China Fines Seven Companies Over Tainted Cooking Oil Scandal

(Bloomberg) — China has fined seven companies for their involvement in a tainted cooking oil scandal that caused a nationwide uproar over food safety last month.

Most Read from Bloomberg

The firms were penalized a combined 11 million yuan ($1.5 million) for their role in an incident that saw edible oil being transported in trucks that had been used to carry coal oil without being properly cleaned. A unit of state grain stockpiler China Grain Reserves Corp., known as Sinograin, got the biggest fine — 2.86 million yuan — following an investigation set up by the State Council.

The nature of the case is “extremely severe,” the Food Safety Commission of the State Council said in a report late Sunday. It “goes against the basic common sense, and tramples the moral bottom line and legal red line,” and must be “cracked down on strictly,” it said.

China’s government is especially sensitive to food scandals as the country has been rocked by a series of such incidents over the years, including an episode in 2008 when adulterated milk killed six children and poisoned some 300,000 more.

The authorities also said they would investigate individuals that owned vehicles used to transport the tainted cooking oil, and filed criminal charges against two drivers.

Most Read from Bloomberg Businessweek

©2024 Bloomberg L.P.