BEARING FALSE WITNESS. A critique of Global Witness anti-development activity in East New Britain

Transcription

1 BEARING FALSE WITNESS A critique of Global Witness anti-development activity in East New Britain November 2014

2 ABOUT ITS GLOBAL ITS Global Level 1, 34 Queen Street, Melbourne VIC 3000 AUSTRALIA Tel: (61) Fax: (61) This report was commissioned by Rimbunan Hijau (PNG), a diversified company operating in the forestry, agriculture, retail, real estate and transport sectors In Papua New Guinea. Commercial-in-confidence. The views expressed in this publication are those of its authors. The consultant takes no liability for commercial decisions taken on the basis of information in this report. The information is accurate to the best of the consultant s knowledge, however the consultant advises that no decision with commercial implications which depends upon government law or regulation or executive discretion should be taken by any person or entity without that party s having secured direct advice.

3 PAGE 3 INTRODUCTION Throughout 2014, the UK-based non-governmental organisation Global Witness has undertaken a series of activities that aim to discredit a project operated by the Rimbunan Hijau (PNG) Group (RH PNG) in East New Britain. Global Witness has engaged in this activity through local and international media channels, as well as through private lobbying of officials. Global Witness has made a number of claims about the impacts of RH s activities in East New Britain. These allegations are quite specific, and relate to alleged environmental damage, impacts on local communities and child labour. This report responds to and critiques the claims made by Global Witness.

4 PAGE 4 Bearing False Witness CONTENTS About ITS Global 2 Introduction 3 The Sigite Mukus Rural Development Project 5 Environmental impact 6 Social impact 7 Labour standards 10 Legal disputes 12 The benefits of the Sigite Mukus Project 14 Annexes 15

5 PAGE 5 Bearing False Witness THE SIGITE MUKUS RURAL DEVELOPMENT PROJECT This major agricultural project is located in Pomio, East New Britain and is managed by Gilford Limited, a fully-owned subsidiary of RH PNG. Acting on behalf of a group of NGOs, 1 UK-based activist group Global Witness 2 has claimed that the project is socially disruptive, causes health problems, disregards labour standards, is legally questionable and harms the environment. All of these claims are untrue. The NGOs call for the cancellation of the Sigite Mukus project, 3 which is bringing real, lasting improvement to the lives of thousands in Pomio district. The NGO group unsuccessfully petitioned the PNG National Forest Board (NFB) not to renew the Forest Clearance Authorities (FCA) 4 for the project area. The NGOs also appear complicit in a failed effort by Thomas Paka, Chair of the PNG Forest Authority (himself a member of a prominent anti-development NGO) to block FCA renewal, and have secured some media coverage by the Australian Broadcasting Corporation (ABC). 5 The accusations made by the group have been carefully investigated by the company. RH PNG has developed a detailed corporate social responsibility program for the Sigite Mukus project to ensure social and environmental goals are met and that local people are trained and supported. With this management system in place the company has quickly addressed problems and taken remedial action when necessary. In the case of the claims made by the NGO group against the Sigite Mukus project, investigations have demonstrated that all of the allegations are untrue. Greenpeace's role in this affair is significant. Greenpeace along with Global Witness and others seek to extend to PNG the anti-palm oil campaign it has been running for some time in Southeast Asia. Greenpeace wants to stop all conversion of forests for agriculture by Doing so would condemn the majority of people in Pomio and in many other regions of PNG to poverty. Greenpeace is against economic development in PNG their commitment to Economic De- Growth 7 demonstrates this fact. 1 The three NGOs represented by Global Witness are: Greenpeace; Rainforest Action Network a US-based activist network that agitates against resource industries in developing countries; and Forest People's Program a UK-based group that campaigns for indigenous and community land rights in developing countries. 2 Global Witness is best known for its conflict diamonds campaign in Africa An FCA is the primary permit required to convert areas of forest to agriculture See 7 See

