July 2, 2019 / 3:58 PM / 3 months ago

CORRECTED-UPDATE 1-Vale CFO, ex-CEO should be indicted for manslaughter-Brazil Senate panel

(Corrects number of recommended indictments related to manslaughter to 14 from 16 in paragraph 3)

By Jake Spring

BRASILIA, July 2 (Reuters) - Iron ore miner Vale SA’s chief financial officer and its former chief executive should both be indicted for manslaughter, a Brazilian Senate committee that has been investigating a deadly dam collapse in late January, recommended on Tuesday.

The committee is also seeking the indictment of Vale itself as a company, as well as dam stability auditor TÜV SÜD, for environmental damages and corporate responsibility for the actions of their employees in the disaster that killed nearly 250 people.

The 400-page report recommended a total of 16 indictments, including the two corporate ones and another 14 of individual executives and others, all of them for manslaughter and other crimes.

Fabio Schvartsman stepped down as Vale’s CEO under pressure from prosecutors in March. Luciano Siani, also targeted by the committee, continues to serve as CFO.

Vale did not immediately respond to a request for comment.

Vale shares fell after the recommendations were announced and were down more than 2% in early afternoon trading.

Although the committee’s recommendations are not binding, they could influence prosecutors who are continuing to investigate Vale and its executives for negligence regarding the disaster.

Reporting By Jake Spring Editing by Susan Thomas

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