Zoltan Bakonyi, the chief executive of the industrial plant responsible for the massive toxic sludge spill, has been arrested.
It was also announced that the company would be temporarily nationalized and bear any damages.
Repair work continues on the deep cracks that have appeared in the reservoir holding yet more toxic sludge from the alumina plant near Kolontar.
Prime minister Viktor Orban had the village evacuated because it was "very likely" that an entire wall of the structure would collapse, releasing a fresh 500,000 meter wave of the chemical effluent that has killed 8 and injured 150."The wall is in very bad shape, " said Orban. "We have started to build dams in the direction of the populated areas to slow the flow of the material in case of a new incident."
A spokesman said the effort to contain the waste was "a race against time" as further rain threatens to increase pressure on the reservoir wall.