In Secret Tapes, Palm Oil Execs Disclose Corruption, Brutality

Aggregation, Business News/Analysis, Farming/Growing, Feedstocks, Field/Orchard/Plantation Crops/Residues, Indonesia, Infrastructure, Malaysia, Opinions, Papua New Guinea, Policy, Sustainability, UK (United Kingdom)

October 10, 2021

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by Desmond Butler (Washington Post) … Global Witness’s two-year investigation is a rare behind-the-scenes look at the corruption, labor abuses and destructive environmental practices in an industry that is clearing carbon-rich rainforests and emitting greenhouse gases at a rate that has become a growing concern for climate scientists. The world’s most common vegetable oil has spawned vast fortunes, while coming under scrutiny for its labor practices and environmental impact.

The report includes recordings of oil-palm managers detailing corruption and labor abuses to investigators posing as commodity traders. The investigation has already provoked a response from 17 corporations, some of which have pledged to remove the palm oil companies the advocacy group identified as their suppliers.

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The group’s undercover investigators taped an executive from a Papua New Guinea-based company called Tobar Investment Ltd. seemingly confirming the Watwat resident’s account of the police raid of the village, which came in response to the destruction of palm trees on the plantation.

Edward Lamur, the executive, told investigators in a secretly recorded online meeting that his company had approached police after vandalism to get them to send a message to local residents. He said that a close friend of his ran the “special operation police” and that he could call the officer “whenever we want assistance.”

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The Global Witness report looks at Malaysian companies operating in Papua New Guinea, including East New Britain Resources Group (ENBR) and Rimbunan Hijau, that it says collectively have cleared tens of thousands of acres of forest in recent years. More than three quarters of the global product from oil palm trees comes from Indonesia and Malaysia and makes its way through supply chains into products familiar to any Western consumer, from companies such as Colgate-Palmolive, Kellogg’s and Nestlé. Many of the buyers have so-called No Deforestation, No Peat and No Exploitation policies (NDPE), but Global Witness found some of the palm oil companies whose abuses they documented on the supply list for those three Western corporations, among others.

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As Malaysia came under increasing pressure in recent decades for clearing its forests faster than any country on Earth, some of its lumber companies began looking to the virgin rainforests of Papua New Guinea. The mostly unspoiled island country has since become one of the biggest exporters of tropical lumber. And in the wake of all the cutting, Malaysian palm oil companies moved in.

Impoverished Papua New Guinea sees its economic future in palm oil.

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In a statement to The Washington Post, Tan (Malaysian chief executive of the company, Eng Kwee Tan did not deny the veracity of therecorded conversations but said the company had not engaged in bribery or tax evasion. He said the company “provides essential services such as aid posts, schools, bridges, roads, basic life skills training to local communities, clean drinking water, [and] electricity supply to the least developed districts, villages and communities within East New Britain Province.” READ MORE; includes VIDEO

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