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Article

7 Nov 2018

Author:
RIAO-RDC, GRAIN and others (farmlandgrab.org)

DRC communities file complaint with German development bank to resolve century-old land conflict with palm oil company

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Nine communities from the DR Congo took a historic step...by filing a complaint with the complaints mechanism* of the German development bank (Deutsche Investitions- und Entwicklungsgesellschaft – DEG). The communities of the DR Congo want a resolution to a land conflict that dates back to the Belgian colonial period with a palm oil company that is currently being financed by a consortium of European development banks led by DEG...In 1911, the Belgian colonial administration unilaterally awarded Lord Leverhulme of Britain a massive one million hectare land concession covering the territories of these communities and many others. Leverhulme...used forced labour and violent repression to extract palm oil from the forests...and eventually erected several oil palm plantations within the concession area that would come to be owned and operated by the multinational food giant Unilever. In 2009, Unilever sold its DRC oil palm plantation subsidiary, Plantations et Huileries du Congo (PHC), along with a set of contested concession contracts totalling over 100,000 hectares, to a Canadian company...Feronia Inc. The nine communities...say that the illegal theft of their traditional lands and forests has deprived them of the means to feed and house their families and earn their livelihoods...Poverty and malnutrition within the communities are rampant and severe, and the communities say that conditions have worsened since Feronia took over the plantations from Unilever. Over the years, the communities within the concessions claimed by PHC have sought to regain control over their lands and have called for negotiations with the company and government authorities to determine the conditions under which the company may be allowed to continue to operate. These communities have issued multiple letters, memos and declarations that have been addressed to or have been sent to government authorities, company representatives and the development banks financing Feronia and PHC...In full knowledge of this on-going legacy land issue, the DEG and other development banks from the UK, France, Belgium, the Netherlands, Spain and the US have, since 2013, provided Feronia Inc and its subsidiary PHC with upwards of US$180 million in financial assistance. The development funds of the UK, Spain, France and the US directly or indirectly hold shares of Feronia Inc while PHC has received US$ 49 million in loans from a consortium of lenders led by DEG that includes the development banks of Belgium and the Netherlands. Considering their significant involvement and the direct link between denied access to land and hunger and poverty in the communities, development banks have a responsibility for ongoing abuses of human rights and the failure to resolve the conflicts that the two companies are embroiled in...All development banks have justified their investment in Feronia or PHC with their mandate to support development in Africa, which, in this case, cannot be achieved without a resolution of the land conflict. 

 

Part of the following timelines

Rép. dém. du Congo: Des communautés locales déposent une plainte auprès d'une banque de développement allemande contre PHC pour spoliation de leurs terres

DRC: Communities file complaint with German development bank to resolve land dispute with palm oil producer PHC