6 PAGE 6 Bearing False Witness ENVIRONMENTAL IMPACT Global Witness alleges the Sigite Mukus project is causing major damage to invaluable rainforest reserves and Papua New Guinea s fresh water ecology. This statement is false. The project does not negatively affect forest reserves or fresh water resources. The PNG Forest Authority reports that forests cover 29.4 million hectares, or 64% of PNG s land area. 8 Reserve areas account for 14 million hectares (48% of forest area). There are no forest reserve areas within the operational zone of the Sigite Mukus project; all of the land has been classified as suitable for conversion to agriculture. The Sigite Mukus operational plan includes creating voluntary nature reserves in some areas, as well as planting and reforesting others. The total area of the three blocks that make up the Sigite Mukus project is 42,400 hectares. The project plan allows for establishment of oil palm plantations on up to a maximum of 32,234 hectares, or 76% of the total project area. The project has the full support of the Department of Agriculture and Livestock. See Annex III for the Department s official recommendation to extend the Sigite Mukus Forest Clearance Authority, which includes the following statement: The developer has satisfactorily complied with all requirements under the FCA and must be commended for their outstanding performance and achievement in Global Witness claims of damage to fresh water ecology have no basis. As a condition of the project s environmental approval, project management applies best practice in the use of fertilisers to ensure that run-off into waterways is avoided. The company has also taken the voluntary measure of monitoring water quality at multiple sites around the project area. Monitoring to date confirms that the project is not having an adverse impact on water quality (see Annex I). Company initiatives stand to significantly improve the water quality of the operational area. Of the 13 monitoring water sites, ten were rated unsafe for human consumption because of contamination from the traditional practice of villagers defecating directly into rivers and streams. Company initiatives aim to rectify this situation. They include construction of pit toilets for the use of workers and local communities as well as education initiatives on health and sanitation. Monitoring will continue at all sites in order to gauge the effectiveness of these actions. 8 See

7 PAGE 7 Bearing False Witness SOCIAL IMPACT The Global Witness article 9 claims that the Sigite Mukus project is negatively impacting the livelihoods, health and way of life of communities. There is no tangible evidence to support this claim. The evidence is that the project is positively impacting the livelihoods, health, and way of life of the vast majority of the local community. Global Witness assertion that the Sigite Mukus project is threatening local livelihoods is based on the claim that the project has displaced a previous eco-forestry project which was certified by the Forest Stewardship Council, of which Greenpeace is a member. The article fails to mention that this project s FSC (FSC) accreditation was suspended in 2013, due to suspect audit results, and has not been reinstated. The article also fails to mention that this eco-forestry project was heavily reliant on donor subsidies, and failed to deliver adequate incomes and agreed infrastructure upgrades during its eight years of operation. The Pomio eco-forestry projects were reviewed by the Japanese Institute for Global Environmental Strategies (IGES) in May The review found that returns to landowners from the four projects in the Pomio area were minuscule; wages paid were typically below the government-mandated minimum wage; and that the number of people benefiting from the projects was very small. For example, women hired to move timber were paid only 75 toea (0.75 Kina, or US$0.25) 11 per hour. Total wages paid by all four projects during 2007 were K28,590, shared among 108 workers, so workers received on average K265 (US$89.44) each for the entire year, and the vast majority of people in the Pomio region 12 received no benefits at all, as eco-forestry projects do not pay timber royalties. By way of comparison, in the 9 months of operation from September 2013 to May 2014 the Sigite Mukus project paid out wages totalling K4.4 million to more than 3,000 workers employed in the land preparation and plantation divisions. This is in addition to millions of Kina that have been paid to communities in the form of timber royalties. This boost to the local economy has also resulted in the establishment of new local businesses, including trade stores and privately operated saw mills. The case studies featured throughout this report showcase some of these new businesses, and demonstrate how they have enabled local people to build safe housing, access medical services and invest in their children s education See 11 Based on Bank of PNG 2007 exchange rate of US$ per K1 ( Total population 28,123 according to the 2011 census (see

