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Bloomberg.com: India & Pakistan
China Delays in Milk Scandal `Deliberate,' WHO Says (Update1)
By Lee Spears and Dune Lawrence
Sept. 26 (Bloomberg) -- China, embroiled in a tainted milk scandal that led to the deaths of four babies and sickened 53,000, suffered from a ``deliberate failure'' to report the contamination, the World Health Organization said today.
``This incident was aggravated by delays in reporting at a number of sources,'' Hans Troedsson, WHO's China representative, told reporters in Beijing today. ``These delays were probably a combination of ignorance and deliberate failure to report.''
The melamine-milk crisis has revived concerns about Chinese food-safety controls after previous scares over seafood, dumplings and pet food. The European Union yesterday proposed banning some Chinese dairy products, joining restrictions in more than 20 countries and markets after 22 mainland companies were found to have sold contaminated products.
``Controls in China need to be reinforced,'' EU Trade Commissioner Peter Mandelson said today in Beijing. ``Above all, we expect responsibility from producers and managers in all companies involved in food production.''
Melamine, used to produce plastic and tan leather, was added by some suppliers to make the protein content in diluted milk appear higher than it is, the Chinese government has said. The chemical can cause kidney stones in children, which sometimes causes fatal complications, according to the WHO.
Reporting Delay
Sanlu Group, the first company identified as having produced tainted milk, received complaints in December and knew of the contamination in June, the official Xinhua News Agency reported on Sept. 22. It didn't notify the city government of Shijiazhuang, where it's based, until Aug. 2. The nation's quality and safety watchdog started an investigation on Sept. 10.
New Zealand's Fonterra Cooperative Group, which owns 43 percent of Sanlu, this week criticized the ``appalling delay'' by its affiliate in reporting complaints by parents of babies sickened after drinking its infant formula. The WHO yesterday described the contamination as ``deplorable.''
Tests showed that milk products made by companies including Sanlu, China Mengniu Dairy Co., the country's largest dairy group by market value, Inner Mongolia Yili Industrial Group Co. and Bright Dairy & Food Co. contained melamine, which is banned as a food ingredient in China.
``From what we know, the Chinese central government and the Ministry of Health have acted appropriately since early September when the central government went public with the issue,'' Troedsson said. More cases of sickened children are expected, and it's possible that some more recent baby deaths will be retrospectively linked to melamine consumption, though neither in ``high numbers,'' he said.
Deaths Update
China's Ministry of Health has reported three infant deaths caused by melamine-laced milk between May and August. The government of the northwest Xinjiang region reported a fourth death on Sept. 18, without saying when it happened. The government hasn't provided an update on the death toll or the number of babies hospitalized since Sept. 21.
The scandal led to the resignation of the state's chief quality supervisor on Sept. 22 and the bureau's new head, Wang Yong pledged to step up inspections of dairy farms and milk collection. More than 7,000 tons of dairy products have been withdrawn from stores across the nation.
Sanlu Group sold milk powder with more than 100 times the concentration of melamine that can be tolerated by a 5-kilogram (11-pound) baby, Jorgen Schlundt, director of the Geneva-based WHO's department of food safety, zoonoses and foodborne diseases, said today in Beijing. Melamine does occur at harmless low levels in some foods because of contamination from packaging or fertilizers, and the body eliminates it, Schlundt said.
Sanyuan Acquisition
Sanlu is facing bankruptcy and may spend as much as 700 million yuan ($102 million) on recalls of more than 10,000 metric tons of contaminated infant formula, the China Securities Journal said today. Sanlu may be bought by Beijing Sanyuan Foods Co., the newspaper said.
Sanyuan, whose dairy products were cleared of melamine contamination, today suspended trading of its shares in Shanghai, pending an acquisition announcement.
The European Commission yesterday proposed a ban on Chinese products containing any amount of milk for infants and young children. It will also impose testing all imports of products that contain more than 50 percent milk powder.
The maker of White Rabbit, China's best-known milk candy, has halted sales nationwide as Shanghai inspectors test the sweets for melamine, Xinhua reported today. The candy has already been pulled from shelves in Singapore, Hong Kong and the UK after tests showed some batches contained the chemical.
Chinese inspectors are also checking other food products that may contain melamine after products including liquid milk, yogurt and ice cream have been found to be contaminated, Troedsson said today.
To contact the reporters on this story: Lee Spears in Beijing at lspears2@bloomberg.net; Dune Lawrence in Beijing at dlawrence6@bloomberg.net.
