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Uganda: StopEACOP Campaign Condemns Standard Bank’s Decision to Fund EACOP

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Kampala — The StopEACOP Campaign is appalled by Standard Bank’s decision to help finance the East African Crude Oil Pipeline (EACOP) project and condemns this decision in the strongest possible terms. This decision follows a years-long review process, during which environmental and social concerns raised by numerous stakeholders were evidently ignored.

The $5 billion EACOP project, spearheaded by TotalEnergies, aims to transport crude oil from Uganda’s oil fields to a terminal in Tanga, Tanzania. Despite significant opposition from affected communities and environmental and human rights groups, Standard Bank, Africa’s largest lender, has decided to support this disastrous project.

Standard Bank chair Nonkululeko Nyembezi stated in a recent interview that they had conducted comprehensive environmental and social due diligence. However, the claim contradicts the project’s grave climate, environmental and human rights risks. The decision of Standard Bank is also at odds with the assessment of its peers, who have ruled out support for the EACOP for climate, environmental, and social concerns.

Standard Bank’s decision ignores local opposition and human rights abuses 

In the last month alone, 11 pipeline critics have been arrested in Uganda and Tanzania after expressing their concerns about the project. In addition, one of the community leaders from the Kingfisher region in Uganda was abducted by the Uganda Peoples’ Defense Forces, bringing condemnation from the UN Special Rapporteur on Human Rights Defenders. Standard Bank’s untimely announcement of their decision to finance EACOP, in the midst of a brutal crackdown on human rights, environmental and land defenders in Uganda and Tanzania, illustrates their level of detachment from the realities and experiences of communities on the ground and calls into question their claim to have done thorough due diligence.

Environmental and human rights groups have persistently highlighted the potential hazards of the controversial EACOP, including severe impacts on wildlife habitats, the displacement of communities, and the exacerbation of climate change through increased greenhouse gas emissions. Many field investigation reports, including a recent Human Rights Watch report, have also documented and denounced the inadequate compensation and significant disruption experienced by residents displaced by the pipeline’s construction. Against this backdrop, Standard Bank’s decision to finance EACOP shows blatant disregard for the voices and rights of the communities in Uganda and Tanzania who will bear the brunt of the environmental and social devastation caused by this project.

Standard Bank cannot feign ignorance in relation to the concerns surrounding EACOP. It has faced consistent pressure from communities and climate and social justice organisations and groups in South Africa who have demonstrated outside the bank’s offices in Rosebank, Johannesburg on numerous occasions. These demonstrations, including a large protest with hundreds of participants on the day of the bank’s AGM in 2023, a 3-day-long occupation of the bank’s entrance in September of the same year, and weekly pickets held outside the bank’s parking lot by Extinction Rebellion, sought to bring the demands and experiences of EACOP-affected communities to their attention.

Standard Bank has refused to engage in meaningful and constructive dialogue and instead, its response has been characterized by repression and increased militarisation. The South African Police Service has also intervened to protect the interests of the bank and has arrested peaceful demonstrators on two occasions. It is a stark demonstration of Standard Bank’s prioritization of profit over people and the planet and its lip-service commitment to constructive dialogue and meaningful engagement with frontline communities and other key stakeholders.

Standard Bank is also ignoring clear business risk

The decision to bankroll the project also casts doubt on Standard Bank’s assessment of the business and reputational risks stemming from the risks to local communities, environment and climate posed by the project.

Standard Bank’s decision comes after major financiers and insurers from North America, Europe, and Japan have publicly ruled out support for EACOP due to global outcry over the harmful project. The expected finance from China has also been delayed, while the Chinese state-owned insurers and banks have taken prolonged time to assess the outstanding risks. As a result, the EACOP project is facing significant challenges and  project sponsors are reportedly in a cash crisis to fill the funding gap, which threatens to stall the construction.

These delays come as a result of the immense pressure that potential financiers have come under from communities, civil society, the international community and even shareholders and investor groups who express grave concern over the catastrophic socio-economic, biodiversity and climate change risks of the project.

Standard Bank’s decision to finance the EACOP project starkly contradicts industry trends, as leading banks and insurers have distanced themselves from this controversial initiative. This decision exposes Standard Bank to significant risks, including the potential for stranded assets, especially as the global economy transitions towards clean energy solutions. Furthermore, with Uganda already facing a severe debt crisis, worsened by the country’s oil induced borrowing spree, the environmental and social costs associated with EACOP could precipitate an economic disaster for the people of Uganda as well as financiers and their shareholders who opt to engage with this project.

It is clear that investing in EACOP threatens the stability of vulnerable communities and jeopardizes the financial health and reputational integrity of those who support it. A 2022 report assessing the EACOP and associated oil fields against internationally recognized environmental and human rights standards for financial institutions found numerous violations, putting banks at risk if they sign on to support the project. The assessment, undertaken by the Africa Institute for Energy Governance (AFIEGO), Inclusive Development International (IDI) and BankTrack, suggests that the project is not in compliance with many of the criteria set forth in the Equator Principles and the Environmental and Social Performance Standards of the International Finance Corporation (IFC), two internationally recognized standards for responsible finance.

