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Unbelievable misconduct by dairy giant Sanlu

Updated: 2008-09-23 14:53

Posted by richard, 2008-09-23 13:34

Unbelievable of misconduct...."Dairy giant Sanlu Group lied about its contaminated baby milk formula for eight months, while tens of thousands of infants got ill, said an investigation team sent by the State Council."

This is STAGGERING MONUMENTAL FAILURE of corporate social responsbility and corporate governance by the Sanlu Group while customers lives were being destroyed as the clock ticked by.

The entire Board of Directors have failed spectacularly and should ALL be removed immediately. The Chinese Government must take up SUBSTANTIAL shareholdings interests in the Sanlu Group (and the other two major dairy food manufacturers) and assumed MAJORITY Board control regardless of existing shareholders' likely protests.

The embarassed resignation of Minister LI itself does not and will NOT in itself resolve future risks, the corporate culture at the highest level of management within the Sanlu Group is unacceptable.

It is not what has gone wrong in the past. IT IS THE CONCEALMENT AND DAMAGE that was allowed to fester for eight months for motives and other considerations totally appropriate in all its tragic circumstances.

PUBLIC ACCOUNTABILITY REQUIRES THAT THIS BE DONE NOW.