- Associated Press - Monday, October 11, 2010

DEVECSER, Hungary (AP) — Hungarian police have detained the director of the aluminum company responsible for a flood of caustic red sludge that killed eight people when it burst from its reservoir last week, the prime minister said Monday.

Police said they were questioning Managing Director Zoltan Bakonyi on suspicion of public endangerment causing multiple deaths and environmental damage.

Prime Minister Viktor Orban told parliament that the government wanted to take over MAL Rt., the Hungarian Aluminum Production and Trade Co., because the safe restart of production at the alumina plant was needed to save the jobs of thousands of workers.

Mr. Orban also said his administration was freezing the company’s assets to ensure that funds were available to compensate for the damages caused by the disaster.

“Since this is not a natural catastrophe, but the damage was brought about by people, the damages must be paid first and foremost not by taxpayers, but by those who caused the damage,” Orban told lawmakers.

Late last week, Mr. Bakonyi said that MAL Rt. had not noticed anything irregular at the site.

“The reservoir — which our men patrol daily — did not show any physical signs that something of this nature could happen,” Mr. Bakonyi said.

Mr. Orban, however, said the government had other suspicions.

“We have well-founded reasons to believe that there were people who knew about the dangerous weakening of the reservoir wall, but for personal reasons they thought it wasn’t worth repairing and hoped there’d be no trouble,” Mr. Orban said.

On Sunday, MAL Rt. said it was willing to pay compensation “in proportion to its responsibility” for the damage caused by the deluge.

In Devecser, one of several towns that was hit by the flood a week ago and where many people are employed at the alumina plant, Mr. Bakonyi’s detention was met by mixed feelings.

“Someone surely has to be held responsible, but he wasn’t here when the reservoir was built, so he can’t carry all the blame,” 56-year-old caterer Maria Kiss said. “I never heard any of the plant workers complain about him.”

The body of the flood’s eighth victim, an elderly woman, was found Monday afternoon near Devecser. The woman was the last person reported missing.

In Kolontar, the town closest to the damaged storage pool, which is 25 acres in size, construction continued of a new containment wall to protect the area in case of a new flood.

The wall — 610 yards long with an average height of 8.8 feet — was being built of dolomite rock and clay, the National Disaster Management Directorate said.

Story Continues →