An alleged illegal operation of China Lottery Online Co. Ltd., a state-owned lottery enterprise, was uncovered by whistle blower Wang Wenzhi. Wang works as a reporter for Xinhua’s Economic Information Daily.
In an interview with the Global Times Sunday, Wang said that he has already alerted the officials at the Ministry of Finance about the online illegal operations.
A letter written by Wang was released for public viewing on Sunday, accusing the company's general manager He Wen of controlling the system. According to Wang's letter, He also controls the funds and sales of the lottery, which "severely violates regulations."
He Wen has also secretly transferred funds of up to 2 billion yuan, said Wang in the letter.
"Lottery data and technical skills should be separately managed to prevent fraud, but He's company played both roles for 12 years," Wang wrote.
He's illegal operations was first published by Wang in May, but updates on the general manager's shady business weren't published until now for fear of reprisals. The company has denied the May report.
He Wen has already sued Wang for defamation. In return, Wang submitted a case against He, demanding 5 million yuan for compensation as well as a public apology from the official for seven consecutive days. The case is currently being heard by a local court in Beijing's Haidian District.
Wang first gained popularity as a whistle blower for his post on Weibo against Song Lin in July 2013. In the post, Wang accused the former president of China Resources (Holdings) Co. Ltd. of massive corruption and, later, serious dereliction of duty in April 2014. As a result, Song was placed under investigation and later expelled from the Chinese People's Political Consultative Conference (CPPCC) National Committee in June 2014.