Braskem’s Reckoning: Federal Police Indict 20 Over Maceió Ground Sinking Disaster
Brazil’s Federal Police formally accused Braskem and 19 individuals of crimes related to ground sinking in Maceió. The accusations stem from decades of rock salt mining that caused severe environmental damage and displaced thousands of residents.
Braskem began extracting rock salt in Maceió during the 1970s. The company used the salt to produce various household and industrial products. However, their mining activities created underground cavities that destabilized the ground above.
In 2018, residents noticed alarming cracks and tremors in five neighborhoods. Braskem halted operations in 2019 as authorities began evacuating the affected areas. Approximately 60,000 people have been forced to abandon their homes due to the disaster.
The investigation concluded on November 1, 2024. They accused 20 suspects of environmental crimes, damage to public property, and using false reports. The indictments include Braskem employees and contractors.
Braskem has set aside R$15.5 billion ($2.72 billion) for compensation and remediation efforts. The company claims to have offered financial compensation to 99.9% of affected residents. They have already disbursed R$9.2 billion ($1.61 billion) since 2018.
Braskem’s Reckoning: Federal Police Indict 20 Over Maceió Ground Sinking Disaster
However, many victims argue that the compensation is inadequate. Some have taken their fight to Dutch courts, where Braskem manages its European subsidiaries. In July 2024, the Rotterdam Court ruled against Braskem, ordering compensation for nine Maceió residents.
This ruling could set a precedent for future cases against multinational corporations operating in Brazil. It highlights the growing trend of holding companies accountable for environmental disasters in their home countries.
A Parliamentary Inquiry Commission in the Brazilian Senate has also recommended 14 indictments related to the disaster. These include Braskem executives, former employees, and collaborators accused of negligence and responsibility.
Braskem Reports Strong Domestic Sales Amid Weaker Exports in Q3 2024
The Maceió case serves as a stark reminder of the potential consequences of unchecked industrial activities. It underscores the need for stricter regulations and oversight in extractive industries to protect communities and the environment.
As legal proceedings continue, the focus remains on ensuring justice for affected residents. The case also raises questions about corporate responsibility and the balance between industrial development and environmental protection.
More: Brazil news in English, every day from The Rio Times.
Live Company IntelligenceBraskem S.A — the full investor dossier
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error
LatAm Markets: Live Signals → — real-time movers, turnover leaders and FX across Latin America.
Brazil runoff, Sunday, October 25: Brazil runoff: date, poll closing times and when results start. Latest: Brazil runoff polls, Flávio 51%, Lula 49%.
Read More from The Rio Times