Logging companies mentioned in this document:
Concessions mentioned in this document:
THE TRUE PRICE OF PALM OIL How global finance and household brands are fuelling deforestation, violence and human rights abuses in Papua New Guinea October 2021
CONTENTS KEY FINDINGS ........................................................................................................................... 4 INTRODUCTION: AN INDUSTRY UNCHECKED ......................................................................... 6 A growing threat ................................................................................................................. 6 New kids on the block ......................................................................................................... 7 Tobar’s Laughing Villain ...................................................................................................... 7 Political connections................................................................................................... 9 EAST NEW BRITAIN RESOURCES GROUP ..................................................................................... 10 ‘Unofficial fees’ .......................................................................................................................... 10 Child labour ...................................................................................................................... 12 Women threatened at gunpoint .................................................................................. 12 Admissions of tax evasion ........................................................................................................ 13 Watch the tax gap ................................................................................................................................ 13 Tracking the tankers.......................................................................................................... 14 No paper trail ................................................................................................................... 14 ‘Impossible’ to sell ............................................................................................................ 14 Car chase and attempted murder ................................................................................ 15 > Box: Roundtable on Sustainable Palm Oil......................................................................... 16 Environmental cost ................................................................................................................... 16 International financing .............................................................................................................. 17 ‘Severe assault’, hundreds evicted ........................................................................................... 19 > Box: Special Agriculture and Business Leases: a toxic legacy............................................ 20 RIMBUNAN HIJAU GROUP ................................................................................................................ 21 Permanent injuries ........................................................................................................... 22 Father-and-son tragedy ..................................................................................................... 22 Amputations, chemical accidents............................................................................................. 23 Unreported tragedies ........................................................................................................ 23 ‘Inhuman’ treatment ......................................................................................................... 23 Police terror...................................................................................................................... 24 > Box: Unequal burdens ................................................................................................................... 25 Following the money ......................................................................................................... 25 Cover image: Terraced oil palm fields overlook Ataliklikun Bay, East New Britain Province, Papua New Guinea. © Global Witness
BEWANI OIL PALM PLANTATIONS LIMITED .................................................................................. 28 ‘Lost everything’ ........................................................................................................................ 28 Will the real owners please stand up? ..........................................................................29 The great switcheroo ......................................................................................................... 30 It takes two to Tago .................................................................................................................... 30 GLOBAL BUYERS ............................................................................................................................... 32 Sticks in the throat ............................................................................................................ 33 ‘Journey of no deforestation’ .................................................................................................... 33 >Table 1. Global brands that have sourced from palm oil producers East New Britain Resources Group, Rimbunan Hijau, and/or Bewani Oil Palm Plantations Ltd in Papua New Guinea, and their responses to Global Witness’s requests for comment. .................................................................................................. 34 > Box: Crowd-sourcing due diligence ........................................................................................... 37 Heavy industry ...................................................................................................................................... 38 CONCLUSIONS ........................................................................................................................ 39 Recommendations ............................................................................................................. 40 APPENDIX 1 ............................................................................................................................. 42 APPENDIX 2 ............................................................................................................................. 54 REFERENCES...................................................................................................................................... 57
KEY FINDINGS Agribusiness, including the palm oil industry, is a key driver of tropical deforestation. © Global Witness The climate crisis is no longer projection, but reality. > Palm oil executives and senior employees tell Forests play a key role in regulating the global undercover Global Witness investigators they bribed climate and are critical to preventing runaway global officials including a Papua New Guinean government heating. They are also a treasure trove of biological minister; paid police to brutalize villagers; used diversity, and home to many indigenous peoples child labour; and participated in an apparent tax evasion scheme. and forest communities. Yet forests continue to be burned and destroyed at an alarming rate. The > The Malaysian-backed firms clear-felled tens of primary driver of deforestation is agribusiness, with thousands of hectares of Papua New Guinean rainforest, palm oil a chief culprit. which supports rural communities and is among the most Global Witness went undercover to investigate the biodiverse in the world. growing threat facing Papua New Guinea’s (PNG) communities and tropical forests from palm oil > Tainted palm oil and its derivatives from Papua New companies driving widespread deforestation and human Guinea plantations were sold on to well-known big rights abuses. This investigation now exposes that brands including Kellogg’s, Nestlé, Colgate, Danone, three of PNG’s newest palm oil producers appear to be Hershey, and PZ Cussons and Reckitt Benckiser, the implicated in serious criminality and other harms. For parent companies of Imperial Leather and Strepsils. the first time, we show how this tainted product is being sourced by world-famous brands and their business > One palm oil firm, Rimbunan Hijau, negligently ignored financed by iconic banks and investors: repeated and avoidable worker deaths and injuries on palm oil plantations. > Global financiers such as BlackRock, the world’s largest asset manager, are indirectly profiting from these human rights and environmental abuses through investing in banks notorious for financing harmful palm oil firms. 4
A pattern of coercion and violence right across PNG has denied local people the traditional use of forests integral to their culture and livelihoods. Huge areas of tropical forests have been deforested, and much more remains at risk unless action is taken. Global Witness is calling for companies named in this report to be held to account for causing, contributing to, or profiting from harms linked to their global operations. International financiers ought not to be bankrolling these companies - and governments need to regulate to stop bankers enabling this industry’s excesses. Papua New Guinea’s forest communities have managed their environment for generations. © Global Witness Money in, palm oil out: global finance funds the production of deforestation palm oil in Papua New Guinea Palm oil supply chain links S$ Global finance links $ Finland Norway UK EU US ¤ kr South Korea Mexico £ Malaysian & India Singaporean banks Papua New S$ RM Guinea Malaysian-backed companies producing palm oil The production of palm oil in Papua New Guinea by Malaysian-backed companies is enabled by global finance. Palm oil from these plantations has been sold around the world. This illustration depicts some of the flows of money and palm oil examined in this investigation. THE TRUE PRICE OF PALM OIL 5
INTRODUCTION: AN INDUSTRY UNCHECKED “When the boys woke up, they were be blindfolded and arrested, then held for weeks, only to be released on payment of bail that the villagers can at gunpoint. They tied their hands at scarcely afford. the back and blindfolded their faces Welcome to Papua New Guinea’s palm oil industry, where so they could not see.” such brutality is commonplace. Global Witness now tells the story of communities across the country harmed, – Resident of Watwat village terrorised, and impoverished in pursuit of a liquid gold foodstuff that has found its way into the supply chain of global brands including Kellogg’s, Nestlé, Danone, and It is late at night in July 2019, and a pair of off-road Hershey. And a Global Witness undercover investigation vehicles wind their way through the rainforests of New helps unpick a web of apparent tax evasion and Britain, a crescent-shaped island off the north-east coast corruption, tracing money flows from financiers in of Papua New Guinea (PNG). The transport has been the US, UK, and EU to this troubled new frontier of paid for by a palm oil company. On board are police the global palm oil industry. armed with guns and metal bars who have received an ‘allowance’ from the company. In effect, this is a private army. A growing threat On arrival at the village of Watwat—where nearby oil Chances are you have consumed some palm oil already palm trees have been vandalised by persons unknown— today. Despite growing awareness of its association with the armed officers dismount, intent on retribution. They deforestation, it is the most common vegetable oil in then launch a violent raid on the village. Men and boys the world, appearing in everything from baked goods to as young as 16 are dragged from their beds, beaten with instant noodles to shampoo and baby formula.1 2 3 4 And metal bars, and thrust down into the mud at gunpoint, in PNG, palm oil is an industry poised to explode. By 2030, lying prone as tropical rain lashes from the sky. They will the PNG government aims to have 1.5m hectares (ha) © Mapbox © OpenStreetMap 6
under oil palm cultivation, compared to about 150,000 ha in 2016 – a ten-fold increase.5 Yet, there is no national New Guinea has the highest plant diversity of any island on Earth, policy guiding this expansion and creating safeguards with the majority of its plants found nowhere else. © Global to ensure communities are protected from acquisitive Witness corporations.6 Papua New Guinea’s history of land and forests mismanagement makes this an urgent issue.7 major consumer markets, via favourite brands like Hershey and Kellogg’s. A South Pacific nation, PNG makes up half of the massive island of New Guinea, home to the world’s third-largest East New Britain Province is home to thousands of square remaining rainforest.8 The country’s borders include kilometres of rainforest, and to operations of two of the hundreds of smaller islands, and it controls an area of oil palm producers that are the subject of this report.36 ocean over ten times the size of the UK.9 It is home 10 In October 2019, a team of Global Witness reporters drove south through the province to Watwat, site of the police’s to at least five per cent of all species on Earth, many found nowhere else: forest dragons, tree kangaroos, night-time attack on village boys. An elderly villager, resplendent birds of paradise, and the only known night- Sharon, whose name has been changed to protect her blooming orchid.11 12 13 14 15 16 17 Billions of metric tons of safety, described how someone had vandalized palm carbon are stored in the country’s towering trees. 18 With trees there—destroying more than a thousand—and the a population likely above eight million, richly diverse Royal PNG Constabulary sought culprits. According to cultures have developed in PNG, with more than 800 Sharon, they singled out five Watwat youths. languages spoken. 19 20 “The police were beating them and asking them Most of PNG’s people live in rural areas and rely on who cut the oil palm tree,” she recalled to Global their land, seas, and forests for at least some of their Witness reporters. livelihoods.21 In turn, communities have carefully managed the biodiversity of their local environment Police dragged the young men and boys out of bed, for generations.22 Papua New Guinea has strong laws 23 blindfolded them and tied their hands behind their to protect Indigenous peoples’ rights and its stunning backs, she said. Reporters were told officers beat the biodiversity, but these are rarely enforced.24 Civil society young people with metal bars and the flats of machetes, and even the PNG government itself have documented “jumping up and down on [a victim’s] back”. its egregious failure to uphold these laws.25 26 27 This The men and boys were then taken to Kokopo, where failure is on stark display in the sectors now dominated by police allegedly hit their heads against posts to elicit Malaysian-owned logging and agribusiness companies. confessions before they were charged with criminal damage. Global Witness has been unable to determine New kids on the block whether these charges led to convictions. At the turn of the millennium, Malaysia itself was losing Sharon told Global Witness the car that police its forests faster than any other nation on earth.28 In just arrived in was owned by a company called Tobar twelve years, it lost 14% of its rainforest, much of which Investment (“Tobar”). was cleared to plant oil palm.29 Before long, its logging companies sought new opportunities abroad. 30 They did not have to look far. In PNG, they came to dominate the THE TRUE PRICE OF PALM OIL 7 logging industry, making it the world’s largest exporter of tropical timber by 2014.31 Some of these companies 32 then planted oil palm on land they had cleared. 33 Global Witness has spent two years investigating three such companies that began exporting palm oil from PNG since 2014: the East New Britain Resources Group (“ENB”), the Rimbunan Hijau Group (“RH”), and Bewani Oil Palm Plantations Ltd (“Bewani”).34 Together, these 35 companies have recently cleared tens of thousands of hectares of climate-critical rainforest in PNG. Despite the growing urgency of the climate crisis, global financiers have propped up these companies’ deforestation in the expectation of profit. Their palm oil has now reached
“The company has a lot of money,” she said. “They are Watwat.37 It operates under a joint venture agreement 38 able to give it to the police. The police were working for with East New Britain Palm Oil Ltd (ENBPOL), part of the Tzen Niugini [an ENB company closely linked to Tobar].” ENB Resources Group of companies. This group is one of two major palm oil producers, along with Rimbunan Global Witness asked the residents of Watwat whether Hijau, that have deforested thousands of hectares in East anything good had come to their community from palm New Britain Province since 2010. oil development. One of Tobar’s founding directors is Edward Lamur, a jolly “Only destruction,” Sharon said. figure and the former deputy provincial administrator for To investigate these allegations, Global Witness went East New Britain.39 In February 2021, a Global Witness 40 undercover. Drawing on fieldwork and satellite imagery investigator posed as a commodities trader facing and by following the money, Global Witness exposes in resistance from communities at a fictional plantation in this report the growing threat facing PNG’s communities Thailand to ask how the police helped Tobar with the and forests from palm oil companies that have acted Watwat development. unaccountably, yet are financed by the world’s biggest “We had some problems when we were planting, before banks and sold to global brands. Global Witness focused we... when we were preparing the land to plant, some on three Malaysian-backed palm oil producers: the East people wanted to disturb us,” Mr Lamur said. “So we got New Britain Resources Group, the Rimbunan Hijau Group, police... we sat down with them”. and Bewani Oil Palm Plantations Ltd. Together they have deforested tens of thousands of hectares since 2010. [...] Mr Lamur chuckled and said, “They did some bashing Our investigation widened to include a PNG-owned up.” [...] company, Tobar Investment Ltd, as serious admissions of corruption and police violence were made to “Beating them?” the investigator asked. our reporters. “That’s correct,” replied the businessman. [...] “... Even at This report exposes instances of apparent tax avoidance, night those culprits... who you know did trouble and ran corruption and abuses of both local communities and away to the hiding places [...] so we went after them in their environment. We then reveal the financial actors the night, got them, belted them up and locked them up profiting from these acts, as well as the global brands at the station. [...] sourcing the companies’ product. The investigation concludes by recommending the changes urgently needed to safeguard PNG’s communities and environment and hold these corporations accountable. Tobar’s Laughing Villain Tobar Investment Ltd is a Papua New Guinean-owned agribusiness company with palm oil plantations around East New Britain Resources Group of companies operating in Papua New Guinea Companies East New Britain Palm Oil Ltd Tobar Investment Ltd CEO Eng Kwee Tan Tzen Plantation Ltd Tzen Niugini Ltd “...I made sure those operations were done,” he added. [...] “They know we are owners now.” The East New Britain Resources Group includes multiple companies in PNG directed by Malaysian nationals. Tobar Investment Ltd has a joint venture agreement with one of these companies, East New Britain Palm Oil Ltd. © Global Witness 8
The Royal PNG Constabulary did not respond to multiple requests for comment from Global Witness. East New Britain Province is a seismically active area and experiences frequent earthquakes. Active volcanoes lie just across a harbour from ENB said: “We generally deny all the allegations.” A the provincial capital Kokopo. © Global Witness spokesperson called Global Witness’s findings “baseless and untrue”. Later confronted with his own admissions, Mr Lamur They added: “Both Tobar and ENBRG deny any use of the did not respond to multiple requests for comment from Royal PNG Constabulary to cause any violence against Global Witness. any person or detain anyone illegally.” Mr Lamur described the influence of both Tobar and ENB over the police. Global Witness did not receive a separate reply from Tobar. Both companies “assisted with logistically paying for police, you know... fuel, cars”, he said. Political connections [...] “When they [villagers] are aggressive, we naturally Oil palm attracts powerful men. Another founding use a little bit of force on them. [...] So the story you know director of Tobar is Leo Dion, the ex-governor of East went around, oh police... you know these people are New Britain Province and a former Deputy Prime doing this and this. And police... So [...] we quietened Minister of PNG.41 42 43 (Mr Dion is still listed as a director things down. No more, no more unnecessary disturbance in company filings but, according to Mr Lamur, he is no to our workers who were planting.” longer in that position.) On a later phone call, Mr Lamur doubled down on his Asked whether having a Deputy Prime Minister on the claims of this cosy relationship with the constabulary. board of Tobar was useful, Mr Lamur told our undercover On questioning, he confirmed that a former member reporter: “Yes, he was very good for us and very good for of Tobar’s staff had worked simultaneously as a police Mr Tan [ENB’s CEO Eng Kwee Tan] and them too.” reservist. Then the businessman went further yet. “So he could secure some special deals, I guess, with the “There is a special operation police,” he said. “The boss ministry, or not?” asked Global Witness. is actually a very close friend, we work hand in hand with them [...] whenever we want assistance...”. “That’s correct, that’s correct,” replied the businessman. Global Witness said, “So, whenever there is a problem, Contacted by Global Witness, Mr Dion said he “offered you can call this special operation police and they help in acquiring coconut plantations during the early help you?” years of the former chairman of Tobar Investment Ltd Joseph Lupin when I was the governor then helping our [...] “Yeah, we’ve got the boss’s mobile number”, Lamur grassroot people [sic throughout] to take ownership of said. “We just call or text any time”. foreign own plantations here i[n] ENBP.” Mr Lamur, the former deputy provincial administrator, He added, “Any other Tobar Investment businesses has higher political aspirations. In 2017, he stood for carried out after the death of Mr Joseph Lupin has the Kokopo Open seat in PNG’s Parliament. Will he nothing to do with me. run again? “I denied any participation in any way by words or actions to condone anything that is illegal and unlawful.” Global Witness has found no evidence that improper deals did actually take place under Mr Dion’s auspices. But as we shall hear, Mr Lamur’s partners at ENB are no strangers to ‘special deals’ themselves. Global Witness’s undercover operatives infiltrated the higher echelons of ENB itself, dining on separate occasions with both senior managers and with the chief executive. This yielded admissions of serious white-collar crime and human rights abuses – which allegedly go right to the upper echelons of Papua New Guinean politics. THE TRUE PRICE OF PALM OIL 9
EAST NEW BRITAIN Total forest destroyed, 2007-2019: 18,900 hectares RESOURCES GROUP Deforestation in plain sight: Forest clearance surrounds ENB’s Liguria mill in this satellite imagery mosaic from 2017-2018. In a palm-thatched Kokopo restaurant that overlooks a smoking volcano across the harbour, two senior ENB executives readily admitted that bribery to obtain logging permits and access to land is a regular cost of doing business. Tzen Niugini’s Land Acquisitions Officer Bernard Lolot and public relations kingpin Michael Paisparea were in a boastful mood when they met Global Witness undercover reporters for a business dinner in October, 2019.44 45 Asked whether a “special favour” had convinced government officials to approve projects, Mr Lolot said: “Of course [...] that’s what a lot of the leaders, they want. [...] Some school fees and they ask for token and all this.” “What is a token? A nice Land Cruiser?” asked Global Witness. “Yep, things like that,” Mr Lolot replied. [...] “Sometimes they’re bringing all this stuff back to their own areas.” ‘Unofficial fees’ Mr Paisparea went further, acknowledging gifts to secure the renewal of a logging permit. “...Giving something to the minister, to the secretary, to [National Forest] Board members...” he said. Asked whether this constituted ‘unofficial fees’, he replied: “Yeah, that’s right.” [...] He said: “Roughly, sometimes the minister need about a hundred thousand, fifty thousand [Papua New Guinean kina].” Fifty thousand kina was about £10,000 at the time of writing. Asked if the chairman of the National Forest Board also needed paying, Mr Paisparea said: “Chairman as well.” Our reporter probed: “So [in total for one permit], you pay half a million?” Mr Paisparea responded: “That’s right. It’s enough.” 10
In addition to his work for ENB, Mr Paisparea serves on The PNG Forest Authority did not respond to repeated the East New Britain Provincial Forestry Management requests for comment, including a letter hand-delivered Committee (PFMC), which assesses new forestry projects to its headquarters. and recommends to the national board to approve or In its response, ENB denied bribery and corruption, reject them. This presents a serious conflict of interest. writing, “We generally deny all the allegations” put to it Although Mr Paisparea said he does not rule on his by Global Witness. It added, “Most of your allegations are own projects, the position may nonetheless allow him influence over other members. all hearsay with no accurate details”. Asked about official fees, Mr Lolot said: “The official In an apparent reference to Mr Paisparea’s position on fee’s not so much [...] 200,000, 150 [thousand PGK, the PFMC, it said: “Renewal of existing and new forest about £30,000].” projects are only approved by the PNG Forest Authority.” Explaining how to convince individuals to sign papers suggesting the company has rights over their land, While this is true, the PFMC provides recommendations to Mr Paisparea said: “Request of the school fee, I come the Forest Authority. there and we help them.”... Following the dinner, Mr Lolot supplied Global Witness [...] “Because these things are not in [the official] with numerous maps and documents relating to several the agreement.” logging and agriculture projects, showing his intimate involvement with major deforestation plans. Global Witness has been unable to discover what projects these claims may refer to. Nor can we rule out that they Eight months later, in a follow-up telephone discussion, were groundless boasts. However, the comments suggest an undercover Global Witness reporter repeated Mr a detailed understanding of who needs to be bribed, such Paisparea’s bribery admissions back to him. He did not as the knowledge that the secretary and board members deny them, and conceded paying “allowances” to entice would need to be bribed in addition to a minister. Global individual customary landowners whose forests Tzen Witness is not suggesting that any employee, minister, Niugini coveted, although he said they did not offer Land or member of the Board did in fact accept a bribe. Cruisers in that instance, which is why a rival company obtained access to the land. An employee of the East New Britain Resources Group shared documents from numerous logging projects with an undercover Global Witness reporter. © Global Witness THE TRUE PRICE OF PALM OIL 11
Communities’ traditional use of their land is protected defines this category to include work in an environment by the country’s laws and constitution, making virtually likely to harm the health or safety of children. 57 every Papua New Guinean a landowner.46 Most of the47 country is still under the legal control of such customary Children working on a palm oil plantation therefore landowners, at least on paper.48 49 50 But these laws are constitutes an offence under both the PNG Employment poorly enforced, allowing companies like ENB to Act and Convention. ENB said Global Witness’s allegation that it used child labour was “absurd and denied”, and it exploit rural communities and setting people against their neighbours. 51 52 53 upheld PNG child labour laws. Papua New Guinea scores dismally on Transparency Oil palm plantation workers carry out heavy labour. International’s corruption perceptions index, scoring a They are at risk of musculoskeletal injuries, infectious mere 27 points out of 100 in 2020. This puts it in 142nd disorders including malaria, pesticide exposure, place out of the 180 countries assessed.54 and sexual harassment and rape. 58 As Global 59 Witness’s investigation reveals, deaths among workers are commonplace. Child labour During the Kokopo dinner, Mr Lolot and Mr Paisparea Women threatened at gunpoint also admitted the company used child labour, with schoolchildren as young as ten working on their A mediation process in East New Britain Province in plantations. Mr Lolot conceded this was against PNG law. June 2018, which brought to light serious allegations He had added just before: “Sometimes we bend the rules by villagers against the ENB group, also implicated Mr just to make things happen.”55 Lolot and Mr Paisparea. Multiple witnesses said the ENB company Tzen Niugini “brought in” police officers to Employing a person under 16 years of age in work Pulpul in the East Pomio region to coerce community that is likely to be injurious is an offence under the members, as landowners, into signing agreements for a PNG Employment Act.56 PNG is also a signatory to the logging project. In an incident with strong echoes of the Convention on the Worst Forms of Child Labour, which Watwat village repression, police allegedly forced the men East New Britain Palm Oil Ltd operates the Narangit palm oil mill in northern East New Britain Province. © Global Witness 12
into a shed at gunpoint and held them there for hours and threatened the women at gunpoint. Pulpul community Kokopo, the capital of East New Britain Province. © Global Witness members alleged police punched the village magistrate and beat him with a fan belt. The aim of this atrocity, according to members of the community, was to override “So we have to make it show like it come from Malaysia,” objections they had already voiced to Mr Paisparea he continued. “It’s always a bit technical.” and Mr Lolot, when they had rejected the idea of this new development. Speaking to a local NGO, villagers The reporter replied: “Oh, so it goes on the paper to claimed that this physical abuse had happened on Malaysia. But directly to India.” Mr Lolot’s land.60 Mr Tan said: “Yes, yes. So we make it that it comes Mr Paisparea and Mr Lolot did not respond to Global from Malaysia.” Witness’s subsequent requests for comment. He continued: “The vessel has to go to Malaysia, offload ENB said: “ENBRG has complied with all Forestry and the PKO [palm kernel oil], and then offload the CPO Environmental laws in Papua New Guinea and denies [crude palm oil] in India.” participating in any illegal activity in connection to any This would appear to be an admission that the ENB Forest projects or planting of oil palms.” Group has dishonestly evaded the imposition of import “ENBRG has and continues to comply with all land laws in duty on its palm oil exports to India. Such a scheme could Papua New Guinea to acquire and/or develop land”. have benefitted the company by claiming preferential Indian tariffs for palm oil exports from Malaysia rather During their dinner with Global Witness, Mr Lolot and than from PNG. Mr Paisparea revealed ENB was running two palm oil projects: one in Pomio District and the other in Gazelle District at the north end of the province.61 As we shall see, Watch the tax gap at the latter site, the company stands accused of brutally Between March 2018 and 27 November 2020,64 India taxed evicting smallholders and bulldozing their homes and crude palm oil imports from countries it did not have free cacao trees. trade agreements with—including PNG—at a base rate of 44%.65 But Malaysian imports were not taxed as heavily. 66 But the pair were not the only ones who made damaging In 2019, when Mr Tan spoke to an undercover Global admissions. Their Malaysian boss Eng Kwee Tan, chief Witness researcher, the Malaysia-India Comprehensive executive of the ENB Group, also confessed to a tax Economic Cooperative Agreement (MICECA) established a evasion scheme on an international scale.62 duty on Malaysian palm oil of only 40%.67 Admissions of tax evasion India also charges a Social Welfare Surcharge equal to 10% of the total duty on imports, in addition to the “I would also be lying to you if [I said] there is no conflict,” import duty itself.68 In 2019, this resulted in a 4.4 Mr Tan told a Global Witness undercover reporter over percentage point difference between tariffs levied a dinner of red snapper. “We do have conflicts, but on PNG and Malaysian imports of palm oil to India. This solvable conflicts. tax gap appears to lie behind Mr Tan’s scheme. And our research shows shipments were indeed made by ENB to “We have people, you know, that come and stop our work India in the relevant period. [...] and I think this is a common phenomenon.”63 Mr Tan was referring to local villagers. Land conflicts are a frequent by-product of palm oil plantations. THE TRUE PRICE OF PALM OIL 13 In a swanky hotel in the port town of Kokopo, the businessman bragged of owning no fewer than 20 German Shepherd dogs - and soon it became clear how he can fund such indulgences. Halfway through the meal in October 2019, he made the unprompted remark that palm oil destined for India “has to come from Malaysia, otherwise they impose taxes”.
