Sanlu Group, the main dairy involved in the melamine scandal, has also said it will borrow 500 million yuan (73 million U.S. dollars) from the local government to compensate its business partners. The collapsed dairy giant based in Shijiazhuang, Hebei province, is also responsible for paying 900 million yuan to families of victims hit by the scandal in a controversial compensation scheme.
Wang said that his administration will assist other ministries to revamp the risk analysis and recall system for products, as well as eradicate the illegal use of substances like melamine in food production.
"The milk powder incident is a tough lesson that shows the loopholes in the government's surveillance system," Wang said in his address.
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