Six children and an adult paralyzed by polio perished on Jan 4 in the fire at an unlicensed orphanage owned by Yuan, a 48-year-old street vendor.
Yuan has been looking after abandoned children since the 1980s. However, she did not live with the 18 children in the orphanage. Eight of them were left unattended in the two-story apartment when the fire broke out as Yuan took other children to school.
A 10-year-old boy remains in intensive care in a hospital in Kaifeng, which administers Lankao.
"The boy is still in a coma and is on a respirator," a hospital official said.
Wang Yongxi, director of the Kaifeng Social Welfare House, said on Thursday that the 10 children who survived in the fire now are temporarily settled there.
Wang said social workers have provided one-on-one counseling.
"One of our social workers was moved to tears after one child ask her whether he could call his mother," he said.
"Their health is good and they are calm," he said.
"Five of them are attending a nearby primary school."
Children playing with fire caused the blaze, the local government said on Tuesday.
The county's top civil affairs official and other five local officials have been suspended from their posts pending further investigation.
Sun Lisheng, the county government's publicity official, said the investigation "will take time".
"It's still not clear if Yuan will be held legally responsible for the accident," he said.
Yuan was rushed to hospital over the weekend after suffering a heart attack.
"She is still in a serious condition as she is suffering heart disease, high blood pressure and diabetes," said Du Peng, Yuan's son.
Du became emotional as he recalled his mother's love for the children. "Her heart is with the dead children," he said.
Du said Yuan hopes that the survivors can live in the new orphanage in Lankao.
"She can apply for a job there so she can see them every day," he said.
Bian said Yuan can keep those children on the condition that she registers her orphanage and follows legal procedures.
Yuan has been taking care of orphans and abandoned children since 1986, raising money by selling snacks, helping local dealers sell construction materials, and receiving allowances from the local government.
Han Yusheng, a law expert at Renmin University of China, said Yuan faces punishment of up to seven years in jail if she is found guilty of death by negligence.
"Regardless of the legal status, she should be responsible for their safety," he said.
Han said Yuan's record of looking after children will be taken into account.
In a related issue, a report on the website of the People's Daily said reporters tried to call the Ministry of Civil Affairs 15 times earlier this week, but failed to get any response.
Wang Laizhu, spokesman for the ministry, went to the newspaper's headquarters in Beijing to explain that many of his colleagues were at a meeting when the phone calls were made to discuss how to cope with the aftermath of the accident.
As a result no one was there to reply to the questions, he said.
The ministry pledged to improve communication with the media by providing training for its staff.
The report on Wednesday criticized the ministry's bureaucratic approach in emergencies and published a list of conversation records between its reporter and the ministry's several departments, including the ministry's publicity office.
The report triggered a public outcry.
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