FG Landfill site to close as Interwaste loses appeal

JSE listed waste management group Interwaste learnt late on Monday that it must close its FG Landfill site near Olifantsfontein in Midrand after acting minister of environmental affairs Derek Hanekom dismissed its appeal against a ruling in February last year that that it should cease operations at the site.

This follows pressure from neighbouring communities who blame the FG Landfill for bad odours which they say are related to severe health problems they experience.

This includes difficulty to breathe, bronchial disorders, chronic neurological disorders, children who are constantly sick with among other things bleeding noses and chest infections, burning eyes, nostrils and throat, coughing and blurry visions.

They also alleged that there were mass bird deaths “numbering in the thousands”.

Interwaste on Monday night gave a preliminary response, saying they are still studying the ruling and will take legal advice on whether to take the matter on review in the High Court.

Interwaste is currently the subject of a take-over bid by French waste management group Séché. The group announced on November 2 that the French group has made a firm offer to buy the entire issued share capital at R1.20 per share, which includes a 48% premium.

Owners of 47% of the shares have already give irrevocable support to the bid.

The offer provides that the agreement between the parties could terminate five days after Séché gives notice of a “Material Adverse Change” which may affect Interwaste’s “operations, continued existence, business, condition, assets and/or liabilities”.

Here is how Midstream resident Anneline du Bruto last year described the impact of the air pollution on their lives: 

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Moneyweb asked Interwaste CEO Alan Willcocks if this ruling could qualify as a “Material Adverse Event”.  In response Willcocks said a full disclosure of the status of FG Landfill Site was made o Séché and “the decision to effect the “Material Adverse Change Clause” is within Séché’s control and not ours”.

In an 18-page ruling Hanekom sets out what would be expected of Interwaste before it could reopen the FG site.

He details a number of experts that Interwaste must appoint to review the air quality and health risks and what they are expected to report on.

According to Willcocks the majority of these actions have already been implemented voluntarily by Interwaste over the past 18 months.

Lanette Hughes who lives with her family in Midstream Estate near the FG Landfill and was one of the vocal critics of the Interwaste operations, welcomed Hanekom’s ruling on Monday night.

She told Moneyweb that the effect of the landfill has not improved since February last year.

“I hope the site can be rehabilitated and that somebody supervises the process to see that it is done correctly,” she said.

Jan Zeederberg, chairperson of the Greater Midstream Forum, Hanekom’s decision confirmed the view held by the public that Interwaste did not comply with the conditions of the site licence and caused pollution emanating from the FG site. 

He thanked the officials from the Department of Environmental Affairs who he said spent many hours in the middle of the night to experience the extent and source of the foul smells for themselves and also the State for appointing specialists that confirmed the extent of emissions from the FG site at substantial costs to the State. 

He said he hopes that the prescribed studies will address the other possible issues of non-compliance that have been pointed out to the authorities.

Zeederberg said he trusts that if the site is allowed to be reopened it will be with full compliance to the conditions of the authorities and subject to continued monitoring.

Asked how the closure of FG will impact on waste disposal in Gauteng, Willcocks said the availability of landfill airspace is Gauteng is already in crisis, the closure of FG Landfill will simply aggravate this situation even further.

In March last year Willcocks spoke to Moneyweb about the problems at FG.

Watch the interview here: 

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