Brazil federal police formally accuses Braskem over sinking ground

SAO PAULO (Reuters) -Petrochemical firm Braskem and 19 people were formally accused by Brazil's police following an investigation into sinking ground in the city of Maceio related to salt mining activities, according to the police and documents seen by Reuters.

Braskem's mines began extracting rock salt in the 1970s in the northeastern city of Maceio, but operations were halted from 2019 after authorities said it contributed to five neighborhoods sinking. Thousands of families had to be removed from the affected areas.

In a statement, police said on Friday 20 suspects have been accused as it concluded its investigations, but the authority did not name the company, or those who were formally accused.

However, a Federal Police document seen by Reuters showed that service providers and Braskem's executives are among the accused, as well as Braskem itself.

The accusations include the crimes of pollution, damage to public property and the use of false reports, another document showed.

Earlier on Friday, Braskem said in a statement that it had not analyzed the entire police report, adding it has contributed with the investigation and "always acted in line with the laws and regulations of the sector."

The firm did not immediately comment on the additional documents obtained by Reuters.

Over the past few years, Braskem has been paying billions of reais in reparations to Maceio and its residents.

(Reporting by Alberto Alerigi Jr. and Luciana Magalhaes; Editing by Sharon Singleton and Alistair Bell)

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