Fiona Galea Debono
Child cancer charity may ditch HSBC
The children's cancer charity Puttinu Cares is considering switching banks because the group's connection with HSBC has "backfired" to its detriment, a committee spokesman said.
What started off as a promising partnership with the bank has turned into a relationship in which the charity reaps little benefit, according to the spokesman. Not only is the bank's sponsorship modest but the public impression is that HSBC is the financial backbone behind the charity - an erroneous notion that is keeping potential donors from including the charity in their list of recipients.
Since the charity was set up six years ago, HSBC has donated about €70,000 to the support group but the beneficiary would be practically paying that sum back to it this year, as it is forking out €55,000 a year in interest on a loan it has taken out to buy three apartments in Sutton in the UK to host Maltese families whose children are undergoing cancer treatment.
Over the next decade, the Puttinu Cares Children's Cancer Foundation would be paying the bank €350,000 in interest while the bank in the meantime benefits from the marketing through its association with the charity, the spokesman said.
On top of that, the spokesman complained that the bank is claiming to be "indispensible" to the support group and has often "hijacked" its events for marketing purposes.
The details of the loan were issued by the charity last month in a press release which pointed out that HSBC was charging the beneficiary a subsidised commercial interest rate of 6.1 per cent on what is effectively a house loan, now standing at 3.35 per cent for private clients.
Set up "from zero" to collect funds and ease the suffering of child cancer patients and their families, the support group had asked HSBC for the Puttinu name.
In fact, if the relationship with HSBC is ditched, the charity may have to do away with the logo, despite its now strong connection with their cause, because the angel cartoon character, Puttinu, was created for the bank. The current logo has the words: "Supported by HSBC Cares For Children Fund".
An agreement was reached with the bank six years ago whereby it pledged €4,666 a year and the Puttinu logo, bearing the letters HSBC, which appear every time on anything the support group does.
The result is that the public and major donors are under the impression that the bank is Puttinu's main sponsor, which is scaring away potential benefactors, the Puttinu committee is now discovering.
But the charity is moving ahead on its own steam. The fund-raising activities, and in particular a football marathon, which the support group has organised have, over the years, raised a total of €425,300, while other events by individuals in aid of Puttinu amounted to another €70,000 or so annually.
These funds allowed it to realise the dream of purchasing the property in the UK. "We used to rent out apartments but when we started raising more funds we decided it made more sense to buy three apartments in Sutton, UK, close to the hospital (where the children receive their treatment)," the spokesman said. Over the past three years, about 100 families had to seek further treatment abroad.
Asked why the charity was raising the issue now and not when the loan was taken, the spokesman said one of the disadvantages of the HSBC association was the fact that, when they shopped around, no bank wanted to loan the money in the circumstance. But now the committee is considering turning to another bank that can offer better rates.
The committee already has plans for another name and logo if it has to give up Puttinu. It intends to organise a competition and rope in schoolchildren to design the most appropriate character.
A spokesman for HSBC said the bank did not want to comment until it was informed of the committee's decision, adding it would respect its choices.
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Zap Branagan
Dec 3rd 2008, 20:43
Seems to me that Puttinu Cares needs a new treasurer. After all, they took out this loan, and somehow NOW they realise that it's going to cost them?
Please show me anywhere that you can get a loan for free? A bank is a business, not a charity.
I have no association with HSBC or any other bank. They all s***, and they all charge you if you borrow money.
Charles J Buttigieg
Dec 3rd 2008, 17:49
Do you really think that any foreign bank would Care for Puttinu? And why do we need to get on our knees to get the so much needed help for those unfortunate parents that become so destitute, while suffering seeing their loving children in so much pain that the dreadful cancer ailment causes.
It would be sinful to drag this tragedy to the political arena but somebody needs to drive home this irony.- We spent MILLIONS of Euro for a palace in Brussels, we are going to spend more Millions to build a new palace to be enjoyed only by our polititeans, Millions for a stupid Gate for our City, we donate hard earned money to build Holy Palaces as poor excuse for houses of worship, we spend Millions on fireworks each summer, we cover our churches with topaz and our statues with gold and diamond, and we expect HSBC to show some sympathy with the victims of cancer. We are our own victims.
