China milk scandal firm bankrupt

Dairy company at centre of scandal that killed six infants and sickened many more.

     The Chinese government launched a crackdown on food safety in the wake of the scandal [AFP]

    "This bankruptcy order is not a surprise to us," he said. "We were aware that Sanlu was in a very difficult situation and faced mounting debts as a result of the melamine contamination crisis."

    Thousands affected

    Sanlu baby formula was among the top brands hit by the scandal [Reuters]

    Sanlu was the biggest name among some 22 Chinese dairy companies found to have added high levels of the industrial chemical melamine to its milk products.

    The chemical was added to fool tests for protein levels and cover up diluted milk.
     
    The scandal led to the deaths of at least six babies and caused 294,000 others across China to suffer urinary problems.
     
    It also led to the recall of thousands of Chinese-made milk products, both in China and around the world.

    At least a dozen individual lawsuits have been filed against part state-owned Sanlu, but they are caught in a legal limbo as courts have neither accepted nor refused the cases.

    The Chinese government has promised free medical treatment for children who fell ill as a result of being fed the tainted milk, plus unspecified compensation.

    Earlier this month China's health ministry said that some Chinese dairy companies would likely have to pay for a compensation plan, the details of which have not been released.

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    How different voting systems work around the world

    How different voting systems work around the world

    Nearly two billion voters in 52 countries around the world will head to the polls this year to elect their leaders.

    How Moscow lost Riyadh in 1938

    How Moscow lost Riyadh in 1938

    Russian-Saudi relations could be very different today, if Stalin hadn't killed the Soviet ambassador to Saudi Arabia.

    The great plunder: Nepal's stolen treasures

    The great plunder: Nepal's stolen treasures

    How the art world's hunger for ancient artefacts is destroying a centuries-old culture. A journey across the Himalayas.