Thursday, January 15, 2009

60 arrested over melamine-tainted Sanlu milk powder

SHIJIAZHUANG, Jan. 11 (Chinese media) -- Sixty suspects have been formally

arrested over the melamine-tainted Sanlu milk powder that caused urinary

problems such as kidney stones in thousands of babies in China last year.



"Twenty-one of them went on trial between Dec. 26 and 31, including four

executives of Sanlu Group," said Zhang Deli, chief procurator of the Hebei

Provincial People's Procuratorate.

"The court will announce the verdicts soon," Zhang told the ongoing annual

session of the Hebei Provincial People's Congress.

Tian Wenhua, Sanlu's former board chairwoman and general manager, stood

trial in the provincial capital Shijiazhuang on Dec. 31, alongside the group's

former deputy general managers Wang Yuliang and Hang Zhiqi, and Wu Jusheng, a

former executive in charge of the firm's milk source division. The four were

arrested on Sept. 26.

Prior to these four, 17 people were on trial on charges of producing,

adding melamine-laced "protein powder" to milk or selling the tainted milk to

Sanlu or other dairies.

From Aug. 2 to Sept. 12, Sanlu Group produced 904 tonnes of

melamine-tainted baby formula powder and sold 813 tonnes of the tainted

products, making 47.5 million yuan (6.9 million U.S. dollars).

The Ministry of Health said it was likely the tainted milk scandal with

Sanlu Group at its center killed at least six babies. Another 294,000 infants

suffered kidney stones and other urinary problems.

Sanlu Group, partly owned by New Zealand dairy product giant Fonterra,

stopped production on Sept. 12. A bankruptcy petition for Sanlu has been filed

in the face of a 1.1 billion yuan debt.

On Dec. 19, the group borrowed 902 million yuan to pay the medical fees of

children sickened by its melamine-tainted baby formula and to compensate the

victims.

In his report to the provincial legislature, Zhang Deli said the

procuratorate system would "live up to its obligation, handle the milk scandal

properly, and crack down on all crimes that disrupt market order and economic

development".

He said such crimes included frauds, tax evasion, illegal fund-raising,

production and sales of counterfeit goods and commercial bribes.

Last year, 1,173 suspects in Hebei Province were arrested over these

charges, he said.

Meanwhile, 1,244 government employees were investigated on corruption

accusations.

The province's total arrests last year were put at 43,000.

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