Cambodia: ANZ cuts off ties with Phnom Penh Sugar allegedly due to “inadequate response” to a plan to remedy concerns about forced evictions, child labour

Author: Khmer Times, Published on: 7 July 2014

“ANZ cuts off ties to Cambodian firm”, 6 July 2014

…ANZ Bank’s commercial relationship with Phnom Penh Sugar has come to an end…[T]he relationship broke down over the company’s inadequate response to a detailed project plan developed by ANZ, which was designed to remedy longstanding concerns about the use of child labour, forced evictions and military-backed land grabs...“While I’m limited in what I can say about individual customers, I can confirm that PP Sugar has paid out its loan and is no longer a customer of ANZ,” the [ANZ] spokesman said…PP Sugar is understood to have secured cheaper finance when all the compliance costs associated with the ANZ facility were factored in. The company, however, has made progress in some areas. It put in place a zero-tolerance policy towards child labour…The company also held a forum with villagers and NGOs to hear the concerns…And it reached further financial settlements with other affected village families, although not all families accepted the compensation deal offered…

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Related companies: ANZ Bank Phnom Penh Sugar