Global Witness tracked the oil tanker Chem Peace from East New Britain, Papua New Guinea, to Kolkata, India. © Mapbox, ©OpenStreetMap Tracking the tankers Global Witness documented two voyages of the oil tanker ‘Impossible’ to sell Chem Peace travelling from PNG to India in 2019 (one arriving in January that year and the second in May). With Indian tariffs on PNG palm oil so high in 2019, Social media posts, commercial shipping data and a selling legitimately to the country in this period appears Kolkata Port Traffic Control document illustrate the ship’s to have been economically unattractive. According to travels. A Facebook photo posted on 21 December 2018 UN Comtrade data, during 2019, India imported more reveals the Chem Peace collected palm oil from ENB’s than 6.6 million metric tons of crude palm oil, of which “Liguria” palm oil mill in Pomio. From there, records 1.7 million tons came from Malaysia. By comparison, show, it travelled to Singapore, then Malaysia - where Mr a mere 11,346mt was declared as coming from Papua Tan told our undercover reporter his company sometimes New Guinea, despite its burgeoning plantations.75 This unloads palm kernel oil - before arriving in India on 4 illustrates how rare legitimate palm oil sales between January 2019. There, Kolkata port records indicate it Papua New Guinea and India were during this period consigned 6,118 metric tonnes (mt) of crude palm oil compared to those from Malaysia. to leading agribusiness Ruchi Soya Industries (Ruchi Global Witness spoke to two palm oil industry experts in Soya).69 This quantity matches Mr Tan’s estimates to 70 India. One said it was “impossible” to import from PNG our undercover reporter of his total monthly exports. because of the significantly higher tariffs compared to A documented journey therefore supports Mr Tan’s Malaysian palm oil. assertion that ENB exports palm oil from PNG to India. Yet the Kolkata Port document describing the Chem Peace’s palm oil delivery indicates only that the vessel had been in Pasir Gudang, Malaysia. It does not state that the palm oil originated from PNG. This would appear to be a smoking gun that in 2019 at least one ENB palm oil delivery to India was not accurately badged as coming from PNG. No paper trail There is further supporting evidence of this. In 2018, commercial shipping records show, an “ENB Trading Ltd” exported one shipment of palm oil from PNG to India. (An entity registered in Singapore, “ENB Trading & Shipping Pte Ltd”, appears to be wholly owned by the British Virgin Islands-registered company that also owns East New Britain Palm Oil Limited.71 ) Yet for 2019, not a single 72 shipment appears in these records as being exported from PNG to India by ENB Trading. This is despite the voyage plotted above. Mr Tan told our undercover reporter that ENB exports approximately 5,000-6,000mt of crude palm oil per month. In 2019, palm oil prices averaged 2,248 Malaysian ringgit per ton (about £414, at December 2019 exchange rates).73 Global Witness calculates that if each of the two 74 2019 shipments we tracked carried an average of 6,000mt, they would have been worth about £4,970,400. That year, the 4.4 percentage point tax gap meant that if the full cargo was unloaded in India, the Indian government would have lost out on about £219,000 of public revenues compared to if it had been honestly labelled. 14
Paranjoy Guha Thakurta, an investigative journalist, deforestation into its supply chain. Checking the origin of author, and the former editor of the academic journal its purchases is a basic step. If Global Witness is able to Economic and Political Weekly,76 said: “If the customs find out this information, major companies could duty on oil from Papua New Guinea is higher than the oil too. Ruchi Soya did not respond to multiple requests imported from Malaysia, and given the fact that Papua for comment. New Guinea is geographically located further away from It should be noted that commercial records show that India than Malaysia, the landed price of oil from Papua New Guinea would be substantially higher than oil in 2020, ENB Trading Ltd was again named on shipments imported from Malaysia. of palm oil from PNG to India.77 If an illicit scheme was 78 in operation in 2019, perhaps the ENB group had “Since private businesspersons would like to maximise decided to bring it to an end. But Mr Tan’s admission to their profits, it is logical that they would not want to an undercover Global Witness reporter, married with purchase oil at a higher price from Papua New Guinea.” clear evidence that ENB palm oil was shipped to India from PNG that year, with no trace of such deliveries on It would appear, therefore, that ENB found a dishonest trade databases or port records, means there are clear route to marketing its product in India profitably. grounds for Indian authorities to investigate a possible Overall, then, Global Witness’s analysis found that palm tax scam. oil shipments from PNG to India were indeed made in Not far from the hotel where Mr Tan made his admissions, 2019, and there are serious grounds for believing this was meanwhile, the tensions seeded by the palm oil industry undeclared. And this would likely have been of financial had exploded in an incident far more frightening than the benefit to Mr Tan and ENB, by opening up their product relatively placid world of white-collar crime. to a market that tariffs rendered otherwise unprofitable. ENB categorically denied any involvement in tax Car chase and attempted murder evasion and said it “has and continues to proudly market and sells all palm products it ships and sells In September 2019, Doug Tennent, a Catholic lay as of Papua New Guinea origin”. missionary from New Zealand, drove to Warangoi, south of Kokopo, to inspect disputed land. 79 80 81 A legal It added: “ENB Trading & Shipping Pte Ltd has been officer for the Archdiocese of Rabaul, Mr Tennent spent dormant since incorporation, without any business years helping communities with land claims involving activities since day 1. Your allegations are entirely logging and oil palm development.82 Too often, predatory inaccurate.” companies pursue a policy of ‘divide-and-conquer’ with local people to enable such projects.83 Now the results of “ENBRG has always done business with integrity, and we this policy would be turned on him. hold ourselves to high ethical standards.” After a local group had obtained a title over a parcel There is no suggestion that Ruchi Soya, to whom the of land the Church claimed to have owned since the Chem Peace consigned the crude palm oil in January 1960s, Tzen Niugini planted more than 2,700 ha of oil 2019, was complicit in this alleged scheme. But it should palm there, according to Mr Tennent.84 85 86 And when the carry out due diligence and not allow palm oil tainted by churchman arrived in his small Suzuki car, his presence provoked an angry response, he alleged. Mr Tennent tried to drive off, swerving around five men who tried to Rural communities in PNG often need roads to access health care, block his way. A car and a truck then gave pursuit in what schools, and markets, but the roads built by extractive industry can had become a high-speed chase. When the truck rammed be worse than nothing. © Global Witness his Suzuki from behind, locking his steering, it sent the car careening down a steep slope, rolling six times, Mr Tennent said. He believes he was lucky to have survived the attack and described it to Global Witness as an attempted murder. Contacted by Global Witness, the local police confirmed the near-deadly attack on Mr Tennent.87 “They [Tzen Niugini] were not behind that”, said Mr Tennent. While there is no suggestion that this incident was directed by Tzen Niugini, it is symptomatic of the THE TRUE PRICE OF PALM OIL 15
conflicts the industry has provoked over time within and ENB operates two plantation sites in East New Britain. between communities. Part of one plantation, operated by ENBPOL in the Gazelle District, was cultivated by smallholders growing “ENBRG has and continues to comply with all land laws in cacao and coffee – until ENB bulldozed their trees to Papua New Guinea to acquire and/or develop land”, the plant oil palm (see p. 18). The other, operated by Tzen company told Global Witness. Niugini in the island’s Pomio District, was formerly rainforest. At that Pomio concession, Global Witness Environmental Cost calculates some 18,900 ha of forest was destroyed between 2007 and 2019. (See Appendix 2.) ENB exported The ENB Resources Group is thus implicated in bribery, about 800,000m3 of valuable tropical timber from violence and tax evasion. But what of the environmental this project.91 harms? Between 2002 and 2014, a greater proportion of forests on New Britain were clear-cut than in any other Together, these findings paint a picture of a company part of PNG.88 Global Witness’s analysis now indicates ENB that is willing to defy national and international law, has cleared thousands of hectares of forest on the island. and destroy highly biodiverse, culturally critical forested landscapes to produce its palm oil. New Britain is part of an ‘Endemic Bird Area,’ home to ENB told Global Witness it complied with all forestry, 14 species of bird found nowhere else on earth.89 Some are highly dependent on lowland forest such as that environmental, and land laws in PNG and denied found on the island, putting them at risk of extinction. 90 participating in any illegal activity. Roundtable on Sustainable Palm Oil The Roundtable on Sustainable Palm Oil (RSPO), touted by supporters as a green credential, is a palm oil certification scheme that covers 19% of global production, according to its own estimate. 92 The association 93 says its objective is to advance the production and use of sustainable palm oil, in part via its eponymous certification programme.94 Both oil palm growers and their customers can be certified under RSPO.95 While the scheme has recently incorporated a no-deforestation requirement, it has repeatedly come under scrutiny for being ineffective due to poor implementation, lack of oversight, a sluggish grievance process and conflicts of interest. 96 97 98 Neither ENB nor RH companies in Papua New Guinea are RSPO-certified. However, many of their recent big- name clients are (see “Global buyers”, below). This results in ENB and RH palm oil finding its way into RSPO- certified supply chains, casting further doubt on the scheme’s validity. Under RSPO’s ‘Mass Balance’ system of certification, palm oil that violates RSPO’s own standards can still be sold as “certified”. This scheme means if a trader buys 5,000t of certified and 5,000t of non-certified palm oil from a plantation like ENB’s, it is allowed to mix the oils together and sell 5,000t of it onwards with Mass Balance certification, even if some of that oil is from an uncertified and harmful site.99 This policy completely undermines the scheme and could mislead consumers. Consequently, buying some palm oil from plantations engaged in large-scale deforestation and with dangerous working conditions is not a violation of these companies’ commitments under their RSPO certification.100 It should be. An RSPO spokesperson said: “It is our mission to ensure the sustainable palm oil sector respects biodiversity, natural ecosystems, local communities, and workers’ rights and safety.” “All RSPO members are required to make time-bound commitments to only purchase certified sustainable palm oil (CSPO).” The organisation described the Mass Balance model as a way for companies to begin to do this. It pointed out that mills producing Mass Balance palm oil must check that the oil palm fruit they process has been grown legally. 16
financing available to the company group.106 107 The documents refer to ENBPOL’s revenues from PNG’s forests provide innumerable ecosystem services to its people, including the provision of fresh water. © Global Witness “plantation land”.108 This comes as no surprise. Maybank is one of the world’s largest palm oil financiers, pouring US$3.9 billion in International financing loans and underwriting services into the sector between 2010 and 2016, according to an analysis published Large-scale industrial agriculture is a capital-intensive by Tuk Indonesia and Profundo. 109 It has been 110 industry, and ready access to capital is thus a pinch-point on the ambitions of destructive corporations such as previously criticized for financing clients involved in land ENB.101 That is why Global Witness is campaigning for grabbing, devastating vegetation-clearance fires in their the UK, US and EU to compel its banks and investors to concessions, development on peatlands, and lack of free, screen out companies engaging in deforestation from prior and informed consent (FPIC) in dealings with local their client base.102 During this investigation, Global 103 and Indigenous communities.111 Witness obtained first-hand testimony as to how effective Maybank’s 2020 sustainability report refers to a this would be. ENB chief executive Mr Tan told our framework for assessing risks of financing palm oil, but undercover reporter when it came to funding, “that alone Global Witness has been unable to find it or the bank’s is a constraint to our expansion”. [...] overarching ESG (Environmental, Social and Governance) policy. This raises the question of how communities are He continued: “...We are not able to expand, not because meant to avail themselves of rights under a policy that we are not, not because our appetite are [sic] small, just they can’t even see. According to Maybank, however, because we feel that ... financial resources are limited...” it requires its palm oil customers—in this case ENB—to Irregularities and abuses in land and forest-related comply with NDPE (No deforestation, development on industries in Papua New Guinea are extensively peatland and exploitation of Indigenous and local people documented, routine, and severe. Despite this, Global and workers) policies.112 It is unclear how or if this policy Witness has discovered the Malaysian financial is implemented. powerhouse Malayan Banking Berhad (Maybank) has chosen to bankroll ENB’s activities.104 Maybank itself is 105 Global Witness’ investigation finds that by financing owned in part by a host of well-known financial names in ENB, Maybank has enabled the company’s abuses, the UK, US, and EU. These institutions are thus enablers from deforestation to the apparently corrupt acts of the crimes and abuses detailed above. described by its senior staffers. While we do not know how much money Maybank made on its deal with ENB, Documents filed with the PNG Investment Promotion the bank certainly expected to profit, and entered into Authority reveal that in July 2015, Maybank Group the deal despite the well-documented risks of illegality subsidiary Maybank Islamic Berhad inked an agreement and serious harms endemic to the PNG land and with ENBPOL to make as much as US$40 million of forestry sectors. “Maybank is fully cognisant of the environmental, social and governance impacts associated either directly or indirectly with the activities within the countries we finance and specifically [...] the issues associated with deforestation, improper governance, labour as well as human rights,” the bank said. “We would like to stress that the Group is cautious in its approach when engaging or financing companies that may have a negative impact on the environment and communities.” Maybank said it engaged clients to “ensure alignment with sustainable practices”, and high-risk companies were required to undergo additional assessment. Where clients fell short, business relationships are “re-considered”. The bank went on: “Maybank is unable to confirm or discuss any alleged banking relationships we may have, THE TRUE PRICE OF PALM OIL 17
Some of these financiers have developed policies or principles that should limit their investing in Both Rimbunan Hijau and ENB operate on East New Britain Province’s deforestation. CalPERS, for example, says that South Coast. Jacquinot Bay is visible in this aerial view of the coastline. © Global Witness companies should disclose and manage environmental risks, including deforestation.118 Robeco boasts it is a signatory to over 60 sustainable investing memberships, or have had with any organisation, owing to banking secrecy laws. statements, and principles.119 The asset manager states it will exclude palm oil producers that have less than 20% of “We, do however, wish to reiterate that Maybank in their land certified by RSPO from its funds. But it does not 2015 had disposed of our banking subsidiary in Papua exclude the financiers of palm oil – meaning the likes of New Guinea.” Maybank can slip through the cracks.120 Maybank did not respond to Global Witness’s allegations CalPERS acknowledged holding millions of shares in regarding ENB and Rimbunan Hijau (see p. 21) operating Maybank, as well as in RHB Bank Berhad and Oversea- without community consent. The bank said that it Chinese Banking Corporation (see p. 25). But, a intends to publish its NDPE commitments and an spokesman said, “We don’t have insight or comments ESG policy soon. about the material contained in [Global Witness’s] letter,” adding that these investments were passively managed “Maybank is committed to playing our role in helping as part of an index fund. countries and companies [...] to grow the economy in a sustainable manner, whilst remaining responsible to local Robeco said: “Regarding our engagement with Maybank, communities and the environment,” it said. we are part of the PRI working group on palm oil and deforestation [...] that has actively engaged Maybank on strengthening their no deforestation, no peat, no International financiers exploitation policy since 2019 to reduce the negative impact on biodiversity they are exposed to as one of the Maybank’s shareholders include some of the globe’s largest financiers of the palm oil industry.” most powerful financiers. These include two subsidiaries of the world’s largest asset manager BlackRock. The company claimed it actively addressed the risk of Additional backers include the giant California Public deforestation in its investments with an “active Employees’ Retirement System (CalPERS), and Norges ownership strategy”. Bank Investment Management (NBIM), the manager of Norway’s oil fund, the world’s largest sovereign “As a responsible investor, NBIM has focused on climate wealth fund.113 114 115 The Vanguard Group, Inc. and change and human rights issues for more than ten years,” Dimensional Fund Advisors, LP also appear among the the Norwegian sovereign wealth fund manager said. top shareholders, as does the Netherlands-based Robeco “We expect companies engaged in activities with a direct Institutional Asset Management B.V.116 UK-based Pyrford International Limited is also a shareholder.117 By investing directly in Maybank, these funds and asset managers are partly responsible for the abuses carried out by the bank’s customers that its financing has enabled. “Pyrford International takes its ESG responsibilities very seriously,” the investment firm said, adding that it had been a signatory to the UN Principles on Responsible Investment (PRI) since 2014. Pyrford said it was part of BMO Global Asset Management, which it called “an industry leader in terms of responsible investing”. The fund said it had raised Global Witness’s concerns with Maybank. Nevertheless, it declined to commit to pressing Maybank to investigate Global Witness’s findings. Dimensional Fund Advisors did not respond to repeated requests for comment. 18
or indirect impact on tropical forests to have a strategy boards to understand how companies are managing for reducing deforestation from their own activities and sustainability risks.” from their supply chains”, and to conduct human rights due diligence. Vanguard said it took the concerns raised seriously and would incorporate them into its analysis and monitoring “Since 2018, we have proactively engaged with banks of companies with direct and indirect business exposures in Southeast Asia regarding their policies for lending to in the PNG region. companies that contribute to deforestation”, NBIM said. “We urge the banks to strengthen their due diligence and “We have engaged on this topic and associated matters to report on climate and deforestation risks.” such as deforestation,” it said, noting that it participated in the Net Zero Asset Managers initiative. “When a NBIM said it did not provide information about its company’s products, services, or practices pose a risk to engagements with individual companies. its employees, customers, and the communities where the company operates, it can manifest into material For their part, BlackRock and Vanguard have voted reputational, competitive, legal, and regulatory risks that against almost every shareholder resolution to halt can affect long-term shareholder value.” deforestation by the companies in their portfolios since 2012. These asset managers are facing growing pressure The severity of the cases that Global Witness have on their poor record on deforestation, land rights and uncovered raises disturbing questions of if, and how, Indigenous rights issues.121 122 123 laws or norms relating to due diligence required to avoid financing linked to companies engaged in illegal Approached for comment, BlackRock said: “Palm oil activities have been broken. They also reinforce the production is an example of a particularly complex need for countries that import, use or finance forest-risk investment stewardship issue.” commodities such as palm oil to recognise that company self-regulation has failed. Clear requirements are needed It pointed Global Witness to a 2021 publication that said for businesses, including finance, to undertake adequate BlackRock encourages companies to disclose their plans due diligence on deforestation, the lack of FPIC, and for sustainable use of natural resources. related human rights abuses. Such laws are currently “As an asset manager, BlackRock cannot substitute being proposed in the EU and UK, and potentially the US one company for another company or exclude any – and Global Witness is campaigning to ensure that the particular companies from the indices selected by finance sector is not exempted from these provisions. our clients,” a spokesperson continued. “We focus on engaging with companies’ management teams and ‘Severe assault’, hundreds evicted There was more than enough evidence of problems to have steered Maybank away from financing the ENB group. A legal battle involving ENB in the Gazelle district of East New Britain Province illustrates Maybank’s disregard for palm oil’s impact on communities.124 Landowners and settlers there told the PNG National Court they had not known about nor agreed to a 99 - year agricultural lease granted over their land for oil palm development.125 A local government official who objected to the project said he was “severely assaulted” by supporters of the project in retaliation.126 The land had previously been included in a US$50 million World Bank project to improve the livelihoods of smallholder coffee and cacao growers.127 128 Global Witness has now seen unpublished documents indicating that 120 households that benefited from this scheme were forcibly evicted, with their homes, gardens, and equipment destroyed.129 In 2017, a Global Witness team visited the area and interviewed some of those Land cleared for oil palm plantations in the Bainings region of East landowners objecting to the project, who alleged an New Britain Province, Papua New Guinea. © Global Witness entire village had been evicted, leaving people internally THE TRUE PRICE OF PALM OIL 19
displaced. Hundreds of families not supported by World in place strategies to help prevent similar issues from Bank funds were also allegedly evicted, while dozens occurring again.” more families were affected by ENB’s activities, with their ENB wrote: “Squatters can be evicted from State water sources or gardens damaged. At an average family Land if they are residing there without the authority or size of six, this would mean ENB’s actions affected the the permission of the registered Lease holder. lives of well over one thousand people. In August 2016, the judge found for the plaintiffs, ruling “This is not unusual and both the District Court and that land was “hijacked from appropriate land owners” National Court can issue eviction Orders [sic] where in breach of the Land Act and the Constitution.130 squatters refuse to move. Nevertheless, during the trial, in December 2015, ENB “Their only ‘right’ is the right to receive reasonable notice had already awarded a contract to build the group’s to vacate. To our knowledge, ENBRG has not participated Narangit palm oil mill in Gazelle District.131 This mill is 132 in any forceful evictions as claimed by you.” now producing palm oil sold around the world, while the families who lost their land have reportedly received “All labourers of the previous cocoa and copra plantation no compensation. and persons living near the plantation have been given employment opportunities to work at the oil palm The case had been in progress since 2012, three years estates,” the company also said. before the Maybank deal with ENB.133 Proper due diligence by the bank on this case alone should have As we shall see, this litany of offences has not barred the precluded it from lending to the group. The terms of its ENB Group’s palm oil from making its way into a global financing required ENBPOL to check and ascertain that array of goods, made by companies such as Colgate- no pending litigation against it might have a “material Palmolive and Nestlé, whose products you likely have at adverse effect” against the company’s operations.134 home right now. But ENB is not the only malevolent actor Global Witness asked both parties if ENBPOL disclosed in PNG’s palm oil industry. Global Witness can also reveal the lawsuit to Maybank, but did not receive a reply. that the activities of a far more influential company are resulting in an ongoing and avoidable human tragedy. Reached for comment, the World Bank said it had raised concerns with the PNG government when land incursions impacting farmers in its project area were reported in 2015. It said 95 cocoa blocks were destroyed, and the Special Agriculture and Business bank had communicated this to the government, which Leases: a toxic legacy issued a stop work notice to ENB. “Although the Productive Partnerships in Agriculture ENB, RH (Rimbunan Hijau Group) and Bewani Project closed in May 2021, we remain concerned by the (Bewani Oil Palm Plantations Ltd) all obtained land incursions in East New Britain,” the bank said. “In access to land through Special Agriculture and preparing further PNG agriculture sector projects, the Business Leases (SABLs).135 This now-infamous World Bank supported the Government of PNG to put system allowed the control of over 50,000 km2 of PNG land to be wrested from Indigenous communities and transferred to foreign companies.136 137 138 The PNG Forest Authority issued forest clearance authorities (FCAs) alongside The Productive Partnerships in Agriculture Project supported SABLs, allowing companies to flatten rainforests smallholder coffee and cocoa farmers across Papua New Guinea. © Global Witness and export timber worth hundreds of millions of dollars.139 In 2013, a government commission 140 into these leases found the vast majority of SABLs that it published findings for violated PNG law - typically by ignoring communities’ constitutional land rights.141 Yet, for reasons that have never been made public, many leases the commission reviewed were not included in its final report, including all of those in East New Britain Province – which included the ENB Group and RH leases.142 20
RIMBUNAN HIJAU Total forest destroyed, 2011-2019: 24,600 ha GROUP Rimbunan Hijau’s deforestation is starkly visible in this satellite imagery mosaic from 2019. Rimbunan Hijau Group (RH) - the name means ‘Forever Rimbunan Hijau did not respond to Global Witness’s Green’ - is a sprawling global business empire with repeated requests for its comment for this report, interests in forestry, palm oil, plastics manufacturing, including a request hand-delivered to its headquarters in mining and the media.143 144 145 Its founder, Malaysian i Papua New Guinea. businessman Tiong Hiew King, is listed on Forbes’ Richest RH subsidiary Gilford Ltd acquired FCAs for three leased 50 List for Malaysia, with an estimated net worth, in areas in the Pomio District of East New Britain Province 2021, of US$1.3 billion.146 In Papua New Guinea, RH 147 in 2010.154 Since then, the company has devastated the owns one of PNG’s airlines, The National newspaper, and coastal rainforest where it operates, clear-cutting tens of a plush hotel in the capital Port Moresby. It is logging thousands of hectares that local communities had relied several areas throughout the country and operates palm upon for sustenance. In 2017, Global Witness revealed RH oil plantations in Pomio, East New Britain Province.148 149 had cleared almost 210 km2 of rainforest and exported 150 151 The logging and plantation projects have been the about 1.2 million cubic meters of timber—worth about source of protests for many years from communities who US$122m—from its leased areas in East New Britain say RH has exploited them and their forests.152 Global 153 Province.155 We calculate that a further 30 km2 has now Witness has previously reported community landowners’ allegations that its access to Pomio land was obtained been cleared and another 100,000 cubic meters of timber through fraud and forgery. RH denied these claims. shipped out (see Appendix 2). Communities in the Pomio i In its 2005 report The Untouchables, Greenpeace described Rimbunan Hijau as “a conglomeration of many hundreds of companies . . . all owned and controlled by the Tiong family but which sometimes have no other official connection.” We consider this definition accurate a nd apply it here. For instance, although Gilford Ltd is described as a subsidiary of Rimbunan Hijau (PNG) in this article by the RH-owned newspaper The National, in company filings its owner is listed as the Malaysian Prime Resources Corporation Limited. This latter company does not appear in the database of the Companies Commission of Malaysia. THE TRUE PRICE OF PALM OIL 21
