22 Aug 2013

Fonterra officials facing contempt charge in Sri Lanka

10:01 am on 22 August 2013

A court in Sri Lanka has issued a summons to Fonterra Brands Lanka, a subsidiary of Fonterra, and four of its officials for contempt of court for not adhering to an earlier ruling banning sales and advertising of Fonterra milk products for two weeks.

The ban was obtained by a trade union because Fonterra products suspected of being contaminated with the toxin DCD were still on the market despite a recall by the health ministry.

On Monday, the ministry testing cleared Fonterra milk powder of contamination.

Lawyers representing the union said Fonterra continued to distribute its milk powder products to retailers on Saturday despite the court ban and distributed leaflets on Monday saying its products were still fit for human consumption.

"They (Fonterra) are in contempt as they have not followed the court order," said Upul Jayasuriya, who appeared in court on behalf of the union. "The judge has issued summons on Fonterra and its four directors for 23 August."

Officials from Fonterra Brands Lanka Pvt Ltd were not available for comment.

Fonterra announced on 3 August that some of its products could contain a bacteria that can cause botulism. Products have since been taken off the shelves in China and other countries.