Resources paid in compensation in the region exceed the amounts collected by municipalities in 2020
The indemnities paid in nine locations in the Doce River Valley, until November, through the Simplified Indemnity System, exceeded the mark of R$ 1.4 billion. The amounts were disbursed to about 16,400 people affected in the Minas Gerais municipalities of Tumiritinga, Naque, Itueta, Galileia, Aimorés, Periquito, Resplendor – including the Ribeirinha community of Vila Crenaque and excluding the Indigenous People -, and the districts of Cachoeira Escura , in Belo Oriente, and Baguari, in Governador Valadares.
The compensation flow allows categories, often informal, such as artisans, cart drivers, washerwomen, subsistence and informal fishermen, sand harvesters and others, to be compensated. The system also compensates formal categories such as professional fishermen, boat owners and companies such as hotels, inns and restaurants. The individual values of compensation, defined by Court, ranging from $ 17 billion to R$ 567 thousand, and amounts by damage category can be checked on the Renova Foundation’s website. The adhesion period, according to a court decision, runs until April 30th, 2022 for all municipalities impacted in the Doce River Basin.
The resources paid in compensation exceed the amounts collected by the municipalities in 2020. With about 7 thousand inhabitants, the municipality of Naque received the first payment from Minas Gerais, made in September 2020. Last year, the municipality raised BRL 25.5 million, according to data from the State Court of Auditors (TCE), and the amount paid to 2,120 Naque residents by the Simplified Indemnity System, from September 2020 to November 2021, reached approximately R$ 163.4 million.
Another example is Belo Oriente, the municipality with the highest per capita income in Minas Gerais: R$ 64 thousand, according to IBGE data in 2018. With a population of 23,400 people and an average monthly salary of 2.8 minimum wages in 2019, the municipality raised BRL 119 million in 2020, according to the TCE. The resources paid in compensation amounted to more than R$ 223.9 million, received by about 2,740 residents of the district of Cachoeira Escura.
Check below the nine locations in the Doce River Valley that received compensation through the Simplified Indemnity System until November.
| Municipality | Indemnified population (about) | Amount paid in BRL million (about) |
| Aimores: | 5.77 thousand | 534.7 |
| Belo Oriente | 2.74 thousand | 223.9 |
| Galileia | 490 | 47.3 |
| Governador Valadares | 500 | 39.1 |
| Itueta | 630 | 60.2 |
| Naque | 2.12 thousand | 163.4 |
| Periquito | 1.63 thousand | 155.8 |
| Resplendor | 1.12 thousand | 98.3 |
| Tumiritinga | 1.40 thousand | 137.8 |
Residents of Governador Valadares and those affected from over 44 municipalities in the Doce River Basin can access the Simplified Indemnity System. The first payment made by the indemnity flow took place in September 2020. Since then, more than 46,500 people from Minas Gerais and Espírito Santo have been compensated and payments have exceeded R$4.5 billion.
Until October 2021, the Renova Foundation disbursed BRL 7.02 billion to around 352,000 people, adding up to the amount paid by the Simplified Indemnity System and through the Mediated Indemnity Program (PIM) and Emergency Financial Aid (AFE). With the advance in the payment of indemnities, the Renova Foundation is heading towards the definitive financial compensation for the damage caused by the Fundao dam collapse (MG).
Adhesion
To join, people must be represented by an attorney or public defender, following a judicial decision. In addition, confirmation of age over 16 years on the date of the dam collapse and meeting one of the criteria below is required:
- Have a registration, request, protocol, interview, registration or manifestation before the Renova Foundation until April 30, 2020;
- Have filed an indemnity action in the Brazilian jurisdiction by April 30th, 2020;
- Have filed a claim for damages in a foreign jurisdiction by April 30th, 2020;
- Have, in any way, expressly manifested before public bodies and institutions (Public Defender’s Office, Prosecution Service, Military Police, Civil Police, Fire Department, Civil Defense, Social Assistance of the municipality) until April 30th, 2020 the condition of being affected by the Fundao dam collapse, with the explanation of its damage, duly proven by a certificate provided by the institutions.
Access
According to a court ruling handed down on October 30th, 2021, 45 municipalities in the Doce River Basin were able to enter the system as of December 1st. The membership deadline is April 30th, 2022. Access to the Simplified Indemnity System is made through the online platform Attorney’s Portal, at the Renova Foundation website (www.fundacaorenova.org). Payment takes place within 10 working days after the approval of the acceptance agreement by the Court.
The Renova Foundation has dedicated teams to deal with any problems in using the platform and is in permanent contact with the applicants’ attorneys via SMS, email or WhatsApp. Attorneys can call 0800 031 2303 for any doubts or concerns.