When the Duolun Museum of Modern Art opened in 2003, many hoped that it would break the mould of state-owned museums in China, plagued by money problems, mismanagement and petty feuds. But a recent spate of resignations has derailed that promise, and attempts by state-owned enterprise Changyuan Group, currently managing the museum, to negotiate a compromise with its former employees have failed. In recent months, Duolun curatorial department Biljana Ciric, designer Cao Wei and assistant curator Huang Yuelin have all resigned, following the financial department’s cancellation of funding for educational programs including residencies, lectures, workshops and video series. Ciric, an internationally-recognized curator who founded Duolun’s residency and educational programs, claims that the museum became a sanctuary for unemployed workers from Changyuan Group’s other ventures. She cites occasions when management denied her funds for basic materials such as art magazines and docked her salary because an artist had painted a wall without budgetary approval. Other staff members found that Changyuan employees neglected professional art-handling standards, resulting in the destruction of art works. Problems started when management of the Duolun, formerly under the jurisdiction of the Hongkou district cultural bureau, was transferred to Changyuan Group in 2004, leading to a sharp cleavage between two classes of employees: those hired because of their government connections and those hired for their professional qualifications.At first, both sides worked to put aside their differences. The situation turned sour last year, however, when the museum received government criticism for its involvement in “38 Solo Exhibitions,” an off-site art event that was closed down by the cultural bureau because of alleged pornographic content. Following this, a video exhibition at Duolun, “Move on Asia,” was closed and art director Shen Qibin, who had been overseeing both the Duolun and the Zendai Museum of Modern Art, made a permanent move to the Zendai. Shen’s departure left a void between staff and management, with Ciric, who is not Chinese, forced to negotiate directly with her overseers.As the situation deteriorated, former Hongkou district mayor Zhang Yonglin, now director of Duolun and president of Changyuan Group, pleaded with Ciric to meet with Changyuan Group director and then Duolun legal representative Chen Jinfa to discuss the museum’s future. Chen proposed a deal wherein the curatorial department could mount three shows a year and then rent the space from the museum for an additional part of the year from its own funding. The proposal, similar to a model practiced at Shanghai’s other state-run museums such as the Shanghai Art Museum and the Liu Haisu Art Museum, was unacceptable to the departing staff. When asked about the resignations, Chen replied, “These are the internal affairs of our museum. The employees left because it was their time to go. Their contracts were up.” It is uncertain how the museum will evolve. Zhang Bing, a Duolun representative, says that the museum will organize its own exhibitions and provide space for artists and touring shows. Zhang was unclear about whether space would be rented out, but she promises that the museum will maintain its previous standards and provide a platform for Chinese design. Slated for March is a touring exhibition of Korean contemporary art.“There are more and more private museums, which are better funded and which have better connections,” says Ciric, “State-owned institutions have to figure out some survival strategies or they will just be kicked out of the game.”