Saturday, November 1, 2014   

Five arrested over food scandal
(07-23 13:53)

Five employees of a company accused of selling expired beef and chicken to McDonald's, KFC and other restaurants were detained by police Wednesday after an official said illegal activity was an organized effort by the supplier.
China's food safety agency said on its website its investigators found unspecified illegal activity by Husi Food Co. but gave no confirmation expired meat had been found or other details.
"We found that some of the illegal conduct was not that of certain individuals but was an arrangement organized by the company,'' the deputy director of the agency's Shanghai bureau, Gu Zhenghua, told the official Xinhua News Agency.
Those in criminal detention include Husi's quality manager, the Shanghai police department said on its microblog account. The one-sentence statement gave no details of possible charges or the employees' identities.
Phone calls to the agency were not answered.
The scandal surrounding Husi, which is owned by OSI Group of Aurora, Illinois, has alarmed Chinese diners and disrupted operations for fast food chains.
A Shanghai broadcaster, Dragon TV, reported Sunday that Husi repackaged old beef and chicken and put new expiration dates on them. It said they were sold to McDonald's, KFC and Pizza Hut restaurants.
Restaurant operators that have withdrawn products made with meat from Husi include McDonald's Corp., KFC owner Yum Brands Inc., pizza chain Papa John's International Inc., Starbucks Corp., Burger King Corp. and Dicos, a Taiwanese-owned sandwich shop chain.
Product safety is unusually sensitive in China following scandals over the past decade in which infants, hospital patients and others have been killed or sickened by phony or adulterated milk powder, drugs and other goods.
Husi said in a statement earlier it was "appalled by the report'' and believed it to be an "isolated event.'' It promised to cooperate with the investigation and to share the results with the public.
The State Food and Drug Administration's statement Wednesday said investigators seized 160 tons of raw material and 1,100 tons of finished products from Husi. The agency said earlier its investigation would extend to Husi facilities in Shanghai and five other provinces.
During a conference call Tuesday to discuss its financial results, McDonald's Corp. CEO Don Thompson said the company felt "a bit deceived'' about the plant in question.
Foreign fast food brands are seen as more reliable than Chinese competitors, though local brands have made big improvements in quality.
KFC, China's biggest restaurant chain with more than 4,000 outlets and plans to open 700 more this year, was hit hard by a report in December 2013 that some poultry suppliers violated rules on drug use in chickens. Sales plunged and KFC overhauled quality controls, cutting ties with more than 1,000 small poultry suppliers. --AP   
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