district of East New Britain Province have calculated that vehicle accidents on the plantation, where heavy trucks over the lifetime of the leases, they will suffer more than laden with fruit bunches or logs share the rough tracks US$730 million in damages due to this destruction.156 constructed by RH with pickup trucks, motorbikes, and This calculation, made by 17 communities, includes workers on foot. Global Witness believes it is the first among other items the loss of timber exported by RH, lost organisation to publish these findings. subsistence agriculture and market income, and the near- Papua New Guinean health and safety consultancy total destruction of the environmental goods and services Niugini Environment Management Services (NgEMS) provided by the forest.157 reviewed the findings for Global Witness. Principal Tony Aromo has over a decade’s experience in the palm Global Witness can now reveal new evidence of serious oil sector in PNG and served as a technical expert on human rights abuses and negligence by RH on its oil the working group developing nationally appropriate palm plantations. These have led to a spate of serious standards for RSPO.160 Some readers may find the injuries - some life-changing - and tragic and preventable following examples upsetting. workplace deaths. It is a human cost to RH’s wealth and influence that should appal potential investors and business customers. Father-and-son tragedy On the night of November 28th, 2014, Leo Kaukau, a Permanent injuries forklift operator at an RH subsidiary, cooked dinner for himself and his 11-year-old son Ronald using water A 2019 study found that the over one million oil palm from a container that had held chemicals used for killing plantation workers globally are at risk of suffering from grass in the plantation.161 162 163 Paraquat and glyphosate, bone and muscle injuries, chemical exposure, infectious herbicides used by the oil palm industry in PNG, are both diseases including malaria, and depression and anxiety.158 toxic to humans.164 165 166 Just one sip of paraquat can kill, Workers, especially women and girls, are also subject to producing vomiting and kidney and respiratory failure.167 sexual assaults and violence.159 By any measure, palm Felix Tau, Leo’s brother, said the father and son began oil labour is stressful and often dangerous work. It is vomiting within ten minutes into their dinner. Leo Kaukau therefore especially important for plantations to maintain died on the way to a health clinic the next morning, robust safety standards. while his son died shortly thereafter. No autopsy was Global Witness began investigating worker safety on the performed, nor inquest held.168 RH plantations in East New Britain after being tipped off PNG’s Employment Act provides penalties for employers by two former employees that a catalogue of preventable who fail to provide their housed workers with safe deaths and serious injuries were taking place. drinking water.169 To avoid such deaths, hazardous chemical waste must also be properly disposed of. In its review of the evidence for Global Witness, NgEMS said that under guidelines established by the Food and Pomio communities depend on their forests for their livelihoods and traditional ways of living. © Global Witness “It’s very bad,” one employee said. “[Workers] live in a house with no lighting, no water. Compliance? Zero.” Asked what safety equipment the company provided, he said: “They give them boots but then deduct it back from their pay. “If you ask for it, you get it, but you have to pay for it.” At least 12 people died on the RH plantations between 2012 and 2020. Eleven of these were RH employees, and one was an employee’s school-aged dependent. Over the same time span, a dozen more were involved in serious accidents, some life-altering. (See Appendix 2 for an explanation of our research methods. A full list of the deaths and injuries Global Witness has catalogued is in Appendix 1.) The deceased workers died from blunt-force injuries, falls or unknown and un-investigated causes. Many of the deaths and accidents stemmed from motor 22
Amputations, chemical accidents Logs harvested from Papua New Guinean forests can measure many meters long. © Global Witness Global Witness compared these tragedies with the safety record of two comparably-sized plantations operated by a Agriculture Organization of the United Nations (FAO), different company in Papua New Guinea. In stark contrast used pesticide containers should have been triple- to the lack of public reporting of incidents at Rimbunan washed and then made unusable, to prevent exactly Hijau operations, accidents at New Britain Palm Oil Ltd such a tragedy from occurring.170 The victims’ family has 171 (NBPOL), one of the RSPO-certified palm oil companies reportedly received no compensation for their deaths.172 operating in PNG, are publicly reported. Company reports Another fatality occurred on November 11, 2020. Father show that between 2010 and 2020, one worker died at the of four Anton Kelal, who had worked for RH subsidiary company’s Higaturu plantation, and three died at its Milne Sinar Tiasa since 2011, was a passenger in a dump truck Bay plantation. Both of these sites employ roughly the on the plantation.173 Five witnesses saw the truck speed same number of workers as RH’s Pomio operation. (For up and Mr Kelal fall from the cab, hitting his head and more details, see Appendix 2). This suggests health and dying instantly. His brother, Lawrence Lapuli, was among safety measures can be put in place to improve conditions the witnesses.174 Mr Kelal’s death certificate indicates on the RH plantation, which the company has failed to do. his brain was contused and both his lungs collapsed.175 Workers’ injuries on the RH plantations include amputated According to his brother, RH provided PGK5,000 fingers, broken bones, and the impacts of chemical (about £1,000) for burial costs, but has not otherwise exposures and vehicle accidents. Almost without compensated Mr Kelal’s family. His children are being exception, accident survivors also seem to have gone taken care of by extended family members.176 financially uncompensated. Noting that there was evidently no motor vehicle accident Truck driver Charles Sai was 22 years old on 1 March 2013, report done, NgEMS’ review of this case recommended when a log slipped from a pile and hit him on the neck. a police investigation into the accident. Reckless driving 177 178 The logs loaded onto ships for export from PNG can may be a violation of the PNG Road Traffic Act. measure over a meter in diameter and fifteen meters in “Allowing employees to drive negligently without due length. This one caused ligament damage and fractured care and attention for other and company property three vertebrae, including the C6 vertebra: a severe show[s] a total lack of duty of care”, NgEMS wrote. injury that risks paralysis and nerve injury.179 A medical “The ultimate responsibility and accountability [for] assessment concluded the use of Mr Sai’s back had been employees’ negligence lies with the top management reduced by 80%. of the organisation.” Records seen by Global Witness indicate he received no recompense – and even had to pay PGK250 (about £50) for a copy of his own workers’ compensation report. Mr Sai said he had to pay for his own medical expenses as well, adding that he felt used by the company. In its assessment of this case, NgEMS noted that East New Britain is a highly seismically active area, with frequent small earthquakes. Stockpiles of logs must therefore never be raised too high and must be appropriately barricaded and signposted for the safety of workers and passersby. According to NgEMS, there is no indication that such simple precautions were taken. If they had, Mr Sai would almost certainly never have been injured, NgEMS said. Unreported tragedies Only seven of the twelve deaths Global Witness documented seemed to be recorded in the governmental Office of Workers Compensation (OWC) database when this report was written. And only seven of the twelve serious injuries Global Witness documented appeared. Employers who fail to give notice of employees’ injuries THE TRUE PRICE OF PALM OIL 23
or deaths are guilty of an offence under the PNG Workers’ Mr Salmang said, they were held tightly packed for five to Compensation Act.180 six hours, through the height of the tropical sun - without water or access to toilet facilities.. 185 An official at the East New Britain Provincial Health Authority declined to discuss the incidents on the phone, “We were crushed inside,” he recalled. “There was no saying they “might get into trouble”. room for us to sit. You could not move. It was inhuman.” RH did not respond to Global Witness’s request for Elderly men were among those allegedly locked up, not comment. It did not even issue a statement of regret accused of any offence at that point: the incident could for the loss of life on its plantations, nor sympathy for easily have been fatal. the bereaved families or those who have suffered life- changing injuries. Mr Salmang’s account has been by corroborated by Sarawak Report, which interviewed another of the sixty- In addition to accidental death and injury on its five men held in a 2020 video report.186 plantations, RH is also linked to a particularly shocking case of human rights abuses. Although most were then released, nine remained in the container overnight, Mr Salmang recalled. The next day, they were brought by boat to Kokopo, many hours’ inhuman’ treatment voyage from their homes. There, they were finally arrested on charges of interfering with police duties and jailed for In October 2019, Global Witness met Anthony two nights in a holding cell with between 60 to 70 men, Salmang, a Pomio landowner who described the impact he said.187 the RH operations have had on his community. RH made no comment on this incident. “We always get fresh fish from the water,” he said. “In the bush, we hunt for animals like wild pigs. They are precious in our life. We live by the nature.” Police terror But this way of life has been obliterated by the company’s Accusations that RH uses the police to intimidate and activities. violently attack communities objecting to their activities date back years. In 2012, Mongabay reported RH-funded “Now [the water] is full of chemical activities, fertilizer that police “terrorized” communities in the Pomio area now flows down the river, and all the corals are killed,” he said. developed for palm oil, beating people with sticks and “It really changed our life. We lost most of our traditional fan belts and locking people in shipping containers livelihoods, like sacred sites.” for up to three nights.188 These allegations from Pomio communities of police violence led to an independent He added: “Empty, I can use that term, empty, because all fact-finding mission in 2013 organized by civil society and those things are gone. We cannot bring them back.”181 including members of the police and local government employees.189 This found that police hired by RH Allegations of RH’s ruinous impact on communities’ subsidiary Gilford had forced landowners to sign logging environments are nothing new. Local government official and outspoken Pomio landowner Paul Palosualrea Pavol, consent forms under fear of death, and beat others with gun butts and tree branches. The report concluded who won the Alexander Soros Award for his environmental activism in 2016, also told Global Witness the company’s these “acts of assault did amount to serious indictable forest destruction has driven away wild animals.182 criminal offences”.190 Previously, RH told Global Witness 183 He said: “The concern is that our children do not that a March 2017 police investigation found no evidence know hunting skills and most of them don’t know what of malpractice at the sites and that local community cassowary looks like and how a wild pig reacts against members had “requested a larger police presence to a hunter. maintain order as the area experienced strong economic growth”. Pavol said water in the area was “polluted” and fish had Multiple PNG Police Commissioners have forbidden been caught that tasted of “oil and fuel”.184 officers to be stationed in logging camps across the But when Mr Salmang and other landowners tried to country.191 The fact that these edicts have been repeatedly photograph RH’s environmental devastation, armed issued points to their ineffectiveness. In September 2020, police swooped. They allegedly forced him and sixty-four the then-Minister for Police, Bryan Kramer, released other people from villages in the Pomio area affected by a statement condemning the lack of integrity of RH’s activities into a single metal shipping container that the Constabulary. doubled as a holding cell at the plantation camp. There, 24
vehicle businesses flourish. Families are now able to bring produce to market. Students can get to school more easily, Women waiting for transportation in East New Britain Province, Papua New Guinea. © Global Witness and people seeking medical services can reach them without life-threatening delays.” “The very organization that was tasked with fighting RH said it had dedicated “significant funds” to a corruption had become the leading agency in acts of PNG malaria eradication initiative and had signed corruption,” he wrote, describing “a rampant culture of an agreement with the East New Britain provincial police ill-discipline and brutality.”192 administration to support local aid posts. Global Witness repeatedly contacted the Royal PNG The company called Global Witness “a group of economic Constabulary for its comment on this report, but the vandals who do not care about the lives they destroy”. police force did not comment. It claimed that the specific allegations presented in this report were presented out of context and “without any These findings show that RH has committed grave human real basis”. rights abuses and neglected the health and safety of its workers, leading to deaths and life-altering injuries. RH said it abided by all relevant laws and regulations, recognized the socio-economic needs of forest RH did not respond directly to Global Witness, but it communities, and took environmental obligations did send a response to one of its customers, the Mewah seriously. Group, regarding our allegations. The company said: “The Consumers may be shocked to learn products they are Sigite Mukus Integrated Rural Development Project has the full approval of Government and has been operating consuming – from brands such as Kellogg’s and Danone – since 2011.” are linked to the abuses this investigation has uncovered. But as we will see below, tracing the palm oil stream leads “Since project commencement, it already transformed [sic directly from RH’s dangerous and repressive operations to throughout] the lives of thousands of families in East New huge commodity traders and a multinational consumer Britain. More than 4,000 people are directly employed by goods company that claims to have its brands in more the project. Millions in royalties and development levies homes than any other company worldwide.193 has been paid directly to landowner communities.” It said the project had constructed “hundreds of kilometres Unequal burdens of new roads” and new and rehabilitated airstrips. The impact of harmful palm oil companies is not “National business entrepreneurs have been able felt uniformly – women feel the burden most. to capitalise on the increased economic activity and Land in East New Britain Province is inherited improved infrastructure to open their own businesses. through matrilineal custom, from mother to We have seen new trade stores and public transport daughter.194 Despite this, women have increasingly been excluded from decision-making over their own land as logging and palm oil development have encroached on the province.195 The loss of the forest itself has brought additional tribulations. PNG women typically do the lion’s share of gardening and produce most of the country’s crops, while also taking care of children and the family.196 197 Access to clean drinking water is very poor, and women and girls in rural communities are often tasked with collecting water from springs and other waterways.198 The destruction of forests, where 199 women manage their gardens and which provide clean freshwater, makes these already challenging tasks significantly harder. THE TRUE PRICE OF PALM OIL 25
Rimbunan Hijau has cleared approximately 240 km 2 of rainforest for its palm oil operations in Pomio, East New Britain Province. © Global Witness Following the money Contacted by Global Witness, OCBC Bank said that banking Much of this destruction might have been prevented if RH regulations prevented it from discussing individual did not have access to big finance. Global Witness has now clients. “However,” it wrote, “we require our borrowers to uncovered documents showing RH companies secured a have safeguard[s] against deforestation and to take into loan for up to US$300 million from a consortium of major consideration social issues such as child/forced labour, Malaysian banks in 2012.200 A document filed with the Investment Promotion Authority names a consortium of banks including Maybank, Singapore’s Oversea-Chinese Banking Corporation (OCBC Bank), and Malaysia’s RHB Bank Berhad (RHB) entities as being behind the deal. The financing was provided to RH’s subsidiary Gilford, which holds the clearance authorities for the plantation areas. The deal was struck as clear-felling there began to accelerate.201 Maybank’s lending to the palm oil industry is well- established (see its response to Global Witness in ‘International Financing’ In 2015, Maybank (PNG) Ltd, ). one of the banks in the $300m deal, was acquired by Kina Bank, an arm of Kina Securities Ltd. 202 The bank, whose red, white, and orange logo is a familiar sight in PNG’s capital, is listed on both the national and Australian stock exchanges.203 Kina Bank said that it had no financing arrangements with RH. It said the Asian Development Bank, as a major shareholder, had conducted a detailed ESG audit of all the issues Global Witness had raised with Kina, “to ensure the business complied with the highest standards in this regard”. Asked whether the 2012 agreement with RH had matured before or after Kina’s acquisition of Maybank (PNG) Ltd, Kina did not respond. Singapore’s Oversea-Chinese Banking Corporation, Ltd is the second-largest financial services group, by assets, in Southeast Asia.204 The bank says it “will not engage in or knowingly finance any activity where there is clear evidence of immitigable adverse impact to the environment, people or communities”.205 It requires borrowers to have their own policies against deforestation.206 The bank’s Environmental, Social and Governance (ESG) risk assessment process, implemented in 2017, requires it to check their customers’ management of ESG risks like deforestation and occupational safety at least annually.207 RH’s actions in PNG should have been 208 scrutinized several times over by the time this report was written. That OCBC should finance RH illustrates perfectly why internal policies are not sufficient to prevent financing of the kind of abuses detailed in this investigation. 26
occupational health and safety as well as any Global Witness has also discovered an entry in Papua resettlement of affected communities in our assessment.” New Guinea’s national collateral registry indicating BSP Financial Group Limited (BSP Financial, previously The bank did not say whether it had checked RH’s Bank of South Pacific Limited) provided a 30-year loan management of environmental and social risks, as to Gilford in 2018.219 The publicly available information required under its policy. does not specify the loan amount, but as collateral, “We are committed to this sustainability journey,” it added. Gilford listed all its current and future property. 220 Major shareholders of BSP Financial include the PNG A third funder, RHB Bank, controls dozens of commercial Sustainable Development Program Ltd (“PNGSDP”) and and investment banking entities throughout Southeast the International Finance Corporation, whose mandate Asia. This includes two banks in the consortium that is to improve people’s lives “by encouraging the provided the loan to RH’s subsidiary Gilford.209 It did growth of the private sector in developing countries”. 221 not formalise a policy framework requiring social and 222 For environmental sustainability of its customers’ operations its part, SDP’s self-described goal is to provide “lasting until 2019.210 This framework states it is “integrating benefits for the people of Papua New Guinea”.223 Once ESG factors and risks” into its business and seeking to again, given the litany of harms and unethical practices minimise “negative impacts to the environment and discussed earlier, this is a deal that should never have society”.211 The bank’s involvement with the loan makes a been made. mockery of this commitment. BSP Financial did not respond to repeated requests RHB did not deny having financed RH. The bank said: for comment. “At RHB, we formally embarked on our sustainability PNGSDP said that its mandate to deliver development journey in the fourth quarter of 2018 and institutionalized initiatives for the people of PNG involved investing its it in 2019. Since then, we continue to take a practical Long Term Fund to generate attractive returns. It added, approach and have progressively embed [ESG] practices “Our investment in BSP represents a very small part of our or considerations into our business and operations as part overall investment portfolio” and said that it was a passive of our overall sustainability journey.” investor in BSP with no knowledge of or influence over the bank’s lending. The bank said that under its ESG Risk Assessment tool for the palm oil sector, customers with a plantation size PNGSDP said that it was in the process of reducing its of over 100 acres were required to obtain sustainability exposure to BSP. “This orderly process is in keeping with certification, abide by the Malaysian Palm Oil Board’s our investment strategy and the decision was made for (MPOB) codes of good practices, and “avoid virgin forest, completely unrelated, commercial considerations,” it said. aboriginal or heritage land”. The International Finance Corporation said: “IFC has no Yet as with ENB’s financing, the money trail does not only knowledge of the specific allegations of abuse raised by originate in Malaysia - for these banks count among their Global Witness and condemns any acts of violence against major shareholders some of the biggest names in global individuals and communities.” finance. These include many of the same investors as Maybank’s, such as BlackRock, Norges Bank Investment The corporation said it had not been made aware of any Management (NBIM), and the Vanguard Group.212 Many BSP exposure to Gilford. of these financiers’ names appear repeatedly behind the flows of money enabling the wholesale destruction of A spokesperson said: “IFC takes any environmental and tropical forests, despite their own investment guidelines social concerns relating to [its] Performance Standards acknowledging climate risk.213 214 215 216 217 NBIM’s 2019 very seriously.” annual report said it “urged [banks] to strengthen their due diligence and to report on climate and deforestation They added that the IFC and IFC Asset Management risks”.218 Yet actions speak louder than words; it has not Company each held less than 1% of BSP’s shares, and the divested from the likes of Maybank, which continually IFC had been reducing its shareholding over several years. finance deforestation. The corporation said it had supported BSP to strengthen its environment and social risk management practice Despite their massive influence and power - BlackRock through a programme beginning in 2018. is the world’s largest asset manager and NBIM manages the world’s largest sovereign wealth fund - these financiers By investing in banks that directly financed RH’s did not acknowledge responsibility for the abuses they operations in PNG, these financiers are partly had enabled. See p. 18 for these financiers’ responses. responsible for the abuses carried out by the company. THE TRUE PRICE OF PALM OIL 27
BEWANI OIL PALM Total forest destroyed, 2011-2019: 30,600 ha PLANTATION LIMITED Satellite imagery from 2019 reveals extensive forest clearance in the Bewani project area. A short drive from Indonesian-controlled Papua, the ‘Lost everything’ port of Vanimo in north-west PNG’s West Sepik Province, has the grit and dust of an industrial border A recent BBC documentary about the Bewani plantation town. At night, cigarette, alcohol, and gun-runners’ boats uncovered children there working barefoot amid leave the harbour, destined for the other side of the dangerous working conditions. border.224 The small port is stacked high with logs from 225 According to one villager in the documentary: “We used inland forests, most destined for China.226 The province has seen astronomical logging rates over recent years, to live by the forest, the forest was our source of food. with millions of cubic meters of timber exported. 227 228 “Now the company came, we lost everything.” It has come in part from the area operated by Bewani Oil Palm Plantations Ltd (“Bewani”), which operates a When Global Witness previously visited in 2016, to 139,909 ha concession south of Vanimo.229 Bewani was reveal widespread community opposition to Bewani’s registered in PNG in 2010 by a member of the prominent lease—which the company contested—investigators and controversial Malaysian Tee dynasty.230 231 232 The saw just one timber ship anchored in Vanimo’s harbour. family’s other business interests span industries from By 2019, the bay was full of vessels. A stream of logging Malaysian palm oil to phosphate mining on Australia’s trucks rolled down the main road, hundreds of logs from Christmas Island.233 234 235 236 the province’s felling operations stacked in piles ready for export. Assuming Global Witness’s team were tourists— Vanimo is also a surfing hotspot—residents approached our investigators unprompted to describe the impact. 237 They spoke candidly about the loss of their forests and resources, and how this had not led to any improvement 28
in their standard of living. Health centres meant to serve entire districts were said to have no staff, nor even basic Vanimo was crowded with logging trucks when Global Witness medicines. (In 2018, the New York Times described a researchers visited in 2019. © Global Witness “public health emergency” in PNG, driven in part by widespread corruption and a collapsing medical supply Will the real owners please chain that had left shelves bare of essential drugs and driven many rural clinics to closing.238) stand up? Global Witness’s deforestation analysis indicates that Against the backdrop of Bewani’s growing infamy, in over 30,000 ha has been cleared in the area since Bewani 2019 the Tee family claimed to have washed their began its operations, destroying ecosystems once integral hands of the plantation.240 The Prosper Group, a to the lives of local communities.239 conglomerate In its response to Global Witness, Bewani said: including palm oil mills in which the Tees have controlling “The allegations in your letter are factually and legally stakes, had come under pressure from some of its incorrect, clearly defamatory and do not represent the biggest palm oil customers to cut ties with Bewani.241 242 243 Prosper’s clients, according to Chain Reaction position of the overwhelming majority of the landowners who not only own the title to the SABL in question, Research, included giant traders and corporations but who support the oil palm development on the including Cargill, Mewah, AAK, Wilmar International, land concerned.” IOI, and Unilever. These in turn supply massive fast food outlets, supermarkets, and household brands, reportedly “All land clearing activities undertaken since 2010 were including McDonalds and Walmart.244 Some of these conducted in strict supervision and compliance with traders received grievance reports following revelations all regulatory requirements imposed by both the PNG by Greenpeace and Chain Reaction Research of Forest Authority and the Conservation and Environment deforestation carried out by Bewani.245 In what appeared Protection Authority”, Bewani said. to be an effort to maintain Prosper’s trading contracts It added that the only complaints from the government with international brands, the Tee family divested from of Papua New Guinea concerning environmental Bewani’s sole shareholder, the Malaysian company PNG issues in its operations were minor and “were rectified Plantations Development Sdn Bhd.246 The Prosper Group in was then welcomed back into lucrative palm oil supply no time”. chains, able to once more sell to powerful trading houses. “Approximately 16,700 hectares of oil palm fruit [sic] have been planted to date of which majority portion of Regarding the Tees’ divestment from Bewani, Prosper planted land is already bearing fruit and landowners admitted to Global Witness: “The divestment warded are enjoying profit sharing as well as employment and off the risk of trade suspensions that were already being business spin-off opportunities that marks significant imposed on Prosper.” improvements to their livelihoods”, the company wrote. “We have significantly expanded the road network in the It added: “The Tee family no longer has commercial project area”. interest in the PNG plantation and its mill, but this does Bewani said it had not cleared any forest since 2019. It claimed there had been “rogue and unauthorized logging operators operating within SABL Portion 160C [the THE TRUE PRICE OF PALM OIL 29 Bewani project area]” that had been dealt with in court. Despite admitting to not having seen the 2019 BBC documentary due to it being unavailable in PNG, Bewani called it “unbalanced and partial”. The company said it had a strict policy restricting child labour. “If there are children entering the plantations, it is not something that BOPPL allows or endorses,” the statement continued.
