Fundação Renova


Published in: 01/17/2019

Renova Clarifies , Renova Esclarece

The Renova Foundation informs that the indemnity payments for Loss of Profit, to be paid in 2019, will deduct all Emergency Financial Aid (AFE) payments disbursed in 2018, in compliance with the preliminary decision of the 12th Federal Court of Belo Horizonte. The Foundation also clarifies that the preliminary decision does not mean that anything changes to the 12 thousand monthly Emergency Financial Aid payments that serve more than 25 thousand people.

The Loss of Profit corresponds to the income that the affected person obtained as a result of his productive activity, but that was interrupted as a consequence of the Fundao dam collapse. Emergency Financial Aid payments started immediately after the disaster and, according to the preliminary decision, was instituted “due to the proven interruption of productive or economic activities”, corresponding to “an immediate value (immediate indemnity) until it was possible to quantify the particular situation of each“.

The preliminary decision issued on December 27, 2018, establishes that there is no difference between the nature of the Emergency Financial Aid and that of Loss of Profit, since both are intended to repair the loss of income of those affected as a result of the Fundao dam collapse. This has always been the interpretation of the Renova Foundation.

Since 2017, the year that indemnity for general damages began, the Renova Foundation has emphasized in meetings with the Interfederative Committee (CIF) that it would be impossible for an affected person to receive both Emergency Financial Aid (AFE) and Loss of Profit, but the CIF expressed a different understanding. In the absence of an agreement between the parties, and following the terms established in the Transaction and Conduct Adjustment Term (TTAC) and the TAC Governance, the subject was taken to the 12th Federal Court to settle matters.

The Renova Foundation reaffirms that those affected will be fully indemnified for any verified loss of income. It is important to note that the decision establishes that there will be no refund to the Renova Foundation of any Emergency Financial Aid payments made before 2018.

Since the disaster, R$ 1.3 billion has been disbursed in indemnities and Emergency Financial Aid (amounts up to November of last year). In 2019, the Renova Foundation will continue paying indemnities and Emergency Financial Aid, which may reach a total of R$ 1 billion.

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