Earlier, executive Zoltan Bakonyi had been questioned by authorities.

Hungary's Prime Minister, Viktor Orban, said that he favored strong government intervention against Bakonyi's aluminum company, MAL Co.

"I proposed appointing a state commissioner to exercise control over the company who should manage the company and its assets until the tasks stemming from the disaster have been fulfilled," he said. "I ask the parliament to accept the proposal. The company should be put under state control and its assets under state closure."

Much of the red sludge has been removed or diluted in the town of Devecer. Residents watched as emergency workers and soldiers walked past in full biohazard suits.

Military trucks and cars used to decontaminate the area came through the streets, spraying away the dark red dust that accumulates. Workers said that they have been diluting the mud and removing it constantly.

Meanwhile, an eighth victim of the sludge has been found, said Gyorgyi Tottos, an official with Hungary's emergency services department.

About 800 people have been evacuated from the village of Kolontar, leaving it essentially empty. Hundreds of soldiers were ready to rescue inhabitants of a nearby village if the wall collapses.