Brazil sues Syngenta over alleged environmental damage

By Ricardo Brito

BRASILIA (Reuters) – Brazil's environmental agency IBAMA has filed a lawsuit against Syngenta, accusing the chemicals group of causing “environmental damage” by producing and selling pesticides containing concentrations of a carcinogen far higher than those allowed by law, according to court documents seen by Reuters.

In the complaint filed last week, IBAMA said it was seeking damages to address environmental and human health problems arising from the use of such a toxic product.

Syngenta did not immediately comment.

IBAMA told a federal judge in Sao Paulo that it had found evidence of the use of a carcinogenic substance called “bronopol” at levels almost three times higher than the amount allowed in the manufacture of the insecticide “Engeo Pleno.”

This substance was also illegally added to the insecticides “Karate Zeon 250 CS” and “Karate Zeon 50 CS” but is not part of their formula, according to IBAMA's allegations.

Syngenta is said to have produced 4.7 million litres of the three insecticides, of which at least 4.4 million were marketed, according to evidence produced by the agency and presented to the court.

IBAMA estimates that the sale of allegedly adulterated products generated more than 400 million reais ($73 million) for the company.

The agency also asked the judge to force the company to properly identify, collect and dispose of products sold that have not yet been removed from the market.

The courts have not yet made a decision.

The amount of the compensation will be determined during the proceedings, according to court documents.

To guarantee the payment of damages in case IBAMA wins the case, the agency asked the court to require the company to set aside 90 million reais.

($1 = 5.4849 reais)

(Reporting by Ricardo Brito, writing by Ana Mano; editing by Alistair Bell and David Gregorio)