Global Witness has also discovered Malaysian corporate records for what appears to be a closely related company, Palm oil from the Bewani plantation has been exported to India, South Ocean Paradise Sdn Bhd. Registered in July 2012, just one Korea, and Singapore. © Global Witness month before Ocean Paradise Ltd was registered in Papua not necessarily diminish their sense of responsibility for New Guinea, the apparent Malaysian incarnation of the the development. company is owned by four individuals. These include Tee Kim Tee, who owns 40% equity, alongside its largest “It is for this very reason the family keeps an open-door individual shareholder in PNG, Kong Fatt Yap, who holds approach to the new owners.” 30% equity in both the PNG and Malaysian companies.257 “Given the absence of coordination with the current The apparent continued involvement of dynasty kingpin owners of the Bewani plantation project, it is not realistic Tee Kim Tee in what appears to be a Malaysian sister for the Tee family to effectively compensate deforestation company of Ocean Paradise Ltd, and of the Tees’ long- in Bewani.” term associate Kong Fatt Yap in both the PNG and Malaysian firms, strongly suggests coordination between Bewani pointed to a peatland rehabilitation project it had the Tee family and Top Leap. This raises further suspicion instead launched in Malaysia. that despite the divestment, the Tees continue to work It said Prosper had adopted its own sustainable palm oil closely with the new Bewani directors and their business policy which was “up to par with many international palm partners at Top Leap Holdings. As a company registered oil traders’ procurement policies”. in a secrecy jurisdiction, the ultimate owners of Top Leap Holding remain a mystery. But evidence uncovered by Global Witness shows the Tee dynasty continues to hold shares in a company operating Reached for comment, a Tee family spokesperson in the Bewani plantation. Global Witness can also reveal said: “None of the [Tee] family members or their legal previously undisclosed business ties between Tee family representatives own shares or has directorship in Top members and two of the plantation’s new directors. Leap Holdings and their related core business. “It is true that there are some corporate entities where The great switcheroo ownership restructuring has not yet been wrapped up. The divestment took place in early 2019. According to “This is the result of considerations other than those Malaysian corporate registry documents revealed by implied in your letter, namely as if the Tee family and Top Chain Reaction Research, on 1 February that year an Leap Holdings would maintain an ongoing but concealed anonymous company, Top Leap Holdings Ltd—reportedly business relationship.” registered in the British Virgin Islands—took over ownership of PNG Plantations Development Sdn Bhd, The spokesperson added: “We understand that you could the vehicle that owned Bewani.247 248 249 Just days earlier, construe things in such [a] manner but in reality, such is new directors of Bewani had also been installed. These not the case.” included Kong Fatt Yap and Eng Seong Goh.250 (Mr Goh was previously exposed by analysts at Chain Reaction Research as having other long term business ties to the Tees.) A Global Witness analysis of Papua New Guinean corporate records reveals these directors, Mr Yap and Mr Goh, are shareholders with Top Leap Holdings in two other companies associated with the Bewani plantation: Bewani Forest Products and Ocean Paradise Ltd.251 252 (Bewani says it has “appointed” Bewani Forest 253 254 Products to work on its plantation, and Ocean Paradise Ltd lists the plantation as its operation location in records on file with the PNG government.255) Top Leap and the new directors of Bewani became joint shareholders of Bewani Forest Products on the same day, 23 January 2019 - strongly suggesting that they are closely coordinating their business activities.256 30
Both Bewani and the Tee family/Prosper disputed This suggests an ongoing business relationship between a that there is any relationship between the two Tee family-controlled company and Bewani. “Ocean Paradise” entities. A spokesman for Prosper acknowledged that Mr Yap, the Bewani director, was a The Tee family/Prosper said: “Tago Maritime is a fully shareholder of Ocean Paradise Sdn Bhd. It said that the owned company by the Tee family. company was currently dormant, adding that Ocean “This company was set up to operate the landing Paradise Ltd was “fully owned and run by former staff vessel that was required to transport goods to the who have joined Top Leap since then”. development area. Bewani said: “Ocean Paradise Sdn Bhd has never been “It still operates at the direction of local marketing and part of or an entity under the Bewani Oil Palm Project”, shipping staff.” adding, “Ocean Paradise Sdn Bhd has nothing to do with our Ocean Paradise Ltd in any way whatsoever”. (Mr Yap, Mr Goh, the Bewani director, was “just a passive director” one of Bewani’s directors, is a major shareholder in both in Prime Horizon Ltd, the family said. “Prime Horizon companies.) Ltd was incorporated in 2018 and after the divestment in BOPPL [Bewani], the Tee family has not been able to It takes two to Tago find a replacement director since,” it added. But there are yet more links between the Tee family and Prosper disputed Global Witness’s deforestation Bewani’s new directors Kong Fatt Yap and Eng Seong Goh. calculation, saying that it estimated closer to 21,000- Global Witness has discovered that another company, 23,000 ha had been cleared between 2011 and 2020. Prime Horizon Limited, is directed partly by Goh, while It said this number did not include degradation due also being 70%-controlled by a transport company called to logging, and again claimed that there had been “a Tago Maritime Services Ltd (“Tago”).258 Tago is owned by number of encroachments by illegal loggers” in the area. two members of the Tee family.259 It is further evidence Beyond the companies identified by Global Witness, the that Bewani’s new owners are closely linked to the Tee family maintain they have no other shareholding or Tee clan. directorships in any other PNG registered companies. In a PNG corporate registration filing, Tago lists its Global Witness was unable to reach Top Leap Holdings operating location as the Bewani plantation.260 for its comment. Land cleared for oil palm in the Bewani project area, 2016. © Global Witness THE TRUE PRICE OF PALM OIL 31
GLOBAL BUYERS Palm oil produced by the companies in this report has been sold to big brands around the world. Given the litany of offences detailed above, it may be with hundreds of members that committed to end surprising to learn ENB and RH sell palm oil to reputable deforestation in its supply chains by 2020.269 It has 270 companies. But Global Witness has discovered their failed to do so.271 product in the supply chains of a staggering list of British manufacturer PZ Cussons – which makes Imperial household-name companies around the world. Brands Leather soap and Carex hand soap - was also supplied by from Nestlé to Colgate-Palmolive and Hershey admitted the ENB Pomio mill.272 Grupo Bimbo, in 2018 the largest 273 to having been previously supplied by the ENB and/ baking company in the world, was another customer.274 275 or RH mills in PNG.261 This is despite long-time industry Neste Oyj, the world’s largest producer of jet fuels made pledges to eliminate deforestation-related palm oil from from biodiesel, listed the group’s Pomio mill among its supply chains, and internal company policies committing themselves to upholding human rights and avoiding suppliers of palm oil byproducts. 276 Other companies environmental abuses. recently listing this palm oil in their supply chains include the Mewah Group, which claims that over a billion people In 2019, both ENB and RH mills began appearing in the use its products; the Swedish oils and fats manufacturer supplier lists of major corporations around the globe. oil processor AAK, which claims to sell to more than 100 This was a breach of many of their internal policies or countries; and the commodity trader Cargill, known public commitments. Cargill, Colgate-Palmolive, Danone, as the second-largest privately-owned company in the Kellogg’s, Nestlé, and Reckitt Benckiser (Reckitt)—the United States. Stratas Foods, a joint venture of giant parent company of Strepsils and Lysol—have all listed commodities trader and food processing company ADM ENB and/or RH mills in PNG among their suppliers.262 and ACH Food Companies, also listed an ENB mill among 263 264 265 266 267 268 These companies are members of the its suppliers. 277 278 279 280 281 282 283 284 Mewah, AAK, and Cargill Consumer Goods Forum (CGF), an industry group have also all listed the RH mill among their suppliers. 32
Palm oil from some of the worst plantations in the world For details of these companies’ responses, see Table 1 thus finds its way into a ‘Who’s Who’ list of global food, on p. 34. biofuels, toiletries, and medicines producers. This broad Industry wholesale giants Cargill and AAK are among list of buyers shows tainted palm oil from PNG plantations these mills’ other recent customers. AAK has listed not where grave human rights and environmental abuses and only ENB’s Pomio mill but its Narangit mill in Gazelle unethical practices have occurred has been traded and used District, where smallholders were kicked off their land.293 globally. These purchases appear to violate the companies’ internal policies. AAK is a founding member of the Sticks in the throat Roundtable on Sustainable Palm Oil. 294 Its sustainable palm oil policy commits the company to sourcing palm oil Many of these companies have No Deforestation, No Peat produced without the conversion of “High Conservation and No Exploitation (NDPE) policies, prohibiting Value” or “High Carbon Stock” forests, or where the deforestation, development on peatland and exploitation plantation was developed without community consent.295 of Indigenous and local people and workers. Nestlé, which AAK’s palm oil product customers include some of the listed ENB as a supplier, once committed to largest and most well-known consumer brands in the using 100% “responsibly-sourced palm oil” by 2020.285 After it world, reportedly including General Mills, Kraft Heinz, was accused in 2019 of having sourced palm oil from PepsiCo, and Unilever.296 producers linked to forest fires in Indonesia, the manufacturer promised it would “immediately cease sourcing Cargill, meanwhile, is one of the world’s largest importers from any supplier found to be linked to any deforestation and exporters of palm oil and has been implicated in activity”.286 Iconic American chocolatier Hershey has also multiple serious palm oil-related scandals, including committed to sourcing 100 percent responsibly grown palm oil widespread destruction of tropical forests and orangutan and boasts it can trace virtually all the palm oil it uses back to habitat. 297 2 98 The company’s palm oil policy commits it its mill of origin.287 Unfortunately, these mills recently to preventing the clearance of “ecologically and socially included both mills operated by ENB.288 Reckitt, meanwhile, is important forests”, to uphold the principle of prior the manufacturer of staples like Lysol cleaning products and consent by communities, and to prohibit child labour Woolite detergent.289 In its response to Global Witness, by companies in its supply chain.299 Allowing Reckitt acknowledged that it was connected to ENB via its ENB palm oil into its supply chain makes a supply of palm oil derivatives, used in products including mockery of these commitments. Lysol.290 The company claims to work “proactively with 291 our suppliers to eliminate deforestation over time”.292 For details of these companies’ responses, see Table 1 on p. 34. ‘Journey of no deforestation’ Papua New Guinea’s forests are critical to global climate. Credit: Fábio Erdos/Panos Another major player to buy up tainted palm oil from ENB and RH is the Mewah Group, the giant Singapore-based oil processing company. 300 It has purchased crude palm oil THE TRUE PRICE OF PALM OIL 33 from both PNG mills owned by ENB, as well as crude palm kernel oil from ENB’s Liguria mill and RH’s “Mamusi” mill in Pomio. 301 Mewah’s sustainable palm oil policy pledges the company to “continue the journey of no deforestation”, requiring direct suppliers to comply with a sustainable palm oil policy and vowing to take remedial action should violations occur.302 Mewah says it sells its products to customers in over 100 countries.303 One of those is Neste Oyj, the Finnish palm oil refiner that claims to be the world’s largest producer of renewable jet fuel. The ENB Pomio mill was listed explicitly among Neste’s suppliers of PFAD (palm fatty acid derivate, left over from palm oil refining). 304 305 For details of these companies’ responses, see Table 1 on p. 34.
Neste claims it sources PFAD only from suppliers sourcing or failed to apply them correctly. with a “proactive approach to avoiding Many have failed to respect human rights as required deforestation”.306 The company says it requires all its under international human rights standards applicable suppliers to be members of the RSPO, and claims that to business, and even those in PNG law. They have also all its suppliers are committed to no-deforestation failed to carry out the requisite checks on their supply policies.307 Its 308 chains to prevent, identify and address and account for Responsible Sourcing Principles commit it to not sourcing deforestation. And they have failed to detect any other from areas where High-Conservation Value forest was unethical practices, such as apparent corruption. converted to cultivation areas, or where FPIC was not obtained from communities.309 This means the purchase It is a stark illustration of why companies cannot of palm oil residues from ENB plantations blatantly continue to be allowed to mark their own homework on violates its own policy. deforestation and other abuses in their supply chains. Without robust legal requirements accounting for Colgate-Palmolive listed both the RH Mamusi mill and deforestation and human rights abuses in supply chains, the ENB Liguria mill among its 2020 suppliers.310 Colgate we will fail to save critical carbon sinks and allow abusive itself is reportedly the UK’s best-selling toothpaste, while practices harming people on and around these palm oil Colgate-Palmolive claims to sell its products in “over plantations to continue. 200 countries”.311 312 For details of these companies’ responses, see Table 1 These findings prove that industry self-regulation, on p. 34. including for financial actors, does not work. The companies in this report either lacked policies on ethical Table 1. Global brands that have sourced from palm oil producers East New Britain Resources Group, Rimbunan Hijau, and/or Bewani Oil Palm Plantations Ltd in Papua New Guinea, and their responses to Global Witness’s requests for comment. Global brand Extracts from brands’ responses to Global Witness Palm oil producer AAK ENB, RH “AAK is committed to the sustainable and responsible sourcing and production of palm oil and other commodities,” the company wrote. “We take reports of such incidents [of social and environmental harms] very seriously.” AAK acknowledged having sourced palm oil from the Liguria, Narangit, and Mamusi mills, but said its only connection was via the Mewah Group, which had suspended purchases pending an investigation into the allegations raised by Global Witness. It said Mewah’s purchases from all three mills were one-off occasions, and another AAK supplier possibly exposed to Rimbunan Hijau’s Malaysian mills had initiated an investigation. AAK said it had also engaged a technical sustainability partner, Earthqualizer, to estimate deforestation at each mill that had taken place after 31 December 2015. Cargill ENB, RH Cargill acknowledged that it was connected to RH and ENB via its indirect supply chain. It said that it had contacted its direct suppliers as part of its investigation, adding that in accordance with its palm oil grievance procedure, it would engage with and suspend suppliers where appropriate if they were found to be not compliant with its human rights and/or palm oil policies. “Cargill is committed to treating all people in our supply chains with dignity and respect and have written this formally into our Commitment to Human Rights”, the company wrote. “We are also working to eliminate deforestation in our supply chains”, adding that its palm oil policy “outlines our commitment to a transparent, traceable and sustainable palm oil supply chain and aims to deliver palm oil that is produced in accordance with No Deforestation, No Peat and No Exploitation (NDPE) practices.” Colgate-Palmolive ENB, RH Colgate-Palmolive confirmed it had supply chain connections to the Liguria and Mamusi mills as of Company the first half of 2020, but said its mill list to be published in August 2021 would show that this was no longer the case. It said it had also identified links to RH via two mills in Malaysia. “We will include ENB and RH groups on our internal grievance log and continue to work with Earthworm Foundation and our suppliers to investigate the concerns raised and determine appropriate actions,” the company wrote. “We appreciate you bringing your concerns to our attention.” 34
Danone S.A. ENB “Danone is committed to the principles of no deforestation, no development on peat, and no exploitation of rights of workers, indigenous peoples and local communities”, the company wrote. “We signed the New York Declaration on Forests and are a member of the Forest Positive Coalition of the Consumer Goods Forum (CGF).” Danone added that it participated in numerous other “alliances that further collaboration and progress toward zero deforestation”, including the RSPO and the Palm Oil Innovation Group. The company said it had stopped sourcing from ENB’s Liguria mill since the beginning of 2020, and that it had asked its supplier(s) to conduct investigations into their supply chains. “We are fully committed to achieve segregated sustainable palm oil,” Danone wrote. “We put in place a traceability system allowing us to map our supply chain, and a formal grievance process, with the support of Earthworm.” General Mills ENB, RH General Mills said that although it was a “relatively minor user” of palm oil that it bought through a complex supply chain, it was committed to sourcing palm oil sustainably and took allegations of deforestation seriously. “Conducting ethical business and respecting human rights are core to our values,” it said. “Through our Global Responsible Sourcing program, we uphold our Supplier Code of Conduct and drive ongoing supplier progress in areas of health and safety, human rights, business integrity and the environment.” General Mills said it had entered Global Witness’s allegations into its grievance process and would engage its suppliers and report on its findings. Grupo Bimbo ENB Grupo Bimbo said that since releasing its global palm oil policy in 2016, it had been working on S.A.V. de C.V. improving traceability, engaging with suppliers to implement its policy, investing in two projects in Mexico to halt deforestation and improve smallholders’ livelihoods, and verifying deforestation through satellite analysis. Regarding its exposure to ENB, it said, “[Our suppliers] have already confirmed that the source from those mills has been suspended. We can assure you that at Grupo Bimbo we have the right monitoring mechanisms and rigorous processes to supervise the compliance of our Global Palm Oil Policy and in the case of any violations, we will take the required actions.” GS Global Bewani GS Global said that it had bought palm oil from “ENB Trading Ltd”, which in turn had bought it from Vanimo Green Palm Oil Mill. When asked by Global Witness if it denied having bought palm oil from Bewani, which controls the Vanimo Green mill, the giant corporation said it could not check where ENB Trading had sourced its oil. Mewah Group ENB, RH “Your report is certainly useful for us as well as the entire palm oil industry, as we have not seen another similar grievance case being reported by another NGO,” wrote the Mewah Group. It said it had reached out to ENB and RH to begin an investigation and had filed a formal grievance in Mewah’s sustainability grievance log. Mewah said it put in place a groupwide suspension on all trading with the companies pending the completion of its investigation, and that it had not purchased from ENB or RH since April 2020 and June 2020, respectively. “If any of these allegations is proved genuine,” the company wrote, “we will demand the respective company to undertake necessary recovery plan to compensate for HCS [high carbon stock] forest loss or human rights violation that is identified within its operation.” Bewani MGV Commodity said that it had not bought from Bewani since 2019. “We did very small volume of MGV Commodity shipments,” the company said, adding: “We are very ethical in our trade”. It said it had no plans to Pte Ltd buy from Bewani in the future. Neste Oyj ENB Neste said that its investigation had found that its exposure to ENB had been via Mewah, which not been a supplier to Neste since the second half of 2020. It provided a link to its sustainability dashboard but did not otherwise comment on Global Witness’s findings. Nestlé S.A. ENB “Nestlé is committed to sourcing 100 percent responsibly sourced and deforestation-free palm oil,” the company said. Nestlé said it had implemented responsible standards in its palm oil supply chain, prioritizing traceability to plantations, and monitored deforestation by satellite. The company said it applies a “suspend and engage” policy with suppliers found deforesting or not able to demonstrate they had followed FPIC processes, and works to improve sustainability in the industry. “As of December 2020,” Nestlé wrote, “70% of the palm oil we sourced was assessed as deforestation-free and we are progressing towards achieving 100% by the end of 2022.” Nestlé said it had not received any palm oil from ENB’s Liguria mill since 2019, but that it appeared to be connected to nine RH mills in Malaysia via various suppliers. The company said it had asked Earthworm to investigate Global Witness’s allegations, and if any mill was involved in deforestation or had failed to seek proper consent from traditional landowners, it would suspend them at the group level. THE TRUE PRICE OF PALM OIL 35
PZ Cussons ENB PZ Cussons said it had worked with the Earthworm Foundation to confirm the deforestation described by Global Witness. “Having confirmed it has taken place and is identifiable as palm plantation, we immediately activated our non-compliance grievance mechanism,” it said. “We are already engaging with [...] suppliers directly to instruct them to engage with East New Britain Resource Group to request an immediate stop to current activities that contravene our NDPE position.” It added, “If we do not receive an appropriate response from them then we will instruct [suppliers] to confirm the removal of the plantation company and parent group from their supply chains.” The company said its goal was to buy 100% of its palm oil from suppliers independently verified to be NDPE-compliant. Oleon ENB Oleon said: “Oleon is committed to protecting human rights in the workplace and in the communities where we do business. This commitment is shared with our shareholder the Avril Group. The Avril Group strives to obtain its palm oil from suppliers who can prove that its cultivation is in line with the Group’s No Deforestation, No Peat, No Exploitation (NDPE) commitment, and is fully traceable back to the mills. “Oleon is sourcing from Narangit and Liguria palm oil mills via other suppliers. Our suppliers have informed us that as of July 2021 there is a groupwide suspension of ENB until the investigation process is completed. We know, that cutting off purchases alone does not usually solve the problem on the ground for the local communities, and workers who have been harmed. As such, we are in conversations with Earthworm Foundation to explore what could be done to bring some level of support to the communities and workers who have been impacted.” Reckitt Benckiser ENB Reckitt said that palm oil from the Liguria and Narangit mills had not entered its supply chain, but Group plc that it did have a supply chain connection to ENB via a supplier of palm oil derivative products. “Our supplier is investigating further with ENB and we have required ENB’s removal from our supply chain,” it wrote. Reckitt said: “We take our responsibility for meeting our standards very seriously and continue to work in a number of ways to strengthen standards in our and the wider palm oil supply network.” It pointed to its membership in the Consumer Goods Forum’s ‘Forest positive’ and ‘Human rights’ coalitions of action, and said that it was using satellite analysis to monitor deforestation in its supply chain and working to support smallholder farmers. “We will naturally continue to investigate, working with Earthworm and others, and taking any further action necessary to exclude these suppliers from our network,” it said. Stratas Foods ENB Stratas, a joint venture of ADM and ACH Food Companies, acknowledged that ENB was part of its supply chain “for a very limited time in the third quarter of 2019”, via its supplier AAK. “Our Sustainable Palm Policy spells out what actions we might take in response to a substantiated grievance. In addition, your allegations implicate our Corporate Ethics and Human Rights Policies,” it said. “Stratas and AAK are committed to accountability and transparency in our supply chains, so I am confident we will be able to conclude our investigation promptly. The results of that investigation and our next steps will be disclosed in our grievance log at the conclusion of our investigation.” ADM said that it took “extremely seriously” any allegations of social and/or environmental non- compliance, and that it had zero tolerance for such violations in its supply chain. “ADM is working diligently to implement its Policy to Protect Forests, Biodiversity and Communities, and Human Rights Policy and to ensure these are upheld across its supply chain. The policies apply to ADM’s own operations and across all supply chains in which ADM operates, including all supplier tiers back to the origin from which commodities are sourced, and for all companies/JVs in which ADM holds an ownership stake,” it wrote. ADM said it was supporting Stratas in engaging in its grievance resolution mechanism, and that it would enter Global Witness’s allegations into its own grievance log and would reach out to its direct supplier(s) for an investigation. ACH Food Companies did not respond to repeated requests for comment. 36
