Mystery surrounds 'secret' milk fund
By Jia Feishang |
May 17, 2011, Tuesday
|
Print Edition
Print Edition
MYSTERY surrounds a compensation fund set up after the notorious milk scandal in 2008 which sickened thousands of children across the country, with details about its management, operation and financial reports unavailable to the public, a news magazine reported yesterday.
The 200 million yuan (US$30.73 million) fund, which was to cover future medical bills of children affected by the scandal, was set up by the Chinese Dairy Industry Association and was to be operated by an insurance company.
But both sides told the Oriental Outlook they could give no information about the fund, claiming it was an industry or even a state secret and details couldn't be made public.
An official with the dairy association said they were only responsible for setting up the fund and that the China Life insurance company was supposed to be operating it.
"We suggest media not to report the fund," the official told the magazine.
When the insurance company was asked whether it would be making regular reports on the operation of the fund to the association, an official said he did not know anything about it, the magazine reported.
At least six babies were killed and nearly 300,000 children fell ill, mainly diagnosed with kidney stones, in the 2008 scandal after they consumed melamine-laced milk powder produced by 22 Chinese companies, including the Sanlu Group, Mengniu Dairy Co and Yili Industrial Group Co.
The 22 companies raised a total of 1.1 billion yuan for victims of the scandal - 900 million for the sickened children's treatment and compensation and the remaining 200 million to be used for future medical expenses.
Apart for the Sanlu Group, the main player in the scandal, which contributed more than 900 million yuan, how much other producers donated is not known and spokesmen for Mengniu and Yili both said they were "not clear" about their funding, the magazine said.
Lin Zheng, a lawyer who acted for more than 330 sickened children, said the situation had not been open or transparent enough from the very beginning.
The 900 million yuan should have been used to compensate victims' families - 200,000 yuan for each death, 30,000 yuan for each serious case and 2,000 yuan for ordinary cases, according to the compensation standard.
"Most people got 2,000 yuan, but we do not know how much of the money has been spent or whether the 900 million yuan has a balance remaining," Lin told the magazine.
The fund faces similar questions.
Renmin University law professor Zhang Xinbao told the magazine that the fund's management body should submit financial reports on the use of the fund regularly, and both the association and the insurance company should be well aware of the operation of the fund.
No one so far has explained what authorities or the dairy companies would do if the 200 million yuan fund - which should cover medical bills until those affected turn 18 - was used up. And if there was money remaining, details of how it would be spent were also not available, the magazine reported.
The 200 million yuan (US$30.73 million) fund, which was to cover future medical bills of children affected by the scandal, was set up by the Chinese Dairy Industry Association and was to be operated by an insurance company.
But both sides told the Oriental Outlook they could give no information about the fund, claiming it was an industry or even a state secret and details couldn't be made public.
An official with the dairy association said they were only responsible for setting up the fund and that the China Life insurance company was supposed to be operating it.
"We suggest media not to report the fund," the official told the magazine.
When the insurance company was asked whether it would be making regular reports on the operation of the fund to the association, an official said he did not know anything about it, the magazine reported.
At least six babies were killed and nearly 300,000 children fell ill, mainly diagnosed with kidney stones, in the 2008 scandal after they consumed melamine-laced milk powder produced by 22 Chinese companies, including the Sanlu Group, Mengniu Dairy Co and Yili Industrial Group Co.
The 22 companies raised a total of 1.1 billion yuan for victims of the scandal - 900 million for the sickened children's treatment and compensation and the remaining 200 million to be used for future medical expenses.
Apart for the Sanlu Group, the main player in the scandal, which contributed more than 900 million yuan, how much other producers donated is not known and spokesmen for Mengniu and Yili both said they were "not clear" about their funding, the magazine said.
Lin Zheng, a lawyer who acted for more than 330 sickened children, said the situation had not been open or transparent enough from the very beginning.
The 900 million yuan should have been used to compensate victims' families - 200,000 yuan for each death, 30,000 yuan for each serious case and 2,000 yuan for ordinary cases, according to the compensation standard.
"Most people got 2,000 yuan, but we do not know how much of the money has been spent or whether the 900 million yuan has a balance remaining," Lin told the magazine.
The fund faces similar questions.
Renmin University law professor Zhang Xinbao told the magazine that the fund's management body should submit financial reports on the use of the fund regularly, and both the association and the insurance company should be well aware of the operation of the fund.
No one so far has explained what authorities or the dairy companies would do if the 200 million yuan fund - which should cover medical bills until those affected turn 18 - was used up. And if there was money remaining, details of how it would be spent were also not available, the magazine reported.
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