China offers cash for tips on food safety violations

The Chinese government will offer as much as US$48,200 (RMB300,000) to those who report food safety violations, following high-profile cases at restaurants including KFC, Reuters reported, citing state media. A Xinhua News Agency report said rewards will be paid out after the tip-offs are verified as legitimate. The new action follows a series of other campaigns to crack down on food safety issues, which additionally promise harsh punishments to violators. In December, China Central Television uncovered abnormally high levels of antiviral drugs and hormones in chicken at KFC and McDonald’s (MCD.NYSE). Yum! Brands (YUM.NYSE, TGR.FRA), the parent company of KFC, apologized last week to its customers for how it handled the food scare. Among other scares are incidences of fake eggs and carcinogens in milk that have been reported in the media, and milk contaminated with melamine that killed six children in 2008.