China sets up fund for victims of tainted milk powder

Dec 28, 2008, 10:31 GMT

Beijing - China's dairy producers have set up a fund to compensate victims of melamine-tainted milk powder, which apparently led to the death of at least six infants and may have sickened tens of thousands of others, state media said on Sunday.

The China Dairy Industry Association said it set up the fund from 22 dairy producers implicated in the scandal, who 'hope to earn understanding and forgiveness of the families of the sickened children' through the move, the official Xinhua news agency reported.

All victims will get a one-time cash payment, the association said without specifying the amount or other details of the compensation.

The agency said the 22 firms would also provide money to cover medical bills for 'any possible after-effects as a result of the poisoning'.

The health ministry said it believed melamine contaminated milk powder was probably to blame for the death of six infants, while the parents of another 294,000 infants sought medical advice for kidney stones and other urinary problems.

At the end of November, a total of 861 babies were still under treatment at hospitals nationwide for problems linked to tainted milk powder, the ministry said.

Courts in northern China's Hebei province on Friday tried six people accused of crimes linked to production and distribution of nearly 800 tons of melamine-tainted milk powder.

Hebei police have arrested at least a dozen others linked to contaminated milk powder produced by local firm Sanlu, which was declared bankrupt earlier this week with debts of 1.1 billion yuan (161 million dollars) after ceasing production in September.

Most of the infants treated had consumed baby milk powder made by Sanlu.

Government officials said Sanlu knew about the contamination of milk powder with melamine since March but didn't order a national recall of the powder until September.

Melamine is used as a binding agent and coating for particle, fibre and laminated board in furniture. It is also used to make fertilizer.