8 PAGE 8 Bearing False Witness It is reasonable to assume that the failure of the ecoforestry projects to deliver incomes to landowners and community members led many to search for a more productive use of their customary land, leading to the establishment of the landowner companies that registered the land for inclusion in the Sigite Mukus project. Even less than a year into large-scale operations, it is clear the benefits to landowners provided by the project are much greater than those received from eco-forestry activities. Global Witness claims that working conditions in the Sigite Mukus project area are unsafe. The NGO states that Investigations also show that workers are being exposed to synthetic fertilisers for protracted periods without gloves, masks, shoes or protective clothing. RH and Gilford Limited take the health and safety of workers very seriously. The practice of the companies is to provide suitable safety gear and training to all operational staff. Instituting best practice health and safety policy in the Pomio region constitutes a culture change for some workers, and there have been reported instances of workers failing to use prescribed safety gear. Gilford Limited recognises this problem, and has introduced the following policies to address it: All staff involved in spraying of fertiliser required to sign document attesting that they have received all applicable safety gear, and will use it accordingly. If he/she is observed not using the safety equipment, he/she will be issued with a warning. A second offence will result in termination. Paul Kinroro Trade Store Operator I started to work as a surveyor with the Sigite Mukus project since the project started in I purchased the supply of the goods for my store by using my fortnightly salary. Most of the time, I sell the fast moving items from my store to my neighbors, who are also working with the project. Due to the demand for basic commodities, I have decided to set up other stores at Lower Pomai, Upper Pomai, Puapal and Lau village. The expanded store businesses are run by my son and relative clan members, and this has helped them to uplift their livelihood. The income from my main store and 4 branches is sufficient enough for my children s school fee and I am able to build a new house with iron roofing. Global Witness found no evidence of sickness or injury. The Sigite Mukus project has, in fact, been responsible for significant health improvements at the community and regional level. Project management has initiated a major education campaign to help communities reduce and combat a range of health problems, including HIV/AIDS, tuberculosis, malaria, sexually transmitted infections and measles.

9 PAGE 9 Bearing False Witness RH is a member and major financial supporter of the PNG Industry Malaria Initiative (PIMI), 13 which aims to eradicate malaria from target areas in PNG, and eventually from the entire country. RH proposed Pomio as a pilot site for PIMI, and has already: rolled out training for workers, health staff and communities; performed preventative anti-mosquito spraying; and provided hundreds of bed nets to the community. As the Sigite Mukus project reaches its fully operational stage, provision of health services will increase significantly. The project plan includes the establishment and supply of new aid posts, including staffing and medical equipment. It has already been observed that simply by having access to new roads, bridges and culverts - provided as part of the Sigite Mukus project - local people now have improved access to existing medical services. A statement released by the landowners companies in May 2014 underlined this fact. Mothers and children are now benefiting because they have money in their pockets to buy basic goods and have easy access to Government services because of better infrastructure built by the investor. Something that was not provided in the last two decades. 14 The accusation in the Global Witness article regarding threats to the way of life of local communities is vague, with no supporting evidence. The people of the local communities that now make up the Sigite Mukus operational area decided themselves to seek a commercial partner to help them develop their land and improve their quality of life. Robert Pavalengrea Health Assistant I am Robert Pavalengrea, 34 years old, married, a resident of Kaiton Village and working as Health Assistant at Kaiton aid post. Before the start-up of the oil palm project, villagers living from Drina, Pomai, Malo, Rowan, Mu, Peri & Totongpal had their medical treatment at Kaiton aid post as it was the nearest medical clinic for treatment of malaria, TB, skin diseases and other sicknesses. Now, with a well maintained provincial road towards Palmalmal town, those villagers from Drina, Peri, Pomai & Totongpal can access Palmalmal District Hospital which has more medical attendants and superior facilities than Kaiton aid post. These communities are free to choose their preferred way of life. Foreign groups such as Global Witness which prescribe that a subsistence existence supplemented by occasional eco-forestry wages for a few is somehow better for the people of Pomio than the financial and development benefits of partnering with a commercial-scale agricultural project have no right to force their agendas on the people of Pomio. 13 See 14 Memalo Holdings: Statement published in The National, May (p35)

