Foster mother on orphanage fire

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After seven people, including six handicapped children and one adult, died on Friday, the orphanage owner - who is also the childrens' foster mother - said she won't abandon her charity work.

Yuan Lihai, a 48-year-old widow, has taken care of orphans and abandoned children since 1986 in Lankao County, Henan Province.

A fire broke out in Yuan's two-story home on Friday morning, when she was taking several of her older "adoptees" to school.

Eighteen homeless children and young people were left unattended at home when the accident occurred.

Most of them have congenital diseases ranging from infantile paralysis, to heart disease.

Some are mentally handicapped.

Seven people, including six children and one 20-year-old man, died in the fire.

The ten who were not harmed were relocated to a foster home in Kaifeng - a bigger city nearby.

Yuan says she was so distressed by the disaster, she contemplated death.

SOUNDBITE (CHINESE) YUAN LIHAI, Orphanage owner:

"The kids are dead. I feel so sad that I don't want to live any more".

Yuan, who has a history of high blood pressure, diabetes and heart disease, complained of breathing difficulties late Saturday night, and is in hospital.

SOUNDBITE (CHINESE) YUAN LIHAI, Orphanage owner:

"I have adopted over 100 children. I'm not doing business. I just feel pity for them. Some would have died if I had not taken them in. I'm trying my best to help the poor kids."

Yuan's charity work never went through formal adoption procedures...

Local authorities had held her in a hotel room for questioning.

But Yuan refutes widespread speculation that she unlawfully profited from under-the-table adoption deals.

SOUNDBITE (CHINESE) YUAN LIHAI, Orphanage owner:

"I've heard those rumors...Shoot me if you have evidence that I sold any children. If you can take care of them as well as I do, you can have the subsistence allowances with the children."

On Saturday, a county official said the government also bears responsibility:

SOUNDBITE (CHINESE) WU CHANGSHENG, Deputy Chief of Laokao County:

"Local governments bear unshirkable responsibilities to this issue because of poor and lax regulations."

He says Yuan has no qualifications to adopt according to laws, because she already has children - and little money... But that her motives, seemed moral:

SOUNDBITE (CHINESE) WU CHANGSHENG, Deputy Chief of Laokao County:

"Considering Yuan's actions were out of compassion, local governments acquiesced her unregistered adoption."

China's adoption laws limit foster parents to people who have no offspring of their own... And are financially capable of providing for an adopted child.

Yuan has two sons and a daughter, but no stable income, earning her living as a street vendor.

SOUNDBITE (CHINESE) YUAN LIHAI, Orphanage owner:

"I made a living selling homemade pancakes and other snacks. From time to time, civil affairs officials bring some cash and food for the children."

But after becoming known as a "loving foster mother," her reputation brought her new business opportunities.

She helped local merchants sell building materials, taking commissions in return.

As an impoverished county with a population of 760,000, Lankao has no child welfare agencies.

Its first foster home is expected to be completed in 2013.

When asked if she will continue to run her shelter, the foster mother says its her duty to do so.

SOUNDBITE (CHINESE) YUAN LIHAI, Orphanage owner:

"Do you think I can see a child die from cold and hunger out there in the street? I will certainly give a hand as long as I'm still alive."

And the local government says, it's going to do more to improve child welfare too.