China news agency outs illegal online lottery activity

A reporter working for the major Chinese news agency Xinhua has blown the whistle on alleged illegal activity within a State-owned online lottery.

Journalist Wang Wenzhi, who writes for Xinhua’s Economic Information Daily newspaper, told the Global Times Sunday that he has informed the Ministry of Finance about the illegal operations of the China Lottery Online Co Ltd.

His investigations show that the company’s general manager He Wen “…controls the system, sales data and funds of the lottery, which severely violates regulations,” Wang claims in a public denouncement.

The reporter alleges that funds from the company have been secretly transferred to He, who has amassed 2 billion yuan (US$322 million) by abusing his authority.

“Lottery data and technical skills should be separately managed to prevent fraud, but He’s company played both roles for 12 years,” the denouncement declared.

Wang Wenzhi has revealed that He has launched litigation against him in a Beijing court, claiming defamation. The case has been heard and a decision is pending.

Wang has reacted to the litigation by launching a 5 million yuan counter-suit and a demand that He apologise for the litigation.

Wang has garnered respect for his investigative abilities in the past; in 2013 he used the Weibo social media network to accuse Song Lin, former president of state-owned China Resources (Holdings) Co Ltd of massive corruption.

He followed that with an allegation of egregious dereliction of duty the following year; later that year Song was officially investigated and subsequently expelled from the Chinese People’s Political Consultative Conference (CPPCC) National Committee.

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