BBC NEWS Americas Africa Europe Middle East South Asia Asia Pacific Arabic Spanish Russian Chinese Welsh
BBCi CATEGORIES   TV   RADIO   COMMUNICATE   WHERE I LIVE   INDEX    SEARCH 

BBC NEWS
 You are in: Business
Front Page 
World 
UK 
UK Politics 
Business 
Market Data 
Economy 
Companies 
E-Commerce 
Your Money 
Business Basics 
Sci/Tech 
Health 
Education 
Entertainment 
Talking Point 
In Depth 
AudioVideo 


Commonwealth Games 2002

BBC Sport

BBC Weather

SERVICES 
Thursday, 24 January, 2002, 13:12 GMT
Japan firm admits BSE cash scam
Supermarket in Kobe, Japan
Packs of Snow Brand Foods being removed from the shelves
By BBC World Business Report's Doreen Walton

A Japanese food company has admitted cheating the government over a programme to buy up beef unsold after an outbreak of mad cow disease, or BSE.

The Snow Brand Food Company said employees had repackaged beef from Australia, pretending it came from Japan, in order to win government compensation.

When the allegations were first made in Japanese newspaper the Asahi Shimbun Snow Brand initially issued a strong denial.

Now the company's president, Shozo Yoshida, has admitted the scam did take place.

He apologised and said Snow Brand would repay the government money it had received.

The Japanese government offered to buy unsold beef after news of Japan's first case of BSE prompted a sharp fall in beef sales.

Damaged reputation

Mr Yoshida said the scam took place at the company's Kansai Meat Centre facility.

The story has once again tarnished Snow Brand's reputation among the general public and on the Tokyo stock market where its share price has fallen steeply.

A year and a half ago, the company was implicated in the poisoning of 13,000 people in and around the Japanese city of Osaka, after a bacterial contamination at one of the company's local dairy plants.

BSE, bovine spongiform encephalopathy, was first discovered in Japan last September.

It is believed to have spread to Japan in imports of European animal feed.

The disease, which first broke out in Western Europe, attacks cow's brains and has been linked to CJD, a similar disease in humans.

See also:

14 Dec 01 | Asia-Pacific
Japan to destroy tonnes of beef
18 Oct 01 | Asia-Pacific
Japan unveils anti-BSE measures
11 Sep 01 | Asia-Pacific
Asia acts on Japanese BSE
Internet links:


The BBC is not responsible for the content of external internet sites

Links to more Business stories are at the foot of the page.


E-mail this story to a friend

Links to more Business stories