Justice blocks R$ 1 billion from Braskem for damages in Maceió – 04/20/2023 – Daily life

Justice in Alagoas decided to block BRL 1.08 billion from the petrochemical company Braskem in favor of the state government to guarantee the payment of property damages caused by the subsidence of soil that affected at least five neighborhoods in Maceió.

Started in March 2018, the largest ongoing urban environmental disaster in the country completed five years with an impact on an area equivalent to 20% of the territory of the capital of Alagoas. The affected neighborhoods were emptied after the first tremors and, little by little, they gained the appearance of a ghost town.

Studies by the Geological Survey of Brazil, a federal government agency, concluded that Braskem’s mining activities in a geological fault area caused the sinking. The company had 35 rock salt extraction wells in Maceió, a material used to produce PVC and caustic soda.

The decision for the blockade was issued this Wednesday (19) by Judge José Cavalcanti Manso Neto, of the 16th Civil Court of the Capital and State Treasury, and responds to a lawsuit filed by the government of Alagoas.

The magistrate highlighted that the State suffered significant losses with the environmental disaster, which affected 14,500 houses, apartments and commercial establishments in the Pinheiro, Mutange, Bebedouro, Bom Parto and Farol neighborhoods, including the destruction of roads, schools and public buildings.

He mentioned that the State stopped collecting ICMS (Tax on Circulation of Goods and Services) due to the vacancy of properties, affecting approximately 60 thousand people and paralyzing trade in the region.

“[O comércio] constituted, through the circulation of goods and transport services, a source of ICMS collection for the State of Alagoas, that is, the main source of public revenue for the States”, he highlighted.

Also according to the judge, the state government incurred losses related to the construction of a new avenue that was rendered unusable after sinking in the Pinheiro neighborhood. The destruction of the work resulted in losses of R$ 11.6 million, in corrected values, in addition to R$ 3.1 million spent on expropriations.

A study by the consultancy Finance (Finanças Análise Consultoria Econômica Ltda) was also cited, which points out that the state’s collection with ICMS between 2018 and 2020 – if there had been no disaster caused by Braskem – would have reached R$ 900 million. According to the consultancy, the volume is 6.5% greater than what the State effectively obtained.

In a note, Braskem said “that it will take the relevant measures within the applicable legal deadlines and keep the market informed of any relevant developments on the subject”.

In January 2020, the company signed an agreement with a task force, formed by the Federal and State Public Ministries and State and Union Defenders, which determined the compensation of the owners of 14,500 homes.

In October last year, MPF and Braskem signed a specific agreement for the Flexal region to reverse the socioeconomic isolation of residents with the construction of a new school, health center, road improvements and compensation for families.

The Municipality of Maceió is negotiating with the mining company an agreement to compensate for the damage caused by the mining activity and says it does not rule out a lawsuit.

The agreement with the Federal Public Prosecutor’s Office provides that Braskem will work to stabilize and monitor the geological phenomenon, repair environmental damage resulting from mining and compensate for social, moral and urban damage. So far, a value of R$ 1.28 billion has been set for social and urban reparation measures.

Braskem and the task force also signed a socio-environmental agreement that does not provide for fixed amounts in relation to mitigation, repair and compensation for environmental damage, which are still being calculated.