China Court Fines OSI, Jails Employees over Food Safety Scandal

A Chinese court has fined two domestic units of U.S. food supplier OSI Group up to $364,875 and handed prison sentences to 10 of its employees over allegations it reused returned food products to avoid losses, Reuters reports.


A Chinese court has fined two domestic units of U.S. food supplier OSI Group [OSIGP.UL] up to 2.4 million yuan ($364,875) and handed prison sentences to 10 of its employees over allegations it reused returned food products to avoid losses, Reuters reports

The verdict marks the end of a long-running probe into OSI after a safety scandal in 2014 that hit fast-food giants it supplied - McDonald's Corp (MCD.N) and Yum Brands Inc (YUM.N), owner of KFC, Pizza Hut and Taco Bell in China.
 
The Shanghai Jiading People's Court said in a statement on Monday that Yang Liqun, a general manager at OSI China, would be sentenced to three years in prison and deported.
 
It wasn't clear whether Yang, an Australian citizen, would serve jail time in China or be immediately deported.
 
Australian authorities said they were assisting a citizen arrested in Shanghai, but did not mention Yang by name.
 
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Source: Reuters