China online lottery operator accused of embezzling $322m

A Chinese reporter with a track record of exposing corruption has made some rather staggering allegations regarding a state-owned online lottery operation.

On Sunday, Global Times Sunday quoted Xinhua News Agency reporter Wang Wenzhi accusing He Wen, general manager of China Lottery Online Co Ltd, of “abusing his authority” by secretly funneling RMB 2b (US $322m) of lottery funds into personal bank accounts.

Wang, who previously exposed corruption by the former president of state-owned China Resources (Holdings) Co Ltd, accused He of controlling “the system, sales data and funds of the lottery, which severely violates regulations.” Wang said “lottery data and technical skills should be separately managed to prevent fraud, but He’s company played both roles for 12 years.” Wang went on to describe China Lottery Online Co Ltd as a “freak” of China’s lottery industry.

Wang first published his allegations about He in the Economic Information Daily newspaper in May of this year, which led He to sue Wang for defamation. He is seeking RMB 5m in damages from Wang, as well as a public apology to be published for seven consecutive days. A Beijing court has already heard the case but has yet to issue a decision.