A man in Thai Binh Province who was falsely accused of tax evasion and appropriation of state assets and imprisoned for three years will receive nearly VND23bn (USD1m) in compensation after years of appeals.

Luong Ngoc Phi

In 1999, the People's Court in Thai Binh Province sentenced Luong Ngoc Phi, former director of Hoa Binh Agriculture-Marine Food Processing Company, to 17 years of imprisonment for tax evasion and appropriation of state asset. In 2001, the Thai Binh People's Procuracy discovered that the charges were a mistake so Phi was released and given an official apology. In 2013, Thai Binh City People's Court announced that the provincial court should provide Phi with compensation of over VND22bn.

After waiting with no compensation forthcoming, Phi continued to follow the case in the provincial court, demanding compensation of VND64bn. In August, after Phi withdrew the appeal, the provincial court concluded he would be eligible for compensation of VND22.89bn.

When being asked about why it took so long to settle the agreed pay out to Phi, Chief Supreme People's Court of Vietnam Judge Truong Hoa Binh, said, "Phi started demanding for compensation in 2004. In 2006, there was a dispute as which agencies must pay and the National Assembly decided that the court must pay the compensation."

Bureau of State Compensation's Deputy Director Tran Viet Hung said the money would be taken from the state budget if they failed to prove that the official on duty deliberately made a wrongful charge.

"The judge at Thai Binh Province People's Court must make compensation but if it's proved that he acted in accordance with the laws then the state will pay," he said.

Bureau of State Compensation's Deputy Director Tran Viet Hung

Hung said the state would give Phi the compensation first then the Supreme People's Court would re-check all previous investigations, court sentences and the judges. "However, Vietnam hasn't had any case in which the official has had to individually pay compensation," Hung said.

According to Hung, if officials were found to have deliberately created wrongful charges then they will be prosecuted and the officials will be forced to pay the state.