Vedan Vietnam yesterday signed an agreement to compensate VND53.6 billion to Ba Ria-Vung Tau farmers for losses it caused to them by polluting Thi Vai River.

Vedan Viet Nam yesterday signed an agreement to compensate VND53.6 billion (US$2.8 million) to Ba Ria-Vung Tau farmers for losses it caused to them by polluting Thi Vai River.

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In a meeting with the General Department of Environment and representatives of the three related provinces – Ba Ria-Vung Tau, HCM City and Dong Nai – in late 2009, Vedan’s general director denied that it had “killed” Thi Vai River.

The Taiwanese MSG-maker also agreed to pay the province People’s Committee VND500 million ($26,300) to cover their cost of calculating the losses.

Vedan will transfer half of the amount to farmers within one week. The remainder will be transferred on January 14 next year with a bank guarantee by the HCM City branch of Bangkok Bank.

The bank guarantee must be sent to representatives of the province’s farmers within one week from yesterday, the agreement said.

HCM City and Ba Ria-Vung Tau made the deal in out-of-court negotiations with the MSG maker.

Following Vedan’s announcement of full payment of VND45.7 billion ($2.3 million), VND53.5 billion ($2.7 million), and VND120 billion ($6.2 million) to HCM City, Ba Ria-Vung Tau and Dong Nai respectively, the General Department of Environment urged the provinces to work with Vedan for transferring compensation amounts.

In Dong Nai, however, authorities and farmers in Dong Nai are still arguing about the rate of compensation.

Many Dong Nai farmers want more money to make up for their losses.

The province’s Long Tho Ward, home to 350 farmers affected by Thi Vai River pollution, submitted lawsuits to sue Vedan demanding compensation of VND350 billion. They said VND120 billion would only compensate a tenth of 5,000 local farmers’ losses.

Many of the farmers were quoted by Sai Gon Tiep Thi (Sai Gon Marketing) newspaper as saying they would sue the company and not accept the offer.

Phieu, a local farmer, said at VND120 billion for 5,000 families, each would get around VND20 million, an amount not even equal to one shrimp crop.

Farmers harvested shrimp three times a year and had endured losses for 14 years due to the pollution, he explained.

La Van Lon, another farmer, said he planned to sue the company for VND300 million himself.

Many people were concerned about what would happen if Vedan refused to pay all before the legal deadline to sue the company on September 12.

Vedan also asked farmers to withdraw lawsuits against the company after receiving half of the amount, so that no further legal actions could be taken on the matter against the company.

Source: VNS