Benzo[a]pyrene Oil Scandal Widens, Zhonglian and 4 Downstream Manufacturers All Delayed Reporting

(CNA) The Ministry of Health and Welfare's Food and Drug Administration (FDA) stated today that Zhonglian soybean salad oil's benzo[a]pyrene exceedance scandal has expanded. Zhonglian and three first-tier downstream businesses all delayed reporting to health authorities. Even Nanqiao, which first discovered the abnormality in mid-May, first notified its upstream supplier Fwusow Industry, and only reported to the health bureau on July 2, delaying timely action.

The problematic soybean salad oil was produced on April 4. Zhonglian sent raw materials and products to SGS for testing on April 13. Notably, the SGS inspection report on April 22 found no benzo[a]pyrene in the soybean raw material, while the soybean salad oil detected 1.6μg/kg of benzo[a]pyrene, which was within the regulatory limit of 2.0μg/kg.

Nanqiao conducted self-inspection of its oil sources on April 14. The test results on May 13 showed 4.6μg/kg, exceeding the limit. It then sent samples for external re-testing, and the results on June 4 were 8.0μg/kg. According to information from the FDA yesterday, Nanqiao notified Fwusow Industry of the abnormal test results on June 10. Fwusow Industry notified Zhonglian on June 11. Zhonglian sent samples for testing on June 16 and 25. The report on June 29 confirmed the abnormality, and Zhonglian reported to the FDA on June 30.

Zhonglian's "soybean salad oil" exceeded the carcinogenic substance benzo[a]pyrene, with a total of 1,300 metric tons flowing to three first-tier downstream businesses: Taishan Enterprise, Fwusow Industry, and Formosa Oil & Fats.

Since Nanqiao did not report to the local health authorities immediately and only reported for the first time on July 2, it was found to have delayed reporting. The Taipei City Department of Health has fined Nanqiao NT$3 million for violating the "Food Safety and Sanitation Act."

Taichung Mayor Lu Shiow-yen said this morning in an interview before the city government meeting that the city will fine Zhonglian, Fwusow Industry, and Formosa Oil & Fats, all registered in Taichung, NT$3 million each. The Changhua County Department of Health also stated that Taishan Enterprise, upon learning of the problematic oil from its upstream supplier Zhonglian Industry on June 15, failed to report immediately and did not provide complete information during the health department's inspection, resulting in a fine of NT$6 million.

Minister of Health and Welfare Shiu-chuan Shih personally attended an FDA press conference this afternoon, stating that the earliest discovery of this incident was by Nanqiao, and he affirmed its proactive self-inspection. However, after Nanqiao discovered the abnormality on May 13, it did not immediately report to the local competent authority as required by law, but instead notified its upstream supplier first.

Shih said that after the upstream supplier was notified, it also failed to report to the competent authority in a timely manner, instead conducting repeated tests until June 30 before completing the report. This prevented the competent authority from initiating relevant response procedures. The businesses indeed delayed reporting, and local governments have been instructed to impose penalties according to law.

Zhonglian received notification from Fwusow Industry on June 11. On June 16, it sent retained samples from shipments on April 9 to I-Mei Foods for testing. The test results on June 25 were 4.68μg/kg, which did not meet the requirements. Zhonglian sent the same retained samples to SGS again on June 25, and the test results were 8.1μg/kg, confirming the non-compliance for the second time. It was only on June 30 that Zhonglian voluntarily reported.

FDA Director-General Chiang Tze-hsiang stated that this incident relied on collaboration between central and local authorities. The Changhua County Department of Health found that the relevant businesses did not cooperate actively at the beginning. Taishan, during a quality assurance meeting with Zhonglian, Fwusow Industry, and Formosa Oil & Fats on June 15, had already learned of the abnormal test results, constituting concealment.

Chiang pointed out that the delayed reporting by the aforementioned businesses is a fact, which prevented health authorities from obtaining the information in a timely manner. Furthermore, Taishan not only delayed reporting but also failed to cooperate with the investigation when monitoring related product abnormalities. Therefore, they will be fined NT$3 million each, totaling NT$6 million.

Zhonglian was fined a record NT$160 million by the central government. Xu Chao-kai, Director of the FDA's Food Safety Department, explained that Zhonglian's fine, calculated based on the circumstances, was NT$115.2 million. Due to malicious concealment of a large scale and failure to completely block the supply chain, causing systemic and substantial damage to downstream manufacturers and the consumer market, the highest penalty of NT$3 million was imposed.

Xu said that according to Article 18 of the Administrative Penalty Act, considering the degree of culpability, the impact, and the benefits obtained from the violation, as well as the financial capacity of the penalized party, the fine was increased by NT$47 million, totaling NT$50 million. Combined with the previous fine, the total penalty is NT$165.2 million. (Editor: Chen Ching-fang) 1150707

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