“State Secret” Compensation Fund for Toxic Milk Victims in China

In China, a multi-million dollar compensation fund for babies who were sickened by melamine-tainted milk three years ago has been kept secret, Shanghai-based Oriental Outlook Magazine reported this week. Now parents struggling to pay for their children’s treatment want answers.

[Zhao Lianhai, Activist for Tainted Milk Victims]:
“How has this fund operated? Which families has it helped? That has never been publicized. We want to ask questions. We can’t help but suspect the money has been embezzled.”

The 2008 milk scandal killed at least six babies and left 300-thousand more with kidney diseases. That same year, the Chinese Dairy Association pooled 1.1 billion yuan—close to $170 million from 22 dairy companies for a compensation fund. 80% of the fund is meant for treating sickened babies. The remaining 20% was to be operated by an insurance company for future medical expenses.

One parent told us none of the victims’ families have heard of the insurance fund.

[Hu Chunhai, Father of Tainted Milk Victim]:
“As far as I know there’s no such insurance. No one has ever told us about it. We’ve come to know a lot of parents of kidney stone babies and we all talk amongst ourselves. None of us have heard of it.”

Now that this mystery fund has been thrown into the spotlight, Zhao Lianhai wants the money to be made available to victims.

[Zhao Lianhai, Activist for Tainted Milk Victims]:
“They must allow families to apply for compensation because they promised the kids would be treated for free. This promise must be kept.”

The fund operators told Oriental Outlook that operation details were a “state secret.” One official reportedly told the magazine the media should not report on the fund.