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Thursday 11 December 2008
Firms May Have to Pay for Compensation Plan
Some mainland dairy companies will probably have to pay for a compensation plan being prepared by the government for families of hundreds of thousands of children made ill by tainted milk powder, the health ministry said yesterday.
Some mainland dairy companies will probably have to pay for a compensation plan being prepared by the government for families of hundreds of thousands of children made ill by tainted milk powder, the health ministry said yesterday.
The ministry said last week that six babies died, probably as a result of drinking milk powder tainted with the industrial chemical melamine, and 294,000 infants suffered urinary problems.
The chemical melamine is used in the production of plastics and glue. It is added to substandard food, such as watered-down milk, to boost its nitrogen content, allowing it to pass testing for protein levels.
“I think that the likelihood is high that the compensation will come from the companies, because the government is now paying for the screening of the children and other related treatments,” ministry spokesman Mao Qunan said.
“Future payments should be made by the companies responsible for this,” he said when asked if he believed the dairy companies that sold the contaminated milk would foot the bill for the compensation.
Mr Ma said details of the compensation were still being worked out. “From what I understand, the relevant department is holding final discussions on the plan,” he said.
The scandal provoked public anger, particularly among parents who felt the government had breached their trust when their children were made ill by drinking infant formula authorities had certified as safe.
The government has promised free medical treatment to affected children, plus unspecified compensation to them and families of the dead.
Mr Mao said he was not authorised to discuss the details of the plan and could not say when it would be announced, but said it should be soon.
He said the health ministry, which is co-ordinating the government’s response to the crisis, is further verifying the numbers of children made ill, treated in hospital and other related figures.
“This process is for us to prepare for further investigations we are making into this incident and also for the next step of adopting the compensation scheme,” Mr Mao said.
Thousands of parents have been clamouring for compensation for their ill and dead children.
At least a dozen individual lawsuits have been filed against state-owned Sanlu Group, the mainland dairy at the centre of the scandal, but are caught in a legal limbo as courts have neither accepted nor refused the cases - a sign of the scandal’s political sensitivity.
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Firms May Have to Pay for Compensation Plan
AP in Beijing
11 December 2008
Some mainland dairy companies will probably have to pay for a compensation plan being prepared by the government for families of hundreds of thousands of children made ill by tainted milk powder, the health ministry said yesterday.
The ministry said last week that six babies died, probably as a result of drinking milk powder tainted with the industrial chemical melamine, and 294,000 infants suffered urinary problems.
The chemical melamine is used in the production of plastics and glue. It is added to substandard food, such as watered-down milk, to boost its nitrogen content, allowing it to pass testing for protein levels.
“I think that the likelihood is high that the compensation will come from the companies, because the government is now paying for the screening of the children and other related treatments,” ministry spokesman Mao Qunan said.
“Future payments should be made by the companies responsible for this,” he said when asked if he believed the dairy companies that sold the contaminated milk would foot the bill for the compensation.
Mr Ma said details of the compensation were still being worked out. “From what I understand, the relevant department is holding final discussions on the plan,” he said.
The scandal provoked public anger, particularly among parents who felt the government had breached their trust when their children were made ill by drinking infant formula authorities had certified as safe.
The government has promised free medical treatment to affected children, plus unspecified compensation to them and families of the dead.
Mr Mao said he was not authorised to discuss the details of the plan and could not say when it would be announced, but said it should be soon.
He said the health ministry, which is co-ordinating the government’s response to the crisis, is further verifying the numbers of children made ill, treated in hospital and other related figures.
“This process is for us to prepare for further investigations we are making into this incident and also for the next step of adopting the compensation scheme,” Mr Mao said.
Thousands of parents have been clamouring for compensation for their ill and dead children.
At least a dozen individual lawsuits have been filed against state-owned Sanlu Group, the mainland dairy at the centre of the scandal, but are caught in a legal limbo as courts have neither accepted nor refused the cases - a sign of the scandal’s political sensitivity.
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