China punishes more officials in milk scandal

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Posted on 20th March 2009 by Gordon Johnson in Uncategorized

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Date: 3/20/2009

BEIJING (AP) — China’s Communist Party has punished eight more senior government officials for their roles in last year’s tainted infant formula scandal, a state news agency reported Friday.

Milk laced with the industrial chemical melamine was blamed for the deaths of at least six babies and the sickening of nearly 300,000 others. The scandal forced the head of China’s quality watchdog to resign, and courts have sentenced two men to death for producing the chemical and supplying dairies with toxic milk.

The crisis also highlighted the need for major overhauls in China’s food safety system, and led to a law enacted this month that consolidates hundreds of separate regulations covering the country’s 500,000 food processing companies.

The official Xinhua News Agency said the Communist Party’s disciplinary body removed Wang Bubu, chief of the law enforcement and supervision department at China’s quality watchdog, from his official and party posts. A deputy chief of food circulation supervision at the State Administration for Industry and Commerce was also fired, it said.

Six others — from agencies including the State Food and Drug Administration and the Ministries of Agriculture and Health — received penalties including demotions and having their misdeeds recorded, Xinhua said. Xinhua said all were punished for their failures in supervising.

Several senior city officials were fired last year in Shijiazhuang, the northern Chinese city where the dairy at the heart of the scandal was based. The chairwoman of the company has been sentenced to life in prison.

The scandal has been blamed on middlemen who added melamine, which is high in nitrogen, to watered-down milk to fool quality tests for protein content. Melamine can cause kidney stones and kidney failure.

Copyright 2009 The Associated Press.

China's milk victims complain of intimidation

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Posted on 17th March 2009 by Gordon Johnson in Uncategorized

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Date: 3/17/2009

By ANITA CHANG
Associated Press Writer

BEIJING (AP) — Families whose children fell ill from tainted milk have come under pressure to drop compensation lawsuits, victims’ advocates said Tuesday, showing the government’s lingering uneasiness over one of China’s worst contamination scandals.

Local officials were calling and visiting at least a half-dozen families, urging them to drop their cases against the dairies and accept a government-sanctioned compensation plan giving 2,000 yuan ($290) to most victims, said Zhao Lianhai, the father of a child sickened by the milk.

At least one family has decided to back out of their lawsuit, said Zhao, who has rallied other families through a Web site he created.

“One parent told me, ‘I’m more than 30 years old but I’ve never before seen the county and village officials. Everyone in the family is really scared,’” said Lu Jun, an AIDS activist who has been working with families of tainted milk victims in central China’s Henan province.

Infant formula contaminated with the industrial chemical melamine was blamed for killing at least six babies and sickening nearly 300,000 across China in the scandal that began in September.

Unscrupulous middlemen are accused of adding melamine, which is high in nitrogen, to watered-down milk to fool quality tests for protein content. When ingested, melamine can cause kidney stones and kidney failure.

The scandal rocked the country, culminating in a law enacted in recent weeks that consolidates hundreds of disparate regulations covering the country’s 500,000 food processing companies.

The accusations that local officials are trying to intimidate victim’s families come despite this month’s announcement by the executive vice president of China’s highest court, Shen Deyong, that parents who rejected the government’s compensation plan were welcome to file lawsuits against the dairies.

It was not clear why local officials would try to stop the families after Shen’s announcement. But different levels of government in China often disagree on how to handle matters, and local officials may see lawsuits as a threat to their authority with the potential to upset stability in their community.

More than 600 families have demanded higher compensation than the government plan offers — one-time payouts using money from dairies named in the scandal. Families that take the money can’t sue for more unless they can prove they were forced to agree to the compensation plan, lawyers have said.

Wang Zhenping, whose 1 1/2-year-old son became ill after drinking contaminated infant formula, said he has received four phone calls from health bureau officials in Henan’s Zhoukou city in the last two weeks. They also have visited his mother’s house twice.

“The last time they called me, I told them to call my lawyer,” he said, planning to continue his legal fight against Sanlu, the dairy at the center of the crisis.

Phones at the Zhoukou city health bureau rang unanswered Tuesday.

Lawyers representing the victims’ families have also run into obstacles in recent days.

Li Jinglin, an attorney who was representing parents of children sickened by Shengyuan brand infant formula, said the Beijing city justice bureau called his law firm last Friday and told his superiors he should not be working on the case. Li said he withdrew from the case but hoped another lawyer could take his spot.

A coalition of lawyers working to sue the 22 dairies named in the scandal is focused primarily on getting at least one case involving the key dairy Sanlu to be accepted by a court in the northern city of Shijiazhuang.

“We just want the courts to accept at least one case as an example,” lawyer Lin Zheng said.

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Associated Press researcher Xi Yue in Beijing contributed to this report.

Copyright 2009 The Associated Press.

China investigating kidney ailments in babies

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Posted on 19th February 2009 by Gordon Johnson in Uncategorized

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Date: 2/19/2009

By AUDRA ANG
Associated Press Writer

BEIJING (AP) — Chinese health officials are investigating a growing number of cases of kidney stones in babies, state media said Thursday, months after a tainted milk scandal in which hundreds of thousands of children who drank melamine-contaminated formula suffered similar ailments.

While the Health Ministry has not directly linked the new cases to dairy products, parents are blaming formula made by Dumex Baby Food Co. Ltd., a subsidiary of France’s Groupe Danone SA. Dumex insists that its products are safe, and health officials said tests showed they are free of melamine, an industrial chemical.

The China Daily newspaper said Thursday that the Health Ministry has asked all local health bureaus to begin epidemiological research on kidney problems in children, including checking their eating habits and living environment.

