Companies now liable for previous owner’s damage

Companies and their bosses could soon be fined up to R1m and face jail time for pollution and damage to the environment, even if it was caused by previous owners, says a Weekend Argus report

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Li-Fen Chien, of Deneys Reitz, said individuals, companies and directors buying any land or business should conduct environmental impact assessments and analyse their environmental risks. ‘Failure to do so could result in costly penalties for individuals and companies, and personal civil and criminal liability for directors.’ This comes as the country toughens up its environmental law and recent amendments to the National Environmental Management Act come into effect, widening the category of those who may be held accountable for environmental damage. Chien said: ‘In the past, the only person liable for remedying the effects of pollution and environmental degradation was the person who caused the actual damage. The laws now hold anyone – including the new owner of the land, the person with control over the land or person who has the right to use the land – liable for significant pollution and degradation arising from events that occurred before the commencement of this Act.’