According to the Want China Times, Li is accused in a report on the microblog M4 of misappropriating $48 million in donations.
Li’s Charity received $64 million for the rebuilding efforts, but has so far only distributed 9 percent of that amount.
Channel NewsAsia reports that Li issued a statement through his One Foundation website denying the allegations, saying he wouldn’t know how to embezzle the money even if he wanted.
“Can anyone teach me how to do this?” said Li.
“They (the One Foundation board members) all have companies that are worth billions… the misappropriated 300 million yuan would not be enough to go around.
“Can you all help me think of a way to split this little bit of money?” said Li.
The foundation says disbursing the money will take time. It says the largest portion of the funds will be used to rebuild five schools. Construction will begin in July.