Vale to create compliance department after Brumadinho

Rescuers in Brumardinho, Brazil, following the collapse of the dam at the Corrego do Feijão iron ore mine. Photo by Diego Baravelli, Wikimedia Commons.

After the Mariana and Brumadinho disasters, Vale (NYSE: VALE) said on Wednesday that will install an audit committee to improve company’s corporate governance.

The committee will assist the Board of Directors in supervising the internal audit activities, the area of internal controls and the area responsible for preparing Vale’s financial statements.

The committee will be composed of at least three members, two of them appointed by the board of directors: Isabella Saboya de Albuquerque, an independent board member of Vale and the company Wiz Soluções and Luciana Pires Dias, lawyer who served on the audit committee and Board of Directors of the Brazilian National Bank for Economic and Social Development – BNDES.
 
The company also decided to revise its bylaws to establish the Compliance Department (CCO) that will be responsible for the areas of integrity and internal audit and for the management of the Whistleblower Channel.

The company also decided to revise the its bylaws to establish the Compliance Department

The proposed revision of the bylaws will be decided at the General Meeting of Shareholders on April 30th, 2020.

The Brazilian iron ore miner recently published results of an independent report which revealed the company knew about the risks at Brumadinho’s tailing dam before the collapse that killed 270 people.

 “The creation of the CCO will reinforce Vale’s risk management model in its third line of defense, supervising the organization’s corporate integrity and corroborating the compliance with laws, regulations, policies and procedures, with autonomy and independence from management,” the company said in a release.

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