The Hershey ENB “The Hershey Company takes all allegations of NDPE violations very seriously”, the company wrote. “Since 2013, Hershey has been committed to achieving a traceable and sustainable NDPE palm oil Company supply chain in line with our Responsible Palm Oil Sourcing Policy as well as our Supplier Code of Conduct and No Deforestation Policy.” It noted that it did not purchase palm oil directly from mills, but acknowledged that the Liguria and Narangit mills appeared in a 2020 mill list, via its AAK. “The list represents all mills connected to Hershey’s suppliers during the reporting period supplier and likely includes mills whose product was not specifically sold to Hershey”, it said. Nevertheless, it said it had initiated a grievance procedure and had suspended ENB from its supply chain. “We will continue to work with supply chain partners and Earthworm Foundation to define necessary corrective actions and what support can be given to the communities and workers who have been impacted,” Hershey said. The Kellogg ENB Kellogg’s said: “Thank you again for contacting us regarding this issue and we take it very seriously. We have internally reviewed the complaint and are following our public grievance process. We have Company performed outreach to three potentially impacted suppliers.” It said it would continue to monitor the situation. Crowd-sourcing due diligence Global Witness has found palm oil from the ENB Group’s plantations in the supply chains of major companies from Cargill to Nestlé. Many of these are paying members of the Earthworm Foundation, formerly known as The Forest Trust.313 Earthworm says it helps companies eliminate deforestation from their supply chains.314 It works with these companies on their use of palm oil, including by improving transparency and implementing NDPE policies.315 The not-for-profit organization requires its members to provide it all relevant information from their supply chains.316 But in every case, these companies’ partnerships with Earthworm pre-date by years their publicly disclosed purchases of palm oil from the ENB Group’s mills.317 That means all these companies’ new purchases from groups that Global Witness calculates has deforested many thousands of hectares of rainforest since 2010 have apparently escaped scrutiny. An Earthworm spokesperson said: “We admit that we were not aware of the serious legal and human rights violations that were carried out” by ENB and RH. “We are taking these very seriously and are calling on our members to do the same.” Earthworm said that since receiving this information, it had identified all its members’ supply chain links to ENB and RH, including at the parent company level, notified its members, and urged them to treat these issues “with the highest priority”. “We know [...] that cutting off purchases alone does not usually solve the problem on the ground for local communities, and workers who have been harmed,” Earthworm continued. “As such, we are initiating conversations with our members to explore what may be possible to do to bring some level of support to the communities and workers currently who have been impacted. Earthworm said it worked with its members to require each of its suppliers to provide information about its palm oil supply chain back to the mill level, which could result in a list of over a thousand mills, depending on the member. It could not credibly check the environmental and social performance of each mill itself, the organisation said, and so encouraged members to make these lists public to enable the crowd-sourcing of such checks. THE TRUE PRICE OF PALM OIL 37
Heavy industry Global Witness has obtained PNG customs records indicating that Bewani has exported shipments of palm oil to customers in at least three countries: India (via the Seychelles), Singapore, and South Korea.318 319 Two of its customers, based in the Seychelles and Singapore, according to customs data, keep a low profile. A Global Witness researcher visited an address given for MGV Commodity Pte. Ltd in Singapore, headquartered in a firm of accountants. While they were able to confirm that the company does exist, the principal was said to rarely visit the office. No record of the Seychelles company Perfect Essence International exists in the country’s corporate register, and Global Witness was unable to reach the company for comment. But if Global Witness’s investigation of where ENB and RH’s product ends up is anything to go by, there is every chance that from these merchants, Bewani palm oil may soon reach Waterfront at night in Papua New Guinea’s capital Port the supply chains of well-known brands that have failed Moresby. © Global Witness to perform basic due diligence on their supply chains. The third Bewani customer identified by Global Witness by rapper PSY. Its buyer was GS Global Corporation, a is a different story. In September 2019, according to metals, petrochemicals, and industrial products trader customs documentation, the oil tanker MT Bnoah sailed with revenues of about £1.5 billion in 2020.320 321 out of Vanimo carrying over 1.5 million kilograms of palm oil. Its destination: the Gangnam District of Seoul, home For these companies’ responses, see Table 1 on p. 34. to the glitterati of South Korean society and immortalized Banana boats wait for passengers along the Papua New Guinea coast. © Global Witness 38
CONCLUSIONS Mangroves at Wara Puk Puk (Crocodile River) in the north coast region of East New Britain Province, Papua New Guinea. © Global Witness PNG stands on a precipice. Rural communities and the Governments whose businesses are engaged in palm oil forests and biodiversity they depend on are in the path supply chains or financing must hold them accountable of a massive expansion of the palm oil industry. for their impacts on deforestation and forest-related This would be catastrophic if allowed to proceed in human rights risks. the same reckless, irresponsible and unethical way as exposed in this report. The PNG government must immediately take action to uphold land rights, stamp out any corruption and tax Our investigation shows the extent of these predatory evasion, and hold to account companies breaking the practices – they are systemic and widespread across law and abusing human rights or ignoring the safety key new players in the palm oil sector in PNG. ENB, RH, of workers. and Bewani all engaged in large-scale deforestation of climate-critical forest. Community landowners, who The financiers of these destructive oil palm plantations depend on these forests for their livelihoods, have raised also bear a heavy responsibility. They have profited grave concerns about the lack of free, prior and informed from tens of thousands of hectares of PNG rainforest consent involved in these companies’ access to land. being flattened, untold numbers of communities being This investigation has documented other abuses, from left destitute, and the brutalization of communities by detaining community members and the use of police police paid to harm rather than protect them. Many oil to violently suppress protest, to negligence leading to palm workers have been killed or seriously injured on workers’ deaths. Two of the companies we investigated projects they have bankrolled. In several instances local enjoyed extensive financing from a web of banks and laws protecting people and the environment have been financial actors, and all have sold on tainted palm oil to broken. This report illustrates once again how internal global brands without any checks, sanctions or penalties. policies are not enough to steer financiers to make the All of this must stop. right decision, when they are so often ignored. THE TRUE PRICE OF PALM OIL 39
If the story told by this report hinges on rural PNG, it > Immediately investigate companies involved for began in New York, Oslo, Rotterdam, Singapore, and potential violations of statutes including, but not limited Kuala Lumpur. The governments of countries where to, the Employment Act, the Industrial Health, Safety and these financiers and their global owners are based Welfare Act, the Workers Compensation Act, and the Road must act responsibly and require banks and investors Traffic Act. Where applicable, impose relevant penalties. to conduct thorough checks to ensure their money is not used to destroy forests. The global brands buying > Assign an industrial safety inspector to initiate and from these plantations, which now circle the globe and maintain a regular system of industrial safety inspection sell products from toothpaste to biodiesel, must stop for the PNG palm oil plantations and mills that do not contributing to and benefiting from deforestation and already report publicly on their safety record. The cost of other harm in their palm oil supply chains. The gravity these inspections should be a user-pays system where the of the crimes and human rights abuses outlined in this company pays for the inspector’s visits. report means there can be no more excuses. > Review the records of any Royal PNG Constabulary officers involved in alleged harassment of or violence Recommendations toward citizens. Take appropriate disciplinary action where applicable. Government of Papua New Guinea > Freeze the issuance of new forest clearance authorities (FCAs) and cancel existing FCAs except where the > Immediately investigate all injuries and deaths on oil holder can prove they are complying with all national, palm plantations. customary, and international laws and have obtained free, prior and informed consent from local communities > Ensure that all workers injured on oil palm plantations, in order to operate. or the next of kin of workers who died on the plantation, are immediately acknowledged and compensated. > Require all palm oil operations in Papua New Guinea to meet or exceed industry best practices with regards to > Provide support for injured workers and their next of protecting ecosystems; avoiding deforestation; upholding kin to find suitable replacement employment in palm oil community and human rights, including worker rights; agriculture or, if desired, an alternate industry. and ethical and transparent business dealings. Papua New Guinea is home to at least five per cent of all species on Earth. © Global Witness 40
Governments of the UK, US, EU, and other > Cooperate with investigations into the allegations named in this report, including allegations of child countries home to companies importing labour, bribery, environmental devastation, tax evasion, palm oil or financing palm oil-linked banks and negligence regarding worker health and safety, or companies: where relevant. > Introduce and implement legislation requiring > Work to ensure that all workers injured on oil palm businesses, including the finance and investment sector, plantations, or the next of kin of workers who died to identify, prevent, mitigate, and report on deforestation on the plantation, are immediately acknowledged and forest-related human rights risks and impacts in their and compensated. supply chains and financing. > More broadly, work to provide redress and remedy for > Host governments for banks named in this report any harms arising from their business. should investigate and report on whether the banks have legally misled their shareholders or clients as to their due Global buyers diligence processes, including any potential exposure to handling the proceeds of crime > Cease sourcing palm oil and palm oil products originating from ENB’s, RH’s, and Bewani’s mills in PNG, with immediate effect. Banks funding these palm oil companies: > Review internal processes and third-party assistance > Immediately suspend any services, financing or to identify how these companies were allowed into their contracts with ENB, RH, and Bewani Oil Palm Plantations supply chains. Ltd and their subsidiaries or affiliate companies, pending a full review of any potential legal and human > Work to ensure that all workers injured on oil palm rights violations. plantations, or the next of kin of workers who died on the plantation, are immediately acknowledged > More broadly, exclude financing to PNG palm oil and and compensated. related operations unless adequate due diligence has > More broadly, work to provide redress and remedy for been undertaken, including that the bank has gained any harms arising from their business. independent, community-informed data that ensures that business practices exclude deforestation, have > Publicly disclose the end products manufactured secured the legitimate free, prior and informed consent using this palm oil or palm-related derivatives, as well as of Indigenous peoples and local communities, and country of origin. are not exposed to human rights abuses, including labour violations. Investors and shareholders in banks financing these palm oil companies: > Withhold financing from any bank or agribusiness company that is unable to show that it has clear, implemented practices to exclude deforestation and require the free, prior and informed consent of Indigenous peoples and local communities > Ensure that any bank or company claims are cross-checked by ground-truthed data (information provided by independent third parties based on on-the- ground information) and that banks and investors are contributing to remedy for any prior harms caused. > East New Britain Resources Group, Rimbunan Hijau Group, and Bewani Oil Palm Plantations Ltd: THE TRUE PRICE OF PALM OIL 41
APPENDIX 1 Deaths and accidents of Rimbunan Hijau employees on its oil palm plantations in Pomio District, East New Britain Province, Papua New Guinea. Workers’ ages and occupations at the time of their accidents are shown. Information on reported deaths and accidents, including the circumstances of individual incidents, workers’ personal details, and compensation received, was drawn from Office of Workers’ Compensation records, where available, and/or interviews conducted with next of kin and other community members in Pomio District between October 2020-February 2021. When this report went to publication, the OWC database was undergoing renovations and was offline. 1. Ms. Monica Alois 2. Mr. Joe Lui Age 221 years Age 30 years4 Occupation Loose fruit Occupation Mechanic collector2 Employer listed Sinar Tiasa (PNG) Employer listed RH Trading, as: Ltd as: Frontier Holdings, and Niugini Lumber Merchants CRN-0660319-F12121118 CRN-0510819-F12EAS291118 PNG Office of Workers PNG Office of Workers Compensation Case Compensation Case Report Number: Report Number: Incident Ms. Alois fell from the back of a moving Incident Mr. Lui suffered a motor vehicle accident Toyota Land Cruiser vehicle on her way while road testing a repaired motorbike back to the camp site on the plantation, after repairing, resulting in his death.5 resulting in her death by cerebral Outcome Fatality hemorrhage.3 Areas of concern > Official accident reports maintained Outcome Fatality by OWC are illegible. This is a concern in Areas of concern > Whether safe and reliable and of itself. transportation to and from the workplace > For a young mechanic to lose his was provided by the company. life while working in a controlled >PNG Road Traffic Act environment may suggest a lack of rules Potential non- 2014 > PNG Employment and regulation determining work safe compliances: procedures and processes. Act > Workers Compensation Act > Industrial Safety, Health and Welfare Date of incident: 2018 Potential non- Act compliances: Compensation received: None > Road Traffic Act 2014 > Workers’ Compensation Act Date of incident: 2018 Compensation received: Unknown 1 Monica Alois coroner report, on file with Global Witness. 2 Monica Alois next of kin interview, on file on file with Global Witness. 3 Monica Alois police report, on file on file with Global Witness. 4 Data obtained from the PNG Office of Workers’ Compensation database at www.owc.pg.gov 5 NiuGini Environment Management Services (2021). Palm oil producer safety and health review prepared for Global Witness. 42
3. Mr. Joachim Kankan 4. Mr. Leo Kaukau Age 38 years6 Age 49 years8 Occupation Driver Occupation Forklift Operator Employer listed Sinar Tiasa (PNG) Employer listed Sinar Tiasa (PNG) as: Ltd as: Ltd CRN-0980619-F12WES240417 PNG Office of Workers No records found on PNG Office of PNG Office of Workers Compensation Case Workers Compensation website Compensation Case Report Number: (www.owc.gov.pg) Report Number: Incident Mr. Kankan was hit by a dump truck and Incident subsequently passed away.7 While on the plantation, Mr Kaukau cooked dinner for himself and his son Outcome Fatality Ronald Kaukau with water collected and Areas of concern > Official files are insufficient for review. stored in a used chemical container; he This is a concern of itself. In Global promptly began vomiting in the night Witness’s assessment, Mr. Kankan’s and died the next day. death contributes to a troubling pattern Outcome Fatality of motor vehicle fatalities on the RH Areas of concern Whether ample clean, safe drinking plantations. > > If an investigation was not conducted water was provided to workers on the into Mr. Kankan’s death, it should be plantation. > Chemical containers appear to have done immediately and used to develop been negligently unsecured and not company safety procedures. made unusable, in violation of FAO best Potential non- > PNG Road Traffic Act 2014 practices and RSPO PNG NIWG Criteria > Industrial Safety, Health and Welfare 4.6.10. Storage and disposal of chemicals compliances: Act 1965 as prescribed in the GIFAP Code of > Workers Compensation Act Practice: Date of incident: 2017 Specific Guidance: Proper storage and disposal of waste material, according to Compensation received: Unknown procedures that are fully understood by workers and managers. Also see Criterion 5.3 on waste disposal. All redundant and excess plantation chemical containers must be triple rinsed and then punctured before disposal in a designated landfill. Records to be kept. Potential non- > Industrial Safety, Health and Welfare Act 1965 compliances: > Workers Compensation Act Date of incident: 2014 Compensation received: None 6 Data obtained from the PNG Office of Workers’ Compensation database at www.owc.pg.gov 7 Ibid. 8 Global Witness interview with Felix Tau (2021). THE TRUE PRICE OF PALM OIL 43
5. Ronald Kaukau 6. Mr Anton Kelal10 Age 119 years Age 22 years Dependent Child, Student. Occupation Ramp Keeper While living on the plantation with his Employer listed Sinar Tiasa (PNG) father Leo Kaukau, ate dinner cooked as: Ltd. with water collected and stored in a used chemical container; he promptly began vomiting in the night and died the next day. Outcome Fatality PNG Office of Workers No records found on PNG Office of Areas of concern Workers Compensation website >Whether ample clean, safe drinking Compensation Case (www.owc.gov.pg) water was provided to workers on the Report Number: plantation. Incident Mr Kelal fell out of the crew side of a > Chemical containers appear to have dump truck, hitting his head, and died of been negligently unsecured and not his injuries.11 made unusable, in violation of FAO best Outcome Fatality practices and RSPO PNG NIWG Criteria 4.6.10. Storage and disposal of chemicals Areas of concern > No police report on this motor vehicle as prescribed in the GIFAP Code of Practice: accident was available for sighting at the Specific Guidance: Proper storage and time of this publication. disposal of waste material, according to Potential non- > Industrial Safety, Health and Welfare procedures that are fully understood by compliances: Act 1965 workers and managers. Also see Criterion > Workers Compensation Act 5.3 on waste disposal. All redundant and > Road Traffic Act 2014. excess plantation chemical containers must be triple rinsed and then punctured before Date of incident: 2020 disposal in a designated landfill. Records Compensation received: PGK5,000 (about £1,000) for funeral to be kept. expenses Potential non- > Industrial Safety, Health and Welfare Act 1965 compliances: 7. Mr. Joe Kingsly12 Date of incident: 2014 Age 22 years None Compensation Occupation General Worker received: Employer listed Sinar Tiasa (PNG) as: Ltd. No records found on PNG Office of PNG Office of Workers Workers Compensation website Compensation Case (www.owc.gov.pg) Report Number: Incident Mr Kingsly reportedly fell and hit his side on a rock while cutting fresh fruit bunches from an oil palm tree, later dying of his injuries. Outcome Fatality Areas of concern > Insufficient documentation is available to ascertain whether Mr Kingsly’s death was the result of negligence. > PNG Employment Act Potential non- > Workers Compensation Act compliances: Date of incident: April 2020 Compensation received: None 9 Global Witness interview with Felix Tau (2021). 10 Global Witness interview with Lawrence Lapuli (2021). 11 Anton Kelal witness statement and Anton Kelal death certificate, on file with Global Witness 12 Global Witness interview with J. Kingsly’s son (2020). 44
8. Mr Cosmas Manane 9. Mr Patrick Puka 25 years13 4015 years Age Age Occupation Survey aide Occupation Surveyor16 Employer listed Niugini Lumber Employer listed Niugini Lumber as: Merchants Limited as: Merchants Limited CRN-0360618-F12WES261115 Link PNG Office of Workers PNG Office of Workers Compensation Case Compensation Case Report Number: Report Number: Incident Mr. Manane walked through the bush Incident While in a company car, Mr Puka was (forest) alone to the plantation camp involved in a motor vehicle accident after working in the field. He died in his and died from severe head and spinal sleep that night. injuries.17 Outcome Fatality Outcome Fatality Areas of concern >There is no record of an inquest or Areas of concern > Available documentation is insufficient autopsy in Mr Manane’s OWC file.14 to determine whether RH was negligent in allowing its employees to travel in this > PNG Employment Act Potential non- > Workers Compensation Act vehicle.18 compliances: Potential non- > PNG Road Traffic Act 2014 Date of incident: 2015 compliances: > PNG Employment Act Compensation received: Unknown > Workers Compensation Act Date of incident: 2014 Compensation received: Unknown 13 Cosmas Manane police report, on file with Global Witness. 14 Cosmas Manane supervisor report, on file with Global Witness. 15 Patrick Puka death certificate, on file with Global Witness. 16 Patrick Puka supervisor statement, on file with Global Witness. 17 Patrick Puka witness statement, on file with Global Witness. 18 NiuGini Environment Management Services (2021). Palm oil producer safety and health review prepared for Global Witness THE TRUE PRICE OF PALM OIL 45
10. Mr Robert Rolpha 11. Mr Edgar Tanewa 37 years 19 Age Age 20 years Occupation Chainsaw Occupation Bunch recorder operator20 Employer listed Sinar Tiasa (PNG) Employer listed Niugini Lumber as: Ltd. as: Merchants Limited No records found on PNG Office of CRN: 0050518-F12EAS200317 PNG Office of Workers PNG Office of Workers Workers Compensation website Compensation Case Compensation Case (www.owc.gov.pg) Report Number: Report Number: Incident Mr. Rolpha caught a ride on a Incident Mr. Tanewa was operating a motorbike construction road grader to travel home on the plantation. He was hit by a truck from work; he fell from the grader, whilst attempting to overtake it and died rupturing his spleen and resulting in his of his injuries: a severe head injury and death. associated haemo-pneumothorax. 21 22 Outcome Fatality Outcome Fatality Areas of concern > Whether safe and reliable Areas of concern > Has RH implemented safety training, transportation to and from the workplace including driver safety training, on its was provided by the company. plantations?23 > An additional passenger appears to Potential non- >PNG Road Traffic Act have been negligently allowed to ride on compliances: 2014 > PNG Employment single-seat heavy equipment. Act Potential non- >PNG Road Traffic Act > Workers Compensation Act Date of incident: 2017 compliances: 2014 > PNG Employment Act Compensation received: Unknown > Workers Compensation Act Date of incident: 2016 Compensation received: None 19 Robert Rolpha death certificate, on file with Global Witness 20 Robert Rolpha next of kin interview, on file with Global Witness. 21 Edgar Tanewa witness statement, on file with Global Witness. 22 Edgar Tanewa postmortem, on file with Global Witness. 23 NiuGini Environment Management Services (2021). Palm oil producer safety and health review prepared for Global Witness. 46