HSBC is a financial institution with a Mission to make Millions and they are world famous for that, they did not set up shop here to take over our social obligations.
Joseph V. Grech
Dec 3rd 2008, 17:11
The public thanks the Puttinu group - they are really doing a worthy cause for people beset by the most serious of circumstances. I think
1. HSBC should openly declare its sorrow at the grasping manner it has handled the situation and offer far more reasonable interest rates to the charity. A mistake might have been done - it is up to HSBC to state that much;
2. If the above is impossible another bank offering better interest terms should be engaged;
3. Government needs to become involved - by helping out financially. That is what real solidarity is all about! It is NOT enough for the wives of the P.M. and the Leader of the Opposition to show their genuine appreciation for what Puttinu Cares is doing!
Jo said
Dec 3rd 2008, 17:03
I agree to the change of name. One should always consider what words mean in other languages prior to officialising it.
As for HSBC, it is quite ludicrous for such a bank to trust people in its employ who are politically prejudiced to the extent that they carry the trait even at their masters' expense and so unashamedly to the detriment of a noble cause such as this . The rift between the children's cancer charity and HSBC smacks of sheer arrogance and obsession by of the one of the bank's employees in the communications division.
It is for the bank to clear its name by investigating the matter without delay and limit its damage by punishing the culprit.
In the meantime, let us all laud the efforts of the organisers of this charity. Let us all support them financially. Above all, let us show our dismay at, for the time being, the bank's insensitivity to such dignified causes.
R Micallef
Dec 3rd 2008, 16:25
Why not consider APS bank??? dan mhux suppost tal-knisja???? I assume APS should give a helping hand in such a situation
A.Charles
Dec 3rd 2008, 14:53
Every cloud has a silver lining; the name Puttinu in Sicilian is a very rude insult and now is the time to change it.
Andrei Previ
Dec 3rd 2008, 14:25
When i read the article last month , i honestly thought the interest rate was a genuine printing mistake ..... It wasn't !! What a shame !!!
Jeffrey Abela-Wadge
Dec 3rd 2008, 14:22
D Borg
Puttinu Cares are NOT included in this year's Strina.
godwin scerri
Dec 3rd 2008, 12:32
Anyone relying on banks for charity (and anything else) should remember how the international Banks behaved during the ongoing financial crisis, and the English proverb which says that "He who sups with the devil needs a long spoor."
Adrian Gouder
Dec 3rd 2008, 12:18
I must admit I am rather shocked at this news, and I honestly hope that there is a plausable reason behind HSBC's behaviour. To me this looks too much as a marketing ploy decorated as an act of charity.... If that's the case, (I'm gulping now), I will keep this horid deed in mind for a very long time indeed! Still, I would like to wait for what HSBC has to say, if anything.
d. borg
Dec 3rd 2008, 12:09
Is this important charity included in this year's strina?
Robert Piscopo LL.B, Dip. N.P (Notary Public)
Dec 3rd 2008, 11:45
Shame on you HSBC!! At least try to help these people by not charging interest......... I am sorry to say that HSBC Public Relations is going down the drain..... Shame on you!
Marius Zulgis
Dec 3rd 2008, 10:39
HSBC as a main player in local business should lead by example. Its very sad to read this article and I am sure that it isn't a yardstick to measure the attitude of Maltese business as a whole towards such deserving causes. I have always known the Maltese as generous, caring and big hearted and am confident that this has not changed despite the current financial situation.
Its all very well for a business entity to try and market itself as competition generates a healthy economy but some things are and will always be sacred, and should not be used in this way. Charities such as this which do so much selfless good to society as a whole need to be protected by adequate legislation.
johncaligari
Dec 3rd 2008, 10:39
now they found out, we read about this a month ago, good luck though for noticing these things
A Gauci
Dec 3rd 2008, 10:19
If HSBC does not want to "sponsor" more money, then the least they could do is give better interest rates and more benefits to this cause.
What a disgrace for HSBC to treat this as a business and marketing opportunity.
SHAME!