MSG-maker Vedan agrees to pay damages to farmers

03:08, 10/08/2010

Vedan has agreed to fully compensate residents affected by pollution in Ba Ria - Vung Tau Province and HCM City.

Vedan has agreed to fully compensate residents affected by pollution in Ba Ria - Vung Tau Province and HCM City.

 

Vedan was caught discharging untreated waste water into the Thi Vai River in September 2008 by environment police and inspectors.

 

The Taiwanese-owned company will have to increase its compensation payments after the companys proposal to pay Ba Ria - Vung Tau Provinces farmers VND50 billion (US$2.6 million) and HCM Citys farmers VND40 billion ($2.1 million) was turned down in a meeting in HCM City yesterday.

 

The monosodium glutamate company would pay half of the amount, VND53.6 billion ($2.8 million) for Ba Ria - Vung Tau and VND45.7 billion ($2.4) for HCM City, by August 20, said HCM City Farmers Association chairman Nguyen Van Phung.

 

Vedan said it would make its final payment between January 10 and 14 next year, but the two localities had yet to agree on the deadline.

 

The company has yet to confirm the level of compensation for Dong Nai Province.

 

Vedan last week offered to pay Dong Nai farmers VND70 billion ($3.7 million).

 

Yesterday, 139 farmers in Ba Ria- Vung Tau Provinces Tan Thanh District submitted claims for damages to the local Peoples Court, bringing the total seeking compensation to 1,250 in the province.

 

The provincial Bar Associations deputy head, Hoang Long Ha, said the evidence produced in the files by residents was "adequate and firm".

 

Dong Nai Lawyers Association chairman Nguyen Duc said farmers were entitled to file suit against Vedan.

 

Nguyen Van Hau, who is legally representating residents from HCM Citys Can Gio District, said farmers would stop suing Vedan once their initial commitments were fulfilled.

 

General Environment Department director Bui Cach Tuyen said he appreciated the companys goodwill and would create favourable conditions for it to continue its business in Viet Nam in the future.

 

Yesterdays urgent meeting was initiated by the company after traders and consumers across the country had begun boycotting Vedan products.

 

The company had been polluting the river for 14 years and up to 105.6 million litres of untreated waste water had been dumped into the river per month. The toxic water killed farmers fish and shrimp and ruined farmland along the rivers banks.

 

The company was fined VND267.5 million ($15,030). It also had to pay VND127 billion ($7.14 million) in overdue environmental fees.

(Source: VNS)