibet to govern 6 Million Tibetans and inherit a whole host of problems? Its all about tax free money and all at the expense of the beguiled people of the world.

    None of the scams listed in this article would top how much the Dalai Lama benefited from over 50 years of this lucrative business.

  2. Thank you for the information and evidences of the ‘mismanagement’ of funds raised for the Tibetans in exile.

    One would think that all these controversies of the 2 Kagyu Karmapa, 2 Panchen Lama, 2 Domo Geshe Rinpoche and the Dorje Shugdan ban is created to divert and distract everybody from the hands in the Tibetan national coffers.

    All the accusation of the Chinese funding the Shugden worshippers to create trouble for the Dalai lama is nothing but a smoke screen for what the leaders of the community is doing. When these poor ignorant Tibetans are riled up and hopping mad and screaming about Shugdenpas, they are blinded to other happenings. Good job CTA in keeping the Tibetans ignorant.

    And, it’s sad the world too has not woken up to the fact though a few have started question the fund raising.

    With all these evidence, it’s a puzzle to me why no one has started any action to stop these fund raisers.

  3. The Tibetans (well, those who are ignorant) keep saying Shugden worshippers took money from the Chinese. There is no proof of that so far, I have read the Reuters article and was surprised how it was just propaganda. But their own leadership mishandled so much fund donated by various supporters worldwide, yet they say nothing? I am pretty sure the money go into these individuals’ own pockets.

    Funny how the money for Tibetans are ‘mishandled’ and they say nothing, while the Shugden people getting Chinese money – why is it their business? Lol. Anyway, if China did give money, I am sure it was to rebuild monasteries so that the Tibetans are happy with the Chinese leadership. China doesn’t need to pay to create problems among Tibetans. The Tibetans are doing a good job among themselves.

    Agree with Sierra that the accusation of the Chinese funding the Shugden worshippers is a smoke screen, but how many Tibetans, well, those who can read properly, will understand what is happening?

  4. Tibetan in exile must really wake up to reality, but do they have a chance? Most Tibetans in exile would believe 100% in HH Dalai Lama without question, and with that faith, they will also believe 100% in the CTA.

    And because of the full trust of their people, the CTA is abusing the situation to the maximum. Nobody asked for the details of the money collected, and no check & balance. To make the situation even more controllable by the CTA, the leadership has purposely made their people stupid and cannot think for themselves. They would not know how to question the government to make the governance more transparent.

    If the state oracle can be so fierce towards Lobsang Sangyel and Pensa Tsering, it means HH Dalai Lama would also know about the stuffs that these two have done (since He is Chenrenzig). What amazed me is that, despite all that, HH Dalai Lama chose to keep quiet and didn’t even instruct His government to clarify, and more importantly, to demand for a more transparent governance.

    Why would HH Dalai Lama would allow CTA to continue to abuse the situation and exploit the Tibetans in exile? Would it be the karma of the Tibetans has ripen and there is no turning back?

  5. The money laundering actions listed above are shameful and damaging, to say the least. Allowing the inner circle people to do what they did, one would wonder what the Dalai Lama’s plans are for the future of the Tibetans-in-exile. In a glimpse, I see no hope for the CTA supporters.

    The evidence displayed above clearly illustrated that 60 years of international financial support for democracy has in fact benefited a handful of irresponsible and greedy individuals whose interest are to ride on the power for selfish reasons. No wonder we see no improvement in the living conditions or social welfare for Tibetans-in-exile. Compare to the campaigns and sites to ban Dorje Shugden practice, the sum required to improve the overall living conditions of Tibetans are much higher, so it is easier for the CTA to do the formal, which is minimal, while enjoying the ever flowing funds from international parties. I mean, the CTA need to show some results to trick the donors into believing they are doing something “good” with it. Hence, the Dorje Shugden ban.

    It should be clear to all by now the real intention of the CTA and the purpose of the unlawful ban of Dorje Shugden ban. If we really care for the Tibetans, we should not continue to support the CTA’s dodgy behaviours and demand them to do what they are supposed to do: education, living conditions, security, medications etc. for the Tibetans in exile, providing if we are still confident in their abilities to do anything other than banning a spiritual practice that has nothing to do with politic in the first place!

  6. It is enraging to read the crimes that leaderships of the Tibetan community in exile are capable of.
    Murder. Embezzlement. Human Trafficking. Corruption. Abuse of Power.
    You name it. Everything that is showing on Hollywood mafia movies are having a fair run of repeats right here in the Tibetan in exile community. I am really and terribly ashamed to even hear the words “Free Tibet” nowadays.

    Behind these laments, it is a painful heart to see a society is in such bad shape, only because the people allows it. If the leaders are vile, inhumane, malice, sinister and cruel; it is only because the people are ignorance, greedy, and cowardly. The people must peacefully speak up spread the truth, run awareness campaign and publish true story in international arena.

    With enough international pressure and reduction of sponsorship and funding, hopefully the greedy politicians will stop milking Tibetans.

  7. It is a crying shame to know these so called learned Buddhist would resort to money laundering, murder, embezzlement, trickery, power grabbing and lying. Very often I would question why are these things happening to these so called Buddhist? A simple logical analysis would be that when once one is exposed to such illegal means obtained through criminal activities and have tasted luxuries and enjoying other people’s hard earned money turning back to an ordinary mundane Buddhist life would be a very difficult ordeal.
    It is just like asking a drug addict to give up drugs immediately; I would assume these addicts would answer in the negative. Similarly, it is happening where we find many money addicts here in the CTA context no changes can be foreseen in the immediate future unless the top level untainted high power ministers, the Dalai Lama orders a entire shake up to clean up this disgraceful act.
    Rehabilitation for these greedy Buddhist is an immediate necessity and to reformulate, reorganize and restructured the entire CTA cabinet would somehow negate these criminals. Very sad, sad state of affair at this moment for the Tibetans living in exile. My heart goes out to these unfortunate Tibetans living in exile particularly the Dorje Shudgen devotees.

