Vedan Vietnam on September 25 refused to compensate famers 569.5 billion dong (US$31.6 million) for the losses it caused by polluting the Thi Vai River.

Vedan officially refuses to pay farmers $31.6 million in compensation for releasing untreated wastewater into the Thi Vai River via such pipes as the one shown in the photo.

Determination of damage caused by the company has to be based on clear scientific evidence, Mr. Yang said at a meeting with the farmers associations of Ho Chi Minh City, and Dong Nai and Ba Ria-Vung Tau Provinces on Sept. 25 to discuss compensation.

Vedan will announce the amount of damages after the Science Council, managed by the Ministry of Natural Resources and Environment, reports its findings on damage levels, he added.

The associations said if they and Vedan fail to reach agreement, they will bring the case to court.

The associations asked Vedan, a Taiwanese producer of monosodium glutamate (MSG) based in the southern province of Dong Nai, to compensate farmers VND569 billion, which presents 45-48 percent of losses caused by the pollution.

Local authorities first discovered Vedan illegally dumping the waste in the Thi Vai River last September. But investigations by Dong Nai environmental authorities and inspectors from several departments quickly revealed the practice had been going on for the previous 14 years and that the MSG plant had been contaminating the river with up to 105.6 million liters of untreated wastewater per month. The toxic water killed local farmers’ fish and shrimp and ruined farmland along the banks of the river.

The Ministry of Natural Resources and Environment (MoNRE) suspended the plant’s wastewater discharge license and fined the company VND267.5 million (current US$15,030) in November last year. The ministry also demanded VND127 billion (current $7.14 million) from the company in overdue environmental fees. The company has paid the first fine and agreed to pay the fees in three installments, the first of which has been paid.

In May 2009, the Ho Chi Minh City Farmers’ Association asked Vedan Vietnam for VND569 billion ($31.970 million) as financial support to farmers, more than 50 percent less than the initial demand of VND1.2 trillion ($67.4 million) made by farmers from three affected localities.

The association made the suggestion at a meeting between leaders of farmers associations from HCMC, Dong Nai and Ba RiaVung Tau provinces and representatives of the Taiwanese MSG-maker.

The three associations said they had received nearly 10,920 letters demanding legal action against Vedan and asking for some VND600 billion ($33.7 million) in total compensation.

VietNamNet/SGGP