Govt picks up $3.5m wage bill

More than 24 million yuan ($3.5 million) of public funds has been used to compensate 7,000 former employees of collapsed toy maker Smart Union Group, a senior local official said yesterday.

In an interview with the Xinhua News Agency, Xu Hongfei, deputy head of Zhangmutou in Guangdong province, where the Hong Kong listed firm operated two factories, said the town government had agreed to reimburse all those who lost their jobs on Oct 15.

"The boss is nowhere to be found, so the government is paying the wages owed to the workers," he said.