  8. Wow that’s not a lot of plausible cause… that is a lot of evidence that Tibetan Leadership has been swindling the entire WORLD and basically ROBBING us all right under our very nose, not to mentioned getting us to SPREAD their poor me victimised campaign to basically gain more money for their own pockets!!! And we thought we were doing them some good and we thought we were helping these poor Tibetan get their country back! Yeah right.

    I really don’t think any of these leaders are interested at all in returning back to Tibet. Why would they when they can live just about anywhere in the world, enjoy themselves, great infrastructure, freedom and just collect DONATIONS from the WORLD to fatten up their own bank accounts. Most of all these Tibetan Leaders have already migrated or has a dual citizenship and their families safely migrated to other parts of their country as well. I bet they will all be gone at the drop of a hat when Dalai Lama is no longer around man. And still we have silly idiotic FB groups that dare talk about Shugden and how Shugden people are taking money from China? They should really look in the mirror.

    What about them stealing from their own people and the entire world?! I really hope the world wakes up and stop being fooled. It is high time we really shine the light on these crooks and investigate on the real issue here! There is Free Tibet it is more like Free Money and the spokesperson sadly is the His Holiness Dalai Lama.

    My question is if Dalai Lama is Chenrezig, emanation of a Buddha basically, why does he condone such disgusting corruption and not say a word yet He continues to put down the innocent Shugden people? Why won’t the Buddha of Compassion have compassion and stop these corrupted leaders in His own office? Is He in on it too? Why would He if He is a Buddha… for a greater picture? Like what? One where CTA basically destroys themselves and there will no longer be a CTA to lead the people? Just some random thoughts. As we dig deeper, it is disgusting and how sad we have all been played a fool!

  9. If you are looking for freedom and wellbeing outside of yourself, you can’t find it there. So don’t look for the footprints of the elephant in the forrest but turn your mindfulness towards non-duality/wisdom and compassion/dharma then you will become aware of shunyata and only there you can find freedom and wellbeing.

    It is more helpful for oneself to purify ones own karma by dharma study and practice, based on analytical and resting mindfulness, calm abinding, clear view and meditation than looking what other people have done wrong and not practicing dharma for them to help oneself and others.

    Don’t get lost in this dualistic selfhate nonsence of samsara that starts with ignoring non-duality, duality, harmful views of eternalism and nihilism, harmful thoughs and emotions, harmfull actions of body speech and mind, carmic delusions and keeping this up by continuing this dualistic selfhate nonsence of samsara.

    So please take care of yourself and don’t get lost the illusions of ignorance regarding non-duality, duality, harmful views of eternalism and nihilism, harmful (good and bad) thougts and emotions, harmfull (god and bad) actions of mind, speech and body because you harm yourself that is selfhatered and not loving kindness.

    Take care, love you all.

  10. There is this saying in Chinese “when the water level recedes, the stone will become visible” which means with time, the truth will always be reveals. It is most disappointing that the icon of hope, compassion, tolerance and compassion has been exploited to fuel a feudal system that contradicts every teaching in dharma.

    As the world observes and begin to voice their suspicion, they will dig and look for evidence. From the cases presented, I would say it’s easy to find evidence against tibetan leadership who are corrupted because of the old ways when authority was never questioned. The CTA and it’s cronies need to know that when they take international money, they have to be accountable and transparent. Their arrogance can no longer be. I hope the questioning by world authority will weed out all the bad blood and allow some dignity back for the Tibetan society.

  11. I think officers/ politicians who steal money that was intended for their own people’s welfare are shameless.

    What is appalling is the fact that these incidents now constitute a series of financial scandals, and with so much evidence of the Tibetan leadership’s misdeeds, nothing is being done to resolve this issue, yet the persecution of Dorje Shguden continues as a smokescreen or scapegoat for all the misdeeds.

    it is impossible that His Holiness the Dalai Lama is not aware of what is going on. However, it seems that His Holiness has somehow become surrounded by people who have been implicated of financial scandal.

    I hope more media will showcase this news or article, and that international support and funds for this government or administration would stop or
    draw to a close.

  12. After 60 years of living under CTA, you would think Tibetan people would have smarten up somewhat and realized the current CTA government are only out to fatten up their pockets and curry influence.

    The Tibetans in exile in someways are even worst off than their cousins in Tibet, at least the Tibetans in Tibet they have some access to development and a piece of the development that is happening in Tibet. What do Tibetans inexile get besides momos, chai and upheavel, no peace of mind with all the controversies and problems that on going over and over again.

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.…Instead of turning away people who practise Dorje Shugden, we should be kind to them. Give them logic and wisdom without fear, then in time they give up the ‘wrong’ practice. Actually Shugden practitioners are not doing anything wrong. But hypothetically, if they are, wouldn’t it be more Buddhistic to be accepting? So those who have views against Dorje Shugden should contemplate this. Those practicing Dorje Shugden should forbear with extreme patience, fortitude and keep your commitments. The time will come as predicted that Dorje Shugden’s practice and it’s terrific quick benefits will be embraced by the world and it will be a practice of many beings.

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