The Shanghai Green Jie food safety incident investigation team announced on Friday findings related to some residents' complaints about problematic shrimp and scrambled egg dish served to their children at school by Shanghai Green Jie Industrial Development Co on Sept 15.

The investigations revealed illegal activities by Green Jie and its personnel, leading to the proposed revocation of the company's food business license and business license. The company's operator, surnamed Zhang, along with eight other individuals, has been arrested.

Also, Bright Food (Group) Co Ltd, a State-owned enterprise, took over the provision of school meals for 484 schools across the city starting Sept 23, according to the investigation team.

The probe found that on Sept 15, at a primary school in downtown Jing'an district, a chef and a manager, both from Green Jie, cooked shrimp without washing them, and discovered two worms in the process. The manager reported this to Zhang, who ordered the destruction of all shrimp distributed to 211 schools that day and concealed the worm incident.

Regarding online reports of "foul-smelling shrimp," investigations found improper handling in seven school kitchens managed by Green Jie, where staff members did not wash frozen shrimp before cooking. Before the incident, managers at two other schools reported a bad smell from the shrimp on the same day. Over the years, Green Jie managers reported multiple food quality and safety issues, which the company failed to report to regulatory authorities as required, the team said.

The investigations also uncovered bid rigging, with Green Jie winning 86 school meal service contracts illegally.

Due to its organized cover-up, falsification, and destruction of evidence, the city's market watchdog plans to revoke the company's food business license. Legal representatives and key personnel face fines and a five-year ban from the food industry.

Due to bid rigging, the company's business license will also be revoked. Zhang and eight others were arrested for collusion in bidding on Oct 28. Further investigations into other illegal activities by Green Jie and related entities are going on.

Shanghai's education and market authorities pledged to strengthen supply chain management, welcome public oversight, and enhance supervision of school meals.