China regulators fine OSI Group $3.6M in 2014 meat scandal

Markets Associated Press

Shanghai regulators have fined former McDonald's and KFC China supplier OSI Group's local units more than $3.6 million for selling expired meat in a fast food safety scandal that erupted two years ago.

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The Shanghai Municipal Food and Drug Administration said in a notice posted on its website Monday that district market regulators fined Shanghai Husi Food about 17 million yuan ($2.5 million).

Husi parent OSI Group's China office was hit with a separate fine of 7.3 million yuan ($1.1 million).

The penalties come after a Shanghai court ruled in February that two local units of Aurora, Illinois-based OSI sold out-of-date chicken and beef. The court had earlier fined the subsidiaries 2.4 million yuan and sentenced 10 employees to prison, including an Australian citizen.