China's Dairy Firms to Pay Victims of Tainted Milk
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Chinese dairy firms involved in the tainted milk scandal are to compensate the families of the nearly 300,000 affected children, state media said. Twenty-two companies will make an undisclosed one-off cash payment to the families, Xinhua reported quoting the China Dairy Industry Association.
It comes as the first defendants from the food industry went on trial accused of making and selling melamine. The industrial chemical was added to milk to make it appear high in protein.
"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," Xinhua cited the Chinese dairy association as saying.
The firms have also agreed to create a fund to cover the medical bills for any potential after-effects of the poisoning, it said.
The company at the centre of the scandal, Sanlu, which has been declared bankrupt, will be among the firms to make payments, Xinhua reported. Sanlu is partly owned by New Zealand's Fonterra group. No other companies were listed.
So far, the courts have been rejecting lawsuits filed by families seeking compensation. Lawyers for the families have criticised this pay-out plan, saying it was drawn up behind closed doors without the victims' input.
It comes as the first defendants from the food industry went on trial accused of making and selling melamine. The industrial chemical was added to milk to make it appear high in protein.
"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," Xinhua cited the Chinese dairy association as saying.
The firms have also agreed to create a fund to cover the medical bills for any potential after-effects of the poisoning, it said.
The company at the centre of the scandal, Sanlu, which has been declared bankrupt, will be among the firms to make payments, Xinhua reported. Sanlu is partly owned by New Zealand's Fonterra group. No other companies were listed.
So far, the courts have been rejecting lawsuits filed by families seeking compensation. Lawyers for the families have criticised this pay-out plan, saying it was drawn up behind closed doors without the victims' input.
