The Vietnamese branch of the Filipino food and beverage firm Universal Robina Corporation (URC) has been fined over VND5.8 billion (US$259,144) for producing and selling products with excessive lead content, the highest fine ever issued by the Ministry of Health.

Nguyen Van Nhien, deputy chief inspector of Vietnam’s Ministry of Health, signed a decision on Tuesday afternoon to impose the punishment upon URC Hanoi Co. Ltd. for excessive lead content found in its C2 bottled green tea and Rong Do (Red Dragon) energy drinks.

URC Hanoi under URC Vietnam is the Vietnamese arm of Universal Robina Corporation, one of the largest consumer food and beverage companies in the Philippines.

Specific violations of the firm were stated as manufacturing two consignments of C2 beverages and a batch of Rong Do energy drink with recorded lead content higher than the allowable level.

Inspectors from the Ministry of Health supervised the disposal of 1,184 boxes of C2 and Rong Do drinks weighing over 10 metric tons, which came from the violating consignments.

However, it was confirmed that most products originating from the batches had already been sold to consumers across the country with total revenue estimated at VND3.9 billion ($174,252).

The URC subsidiary also committed several other violations in relation to its inventory, with financial penalty for all of their offences totalling VND5.82 billion ($260,037).

During an interview with Tuoi Tre (Youth) newspaper, Nhien said that the fine was based on the severity of the violations and the value of the goods.

According to the official, inspectors from the Ministry of Health had previously seized three batches of the type of drinks to carry out their examination.

Results provided by the National Institute of Nutrition showed that the lead content was within the normal limit, Nhien said.

Authorities dispose of the products containing high lead content on May 31, 2016. Photo: Tuoi Tre

Consumers’ compensation?

Following an inspection on URC Hanoi, the Ministry of Health inspectorate will carry out similar activities on URC Vietnam, Nhien said, adding that Coca-Cola Vietnam, Suntory PepsiCo Vietnam Beverage, and Wonderfarm, a unit of Japan’s Kirin Group, are also expected to be the target of future product inspections.

An important issue in these types of cases is that the Vietnamese law does attribute specific accountability for violating companies like URC Hanoi, the deputy chief inspector continued.

According to Nguyen Manh Hung, vice-president of the Vietnam Standard and Consumers Association, buyers of the C2 and Rong Do beverages containing excessive lead content must be compensated in principle.

However, filing lawsuits for each case would be difficult as buyers usually purchase in small amounts, with all products already consumed and evaluation of detrimental effects on their health difficult to be determined, Hung added.

“A fund could be established to protect consumers’ interests, including inspecting and discovering unsuitable products before they are sold," he proposed.

In a relevant development, an official from the Ministry of Information and Communications confirmed on Tuesday that the agency was working with the Ministry of Public Security to verify the case in which several members of the press were accused of receiving bribes from URC Vietnam in order to cover up the truth behind its products’ excessive lead content.

Authorities have been having difficulty indentifying the anonymous Facebook user who posted the allegation.

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