Brumadinho dam collapse now two years old

Tüv Süd, the German company that signed the report vouching for the stability of mining giant Vale’s dam that collapsed in Brumadinho, Minas Gerais state, has earmarked 28.5 million euros for defense and legal costs in motions linked to the tragedy. This is one of the few pieces of information on the incident that can be found in its latest financial report, published in English and Germany. Unlike Vale, Tüv Süd has not released reports on compensations and spending on repairs, and its share in the reparation process remains unknown.

The dam burst, which left 270 dead and impacted a number of municipalities, took place two years ago today (Jan. 25). Minas Gerais state prosecutors sustain that Tüv Süd is to be held jointly responsible for the tragedy. The report submitted to Minas Gerais authorities indicates collusion between Vale and Tüv Süd. Both companies have been accused of assuming collapsing risks while having knowledge of the dam’s critical conditions, and not sharing share the data with the authorities or society.

Confronted with these allegations, the company refused to disclose details. “Tüv Süd continues to offer its cooperation to the authorities and institutions in Brazil and Germany in the context of the ongoing investigations. As long as the legal and official processes are ongoing, Tüv Süd will not be able to provide any further information on the case,” the note reads.

The report was accepted by Minas Gerais court authorities in February 2020, which turned 16 individuals into defendants: 11 Vale employees and five from Tüv Süd. Among them is German Executive Chris-Peter Meier. He works in Germany and has announced he does not plan on coming to Brazil for a testimony. According to the allegation handed to the prosecutor, Meier played a key role in the decision to sign the stability report that provided support for the operation in the dam that failed. Without this document, Vale would be forced to halt the structure.

After the tragedy, not only Tüv Süd but also consultancies contracted by Vale started revising its studies and questioning the stability of other dams in Minas Gerais state. In some cities, this reassessment found breach risks in some structures, making preventive evacuations necessary. In May 2019, Tüv Süd was banned by court authorities from issuing new reports.

The company’s next report is likely to be published in March with data on 2020. In the last report, released last year, Tüv Süd mentions legal motions requesting damages, and says new motions are likely to be on their way. The firm also states it has been conducting an internal probe and argues that “the driving factors to be considered in a legal dispute are multifaceted.”

The report challenges the Brazilian subsidiary’s capacity to continue operating under the possibility of being held accountable for the collapse. “Should the result of legal processes harm Tüv Süd, this may result in substantial damage and other payments that may have a significantly negative impact on the group’s performance and the financial position,” the document reads.

Motion in Germany

In addition to being held accountable for the tragedy in Brazilian courts, Tüv Süd is also targeted by a legal motion in Germany. Two firms are spearheading this case, UK-US PGMBM Law and German Manner Spangenberg. They represent more than 1.1 thousand clients, including the family members of some of the people who died or survived the incident. The Minas Gerais municipalities of Brumadinho and Mario Campos also joined the motion as well as natural persons, seeking compensation for environmental and economic damage.

The value in the case is yet to be estimated and should cover both moral and material damages. The case has been considered since 2019 by a local court in Munich, where Tüv Süd is based.  An assessment is underway on whether Tüv Süd should be held accountable for the tragedy, a requirement for proceedings to continue.

Tüv Süd has also been the object of a criminal complaint filed in Germany in October 2019 by members of the Association of Relatives of Victims and Those Impacted by the Dam Breach in Brumadinho—AVABRUM in the original Portuguese acronym. The measure was fostered by a coalition of national and international entities, among which International Articulation of Those Affected by Vale, the European Center for Constitutional and Human Rights (ECCHR), and Misereor, an organization of Germany Catholic bishops.