12. Mr Dominic Wainau 13. Mr Philip Alrea 5528 years Age 41 years Age Occupation Dump truck driver24 Occupation Supervisor29 Employer listed Sinar Tiasa (PNG) Employer listed Niugini Lumber as: Ltd. as: Merchants Limited CRN: 0979619-F12WES020917 PNG Office CRN-0210818-F11WES310517 PNG Office of Workers Compensation Case of Workers Report Number: Compensation Case Incident The truck Mr Wainau was driving Report Number: overturned; he either jumped or was Incident Mr. Alrea fell off a bike while supervising thrown from the cab.25 He died of his work, breaking his leg and losing 60% of its injuries, including a fractured pelvis and efficient use.30 31 flail chest, in which a segment of the rib Outcome 60% loss of efficiency of left leg. cage is broken and detached from the chest wall. 26 Areas of concern > No police report is available. > Interviews do not indicate evidence of Outcome Fatality a company safety officer or safety training Areas of concern > Was Mr Wainau was wearing a safety provided to employees.32 Has such training belt? been provided and mandated? > No medical officer was apparently on > PNG Road Traffic Act 2014 Potential non- site to treat his injuries, necessitating compliances: > Workers Compensation Act his evacuation to the Palmalmal health center. Date of incident: 2017 > After the accident, it appears that Mr. None Wainau was still alive. An investigation Compensation should assess whether he could have received: been saved, if incident management had been handled by trained safety and/or medical officers at the incident site.27 Potential non- > PNG Road Traffic Act 2014 compliances: > Workers Compensation Act Date of incident: 2017 Compensation received: Unknown 24 Dominic Wainau supervisor statement, on file with Global Witness. 25 Dominic Wainau witness statement, on file with Global Witness. 26 Dominic Wainau death certificate, on file with Global Witness. 27 NiuGini Environment Management Services (2021). Palm oil producer safety and health review prepared for Global Witness. 28 Data obtained from the PNG Office of Workers’ Compensation database at www.owc.pg.gov 29 Global Witness interview with Philip Alrea (2020). 30 NiuGini Environment Management Services (2021). Palm oil producer safety and health review prepared for Global Witness 31 Philip Alrea final medical report, on file with Global Witness. 32 NiuGini Environment Management Services (2021). Palm oil producer safety and health review prepared for Global Witness. THE TRUE PRICE OF PALM OIL 47
14. Mr Bakom Anak Jali 15. Mr Timothy Joe 56 years 33 2936 years Age Age Occupation Bulldozer operator Occupation Fertilizer stacker37 Employer listed Sinar Tiasa (PNG) Employer listed Sinar Tiasa (PNG) as: Ltd. as: Ltd. CRN-0540319-F11EAS260 818 CRN 0990619-F11WES030117 PNG Office of Workers PNG Office of Workers Compensation Case Compensation Case Report Number: Report Number: Incident Mr Jali’s hand and arm were crushed Incident Mr. Joe’s hand was crushed by a falling while he was crossing a flooded river in pallet; he developed an infection an excavator as a passenger.34 and extension contracture, requiring surgery.38 Outcome Loss of 80% efficacy of left arm. Areas of concern Outcome Contracture requiring plastic surgery39 ~ Crossing a flooding river in an excavator as a passenger on a single seat Areas of concern ~Apparent lack of supervision of earth moving machinery is a serious employees working with heavy objects breach of safety protocols, suggesting a and working at heights; no record lack of safety training.35 keeping of near miss, minor injuries and accidents; no inspection and monitoring ~ PNG Employment Act Potential non- of safe and unsafe working conditions.40 ~ Workers Compensation Act compliances: ~ PNG Employment Act 2018 Potential non- Date of incident: ~ Workers Compensation Act compliances: Compensation received: Unknown Date of incident: 2017 Compensation received: Unknown 33 Bakom Anak Jali interim medical report, on file with Global Witness. 34 Bakom Anak Jali statement, on file with Global Witness. 35 NiuGini Environment Management Services (2021). Palm oil producer safety and health review prepared for Global Witness. 36 Data obtained from the PNG Office of Workers’ Compensation database at www.owc.pg.gov 37 Timothy Joe witness statement, on file with Global Witness. 38 Timothy Joe medical report, on file with Global Witness 39 Timothy Joe medical diagnosis report, on file with Global Witness 40 NiuGini Environment Management Services (2021). Palm oil producer safety and health review prepared for Global Witness. 48
16. Mr Paul Kinroro 17. Ms Bertha Kanmugurea Age 54 years Age – Occupation GPS Surveyor Occupation General worker Employer listed Sinar Tiasa (PNG) Employer listed Sinar Tiasa (PNG) as: Ltd. as: Ltd. No records found on PNG Office of No records found on PNG Office of PNG Office of Workers PNG Office of Workers Compensation website Workers Compensation website Compensation Case Workers (www.owc.gov.pg) Compensation (www.owc.gov.pg) Report Number: Incident Case Report Mr. Kinroro was involved in a motor Number: vehicle accident during working hours, sustaining scalp lacerations and a broken Incident Ms. Kanmugurea was accidentally wrist. He had to pay for his medical costs sprayed by another employee with out of pocket. herbicide 2,4-D; she sustained eye Outcome injuries and still feels weak and suffers Injuries to scalp and head. Fulfilled his chest pain. She is currently unable to own medical bills. work due to her injuries. 41 Areas of concern > Mr Kinroro’s accident is part of a Outcome Injuries to eyes. Alleged loss of energy troubling pattern of motor vehicle and pain in her chest. accidents on the RH oil palm plantations. Areas of concern > For one employee to spray another Potential non- > PNG Road Traffic Act 2014 with chemicals indicates a lack of safety compliances: > Workers Compensation Act awareness, training and identification Date of incident: 2014 of risks and in handing agricultural chemicals at work. 42 Compensation received: None > Apparent failure to use personal protective equipment when handling agrochemicals > Agrochemical use should be guided by GIFAP/industry best practices as established by the RSPO, which should include: – Eye protection – Full body protection – Gloves and rubber boots > PNG Employment Act Potential non- > Workers Compensation Act compliances: Date of incident: 2012 None Compensation received: 41 Global Witness interview with Bertha Kanmugurea (2020). 42 NiuGini Environment Management Services (2021). Palm oil producer safety and health review prepared for Global Witness. THE TRUE PRICE OF PALM OIL 49
18. Mr Timothy Kundi 19. Mr Kevin Lolale 35 years 43 5546 years Age Age Occupation Field worker Occupation Maintenance worker Employer listed Sinar Tiasa (PNG) as: Ltd. Employer listed Sinar Tiasa (PNG) as: Ltd. No records found on PNG Office of CRN-0480819-F11EAS210818 PNG Office PNG Office of Workers Workers Compensation website of Workers Compensation Case Compensation (www.owc.gov.pg) Report Number: Case Report Incident Mr Lolale was in a motor vehicle accident Number: whilst driving a motorbike on the Incident Mr Kundi was sprayed in the eye with plantation and was referred to hospital a glyphosate herbicide, resulting in with back pain. infection, corneal corrosion, and partial Outcome Back injury blindness. He is currently unable to work. Areas of concern > No evidence of motor vehicle safety Outcome Eye infection, corneal corrosion, and training. Possible lack of upkeep of partial blindness. 44 vehicle.47 Areas of concern >No evidence of safety training or Potential non- >PNG Road Traffic Act 2014 protective personal equipment provided compliances: PNG Industrial Safety, Health and to employees. 45 > Welfare Act > Agrochemical use without following recommended safety procedures by ILO > Workers Compensation Act conventions and PNG Industrial Safety, Date of incident: 2018 Health and Welfare Act places workers Compensation received: Unknown at risk of injury to themselves and the environment. Potential non- >PNG Industrial Safety, Health and compliances: Welfare Act > PNG Employment Act > Workers Compensation Act Date of incident: 2018 Compensation None received: 43 Global Witness interview with Timothy Kundi (2020). 44 Timothy Kundi medical report, on file with Global Witness. 45 NiuGini Environment Management Services (2021). Palm oil producer safety and health review prepared for Global Witness. 46 Kevin Lolale statement, on file with Global Witness. 47 NiuGini Environment Management Services (2021). Palm oil producer safety and health review prepared for Global Witness. 50
20. Mr Barnabas Momkale 21. Mr Peter Pavulo 24 years 48 50 years51 Age Age Occupation Security guard Occupation Welder Employer listed Sinar Tiasa (PNG) Employer listed Sinar Tiasa (PNG) as: Ltd. as: Ltd. CRN-0141014F11EAS141212 CRN-0470416-F11EAS270715 PNG Office of Workers PNG Office of Workers Compensation Case Compensation Case Report Number: Report Number: Incident An unsecured log fell from a loaded truck Incident While Mr Pavulo was repairing a and hit Mr Momkale, breaking two bones bulldozer, the roller chain fell and in his leg and requiring surgery.49 crushed half of one finger, which was subsequently amputated. Witness Outcome Lost 60% of the efficacy of the right leg. statements include no evidence of lifting Areas of concern > Logs were negligently unsecured aids for heavy machinery, safety staff, or during transportation. 50 supervision provided to employees.52 He Potential non- >PNG Road Traffic Act 2014 had to pay for his own medical expenses compliances: and says he still finds it very difficult to >PNG Industrial Safety, Health and Welfare Act work with the injured hand. > Workers Compensation Act Outcome Right middle finger crushed by roller chain, later amputated. Date of incident: 2012 Areas of concern > Mr Pavulo’s accident forms part Compensation received: None of a troubling pattern of serious and avoidable injuries on the RH oil palm plantations. Potential non- > PNG Employment Act compliances: >PNG Industrial Safety, Health and Welfare Act > Workers Compensation Act Date of incident: 2015 Compensation received: Compensation received: PGK1,060 (about £210) 48 Global Witness interview with Barnabas Momkale (2020). 49 Barnabas Momkale medical report, on file with Global Witness. 50 NiuGini Environment Management Services (2021). Palm oil producer safety and health review prepared for Global Witness. 51 Peter Pavulo medical report, on file with Global Witness. 52 NiuGini Environment Management Services (2021). Palm oil producer safety and health review prepared for Global Witness. THE TRUE PRICE OF PALM OIL 51
22. Mr George Ravungkia 23. Mr Charles Sai 45 years53 22 years55 Age Age Occupation Subcontracted Occupation Dump truck driver fieldworker Employer listed Sinar Tiasa (PNG) Employer listed Sinar Tiasa (PNG) as: Ltd. as: Ltd. PNG Office of Workers No records found on PNG Office of No records found on PNG Office of PNG Office of Workers Workers Compensation website Workers Compensation website Compensation Case Compensation Case Report Number: (www.owc.gov.pg) (www.owc.gov.pg) Report Number: Incident Mr. Ravungkia hitched a ride home from Incident A log slipped and hit Mr Sai on the neck, work on the plantation on a motorbike. fracturing several of his vertebrae and He fell from the motorbike, lacerating his risking paralysis. Mr Sai reportedly had to Achilles tendon. pay for his medical care and a copy of his Outcome Permanent injury to Achilles tendon on own worker’s compensation report. the leg Outcome Risk of potential paraplegia due to neck Areas of concern and spinal injuries > No sa fe and reliab le transpo rt evidently provided for plantation Areas of concern > There is no evidence of safety signage employees: this indicates a lack of due and barricades to safeguard employees care for workers and is a serious safety and the public from the potential risk.54 collapse of logs in this highly seismically Potential non- active area.56 >PNG Road Traffic Act 2014 compliances: >PNG Industrial Safety, Health and Potential non- >PNG Industrial Safety, Health and Welfare Act compliances: Welfare Act > Workers Compensation Act > PNG Employment Act Date of incident: 2017 > Workers Compensation Act Date of incident: 2013 Compensation received: None Compensation received: None 53 Global Witness interview with George Ravungkia (2020). 54 NiuGini Environment Management Services (2021). Palm oil producer safety and health review prepared for Global Witness. 55 Charles Sai radiology report, on file with Global Witness. 56 NiuGini Environment Management Services (2021). Palm oil producer safety and health review prepared for Global Witness. 52
24. Mr Samson Waso Abbreviations used 42 years57 Age RSPO Round Table on Sustainable Palm Oil Occupation Jinker driver (production) Employer listed Niugini Lumber NIWG National Interpretation Working Group as: Merchants Ltd. (for RSPO) OWC PNG Office of Worker Compensation CRN-0640518-F11EAS180un516 PNG Office of Workers CRN Case Report Number (used by OWC) to register Compensation Case Report Number: individual cases Incident A log fell from a loaded truck onto Mr GIFAP International Group of National Associations of Waso’s hand, crushing two of his fingers, which were subsequently amputated.58 Manufacturers of Agrochemical Products Outcome Amputation Areas of concern > There is no evidence of a safety officer on site, nor of a supervisor’s presence during dangerous industrial activities (offloading logs).59 Potential non- >PNG Road Traffic Act compliances: 2014 > PNG Employment Act > Workers Compensation Act Date of incident: 2016 Compensation received: Unknown 57 Samson Waso statement, on file with Global Witness. 58 Samson Waso interim medical report, on file with Global Witness. 59 NiuGini Environment Management Services (2021). Palm oil producer safety and health review prepared for Global Witness. THE TRUE PRICE OF PALM OIL 53
A P P E N D I X 2 accessed corporate records using publicly accessible Methodology databases of the PNG Investment Promotion Authority, Global Witness focused this investigation on the East Companies Commission of Malaysia, and Singapore’s New Britain Resources Group of companies (ENB), the Accounting and Corporate Regulatory Authority. Rimbunan Hijau Group of companies (RH), and Bewani Company shareholding was assessed via Refinitiv Eikon. Oil Palm Plantations Ltd (Bewani) in Papua New Guinea Global brands’ exposure to the ENB and RH mills was (PNG). ENB and RH are operating oil palm plantations checked using publicly available mill lists published by in East New Britain Province (ENBP), and Bewani is the companies themselves. operating an oil palm plantation in Sandaun (West Sepik) Province. While there are other palm oil companies operating in PNG, these three have together deforested Deforestation analysis tens of thousands of hectares since 2010, and were Global Witness used shapefiles for the Rimbunan Hijau exporting palm oil in 2019, when we began this research. and Bewani concessions previously published in our 2017 report Stained Trade. We derived a shapefile for the ENB Between 2019-2021, Global Witness researchers met with ‘Ili-Wawas’ project drawing from the map included in that and interviewed local community members and civil project’s 2005 Environmental Impact Statement. society organizations in both provinces. We interviewed two former oil palm plantation workers in ENBP, and We used the global forest change 2000-2019 subsequently conducted an extensive investigation dataset (Hansen/UMD/Google/USGS/NASA) to calculate into worker health and safety on the Rimbunan Hijau forest loss within each concession boundary by year, plantations in Pomio District, ENBP, described below. using ArcGIS. To ensure the forest lost area was originally In PNG, and remotely, undercover Global Witness natural forest, we used images from sources including researchers carried out multiple covert interviews with Google Earth, Sentinel 2 and Landsat to check the forest ENB employees and with a director of Tobar Investment type of the lost area before deforestation. The vast Ltd. This report also draws on an interview with majority of forest loss (ca. ~99%) appeared to be community members from Gazelle district, ENBP, that natural forest. Global Witness researchers conducted in 2017. Global Witness used ship tracking data accessed via Worker health and safety incidents the commercial service MarineTraffic to reconstruct the voyage of the Chem Peace from PNG to India. We Acting on tips received from two former employees 54
and a community member, Global Witness launched an investigation into worker health and safety on the RH oil palm plantations in Pomio District, ENBP. We began by searching the publicly accessible PNG Office of Workers’ Compensation (OWC database. Under the Workers’ ) Compensation Act, companies are required to report workplace accidents and deaths to the OWC. Each such report is given a unique reference number in a searchable database. Global Witness found records of seven deaths and seven accidents that we were able to determine had happened on RH’s plantations in Pomio. We then worked with a local community member in Pomio District to interview accident survivors and/or their next of kin, and to identify additional incidents. (We are omitting the name of our local colleague for their safety.) This process ran between Oct 2020-Feb 2021 and captured interviews with fourteen survivors or their next of kin. It produced additional documentation for several cases we had identified from the OWC database, and revealed five additional deaths and five additional serious injuries that Global Witness could substantiate based on documentation. The majority of the injured and deceased workers Global Witness documented were men. This may reflect the fact that women more often work in an informal capacity on palm oil plantations, e.g. as “loose fruit” collectors. Global Witness has seen and collected copies of documentation related to these cases including workers’ medical reports; autopsy reports; police reports; worker, witness, and supervisor statements; insurance forms; proof of employment, including payslips; and accident and autopsy photos. We arranged for one worker and the next of kin of a deceased worker to be interviewed on video. All interviews were captured in writing with our interviewer translating from spoken Tok Pisin to English where necessary. When this report went to publication, the OWC database was undergoing renovations and was offline.
Papua New Guinean health and safety consultancy Table 1. Full-time staff of RH companies operating in Niugini Environment Management Services (NgEMS) Sigite Mukus, according to annual reports filed with the reviewed the findings for Global Witness. Principal PNG Investment Promotion Authority . Tony Aromo has over a decade’s experience in the palm Company 2010 2015 2020 oil sector in PNG and served as a technical expert on 98 98 183 Rimbunan Hijau the working group developing nationally appropriate (PNG) Limited standards for RSPO.1 Sinar Tiasa (PNG) 2 2 2,218 Limited Comparison of fatal accidents, Gilford Limited 0 20 142 Rimbunan Hijau/New Britain Niugini Lumber 467 470 268 Palm Oil Limited Merchants Limited Totals 567 590 2,811 Global Witness compared the fatal accidents we documented at Rimbunan Hijau’s operations with According to annual company reports filed with the PNG those at another oil palm company operating in PNG. Investment Promotion Authority, the total number of employees at these four companies combined varied Four Rimbunan Hijau (RH) companies are working in between 567-2,811 in the years Global Witness assessed the group’s “Sigite Mukus” project in Pomio, ENBP: (2010, 2015, and 2020). > Rimbunan Hijau (PNG) Limited2 In order to compare the fatalities Global Witness 3 documented at the Sigite Mukus operation with another > Sinar Tiasa (PNG) Limited PNG operation of roughly similar size, we looked at publicly available reports from New Britain Palm Oil Ltd. > Gilford Limited4 (NBPOL). NBPOL, owned by Sime Darby,7 operates six > Niugini Lumber Merchants Limited 5 plantations in PNG.8 The company is RSPO certified and publishes its policies regarding human rights and worker Because it is unknown how many personnel from each health and safety.9 company are entirely devoted to the Sigite Mukus project, and in order to produce a conservative comparison with Of NBPOL’s PNG operations, the Higaturu and Milne Bay another company’s operations, for the purpose of the plantations are closest in size to the largest number of analysis of fatal accidents undertaken in this report all employees calculated for Sigite Mukus (employing 2,325 employees listed as working in annual company reports and 3,132 people respectively).10 for all four of these companies were included in the table below. In 2010, work officially began on the Sigite Mukus project.6 1 Roundtable on Sustainable Palm Oil (undated). National Interpretations https://rspo.org/certification/national-interpretations 2 Srinivisan, P. PNG MP responds to allegations of exploitation and abuse in logging industry - Pacific Beat - ABC Radio Australia (2020). https://www.abc.net.au/radio-australia/programs/pacificbeat/mp-responds-to-allegations-of-exploitation-abuse-in-png-logging/11872384 3 Hambloch, C. Land formalization turned land rush: the case of the palm oil industry in Papua New Guinea. Paper prepared for presentation at the “2018 World Bank Conference on Land and Poverty” (2018). https://actnowpng.org/sites/default/files/publications/Land%20Formalisation%20Turned%20Land%20 Rush%20Hambloch%202018.pdf 4 Ibid. 5 Tunama, D. An Exploration of the Impact of Oil Palm Development on Women in Pomio, East New Britain Province, Papua New Guinea (2014). https://core.ac.uk/download/pdf/35469649.pdf 6 Global Witness. Stained Trade: how U.S. imports of exotic flooring from China risk driving the theft of indigenous land and deforestati on in Papua New Guinea. (2017) https://www.globalwitness.org/en/campaigns/forests/stained-trade/ 7 Reuters. Malaysia’s Sime Darby completes $1.74 bln New Britain Palm Oil buy. (2015) https://www.reuters.com/article/new-britain-sime-darby-bhd/ malaysias-sime-darby-completes -1-74-bln-new-britain-palm-oil-buy-idUSL4N0W508H20150303 8 New Britain Palm Oil Limited. “Our operations at a glance.” https://www.nbpol.com.pg/?page_id=83 9 New Britain Palm Oil Limited. “Roundtable on Sustainable Palm Oil and Sustainable Agriculture Network.” https://www.nbpol.com.pg/?page_id=277 10 New Britain Palm Oil Limited. “A safe and fair workplace.” https://www.nbpol.com.pg/?page_id=204 THE TRUE PRICE OF PALM OIL 55
Compared to both of these plantations, there were significantly more fatalities at the Rimbunan Hijau operation (see Table 2). Over the 2010-2020 time span assessed, one worker died at the Higaturu plantation and three workers died at the Milne Bay plantation. In comparison, 12 people—11 workers and one school- aged dependent of a worker—died at the RH operation over the same time period, according to Global Witness’s analysis of Office of Workers’ Compensation records and interviews with survivors conducted in 2020 and 2021. Table 2. Fatalities at three PNG oil palm plantation operations, 2010-2020.11 Company Employees Fatalities (est. in 2020) 2010-2020 Rimbunan Hijau – 2,811 12 Sigite Mukus NBPOL - Higaturu 2,325 1 NBPOL – Milne Bay 3,132 3 It is unknown how many hectares (ha) of oil palm have been planted within the Sigite Mukus project. RH has claimed that 31,000 ha are slated for oil palm.12 However, Global Witness estimates that ~24,600 ha of forest has been cleared within the project area. The total amount of palm planted therefore is unlikely to exceed 24,600 ha, and may be significantly less. The NBPOL Higaturu and Milne Bay plantations combined had a total area of 20,459 hectares devoted to oil palm in 2015.13 Combining the fatality rate for these two operations likewise, the NBPOL operations are still far less lethal on a per-hectare, as well as a per capita, basis. 11 NBPOL 2010-2015 data is drawn from New Britain Palm Oil Limited Sustainability Report https://www.nbpol.com.pg/wp-content/uploads/ downloads/2016/11/NBPOL-Sustainability-Report-2015-Final-SP.pdf. 2016-2020 data is drawn from: New Britain Palm Oil Limited. “A safe and fair workplace.” https://www.nbpol.com.pg/?page_id=204 12 Business Advantage PNG. Spotlight focus on palm oil. (2012) https://www.businessadvantagepng.com/spotlight-focus-on-palm-oil/ 13 New Britain Palm Oil Limited Sustainability Report 2014/2015. https://www.nbpol.com.pg/wp-content/uploads/downloads/2016/11/NBPOL- Sustainability-Report-2015-Final-SP.pdf 56
