China milk scandal companies offer to compensate victims

BEIJING, Dec. 27 (Chinese media) -- Victims who fell ill or

died after drinking tainted baby formula will soon get financial compensation

from 22 Chinese dairy producers, China's Dairy Industry Association announced

here Saturday.

"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.

Victims will get a one-time cash payment, the

association said, without going in to specific numbers.

"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.

No specific date was given.

In all, 22 dairy producers, including the

Shijiazhuang-based Sanlu Group, sold products tainted with an industrious

chemical known as melamine. It is used in the manufacturing of plastics. When

added to milk it appears to increase protein levels.

The association said in order to be fully responsible

for the babies, the 22 enterprises also raised money to cover medical bills for

any possible after-effects as a result of the poisoning. Again, no specific

amount was given.

"If the babies suffer from relative after-effects,

all medical fee will be covered by the fund," the association said.

The Ministry of Health said it was likely melamine

contamination killed six babies. Another 294,000 infants suffered from urinary

problems such as kidney stones.

China's tainted dairy scandal was exposed in

September after babies who were fed milk powder, produced by the Hebei

Province-based Sanlu Group, developed kidney stones.

The scandal led to the resignation of China's chief

quality supervisor Li Changjiang. Several officials were sacked, arrests were

made and the government is working on overhauling the country's dairy industry.

As of Nov. 27, a total of 861 babies were still in

the hospital, according to the Ministry of Health. Chinese media asked for updated

numbers but was told they will be released at a regular press conference,

usually held on the tenth of every month.

The Sanlu Group, epicenter of the scandal, stopped

production on Sept. 12. A bankruptcy petition for Sanlu has been filed as it

faces 1.1 billion yuan of debt, the Shijiazhuang city government said Thursday.