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Tainted milk firms to compensate melamine victims

(Agencies)
Updated: 2008-12-28 09:14

Chinese dairy companies that sold melamine-tainted milk are ready to pay compensation to the families of the nearly 300,000 children who became ill or died from drinking contaminated infant formula, China's Dairy Industry Association announced Saturday.

Twenty-two dairy producers will make a one-time cash payment to the victims' families, the Xinhua News agency quoted China's Dairy Industry Association as saying. No specific amount was given.

"The money for compensation is in place now and will soon be handed to the people who have custody of the sickened children through various channels," the association said. The group did not specify a date.

At least six babies died and some 294,000 other children suffered kidney and urinary problems from drinking formula contaminated with melamine, an industrial chemical which is used in the manufacturing of plastics and can increase the apparent protein content in milk. As of late November, 861 babies still remained in the hospital.

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The report did not name specific companies involved, saying the 22 dairy producers, including the Shijiazhuang-based Sanlu Group, sold products tainted with melamine.

The association also said that the 22 companies have set up an extra fund to cover medical bills for future health problems.

"If the babies suffer from relative aftereffects, all medical fees will be covered by the fund," the association said.

"The enterprises offered to shoulder the compensation liability. By doing so, they hope to earn understanding and forgiveness of the families of the sickened children," the association said.

Sanlu, which was at heart of the scandal, has filed for bankruptcy in recent days with a reported 1.1 billion yuan (US$160 million) of net debt.

On Friday, the first trials associated with the scandal opened. Six men, including the owner of a workshop that was allegedly the country's largest source of melamine, appeared at four different courts, where they are accused of producing and selling melamine.

Sanlu's chairwoman and general manager, Tian Wenhua, will go to trial Wednesday.