SIMPLIFIED INDEMNITY SYSTEM REACHES BRL 2.1 BILLION IN PAYMENTS IN MINAS GERAIS

Resources paid in compensation in the State exceed the amounts collected by municipalities in 2020

Almost 23 thousand people were compensated through the Simplified Indemnity System in Minas Gerais. In November this year, the value of payments surpassed the R$ 2.1 billion mark. 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 R$ 17 billion to R$ 567 thousand, and amounts by damage category can be checked on the Renova Foundation’s website.

The amount of R$ 2.1 billion was disbursed to those affected in the municipalities of Dionísio, Rio Casca, Ponte Nova, Tumiritinga, Santa Cruz do Escalvado, Naque, Itueta, Galileia, São José do Goiabal, Pingo d’Água, Aimorés, Rio Doce, Bugre, Caratinga, Sem Peixe, Ipaba, Periquito, Resplendor – including the riverside community of Vila Crenaque and excluding the Indigenous People -, and the districts of Senhora da Penha (Fernandes Tourinho), Ipaba do Paraíso (Santana do Paraíso), Cachoeira Escura (Belo Oriente), Baguari (Governador Valadares) and Revés do Belém (Bom Jesus do Galho). According to a court decision, the deadline for registration is until April 30th, 2022 for 45 municipalities impacted in the Doce River basin.

Municipalities in Minas Gerais

Indemnities exceeded the amounts collected by municipalities in 2020, moving economies and heating up sectors such as commerce and services, in addition to stimulating entrepreneurship. Among the examples is Aimorés, the municipality with the highest number of people indemnified by the system until then and with the highest amount paid. About 5.7 thousand inhabitants received the total amount paid of approximately R$ 534.7 million. The indemnities exceeded the municipality’s GDP, which was R$ 456 million in 2018, according to the IBGE. The total collection in 2020 was R$ 79.2 million, according to the State Court of Auditors (TCE).

Naque, a municipality of 7,000 inhabitants, collected BRL 25.5 million, according to TCE data. But the amount paid to 2,100 city residents by the Simplified Indemnity System, from September 2020 to November 2021, was six times greater than the municipality’s collection, reaching R$ 163.4 million. Bom Jesus do Galho is another example of how Simplified Indemnity System payments have the potential to boost local economies. The collection of the city, with a population of 15 thousand people, added, in 2020, according to the TCE, R$ 35 million.  Around 960 residents of the Revés do Belém district received approximately R$91 million by November 2021.

Minas Gerais and Espírito Santo

The first payment made by the Simplified Indemnity System 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).

Access to the Simplified Indemnity System has also been granted to Mariana, since September 27, and to Barra Longa, since November 16, but compensation has not yet been made through this flow. 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 30, 2020;
•         Have filed a claim for damages in a foreign jurisdiction by April 30, 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 30, 2021, 45 municipalities in the Doce River Basin were able to enter the system as of December 1st. The membership deadline is April 30, 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.