Hungary nationalizes toxic-sludge company

Hungary Tuesday seized control of the company blamed for a deadly mudslide, as a new dam to prevent a feared second disaster neared completion, likely allowing villagers to return home by the end of this week.

Just a day after the managing director of the MAL Hungarian Aluminium Production and Trade Company was detained for questioning in the country's worst-ever chemical accident, the government seized control of the company and froze its assets.

A bill nationalizing MAL was quickly passed by the Parliament and then signed into law by President Pal Schmitt.

MAL has been accused of overloading a reservoir with toxic residue at its aluminum plant in Ajka, 160 kilometers from Budapest.

The reservoir's retaining walls burst a week ago, sending a tidal wave of toxic sludge through surrounding villages and across an area of 40 square kilometers, polluting the Danube and its tributaries.

The villages of Kolontar and Devecser were the hardest hit and at least eight people from Kolontar died in the disaster, and 45 people remain hospitalized, with two listed in very serious condition.

The company denies any wrongdoing. But an investigation is underway to determine the exact cause of the spill, and on Monday, MAL's managing director, Zoltan Bakonyi, was taken into custody for questioning.

Authorities were also checking similar plants elsewhere in Hungary, but so far have not found any irregularities that would warrant immediate action.

Meanwhile, construction was nearing completion of a second dam to prevent a second spill from occurring in case of anticipated heavy rain later this week.

"The new dike is practically ready. We just need to reinforce it with stones, because it will have to hold for decades," head of the regional disaster relief services, Tibor Dobson, said.

The second dam measures 30 meters wide, four meters high and around 1,500 meters in length.

Around 800 villagers of Kolontar were evacuated Saturday for fear of a second spill. They were informed yesterday that they would probably be able to return to their homes Friday at the earliest, Dobson said.

Agencies