R E F E R E N C E S 1 UCSUSA (2016). Palm oil. https://www.ucsusa.org/resources/palm-oil 14 National Geographic Society Photo Ark (undated). Combed Dragon or 2 Reuters (2019). Malaysia’s Mahathir says linking palm oil to Indonesian Forest Dragon https://www.nationalgeographic.org/projects/ deforestation ‘baseless’. https://www.reuters.com/article/us-malaysia- photo-ark/animal/lophosaurus-dilophus/ palmoil-deforestation/malaysias-mahathir-says-linking-palm-oil-to- deforestation-baseless-idUSKCN1VD0CR 15 IUCN (2016). Huon Tree Kangaroo (Dendrolagus matschiei). https:// www.iucnredlist.org/species/6433/21956650 3 Bronsky, J., et al. (2019). Palm Oil and Beta-palmitate in Infant Formula: A Position Paper by the European Society for Paediatric Gastroenterology, 16 South Pacific Regional Environment Programme. A pocket guide to the Hepatology, and Nutrition (ESPGHAN) Committee on Nutrition. Journal of birds of paradise of Papua New Guinea. https://www.sprep.org/attachments/ Pediatric Gastroenterology and Nutrition: May 2019 - Volume 68 - Issue 5 - p VirLib/PNG/bird-paradise-birdwatching-pocket-guide.pdf 742-760. https://journals.lww.com/jpgn/Fulltext/2019/05000/Palm_Oil_and_ 17 Schuiteman, A., Jan Vermeulen, J., De Vogel, E., and A. Vogel (2011). Beta_palmitate_in_Infant_Formula__A.28.aspx Nocturne for an unknown pollinator: first description of a night-flowering orchid (Bulbophyllumnocturnum). Botanical Journal of the Linnean Society. 4 Rainforest Action Network (2015). Maruchan responds to pressure in https://academic.oup.com/botlinnean/article/167/3/344/2418626 an instant but its new palm oil commitment falls short. https://www.ran.org/ the-understory/maruchan_palm_oil_commitment_falls_short/ 5 Bito, B. and N. Petit (2016). Final report: toward sustainable agricultural commodities in Papua New Guinea. Toward Sustainable Agricultural Commodities in Papua New Guinea (2016) 6 Personal communication, UNDP Papua New Guinea (2020). 7 Mongabay/Hance. J. (2014). Illegal logging makes up 70 percent of Papua New Guinea’s timber industry. https://news.mongabay.com/2014/04/ illegal-logging-makes-up-70-percent-of-papua-new-guineas-timber-industry/ 8 Convention on Biological Diversity (undated). Papua New Guinea. https://www.cbd.int/countries/profile/?country=pg 9 ABC Australia (undated). Charting the Pacific – Places. https://www. abc.net.au/ra/pacific/places/country/papua_new_guinea.htm 10 See Papua New Guinea Defence Force Core Services (undated). Maritime Surveillance, Patrol Response http://www.defence.gov.pg/ core_services/cs_maritime_patro l.html; and The Commonwealth (undated). United Kingdom. https://thecommonwealth.org/our-member-countries/ united-kingdom 11 Papua New Guinea Department of Agriculture and Livestock (2016). Report on the state of biodiversity for food and agriculture in Papua New Guinea. http://www.fao.org/3/CA3422EN/ca3422en.pdf 12 Barrows, L.R. et al. (2009). Making the most of Papua New Guinea’s biodiversity: Establishment of an integrated set of programs that link botanical survey with pharmacological assessment in “The Land of the Unexpected.” Pharmaceutical Biology. https://www.ncbi.nlm.nih.gov/pmc/ articles/PMC2794140/ 13 Convention on Biological Diversity (undated). Papua New Guinea. https://www.cbd.int/countries/profile/?country=pg
18 Vincent, J.B. et al. note in Forest carbon in lowland Papua New Guinea: local variation and the importance of small trees (2015). Austral Ecology. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4461161/: “Forest carbon estimates for PNG have been contentious. Ground-based forest inventories have produced estimates of lowland rainforest carbon ranging from 111.34 Mg [megagram] C ha−1 (Bryan et al. 2010a) and 120.8 Mg C ha−1 (Fox et al. 2010) to 169.9 Mg C ha−1 (Bryan et al. 2010b) whereas estimates from remote sensing ranged 147–153 Mg C ha−1 (Saatchi et al. 2011). Scaling such variation to the estimated 18.65 million hectares of lowland rainforest in PNG (Shearman & Bryan 2011) suggests that massive uncertainty is associated with the regional carbon stock.” GW calculates, based on these ranges and noting that 1 Mg = 1 metric ton, that the lower bound of lowland rainforest carbon is (111.34 mt C/ha * 18.65 m ha =) 2,076,491,000 mt C and that the upper bound is (169.9 mt C/ha * 18.65 m ha =) 3,168,635,000 mt C. 19 Conn, B. and K. Damas. Araucaria hunsteinii in Guide to trees of Papua New Guinea. https://www.pngplants.org/PNGtrees/TreeDescriptions/ Araucaria_hunsteinii_K_Schum.html 20 SIL-Papua New Guinea (undated). Languages of Papua New Guinea. https://pnglanguages.sil.org/resources/language_maps 21 Jubilee Australia, Oakland Institute, and Act Now. From Extraction to Inclusion (2020). https://www.oaklandinstitute.org/sites/oaklandinstitute. org/files/extraction-inclusion.pdf 22 Kik, A. et al. (2021). Language and ethnobiological skills decline precipitously in Papua New Guinea, the world’s most linguistically diverse nation. PNAS2021 Vol. 118 No. 22 https://www.pnas.org/content/ pnas/118/22/e2100096118.full.pdf 23 Novotny, V. et al. (2012). The role of paraecologists in 21st century tropical forest research. https://www.researchgate.net/ publication/268213929_The_role_of_paraecologists_in_21st_century_ tropical_forest_research/link/5464c2c80cf221c8f57b9cf8/download 24 Mongabay/Woods, L. E. J. (2019). ‘Beautiful legislation’ fails to protect PNG’s environment, landowners https://news.mongabay.com/2019/02/ beautiful-legislation-fails-to-protect-pngs-environment-landowners/ 25 Chatham House/Lawson, S. (2014). Illegal logging in Papua New Guinea https://www.chathamhouse.org/sites/default/files/home/chatham/public_ html/sites/default/files/20140400LoggingPapuaNewGuineaLawson.pdf 26 Forest Trends (2006). Logging, legality, and livelihoods in Papua New Guinea, Volume 1 https://www.forest-trends.org/wp-content/uploads/ imported/png-volume-1-pdf.pdf 27 Australian Conservation Foundation and Centre for Environmental Law and Community Rights (2003). Bulldozing Progress: human rights abuses and corruption in Papua New Guinea’s logging industry https://pngforests.files. wordpress.com/2013/05/bulldozing-progress-celcoracf-report-august-2006. pdf 28 Mongabay/Butler, R.A. (2013). Malaysia has the world’s highest deforestation rate, reveals Google forest map https://news.mongabay. com/2013/11/malaysia-has-the-worlds-highest-deforestation-rate-reveals- google-forest-map/ 29 Guardian Environment Network/Young, T. (2011). Malaysian palm oil destroying forests, report warns https://www.theguardian.com/ environment/2011/feb/02/malaysian-palm-oil-forests 30 Gabriel, J. and Wood, M. (2015). Rimbunan Hijau in the Forests of Papua New Guinea. Journal of Pacific History. https://www.researchgate.net/ publication/279942791_The_Rimbunan_Hijau_Group_in_the_Forests_of_ Papua_New_Guinea 31 Sarawak Report (2019). ‘If It’s Not A Profitable Business You Pack Up And You Leave!’ Papuans Tell Sarawak Loggers https://www.sarawakreport. org/2019/10/if-its-not-a-profitable-business-you-pack-up-and-you-leave- papuans-tell-sarawak-loggers/ 32 Oakland Institute (2016). The Great Timber Heist: The Logging Industry in Papua New Guinea https://www.oaklandinstitute.org/great-timber-heist- logging-industry-papua-new-guinea THE TRUE PRICE OF PALM OIL 57
33 Global Witness (2017). Stained Trade: how U.S. imports of exotic 56 PNG has ratified the International Labour Organization’s Minimum Age flooring risk driving the theft of indigenous land and deforestation in Papua Convention of 1973, which allows children as young as 12 to conduct “light” New Guinea https://www.globalwitness.org/en/campaigns/forests/stained- work deemed not harmful to their health or schooling. The PNG Employment trade/ Act allows children as young as 12 to legally work, but only if they are 34 Hambloch, C. Land formalization turned land rush: the case of the working in a family-owned business. Papua New Guinea Employment Act palm oil industry in Papua New Guinea. Paper prepared for presentation section 103 (2) http://www.paclii.org/pg/legis/consol_act/ea1978149/ at the “2018 World Bank Conference on Land and Poverty” (2018). https:// 57 International Labour Organisation (1999). Worst Forms of Labour actnowpng.org/sites/default/files/publications/Land%20Formalisation%20 Convention https://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0 Turned%20Land%20Rush%20Hambloch%202018.pdf ::NO::P12100_ILO_CODE:C182 35 The National (2018). Bewani Oil Palm project all set for first shipment 58 Myzabella, N., et al. (2019). Occupational health and safety in the palm https://www.thenational.com.pg/bewani-oil-palm-project-all-set-for-first- oil industry: a systematic review. Int J Occup Environ Med; 10(4); 159-173. shipment/ https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6820316/# 36 Bryan, J. and P. Shearman (eds.) (2015). The state of the forests 59 Washington Post/Mason, M. and McDowell, R. (2020) Palm oil labor of Papua New Guinea https://png-data.sprep.org/system/files/The%20 abuses linked to world’s top brands, banks https://www.washingtonpost. State%20of%20Forest%20in%20PNG%202014.pdf com/business/palm-oil-labor-abuses-linked-to-worlds-top-brands- 37 Tobar Investment Ltd and Tobar Business Group information accessed banks/2020/09/24/d51fa282-fed7-11ea-b0e4-350e4e60cc91_story.html via the PNG Investment Promotion Authority. 60 Wide Bay Conservation Association (undated). Balokoma Limited Relog 38 Papua New Guinea Post-Courier/ Umau, P. (2019). East New Britain Situational Report https://www.dtp.unsw.edu.au/sites/default/files/u4/ Business Grows from Strength to Strength. https://postcourier.com.pg/east- Isidor.Kaupan.Pulpul%20situational%20report%202.pdf new-britain-business-grows-from-strength-to-strength/ 61 Global Witness undercover interview with Michael Paisparea and 39 Tobar Investment Ltd information accessed via the Papua New Guinea Bernard Lolot (2019) Investment Promotion Authority. 62 The National (2017). Oil palm industry grows, new project launched 40 Loop PNG/Mou, F. (2017). Lamur plans to rescue Kokopo District http://www.thenational.com.pg/oil-palm-industry-grows-new-project- https://www.looppng.com/elections/lamur-plans-rescue-kokopo- launched/ district-58145 63 Global Witness undercover interview with Eng Kwee Tan (2019) 41 Tobar Investment Ltd information accessed via the Papua New Guinea 64 Government of India Ministry of Finance (2017). Investment Promotion Authority. (https://www.ipa.gov.pg/) NotificationNo.50/2017–Customs https://www.cbic.gov.in/resources/htdocs- 42 Papua New Guinea Post-Courier/ Umau, P. (2019). East New Britain cbec/customs/cs-act/notifications/notfns-2017/cs-tarr2017/cs50-2017.pdf Business Grows from Strength to Strength. https://postcourier.com.pg/east- 65 Government of India Ministry of Finance (2018). Notification No. new-britain-business-grows-from-strength-to-strength/ 29/2018-Customs https://www.cbic.gov.in/resources/htdocs-cbec/customs/ 43 Pacific Media Watch (2017). O’Neill’s government loses ministers, cs-act/notifications/notfns-2018/cs-tarr2018/cs29-2018.pdf Speaker and deputy PM in PNG vote https://asiapacificreport.nz/2017/07/23/ 66 Government of India Ministry of Finance (2020). Notification oneills-government-loses-ministers-speaker-and-deputy-pm-in-png-vote/ No.43/2020-Customs https://www.cbic.gov.in/resources/htdocs-cbec/ 44 Bito, B. and N. Petit (2016). Final report: toward sustainable agricultural customs/cs-act/notifications/notfns-2020/cs-tarr2020/cs43-2020.pdf commodities in Papua New Guinea. Toward Sustainable Agricultural 67 Comprehensive economic cooperation agreement between the Commodities in Papua New Guinea (2016) Government of Malaysia and the Government of the Republic of India (2011). 45 Bernard Lolot Linkedin profile: https://pg.linkedin.com/in/bernard- https://fta.miti.gov.my/miti-fta/resources/Malaysia-India/MICECA.pdf lolot-471514a6 68 GST Law India (2018). Social Welfare Surcharge on Imports – A new levy 46 Klopf, S. Private Lands Conservation in Papua New Guinea (2004). by the Finance Act, 2018 https://gstlawindia.in/social-welfare-surcharge-on- University of Colorado/Colorado Law School Scholarly Commons https:// imports-w-e-f-02-02-2018-a-new-levy-by-the-finance-act-2018/ scholar.law.colorado.edu/cgi/viewcontent.cgi?article=1168&context=books_ 69 Kolkata Port Traffic chart (6 January 2019) https://kolkataporttrust.gov. reports_studies in/show_img.php?fid=4154 47 Papua New Guinea Land Act sections 10-12 http://www.paclii.org/pg/ 70 Business Standard News (2016) Ruchi Soya ranked no. 1 food and agri legis/consol_act/la199648/ and Papua New Guinea Constitution, section 53 http://www.paclii.org/pg/legis/consol_act/cotisopng534/ products company in Fortune 500 Report on India’s largest corporations https://www.business-standard.com/article/news-ani/ruchi-soya-ranked-no- 48 Mongabay/Woods, L. E. J. (2019). ‘Beautiful legislation’ fails to protect 1-food-and-agri-products-company-in-fortune-500-report-on-india-s-largest- PNG’s environment, landowners https://news.mongabay.com/2019/02/ corporations-116122800653_1.html beautiful-legislation-fails-to-protect-pngs-environment-landowners/ 71 ENB Trading & Shipping Pte. Ltd business profile accessed via the 49 Jubilee Australia, Oakland Institute, and Act Now. From Extraction to Singapore Accounting & Corporate Regulatory Authority Inclusion (2020). https://www.oaklandinstitute.org/sites/oaklandinstitute. 72 ENBPOL information accessed via the Papua New Guinea Investment org/files/extraction-inclusion.pdf Promotion Authority. 50 Papua New Guinea Land Act section 4, 10 http://www.paclii.org/pg/ legis/consol_act/la199648/ 73 Reuters/Chu, M.M. (2020) Palm oil prices to climb 17.9% in 2020 on tight supplies, biodiesel programs: Reuters poll https://www.reuters.com/article/ 51 Mongabay/Woods, L. E. J. (2019). ‘Beautiful legislation’ fails to protect palmoil-poll-idINKBN1ZK0RI PNG’s environment, landowners https://news.mongabay.com/2019/02/ beautiful-legislation-fails-to-protect-pngs-environment-landowners/ 74 Historical exchange rates accessed via www.xe.com 75 UN Comtrade Database https://comtrade.un.org/ 52 Lattas, A. (2014). Land, environment & violence: the high cost of logging in Pomio. https://www.pngattitude.com/2014/09/land-environment- 76 Bio of Paranjoy Guha Thakurta (undated). https://paranjoy.in/bio violence-the-high-cost-of-logging-in-pomio.html 77 Copyright 2020, S&P Global Market Intelligence (and its affiliates as 53 World Resources institute (2013). Papua New Guinea Forest Legality applicable). All rights reserved. https://forestlegality.org/risk-tool/country/papua-new-guinea 78 Copyright 2020, S&P Global Market Intelligence (and its affiliates as 54 Transparency International (2020). Corruption Perceptions Index applicable). Reproduction of any information, opinions, views, data or https://www.transparency.org/en/cpi/2020/index/nzl material, including ratings (“Content”) in any form is prohibited except 55 Interview with Mr Michael Paisparea and Mr Bernard Lolot, on file with with the prior written permission of the relevant party. Such party, its Global Witness. affiliates and suppliers (“Content Providers”) do not guarantee the accuracy, adequacy, completeness, timeliness, or availability of any Content and are not responsible for any errors or omissions (negligent or otherwise), 58
regardless of the cause, or for the results obtained from the use of such 103 Global Witness (2020). Strengthening corporate responsibility https:// Content. In no event shall Content Providers be liable for any damages, www.globalwitness.org/en/campaigns/forests/strengthening-corporate- costs, expenses, legal fees, or losses (including lost income or lost profit and responsibility-uk-briefing/ opportunity costs) in connection with any use of the Content. A reference to 104 NEPCon (2017). Timber Legality Risk Assessment: Papua New Guinea a particular investment or security, a rating or any observation concerning https://preferredbynature.org/sites/default/files/library/2017-08/NEPCon- an investment that is part of the Content is not a recommendation to buy, TIMBER-PapuaNewGuinea-Risk-Assessment-EN-V1.1.pdf sell or hold such investment or security, does not address the suitability of 105 Radio New Zealand/Blades, J. (2017). New minister aims to clean an investment or security and should not be relied on as investment advice. up corrupt PNG Lands Dept https://www.rnz.co.nz/international/pacific- Credit ratings are statements of opinions and are not statements of fact. news/338010/new-minister-aims-to-clean-up-corrupt-png-lands-dept 79 Email from RPNGC to Global Witness (2020). 106 ENBPOL charge document on file with Global Witness. 80 ABC News/Tlozek, E. (2017). PNG deports Catholic missionary assisting 107 Maybank (2013). Key business entities https://www.maybank.com/ locals with logging legal fight https://www.abc.net.au/news/2017-06-13/png- MaybankAR13/pdf/kbe.pdf deports-catholic-missionary-over-logging-legal-fight/8615042 108 ENBPOL charge document on file with Global Witness. 81 Global Witness interview with Doug Tennent (2019). 109 Chicago Tribune/Mason, M. and McDowell, R. (2020). Palm oil is a big 82 ABC News/Tlozek, E. (2017). PNG deports Catholic missionary assisting business and virtually impossible to avoid. The workers who cultivate it are locals with logging legal fight https://www.abc.net.au/news/2017-06-13/png- abused. https://www.chicagotribune.com/nation-world/ct-nw-palm-oil- deports-catholic-missionary-over-logging-legal-fight/8615042 worker-abuse-20201121-q2grzchac5b2hg57gnww4dex7m-story.html 83 Lattas, A. (2014). Land, environment & violence: the high cost of 110 Profundo and Tuk Indonesia (2018). Maybank: the single largest logging in Pomio. https://www.pngattitude.com/2014/09/land-environment- palm oil financier https://www.banktrack.org/download/maybank_the_single_ violence-the-high-cost-of-logging-in-pomio.html largest_palm_oil_financier/maybankreportenglish210218.pdf 84 Roman Catholic Archdiocese of Rabaul v Sam [2019] PGNC 427; N8145 11 1 I bid. (29 November 2019) http://www.paclii.org/cgi-bin/sinodisp/pg/cases/ 112 Maybank Sustainability Report 2020 https://maybankfoundation. PGNC/2019/427.html?stem=&synonyms=&query=archdiocese com/index.php/media-center/sustainability-reports?task=calleleme 85 Archdiocese of Rabaul (2020). The matter of Putput. Accessed nt&format=raw&item_id=323&element=8956f649-9a99-4a73-bcaa- via https://www.facebook.com/CatholicArchdioceseOfRabaul/photos/ 09214efe8e5e&method=download pcb.1338815049653177/1338814696319879/ 113 Maybank shareholders report accessed via Refinitiv on 13 June 2021 86 Email from Doug Tennent to Global Witness (2020). 114 MarketWatch/Beals, R.K. (2020). World’s largest asset manager 87 Email from RPNGC to Global Witness (2020). BlackRock joins $41 trillion climate-change investing pact https://www. 88 Bryan, J. and P. Shearman (eds.) (2015). The state of the forests of marketwatch.com/story/worlds-largest-asset-manager-blackrock-joins-41- Papua New Guinea. https://png-data.sprep.org/system/files/The%20 trillion-climate-change-investing-pact-2020-01-09 State%20of%20Forest%20in%20PNG%202014.pdf 115 Sovereign Wealth Fund Institute (undated). Top 100 Largest Sovereign Wealth Fund Rankings by Total Assets https://www.swfinstitute.org/fund- 89 BirdLife (2018). Are we too late to save the elusive birds of this Papua New Guinea island? https://www.birdlife.org/worldwide/news/are-we-too- rankings/sovereign-wealth-fund late-save-secretive-birds-papua-new-guinea-island 116 Linkedin.com (2020) Robeco profile https://www.linkedin.com/ 90 Ibid. company/robeco/ 91 PNGi Forest Portal (2020). Retrieved June 2021 from https:// 117 Pyrford International Ltd (2009). Disclaimer https://www.bmo.com/ pngiforests.org pyrford/disclaimer 92 WWF (undated). Responsible purchasing https://wwf.panda.org/ 118 CalPERS (2019). CalPERS’ governance-and-sustainability-principles discover/our_focus/food_practice/sustainable_production/palm_oil/respon - https://www.calpers.ca.gov/docs/forms-publications/governance-and- sible_purchasing/ sustainability-principles.pdf 93 Roundtable on Sustainable Palm Oil (2021). Impact https://rspo. 119 Robeco (2020). Sustainable Investing Memberships, Statements, org/impact and Principles https://www.robeco.com/docm/docu-relevant-codes-and- 94 Roundtable on Sustainable Palm Oil (undated). About RSPO memberships.pdf https://www.rspo.org/about 95 Roundtable on Sustainable Palm Oil (undated) RSPO Supply 120 Robeco (2021). Exclusion Policy Robeco https://www.robeco.com/ Chains https://rspo.org/certification/supply-chains docm/docu-exclusion-policy.pdf 96 Mongabay/Jong, H.N. (2019). RSPO adopts total ban on deforest- 121 Friends of the Earth/Profundo (2020). Doubling down on deforestation ation under sweeping new standards https://news.mongabay.com/2018/11/ https://foe.org/resources/doubling-down-on-deforestation/ rspo-adopts-total-ban-on-deforestation-under-sweeping-new-standards/ 122 BlackRock’s Big Problem (2020). In surprise move, BlackRock votes for 97 Greenpeace (2021). Destruction: Certified https://www.green - Procter & Gamble to disclose on deforestation https://blackrocksbigproblem. peace.org/international/publication/46812/destruction -certified/ 98 Environmental Investigation Agency UK Ltd and Grassroots com/in-surprise-move-blackrock-votes-for-procter-gamble-to-disclose-on- (2015). Who Watches the Watchmen? Auditors and the breakdown of deforestation/ oversight in the RSPO https://eia-international.org/wp-content/uploads/EIA- 123 Amazon Watch (2021). Investing in Amazon Crude II https:// Who-Watches-the-Watchmen-FINAL.pdf amazonwatch.org/news/2021/0603-investing-in-amazon-crude-ii 99 Greenpeace (2021). Destruction: Certified https://www.green - 124 Puipui v Pat [2016] PGNC 326; N6538 (25 August 2016). Accessed peace.org/international/publication/46812/destruction -certified/ 19 August 2020 at http://www.paclii.org/cgi-bin/sinodisp/pg/cases/ 100 Ibid. PGNC/2016/326.html?stem=&synonyms=&query=east%20new%20 101 Inside Climate News/Gustin, G. (2019). Industrial Agriculture, an britain%20palm%20oil Extraction Industry Like Fossil Fuels, a Growing Driver of Climate Change 12 5 I bid. https://insideclimatenews.org/news/25012019/climate-change-agriculture- 12 6 I bid. farming-consolidation-corn-soybeans-meat-crop-subsidies/ 102 Global Witness (2021). The EU needs to hold the financial sector to account if it is to end its complicity in global deforestation https://www. globalwitness.org/en/blog/eu-needs-hold-financial-sector-account-if-it-end- its-complicity-global-deforestation/ THE TRUE PRICE OF PALM OIL 59
127 PNGexposed (2016). Malaysian company destroying cocoa blocks and publication/279942791_The_Rimbunan_Hijau_Group_in_the_Forests_of_ evicting landholders in East New Britain https://pngexposed.wordpress. Papua_New_Guinea com/2016/03/16/malaysian-oil-palm-company-destroying-cocoa-blocks- 149 The National (2016). The Stanley a class of Hotel – its own https://www. and-evicting-landholders-in-east-new-britain/ thenational.com.pg/stanley-class-hotel/ 128 The World Bank (updated 2021). Development Projects PNG Productive 150 SGS (2021). Log export monitoring monthly report December 2020 to Partnerships in Agriculture - P110959 https://projects.worldbank.org/en/ the Papua New Guinea Forestry Authority. projects-operations/project-detail/P110959 151 Global Witness (2017). Stained Trade: how U.S. imports of exotic 129 The United Nations defines forced evictions as ““the permanent flooring risk driving the theft of indigenous land and deforestation in Papua or temporary removal against their will of individuals, families and/or New Guinea. https://www.globalwitness.org/en/campaigns/forests/stained- communities from the homes and/or land which they occupy, without the trade/ provision of, and access to, appropriate forms of legal or other protection”. 152 PNGi (2019). Rimbunan Hijau abuses court system to deny landowners See: https://www.ohchr.org/Documents/Publications/FS25.Rev.1.pdf justice https://pngicentral.org/reports/rimbunan-hijau-abuses-court-system- 130 Puipui v Pat [2016] PGNC 326; N6538 (25 August 2016). Accessed to-deny-landowners-justice 19 August 2020 at http://www.paclii.org/cgi-bin/sinodisp/pg/cases/ 153 Australian Conservation Foundation and Centre for Environmental Law PGNC/2016/326.html?stem=&synonyms=&query=east%20new%20 and Community Rights (2003). Bulldozing Progress: human rights abuses and britain%20palm%20oil corruption in Papua New Guinea’s logging industry. https://pngforests.files. 131 PNG Report (2015). New mill for ENB palm oil https://www.pngreport. wordpress.com/2013/05/bulldozing-progress-celcoracf-report-august-2006. com/png/news/1110796/new-mill-for-enb-palm-oil pdf 132 The Star (2015). CBIP wins RM60mil deal to supply another mill in PNG 154 Global Witness (2017). Stained Trade: how U.S. imports of exotic https://www.thestar.com.my/business/business-news/2015/12/04/cbip- flooring risk driving the theft of indigenous land and deforestation in Papua wins-rm60mil-deal-to-supply-another-mill-in-png New Guinea. https://www.globalwitness.org/en/campaigns/forests/stained- 133 Puipui v Pat [2016] PGNC 326; N6538 (25 August 2016). http:// trade/ www.paclii.org/cgi-bin/sinodisp/pg/cases/PGNC/2016/326. 15 5 I bid. html?stem=&synonyms=&query=east%20new%20britain%20palm%20oil 156 Radio New Zealand (2018). PNG villagers count huge cost of damage 134 Charge document on file with Global Witness. from logging https://www.rnz.co.nz/international/pacific-news/361006/png- 135 Global Witness (2017). Stained Trade: how U.S. imports of exotic villagers-count-huge-cost-of-damage-from-logging flooring risk driving the theft of indigenous land and deforestation in Papua 157 Communities of Atu, Bairaman, Gugulena, Kaiton, Lau, Malmaltalie, New Guinea. https://www.globalwitness.org/en/campaigns/forests/stained- Manginuna, Mauna, Meinge, Mu, Polo, Pomai, Porosalel, Puapal, Rano, trade/; Hambloch, C. Land formalization turned land rush: the case of the Rovan, and Tontongpal (2018). West Pomio Community Damage Assessment palm oil industry in Papua New Guinea. Paper prepared for presentation https://actnowpng.org/sites/default/files/publications/West%20Pomo%20 at the “2018 World Bank Conference on Land and Poverty” (2018). https:// Community%20Damage%20Assessment.pdf actnowpng.org/sites/default/files/publications/Land%20Formalisation%20 158 Myzabella, N., et al. (2019). Occupational health and safety in the palm Turned%20Land%20Rush%20Hambloch%202018.pdf oil industry: a systematic review. Int J Occup Environ Med; 10(4); 159-173. 136 Radio New Zealand (2019). PNG govt told to act now https://www.rnz. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6820316/# co.nz/international/pacific-news/398165/png-govt-told-to-act-now-on-sabls 159 Al Jazeera (2020). Rape, abuses in palm oil fields linked to top cosmetic 137 Papua New Guinea Today (2019). PNG Government must publish full brands: AP https://www.aljazeera.com/news/2020/11/18/rape-abuses-in- list of SABL Lease https://news.pngfacts.com/2019/01/png-government- palm-oil-fields-linked-to-top-cosmetic-brands-ap must-publish-full-list.html 160 Roundtable on Sustainable Palm Oil (undated). National 138 Earthsight (2017). Papua New Guinea’s government resurrects zombie Interpretations https://rspo.org/certification/national-interpretations ag licenses https://www.earthsight.org.uk/news/idm/papua-new-guinea- 161 Global Witness interview with Mr Felix Tau (2021). government-resurrects-zombie-ag-licenses 162 Oakland Institute (2016). The Great Timber Heist: The Logging Industry 139 Act Now/War on Want (2018). The SABL landgrab: Papua New Guinea’s in Papua New Guinea https://www.oaklandinstitute.org/great-timber-heist- ongoing human rights scandal https://waronwant.org/sites/default/files/ logging-industry-papua-new-guinea SABL_PNG_LANDGRAB.pdf 163 Filer, C. with J. Numapo. In Kastom, property, and ideology: land 140 Global Witness (2017). Stained Trade: how U.S. imports of exotic transformations in Melanesia https://press.anu.edu.au/publications/series/ flooring risk driving the theft of indigenous land and deforestation in Papua state-society-and-governance-melanesia/kastom-property-and-ideology New Guinea. https://www.globalwitness.org/en/campaigns/forests/stained- 164 Page, B., and S. Lord (undated). The Oil Palm Industry’s approach to trade/ the use of pesticides in Papua New Guinea https://www.nbpol.com.pg/wp- 14 1 I b id . content/uploads/downloads/2011/02/Pesticides_in_Papua_New_Guinea.pdf 142 Filer, C. with J. Numapo. In Kastom, property, and ideology: land 165 Bradberry, S., Proudfoot, A.T., and J.A. Vale (2004). Glyphosate transformations in Melanesia https://press.anu.edu.au/publications/series/ poisoning. Toxicol Rev. https://pubmed.ncbi.nlm.nih.gov/15862083/ state-society-and-governance-melanesia/kastom-property-and-ideology 166 Centers for Disease Control and Prevention (2018). Facts about 143 Rimbunan Hijau Group (undated). Executive Chairman’s Profile & Paraquat https://emergency.cdc.gov/agent/paraquat/basics/facts.asp Sharing http://rhg.com.my/rhg_v2/en/executive-chairmans-profile-sharing/ 167 United States Environmental Protection Agency (undated). Paraquat 144 Rimbunan Hijau Group (undated). Forestry - Upstream & Downstream Dichloride: One Sip Can Kill https://www.epa.gov/pesticide-worker-safety/ Timber Operations http://rhg.com.my/rhg_v2/en/forestry-upstream- paraquat-dichloride-one-sip-can-kill downstream-timber-operations/ 168 Global Witness interview with Mr Felix Tau (2021). 145 Rimbunan Hijau Group (undated). About Us http://rhg.com.my/rhg_v2/ 169 Papua New Guinea Employment Act, section 121 http://www. en/welcome/# paclii.org/cgi-bin/sinodisp/pg/legis/PG-consol_act_1986/ea666/index. 146 Bloomberg Markets (undated). Rimbunan Hijau Group - html?stem=&synonyms=&query=employment%20act Company Profile and News https://www.bloomberg.com/profile/ 170 NiuGini Environment Management Services (2021). Palm oil producer company/2266745Z:MK safety and health review prepared for Global Witness. 147 Forbes (2021). Tiong Hiew King & family https://www.forbes.com/ profile/tiong-hiew-king/?sh=704813171fb0 148 Gabriel, J. and Wood, M. (2015). Rimbunan Hijau in the Forests of Papua New Guinea. Journal of Pacific History https://www.researchgate.net/ 60
