For Petrobras shareholders, everything; for Vale's victims, nothing.
While Brazil hands over more than R$10 billion to millionaire Petrobras shareholders in New York, in Rio de Janeiro Vale, Samarco, and BHP Billiton—responsible for the environmental crime that devastated hundreds of communities in 2015—managed to have a R$20 billion lawsuit against the companies, filed by the federal and state governments, canceled; furthermore, another lawsuit for R$155 billion has been suspended.
Reuters with 247 - While Brazil hands over more than R$10 billion to millionaire Petrobras shareholders in New York (read hereIn Rio de Janeiro, Vale, Samarco and BHP Billiton, responsible for the environmental crime that devastated hundreds of communities in 2015, managed this Monday (25) to cancel a 20 billion reais lawsuit filed against the companies by the Union and States. Furthermore: another lawsuit for R$ 155 billion is suspended.
As if that weren't enough, in addition to the governance agreement, which is still subject to approval by the 12th Federal Civil/Agrarian Court of Minas Gerais, a process has also been established to extinguish other public civil actions revolving around the same requests made in the R$155 billion lawsuit. In an interview with Reuters Published this Monday, the public prosecutor José Adércio Sampaio, who leads the case for the Federal Public Prosecutor's Office, explained that the agreement would pave the way for the creation of reports and diagnoses on the damage and empower those affected to negotiate the reformulation and creation of programs by the Renova Foundation - this foundation, created by the companies with a discourse of being "autonomous and independent," has been the target of repeated criticism from environmentalists and victim advocacy groups, for being an instance under the total control of the mining companies.
As part of yesterday's agreement, there will be a new governance structure for the Renova Foundation, created to execute the 42 reparation projects. Under the new model, the foundation will have nine members on its advisory board: two representatives of those affected and one from the public sector, in addition to the six from the companies, which will continue to control the institution. Two new discussion forums will be created to provide some space for the victims of the accident and to expand control mechanisms. The agreement does not foresee additional funding or the presence of representatives of those affected in the foundation's executive branch.
“The agreement is important because it demonstrates a convergence of interests between the parties – Vale, BHP Brasil, Samarco, the Public Prosecutor's Office, Public Attorneys' Offices, and Public Defenders' Offices – representing a further step forward for those affected, as it consolidates and expands the scope of actions that have already been implemented by the Renova Foundation,” commented Vale's CEO, Fabio Schvartsman, in a statement – in the text, he does not consider those affected, the victims, as protagonists, only the companies and state institutions.
By June 2018, the companies responsible for the disaster had spent R$ 3,8 billion on reparations and compensation. Of this total, R$ 1 billion was paid in indemnities and financial aid; R$ 500 million was invested in sewage treatment in the affected municipalities. These amounts are considered negligible given the magnitude of the damage caused to the environment and to thousands of people.