10 PAGE 10 Bearing False Witness LABOUR STANDARDS Global Witness states that Photographs taken by Global Witness inside the SABL reveal that children are working in the camp, completing manual tasks such as packing fertilizer into bags. Child labour is illegal in Papua New Guinea. The letter to the National Forest Board makes a similar claim. Gilford Limited and RH have a strict zero tolerance policy for illegal child labour, which under PNG law refers to anyone aged under 16 years of age doing hazardous work, work at night, or work in mines. 15 Further, RH is guided by the following general International Labour Organisation (ILO) observation on undesirable child labour: [undesirable child labour] refers to work that: is mentally, physically, socially or morally dangerous and harmful to children; and interferes with their schooling by: o o o depriving them of the opportunity to attend school; obliging them to leave school prematurely; or requiring them to attempt to combine school attendance with excessively long and heavy work 16 Berta Kanmugunia: Fertiliser packer I started working with the company as fertilizers packer since 2012 with other women. I have 6 children, 4 are married and 2 are still studying at Kaiton Primary School. Since I start working as fertilizer packer at fertilizer store in 2012, The work is safe, as PPE [personal protective equipment] is provided. I was sick with Malaria before but I have recovered after treatment at Kaiton aid post. I use my fortnight income to buy food and clothing for my family, and I also save some of them to buy iron roofing for my house in Kaiton. A thorough company investigation found the Global Witness claims of illegal child labour to be baseless. Children have been observed coming to work from time to time with their parents, during the daytime, outside of school hours, but the local school confirms that no students have missed classes as a result. A letter from Mrs Emelyne Orome, the head teacher of the only primary school located near the Rano project camp is set out in Annex II. It states that children have not taken up employment with the Sigite Mukus project. Mrs Orome offers the school s enrolment statistics as evidence of her statement. 15 See (p22) 16 See

11 PAGE 11 Bearing False Witness In recognition that children accompanying parents to work too often could potentially lead to a lack of free time, and/or a lack of energy for studies, Sigite Mukus management has instituted the following policies: Camp management to meet regularly with local school teachers and principals to ensure that children are not missing school, and are not exhibiting signs of fatigue as the result of accompanying parents to work. Establishment of a kindergarten near the nursery, so that mothers who work in the nursery have a safe and stimulating place to leave children during work hours.

12 PAGE 12 Bearing False Witness LEGAL DISPUTES Global Witness contends that Ralopal Investments - the Landowner Company (LOC) that represents the customary owners of Block 2 of the Sigite Mukus project - was established against the wishes of many local landowners. In fact, the protest involved only a small group associated with foreign funded NGOs, and was dismissed by the Supreme Court. The letter to the National Forest Board previously referred to also claims that the eight Incorporated Land Groups (ILG) that make up Ralopal Investments were fraudulently registered. These allegations do not implicate Gilford Limited nor RH directly neither company is accused of wrongdoing - however they are an attack on the legitimacy of the project. Incorporated Land Groups (ILG) are legal corporations that are registered by groups of customary landowners in order to put their land to productive use. In PNG, 97% of all land is held under customary ownership by local clans and communities. If a group of customary landowners wishes to register its land - in order to develop it themselves or to make it available for forestry, agriculture or mining activities they must form an ILG. The ILG is a legal person that can enter into contracts with other parties. A group of ILGs can then unite to create a landowner company, such as Ralopal Investments. Elijah Gularan Student My name is Elijah, son of Abraham, presently studying in Grade 11 at Palmalmal High School. Before the Sigite Mukus project, my father sold fish in the village, but people could not afford to buy. After the oil palm project came to our district, most of our neighbors start to work with the project and they can now buy fish from my father. As a student and a son of a fisherman, I would say that economic boost is now in my village because of the project. The villagers have replaced their houses from bush material to iron roofing. They are also actively participating in community activities. The NGO letter to the National Forest Board claims that 19 ILGs were incorporated in the Pomio area in 2003, in order to undertake eco-forestry activities. The letter alleges these 19 ILGs were ignored during the incorporation in 2006 of eight new ILGs that eventually formed the basis of Ralopal Investments. In fact, as has been confirmed by the Provincial Lands Office, a Land Investigation Report (LIR) - including comprehensive land mediation - was conducted prior to the registration of the eight 2006 ILGs, taking into consideration all claims on ownership. This process established which clans had legitimate ownership claims on the area in question, and concluded with the registration of eight new ILGs, which superseded the previous ILGs. There is no evidence of fraudulent claims, and all due process was followed in the creation and registration of the eight ILGs, and of the landowner company Ralopal Investments.

