Reporter: Chinese Lottery Engaged in Fraud

A reporter from China’s Xinhua News Agency has accused the head of the state-owned China Lottery Online of corruption and fraud. Wang Wenzhi passed his allegations on to the country’s Ministry of Finance.

Reporter Wang Wenzhi of the Economic Information Daily has informed the country’s Ministry of Finance that He Wen, general manager of the state-owned China Lottery Online Co., “controls the system, sales data and funds of the lottery, which severely violates regulations.” The Daily is part of China’s Xinhua News Agency.

According to the Global Times, Wenzhi’s letter, which has been released to the public, says funds from the company have been systematically funneled 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 letter said. In June, China discovered that 16.9 billion yuan ($US 2.72 billion) was missing from the state lottery program.