WASHINGTON — The company whose peanut butter and paste has been linked to an outbreak of salmonella food poisoning has been suspended from federal government contracts, the U.S. Agriculture Department said on Thursday.
Family-owned Peanut Corp. of America and a subsidiary, Tidewater Blanching LLC, cannot participate in federal contracts for a year, USDA said. The agency also proposed to debar the company from contracts for three years.
"The actions of PCA indicate that the company lacks business integrity and business honesty, which seriously and directly hinders its ability to do business with the federal government," David Shipman, acting administrator of USDA's Agricultural Marketing Service, said in a statement.
Peanut Corp of America has 30 days to respond to the proposed debarment, the USDA said.
Stewart Parnell, chief executive of the company, was also removed from a USDA advisory board on quality and handling standards for peanuts, the USDA said.
Source: Reuters
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