13 PAGE 13 Bearing False Witness Global Witness also alleges that the directors of Ralopal Investments committed fraud and forgery in the establishment of the landowner company, specifically identifying aspects of the Land Investigation Report for criticism. This matter has already been heard by the Supreme Court of PNG, 17 which dismissed the claims of fraud and forgery out of hand. Plaintiffs have since taken the matter to the National Court. 18 The defendants - Ralopal Investments and Pomata Investments (the landowner companies representing Blocks 1 and 2 of the Sigite Mukus project area) have moved that this case should also be dismissed, as it is identical to the case already dismissed by the Supreme Court. The National Court has not yet ruled on the motion to dismiss the case. Global Witness claims that many people allege that they did not give their consent. This is not true. The claim appears to be based on an unofficial transcript of a November 2011 session of the Commission of Inquiry into Special and Agricultural Business Leases, during which Commissioner Alois Jerewai heard evidence from one single Pomio inhabitant (Mr Bailoemaki) who claimed to represent 30 landowners from the project area who objected to the establishment of Ralopal Investments Limited. Commissioner Jerewai quickly established that Mr Bailomakia was actually in dispute with the vast majority of landowners who supported the Sigite Mukus project. [Commissioner Jerewai:] But you must be reminded that you are alone with your unitary family opposed to this while the rest of your clan are in support of this project and want to participate and agreed to being part of the SABL, in the majority, [so] do not waste our time. 19 Unfortunately this kind of disagreement among clans and villages is common, with a few people preferring another use for the land. These disputes are usually dealt with at the local or provincial level. In the case of Ralopal and Pomata Investments, NGOs took the dispute all the way to the PNG Supreme Court, which dismissed the case. In the Sigite Mukus project area, a few people doubtless did very well from the previous ecoforestry project. But the vast majority of residents did not, and this majority prefer more inclusive agricultural development that will bring benefits to the whole community. As Commissioner Jerewai points out: I have a clan too. If most of the members of my clan outvote me I must go with them SCA No. 40 of WS 383/ Transcript of Proceedings, Commission of Inquiry into SABL, Kokopo 1/11/2011 (pp104-5) 20 Transcript of Proceedings, Commission of Inquiry into SABL, Kokopo 1/11/2011 (p74)

14 PAGE 14 Bearing False Witness THE BENEFITS OF THE SIGITE MUKUS PROJECT The Sigite Mukus Integrated Rural Development Project is a world-class agricultural development that is bringing real, life-changing benefits to the people of Pomio. The project has been designed and initiated following all applicable laws, and has been granted all necessary permits and approvals. It is regrettable that a small minority of inhabitants appear to prefer economically inferior land uses, such as eco-forestry; however RH and Gilford are confident that the tangible benefits provided by the Sigite Mukus project will eventually win over these last few hold-outs. Global Witness, Greenpeace, Rainforest Action Network and the Forest Peoples Programme have a very clear agenda: stop agricultural development and protect all forests, regardless of the needs of local populations. If they were concerned with the well-being of the people of Pomio, they would devote their efforts to supporting the Sigite Mukus project and seeking further development opportunities. The fact that they choose to do the opposite demonstrates that they give higher priority to the narrow agendas of their own organisations than to improving thousands of lives in Pomio. Hillary Songtava District Social Development Officer, Palmalmal Before the establishment of the project, there was no accessible road from Palmalmal town to Drina. People from Drina village used to walk on a very far distance bush track along the coast to the town. When the project started, the company constructed a road from Drina to Palmalmal, which we consider a provincial road. The road is for everyone. To my observation, after the provincial road was finished, lots of the villagers residing far outside the town, come to Palmalmal to buy some commodities from the stores in town. During customs celebration, most of the villagers outside the town can now participate in the programs because they can easily access to the town by using this provincial road. The company is also providing lots of financial assistance to villages for sports event, women s day celebrations, schools programs and other customs activities.

15 ANNEXES PAGE 15 Bearing False Witness

16 ANNEX I: WATER ANALYSIS DECEMBER 2013 PAGE 16 Bearing False WItness

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21 PAGE 21 Bearing False WItness ANNEX II: LETTER FROM HEAD TEACHER, KAORO PRIMARY SCHOOL

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24 ANNEX III: SUPPORTING LETTER FROM DEPARTMENT OF AGRICULTURE AND LIVESTOCK AUGUST 2014 PAGE 24 Bearing False WItness

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