171 Food and Agriculture Organization of the United Nations (1999). 199 The World Bank (2018). Papua New Guinea clean water access to end Guidelines for the management of small quantities of unwanted and the walk for water for women and girls https://www.worldbank.org/en/news/ obsolete pesticides http://www.ipcinfo.org/fileadmin/user_upload/ feature/2018/03/20/papua-new-guinea-clean-water-access-to-end-the-walk- obsolete_pesticides/docs/small_qties.pdf for-water-for-women-and-girls 172 Global Witness interview with Mr Felix Tau (2021). 200 Notice for registration of charge on file with Global Witness. 173 Global Witness interview with Lawrence Lapuli (2021). 201 Global Witness (2017). Stained Trade: how U.S. imports of exotic 174 Anton Kelal witness statement, on file with Global Witness. 175 Anton Kelal death certificate, on file with Global Witness. trade/ flooring risk driving the theft of indigenous land and deforestation in Papua New Guinea. https://www.globalwitness.org/en/campaigns/forests/stained- 176 Global Witness interview with Lawrence Lapuli (2021). 202 Kina Securities Ltd (2020). Investor Centre https://investors.kinabank. 177 Charles Sai medical records, on file with Global Witness. com.pg/Investors/?page=company-history 178 Global Witness interview with Charles Sai (2020). 20 3 I bid. 179 Cedars-Sinai (undated). Burst Fracture https://www.cedars-sinai.org/ 204 OCBC (2021). Group Business Overview https://www.ocbc.com/group/ health-library/diseases-and-conditions/b/burst-fracture.html about-us/group-business 180 Papua New Guinea Workers Compensation Act, sections 42 and 45 205 OCBC (2021). Being environmentally and socially responsible http://www.paclii.org/pg/legis/consol_act/wca1978255.pdf https://www.ocbc.com/group/sustainability/sustainability-framework/ environmentally-and-socially-responsible.page 181 Global Witness interview with Anthony Salmang (2019). Global Witness has previously documented downstream pollution from logging and 20 6 I bid. clearance activities at other sites in Papua New Guinea. 20 7 I bid. 182 Mongabay/Gaworecki, M. (2016). Papua New Guinea activist 208 OCBC (undated). OCBC’s ESG Risk Assessment Process https://www. receives prestigious award for protecting forests https://news.mongabay. ocbc.com/iwov-resources/sg/ocbc/gbc/pdf/sustainability/ocbc%20esg%20 com/2016/10/papua-new-guinea-activist-receives-prestigious-award-for risk%20assessment%20process.pdf protecting-forests/ 209 RHB Bank (2021). Group Corporate Structure https://www.rhbgroup. 183 The National (2019). Plans in place to upgrade Pomio airstrip https:// com/files/others/about-us/RHB%20Bank_Grp%20Corp%20Structure.pdf www.thenational.com.pg/plans-in-place-to-upgrade-pomio-airstrip/ 210 RHB Bank (2020). Building a sustainable future: our approach to 184 Email from Paul Pavol to Global Witness (2020). sustainability https://www.rhbgroup.com/files/others/sustainability/RHB_ 185 Global Witness interview with Anthony Salmang (2019). Our_Approach_to_Sustainability__Mar_2020__v3__1_.pdf 186 Sarawak Report (2020). Malaysian Colonialism in Papua New Guinea 21 1 I bid. https://www.youtube.com/watch?v=zmIQ5Yo561A 212 RHB Bank Berhad and OCBC Bank shareholder reports accessed via 187 Global Witness interview with Anthony Salmang (2019). Refinitiv, June 2021 188 Mongabay/Hance, J. (2012). Police hired by loggers in Papua 213 Global Witness (2019). Money to Burn: how iconic banks and investors fund the destruction of the world’s largest rainforests https://www. New Guinea lock locals in shipping containers https://news.mongabay. com/2012/04/police-hired-by-loggers-in-papua-new-guinea-lock-locals-in globalwitness.org/en/campaigns/forests/money-to-burn-how-iconic-banks- shipping-containers/ and-investors-fund-the-destruction-of-the-worlds-largest-rainforests/ 189 Independent fact finding mission (2013). Investigation of police 214 Global Witness (2020). Beef, Banks and the Brazilian Amazon https:// brutality – West Pomio, ENBP https://pngexposed.files.wordpress. www.globalwitness.org/en/campaigns/forests/beef-banks-and-brazilian- com/2014/11/investigation-of-police-brutality-west-pomio.pdf amazon/ 190 Ibid. 215 BlackRock (2021). BlackRock Investment Stewardship Global Principles https://www.blackrock.com/corporate/literature/fact-sheet/blk-responsible- 191 NBC News PNG (2020). Manning stops police at logging sites https:// investment-engprinciples-global.pdf www.facebook.com/NBCNewsPNG/posts/manning-stops-police-on-logging- sites-all-police-personnel-operating-at-logging-/1038257933194460/ 216 Norges Bank Investment Management (2021). Climate change https:// www.nbim.no/en/the-fund/responsible-investment/principles/expectations- 192 The Guardian/Doherty, B. (2020). Papua New Guinea police accused of to-companies/climate-change/ gun running and drug smuggling by own minister https://www.theguardian. com/world/2020/sep/18/papua-new-guinea-police-accused-of-gun-running 217 Amazon Watch (2020). Complicity in Destruction https://amazonwatch. and-drug-smuggling-by-own-minister org/assets/files/2020-complicity-in-destruction-3.pdf 193 Colgate-Palmolive (undated). About Us https://www.colgatepalmolive. 218 Norges Bank Investment Management (2020). Responsible Investment com/en-us/about Government Pension Fund Global https://www.nbim.no/contentassets/ aaa1c4c4557e4619bd8345db022e981e/spu_responsible-investments-2019_ 194 Tunama, D. (2014). An Exploration of the Impact of Oil Palm web.pdf Development on Women in Pomio, East New Britain Province, Papua New Guinea https://core.ac.uk/download/pdf/35469649.pdf 219 BSP Financial Group Limited (2021). BSP shareholders approve company name change to BSP Financial Group Limited https://www.bsp. 195 Mongabay/Cannon, J. (2020). Gender-based violence shakes com.pg/about-us/media-centre/news-announcements/bsp-shareholders- communities in the wake of forest loss https://news.mongabay.com/2020/05/ approve-company-name-change-to-bsp-financial-group-limited/ gender-based-violence-shakes-communities-in-the-wake-of-forest-loss/ 220 PNG security interest # 1003795383, on file with Global Witness. 196 The World Bank (2013). Women in Papua New Guinea to Play Stronger Role in Agriculture https://www.worldbank.org/en/news/feature/2013/09/16/ 221 BSP shareholder report accessed via Refinitiv, June 2021. women-in-papua-new-guinea-to-play-stronger-role-in-agriculture 222 International Finance Corporation (2021). About IFC https://www. 197 Mikhailovich, K., Pamphilon, B., Chambers, B., Simeon, L., ifc.org/wps/wcm/connect/corp_ext_content/ifc_external_corporate_site/ and J. R.Zapata (2016). Exploring the lives of women smallholder about+ifc_new farmers in Papua New Guinea through a collaborative mixed methods 223 PNG Sustainable Development Program Limited (undated). Our Focus approach; Cogent Social Sciences https://www.tandfonline.com/doi/ https://www.pngsdp.org/ full/10.1080/23311886.2016.1143328 224 FTI Consulting (2019). Illicit Tobacco in Papua New Guinea https:// 198 The World Bank (undated). Water Supply and Sanitation www.jdsupra.com/legalnews/illicit-tobacco-in-papua-new-guinea-81981/ Development Project (P155087) http://documents1.worldbank.org/curated/ en/784941468064130050/pdf/PID-Print-P155087-10-12-2015-1444702535073. pdf THE TRUE PRICE OF PALM OIL 61
225 Pacific Islands Report (2014). Smuggling Between PNG, 247 PNG Plantations Development information accessed via the PNG Indonesia Becoming ‘Lucrative’ http://www.pireport.org/ Investment Promotion Authority. articles/2014/04/22/smuggling-between-png-indonesia-becoming- 248 Chain Reaction Research (2019). The Chain: Bewani Oil Palm Plantation %E2%80%98lucrative%E2%80%99 Divestment Increases Risks of Continued Deforestation in Palm Oil Supply 226 The Guardian (2021). From a forest in Papua New Guinea to a floor in Chains https://chainreactionresearch.com/the-chain-bewani-oil-palm- Sydney how China is getting rich off Pacific timber https://www.theguardian. plantation-divestment-increases-risks-of-continued-deforestation-in-palm- com/world/2021/jun/01/from-a-forest-in-papua-new-guinea-to-a-floor-in- oil-supply-chains/ sydney-how-china-is-getting-rich-off-pacific-timber 249 Bewani Oil Palm Plantation Limited information accessed via the PNG 227 PNGi Forest Portal (2020). Retrieved June 2021 from https:// Investment Promotion Authority. pngiforests.org 250 Bewani Oil Palm Plantation Limited information accessed via the PNG 228 Ibid. Investment Promotion Authority. 229 Chain Reaction Research (2019). The Chain: Bewani Oil Palm Plantation 251 Ocean Paradise Ltd filing accessed via the PNG Investment Promotion Divestment Increases Risks of Continued Deforestation in Palm Oil Supply Authority. Chains https://chainreactionresearch.com/the-chain-bewani-oil-palm- 252 Bewani Oil Palm Plantations Ltd (2019). Announcements https://boppl. plantation-divestment-increases-risks-of-continued-deforestation-in-palm- com/announcements/ oil-supply-chains/ 253 Bewani Forest Products shareholders report from the Papua New 230 Bewani Oil Palm Plantation Ltd information accessed via the Papua New Guinea Investment Promotion Authority. Guinea Investment Promotion Authority. 231 Singh, U. (2018). Company owned by Malaysians clearing PNG forests 254 Ocean Paradise Ltd information accessed via the Papua New Guinea https://www.malaysiakini.com/letters/441422 Investment Promotion Authority. 255 Operations in Plantations – Boppl https://boppl.com/company- 232 Greenpeace (2018). The final countdown https://www.greenpeace.org/ background/operations-plantations/ international/publication/18455/the-final-countdown-forests-indonesia- palm-oil/ 256 Bewani Forest Products shareholders report accessed via the PNG Investment Promotion Authority. 233 The Edge Markets (2019). East, Prosper group UMB’s largest shareholders https://www.theedgemarkets.com/article/far-east-prosper- 257 Ocean Paradise Sdn. Bhd. corporate information report accessed via group-umbs-largest-shareholders the Malaysian Companies Commission. 234 Far East Holdings Berhad (2020). Company profile http://cms. 258 Prime Horizon Limited information accessed via the PNG Investment fareastholdingsbhd.com/profile Promotion Authority. 235 CI Resources Ltd (2015). http://www.ciresources.com.au/index.phtml 259 Tago Maritime Services information accessed via the PNG Investment 236 CI Resources Ltd (2015). Directors http://www.ciresources.com.au/ Promotion Authority. corporate/directors.phtml 260 Tago Maritime Services Ltd Foreign Enterprise Certificate accessed via 237 Surfing Association of Papua New Guinea (2021). Vanimo http://www. the PNG Investment Promotion Authority. sapng.com/surf-spots/vanimo 261 The Hershey Company (2020). July through December 2020 Palm Oil Traceability - Mill listing https://www.thehersheycompany.com/content/dam/ 238 The New York Times/Chandler, J. (2018). Papua New Guinea Is Rich in The%20Hershey%20Company%20Palm%20Mill%20List.pdf Resources but Poor in Health https://www.nytimes.com/2018/11/13/world/ asia/papua-new-guinea-apec-polio-health-crisis.html 262 Cargill (2020). Cargill Global Mill List ‐ Quarter 4, 2020 https://www. cargill.com/doc/1432132443976/cargill-palm-mill-list.pdf 239 Global Witness (2017). Stained Trade: how U.S. imports of exotic flooring risk driving the theft of indigenous land and deforestation in Papua 263 Colgate-Palmolive (2020). https://www.colgatepalmolive.com/content/ New Guinea. https://www.globalwitness.org/en/campaigns/forests/stained- dam/cp-sites/corporate/corporate/en_us/corp/locale-assets/pdf/colgate- trade/ palmolive-list-of-mills-2020h1.pdf 240 Chain Reaction Research (2018). The Chain: Bewani oil palm mill in PNG 264 Danone (2019). Palm oil suppliers & mills list https://www.danone. may supply the palm oil leakage market https://chainreactionresearch.com/ com/content/dam/danone-corp/danone-com/investors/en-sustainability/ the-chain-bewani-oil-palm-mill-in-png-may-supply-the-palm-oil-leakage - en-policies/business-for-inclusive-growth/supply-chain/danone-palm-oil- market/ suppliers-mills-list-update-2019-h2.pdf 241 Unattributed (2018). Far East Holdings Berhad Monitoring report 265 Kellogg (2019). Mill list 2019 http://crreport.kelloggcompany.com/ December 2018 https://prosper.com.my/pdf/Grievance/(GV2)%20Far%20 download/Kellogg+Mill+List+2019.pdf East%20Holdings%20December%202018.pdf 266 Nestlé (2019). Nestlé supply chain disclosure: palm oil https://www. 242 Greenpeace (2018). The final countdown https://www.greenpeace.org/ nestle.com/sites/default/files/2019-08/supply-chain-disclosure-palm-oil.pdf international/publication/18455/the-final-countdown-forests-indonesia- 267 RB (2020). RB overall master mill list 2020 https://www.reckitt.com/ palm-oil/ media/8883/rb-overall-master-mill-list-2020_external-final.pdf 243 Chain Reaction Research (2019). The Chain: Bewani Oil Palm Plantation 268 RB (undated). Our Brands https://www.reckitt.com/brands/ Divestment Increases Risks of Continued Deforestation in Palm Oil Supply 269 Consumer Goods Forum (2021). Who We Are https://www. Chains https://chainreactionresearch.com/the-chain-bewani-oil-palm- plantation-divestment-increases-risks-of-continued-deforestation-in-palm- theconsumergoodsforum.com/who-we-are/our-members/ oil-supply-chains/ 270 Global Witness (2020). A letter to the Consumer Goods Forum https:// www.globalwitness.org/en/press-releases/a-letter-to-the-consumer-goods- 244 Mighty Earth (2019). The worst company in the world http://www. forum-its-time-to-stop-the-fires-and-deliver-on-no-deforestation-no-peat- mightyearth.org/wp-content/uploads/Mighty-Earth-Report-Cargill-The- no-exploitation-commitments/ Worst-Company-in-the-World-July-2019.pdf 271 Ibid. 245 Unilever (2021). Palm Oil Grievance Tracker https://www.unilever.com/ Images/unilever-palm-oil-grievance-tracker_tcm244-530071_en.pdf 272 PZ Cussons (2020). Discover Brands https://www.pzcussons.com/ brands/discover-brands/ 246 Chain Reaction Research (2019). The Chain: Bewani Oil Palm Plantation Divestment Increases Risks of Continued Deforestation in Palm Oil Supply 273 PZ Cussons (2020). PZ Cussons Palm Oil Mill List – December 2020 Chains https://chainreactionresearch.com/the-chain-bewani-oil-palm- https://www.pzcussons.com/wp-content/uploads/2020/02/PZC-December- plantation-divestment-increases-risks-of-continued-deforestation-in-palm- 2020-Mill-List-Final-Public-Version_FV.pdf oil-supply-chains/ 62
274 Grupo Bimbo (2014). Grupo Bimbo, Largest Bakery in the World, 298 Rainforest Action Network (2010). Cargill’s problem with palm oil: a Signs Agreement with Invenergy for 100 Percent Renewable Energy for burning threat in Borneo https://www.ran.org/wp-content/uploads/2018/06/ U.S. Operations https://www.grupobimbo.com/en/press-room/release/ cargills_problems_with_palm_oil_low.pdf grupo-bimbo-largest-bakery-world-signs-agreement-invenergy-100-percent- 299 Cargill (2019). Cargill policy on sustainable palm oil https://www.cargill. renewable com/doc/1432076149492/palm-oil-policy-statement-pdf.pdf 275 Grupo Bimbo (2019). Mill list on file with Global Witness. 300 Mewah Group (2006). About us https://mewahgroup.com/history.html 276 Mewah Oils Sdn Bhd. Sustainability and traceability report (2019). 301 Mewah Oils Sdn Bhd. (2020). Year of 2020 CPO Traceability to https://www.neste.com/sites/neste.com/files/attachments/corporate/ Mill Declaration Document http://www.mewahgroup.com/upload/ sustainability/sustainable_supply_chain/traceability_dashboard_ Sustainability/MOSB_CPO%20Traceability%20to%20Mill%20Declaration%20 attachments_2h2019/mewah_oils_sdn_bhd.pdf; also see Neste (undated). Document.pdf and Mewah Oleo Industries Sdn. Bhd. (2020). 2020 CPKO PFAD residue from palm oil refining https://www.neste.com/products/all- Traceability to Mill Declaration Document http://mewah-oils.com/upload/ products/raw-materials/pfad-residue-palm-oil-refining Sustainability/MOIPG_Imported%20CPKO%20Traceability%20to%20Mill%20 277 Mewah Group (2020). Our company https://www.mewahgroup.com/ Declaration%20Document.pdf 278 Mewah Oils Sdn Bhd. (2020). Year of 2020 CPO Traceability to 302 Mewah Group (undated). Sustainable palm oil policy http:// Mill Declaration Document http://www.mewahgroup.com/upload/ www.mewahgroup.com/upload/Sustainability/Mewah%20Group%20 Sustainability/MOSB_CPO%20Traceability%20to%20Mill%20Declaration%20 Sustainable%20Palm%20Oil%20Policy.pdf Document.pdf and Mewah Oleo Industries Sdn. Bhd. (2020). 2020 CPKO 303 Mewah Group (2006). About us https://mewahgroup.com/history.html Traceability to Mill Declaration Document http://mewah-oils.com/upload/ Sustainability/MOIPG_Imported%20CPKO%20Traceability%20to%20Mill%20 304 Mewah Oils Sdn Bhd. Sustainability and traceability report (2019). Declaration%20Document.pdf https://www.neste.com/sites/neste.com/files/attachments/corporate/ sustainability/sustainable_supply_chain/traceability_dashboard_ 279 AAK (undated). Worldwide https://aak-uk.com/about/worldwide attachments_2h2019/mewah_oils_sdn_bhd.pdf 280 AAK (2021). Mill list https://www.aak.com/siteassets/sustainability/aak- 305 Neste (undated). PFAD residue from palm oil refining https://www. public-mill-list-april-2021.pdf neste.com/products/all-products/raw-materials/pfad-residue-palm-oil- 281 Stratas Foods LLC (2021). History https://www.stratasfoods.com/ refining history 3 0 6 I bi d. 282 ADM Stratas (2019). Stratas Palm Oil Supply Chain Traceability July 307 Neste (undated). Supplier requirements https://www.neste.com/ 2019 – September 2019 https://assets.adm.com/Sustainability/2019-Reports/ sustainability/sustainable-supply-chain/supplier-requirements Stratas-2019-Q3.pdf 308 Neste (undated). Protecting biodiversity and forests https://www.neste. 283 Cargill (undated). Cargill Global Mill List ‐ Quarter 4, 2020 https://www. com/sustainability/environment/protecting-biodiversity-and-forests cargill.com/doc/1432132443976/cargill-palm-mill-list.pdf 309 Neste (undated). Neste Responsible Sourcing (Principle) https://www. 284 The Business Journals/McCoy, D. (2020). Cargill loses top spot on neste.com/sites/neste.com/files/attachments/corporate/sustainability/ Forbes private companies list to Koch Industries https://www.bizjournals. managing_sustainability/neste_responsible_sourcing_principle_0.pdf com/twincities/news/2020/11/29/cargill-loses-top-spot-on-forbes-list.html 310 Colgate-Palmolive (2020). https://www.colgatepalmolive.com/content/ 285 Nestlé (undated). What is Nestlé doing to ensure palm oil is sourced dam/cp-sites/corporate/corporate/en_us/corp/locale-assets/pdf/colgate- sustainably? https://www.nestle.com/ask-nestle/environment/answers/ palmolive-list-of-mills-2020h1.pdf palm-oil-sourcing 311 Statista (2021). Brands of toothpaste ranked by number of users in 286 Food Navigator/Southy, F. (2019) Nestlé and Mondelēz respond to Great Britain from 2018 to 2020 https://www.statista.com/statistics/304759/ Greenpeace palm oil report on fires in Indonesia https://www.foodnavigator. leading-brands-of-toothpaste-in-the-uk/ com/Article/2019/11/12/Nestle-and-Mondelez-respond-to-Greenpeace-palm- oil-report-on-fires-in-Indonesia 312 Colgate-Palmolive (2020). CL Investor Presentation https://investor. colgatepalmolive.com/static-files/a65490ac-2442-41e3-8751-e18a1471bd92 287 The Hershey Company (undated). Palm Oil Facts https://www. 313 Earthworm Foundation (undated). Member Handbook: A guide to thehersheycompany.com/en_us/sustainability/shared-business/palm-oil- working with Earthworm Foundation https://www.earthworm.org/uploads/ facts.html#supply-chain-traceability files/earthworm-member-handbook.pdf 288 The Hershey Company (2020). January through June 2020 Palm Oil Traceability - Mill listing, on file with Global Witness. 314 Earthworm Foundation (2019). Deeper deforestation insights pave the way for accelerating the fight against deforestation and call for greater 289 RB (undated). Brands that touch people’s lives https://www.reckitt. company action - Earthworm https://www.earthworm.org/news-stories/ com/brands/ earthworm-foundation-deeper-deforestation-insights-pave-the-way-for- 290 RB (2020). RB overall master mill list 2020 https://www.reckitt.com/ accelerating-the-fight-against-deforestation-and-call-for-greater-company- media/8883/rb-overall-master-mill-list-2020_external-final.pdf action 291 RB (2019). Protecting ecosystems across our value chain https://www. 315 See for instance https://www.earthworm.org/members/colgate - rb.com/media/5389/protecting-ecosystems-in-our-value-chain.pdf palmolive, https://www.earthworm.org/members/nestle and https://www. 292 Ibid. earthworm.org/members/grupo-bimbo-1 293 AAK (2021). Mill list https://www.aak.com/siteassets/sustainability/ 316 Earthworm Foundation (undated). Member Handbook: A guide to aak-public-mill-list-april-2021.pdf https://www.aak.com/contentassets/ working with Earthworm Foundation https://www.earthworm.org/uploads/ a5bb91b203604ee2bae695050414fd15/aak-public-mill-list-sept-2020.pdf files/earthworm-member-handbook.pdf 294 AAK (undated). Better sourcing of palm https://www.aak.com/ 317 Companies’ membership dates are listed on their individual pages on sustainability/responsible-sourcing/responsible-sourcing-of-palm/ Earthworm’s website, e.g. https://www.earthworm.org/members/hersheys 295 AAK (2018). AAK group policy: sustainable palm oil https://www. 318 Customs documents on file with Global Witness aak.com/siteassets/sustainability/policies-and-codes/aak-group-policy- 319 Chain Reaction Research (2018). The Chain: Bewani oil palm mill in PNG sustainable-palm-oil.pdf may supply the palm oil leakage market https://chainreactionresearch.com/ 296 Chain Reaction Research (2019). AAK lags in implementation of NDPE the-chain-bewani-oil-palm-mill-in-png-may-supply-the-palm-oil-leakage - best practices https://chainreactionresearch.com/report/aak-lags-in- market/ implementation-of-ndpe-best-practices/ 320 GS Global (2018). CEO’s message http://www.gsgcorp.com/En/ 297 Mighty Earth (2019). The worst company in the world http://www. Business/Greeting.aspx mightyearth.org/wp-content/uploads/Mighty-Earth-Report-Cargill-The- 321 GS Global (undated). Investor Relations - Financial Statements http:// Worst-Company-in-the-World-July-2019.pdf www.gsgcorp.com/En/IrInfo/FinancialInfo5Years.aspx THE TRUE PRICE OF PALM OIL 63
FIND THE FACTS EXPOSE THE STORY CHANGE THE SYSTEM Challenging abuses of power to protect human rights and secure the future of our planet . globalwitness.org ISBN: 978-1-911606-57-4 October 2021 Global Witness is a company limited by guarantee and incorporated in England (No.2871809) Global Witness 2021