“We’re trying to find out why the number of kidney ailments among babies has risen drastically,” Ma Yangchen of the ministry’s press office was quoted as saying. The report did not say how many children have become sick, when they became ill or what triggered the investigation.

A woman who answered the telephone at the Health Ministry said there was no official statement on the matter.

The ministry’s investigation reflects government efforts to restore public confidence after milk tainted with melamine, used in the production of plastics and fertilizer, was linked to the deaths last year of at least six Chinese babies and illnesses of nearly 300,000 others.

The scandal, which unfolded in September, was one of the country’s worst food contamination crises. It involved the products of China’s biggest dairies and underscored the government’s problems with policing product quality.

State media have said that officials started looking into Dumex because of overseas media reports last month that about 48 Chinese babies suffered kidney-related illnesses after drinking the company’s milk. It did not identify the reports.

Dumex has insisted that all its products are safe. The Shanghai Municipal Bureau of Quality and Technical Supervision said over the weekend it had tested 932 batches of dairy products produced by the Danone subsidiary since mid-September “and all are melamine-free.”

It also said no melamine was found in more than 1,700 batches produced before mid-September, when the dairy scandal broke.

Dumex’s main China office in Shanghai had no immediate comment Thursday.

Jiang Yalin, a mother in the southwestern province of Guizhou and the leader of a parents’ group, said her daughter drank only Dumex milk after she turned 1 and fell sick about two months later. She cried constantly at night, even in her sleep, and started having problems urinating, Jiang said.

When Jiang took her daughter to the hospital in September after reading about the tainted milk scandal, doctors said the child had stones as big as rice grains in both her kidneys.

“I was stunned. I felt helpless and angry,” Jiang said in a telephone interview.

The girl has since recovered and Jiang says doctors have declared her healthy.

Jiang said she has compiled a list of more than 100 babies — the youngest only a couple of months old — who fell sick after drinking Dumex and may file a suit against the company.

“I must figure out what exactly it was that harmed my daughter. I must know,” Jiang said.

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Associated Press researcher Xi Yue contributed to this report.

Copyright 2009 The Associated Press.

China to sell assets of scandal-hit milk company

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Posted on 14th February 2009 by Gordon Johnson in Uncategorized

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Date: 2/14/2009

BEIJING (AP) — A Chinese court plans to auction off the assets of the Chinese dairy at the heart of a tainted milk scandal that sickened hundreds of thousands of children and was blamed for killing six, reports said Saturday.

Sanlu Group Co. was declared bankrupt by a court in its north China base of Shijiazhuang on Thursday. Its real estate holdings, buildings and equipment will be auctioned March 4, along with its investment rights and interests in three other dairy companies, newspapers and the official Xinhua News Agency reported.

Fonterra, a New Zealand farmer-owned cooperative that owns 43 percent of Sanlu, has already written off its $139 million investment. Fonterra was responsible for alerting Chinese authorities about the tainted milk scandal last August.

Sanlu was one of 22 Chinese dairy companies whose products were found to contain high levels of the industrial chemical melamine, which led to the deaths of six babies and caused 294,000 others to suffer urinary problems, according to the government.

At least a dozen lawsuits have been filed against state-owned Sanlu, but they are caught in a legal limbo as courts have neither accepted nor refused the cases — a sign of the scandal’s political sensitivity.

The scandal highlighted a widespread practice among dairy suppliers of watering down milk they bought from farmers and then adding melamine to it to artificially boost its apparent protein levels. The tainted milk was then sold to dairy companies.

Courts have sentenced more than 20 people for adulterating milk or failing to respond to the tainting, including Sanlu’s former general manager and chairwoman Tian Wenhua, who was given a life sentence. Tian, 66, has appealed.

Copyright 2009 The Associated Press.

New Zealand dairy accepts milk scandal verdicts

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Posted on 24th January 2009 by Gordon Johnson in Uncategorized

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Date: 1/24/2009

WELLINGTON, New Zealand (AP) — New Zealand dairy Fonterra said Saturday it accepted a Chinese court’s conviction of 21 people blamed in a deadly contaminated milk scandal, but that it does not condone the death sentences handed to two of them.

Fonterra Group — which had owned 43 percent of China’s Sanlu Group at the center of the scandal — was responsible for alerting Chinese authorities in August that milk had been contaminated with the industrial chemical melamine. By December, Fonterra had written off its $200 million investment in the Chinese dairy group.

On Friday, a Chinese court sentenced to death cattle farmer Zhang Yujun and milk trader Geng Jinping for their parts in the scandal that killed at least six babies and left nearly 300,000 other children sickened. Melamine was added to watered down milk to make it appear to have a higher protein content.

A third man, Gao Junjie, was given a death sentence for endangering public safety, but it was suspended for two years, and may be commuted to life in prison.

The former Sanlu chairwoman, Tian Wenhua, was fined 24.7 million yuan ($2.9 million) and will spend the rest of her life behind bars.

“We accept the court’s findings but Fonterra supports the New Zealand Government’s position on the death penalty,” Fonterra Chief Executive Andrew Ferrier said Saturday. “Fonterra deeply regrets the harm and pain this tragedy has caused so many Chinese families.”

Prime Minister John Key said Friday that New Zealand “does not condone the death sentence, but we respect (China’s) right to take a very serious attitude to what was an extremely serious scandal.”

Sanlu has gone into receivership and the receiver has six months to sell the company’s assets.

Shijiazhuang-based Sanlu Group Co. in Hebei province was the first Chinese milk company to confirm melamine contamination in its infant milk formula products.

More than 30 Chinese dairy companies have since been implicated in the tainted milk scandal.

Fonterra, which controls more than 95 percent of New Zealand’s milk supply, is the country’s largest multinational business, its second-biggest foreign currency earner and accounts for more than 24 percent of the nation’s exports.

Copyright 2009 The Associated Press.