Vale Officially Facing Criminal Charges from Brazilian Authorities
The world's largest iron mining company, Vale (NYSE: VALE), was hit by another piece of bad news recently. Brazilian authorities announced charges against several Vale employees who deceived regulators about the structural integrity of the Brumadinho dam that collapsed in January. The incident, which resulted in the deaths of 248 people, was the deadliest dam collapse in over 50 years and arguably the worst disaster in Vale's mining history.
Brazilian federal police have announced criminal charges against seven employees of Vale as well as six workers from TÜV SÜD, a safety inspection firm and auditor that certified the Brumadinho dam in Minas Gerais safe just months before it ruptured. All the workers accused were either engineers, managers, or technicians; no one in senior management has been charged.
While there has been plenty of speculation about criminal charges for some of Vale's executives or directors, it appears this current round of charges is targeting those who were personally involved in the certification process. However, it's likely that more criminal charges will follow in the near future, and senior executives could face jail time. According to The Financial Times, a parliamentary commission in Minas Gerais, the state where the Brumadinho mine is located, authored a report arguing that Vale's CEO at the time of the disaster, Fabio Schvartsman, should receive criminal charges.
Source Fool.com