We demand that Standard Bank review and rescind its decision to finance the EACOP project immediately. While it may be too late for Standard Bank to redeem its supposed commitment to people and the planet, there is still time for other potential lenders, particularly Chinese state-owned banks, to demonstrate their dedication to human rights and sustainability by refusing to support EACOP. We call upon the global community to continue its unwavering support for the StopEACOP campaign and the communities on the frontlines. It is not too late to halt this disastrous project and prevent the extensive environmental, social, and economic damage it promises to inflict.

Quotes

“For years, we have campaigned tirelessly against Standard Bank, bringing the grievances and aspirations of impacted communities directly to their doorstep time and time again. Each time, we are met either with deafening silence or with outright violence from an institution that has shown itself to be truly heartless and utterly indifferent to the well-being of ordinary people. Let it be known that this announcement will not deter us. We will continue to stand in solidarity with the communities affected by EACOP and will escalate our actions against Standard Bank in the coming months.”  – Zaki Mamdoo, StopEACOP Campaign Coordinator

“Standard Bank prides itself on financing Africa’s development. However, the bank’s decision to finance the EACOP, not to mention its financing of other fossil fuel projects across Africa, earns the institution the title of an anti-people and an anti-development bank. Fossil fuel projects like EACOP that cause livelihood losses, enslave Ugandans by worsening indebtedness and drive all of us deeper into the climate crisis should not be financed by any bank.”  – Diana Nabiruma, Senior Communications Officer, AFIEGO

“Standard Bank is contributing to the devastation of our communities including through the immense loss of land and livelihood. They have chosen to ignore the plight of our people and to support our exploitation and suffering at the hands of greedy multinational corporations. This is a decision that places them squarely on the wrong side of history and which marks them as an institution with no regard for human rights and justice.” –  Richard Senkondo, Executive Director at the Organization for Community Engagement, Tanzania.

Original Source:350Africa.org  Via allafrica.com

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Witness Radio petitions chief prosecutor: Want 34 community land rights defenders and activists released from prison.

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By Witness Radio team.

In the Hoima District, Western Uganda, an urgent and immediate action is crucial to halt an ongoing land grab. The work of community land rights defenders, activists, and local leaders has unfortunately been criminalized, with thirty-four (34) people from Rwobunyonyi, Kirindasojo, and Kihohoro villages falsely accused and sent to different prisons in the Hoima district.

Criminal files No. CRB 330-2022 has Busobozi Patrick, Kaija Phillip Osborn, Mbabazi Isaya, Wembabazi Denis, Tumusiime David, and Abitegeka David charged with aggravated robbery, while the CRB 84-2023 file has Magezi Lawrence, Kaahwa Nelson Komugisa Junior, Mugenyi Vincent, and others on murder charges. The files have been established to gang the work of community defenders and activists.

According to sections 189 and 286 (2) of the Penal Code Act cap 120, both offenses carry the death penalty upon conviction.

As observed above, community land rights defenders, activists, and local leaders have been targeted since 2022. The number of targeted defenders keeps on growing. Sadly, those who have been remanded to prison are still waiting for their cases to be tried, which is tantamount to judicial harassment and persecution.

Witness Radio findings indicate that one Fred Kato Mugumba allegedly orchestrated the land grab. He is backed by officials from Hoima police, Hoima district Office of Director of Public Prosecution (ODPP), and judicial staff. Mugambe and his accomplices aim to evict over 500 small-scale farming families from their ancestral land.

If the land grab is successful, the community will suffer a devastating loss of 800 hectares of land used for food cultivation. This loss will lead to children dropping out of school, families breaking apart due to lack of resources, and a significant increase in food insecurity, hunger, poverty, and illiteracy levels in Uganda.

The affected communities have a deep-rooted connection to the land, having lived on it for over 50 years without disruption. The ongoing persecution by Mugamba and his agents is, therefore, particularly shocking and unjust.

The same land almost ended the life of Junior Lands Minister Sam Mayanja, who was targeted with gunshots when he visited the contested land on August 24, 2023, to protect land grab victims. The current situation highlights the urgent need for intervention from a powerful office.

Witness Radio has, among other interventions, petitioned the Director of Public Prosecutions (ODPP) and urged the Chief Prosecutor’s office to call the file from Hoima High Court.

The office of the DPP is a constitutional body mandated to direct police to investigate any information of a criminal nature, institute criminal proceedings against any person or authority in any court other than a court-martial, take over and continue any criminal proceedings instituted by any person or authority, and discontinue at any stage before judgment any criminal proceedings.

Uganda is experiencing an influx of land-based investments, which have fueled land-grabbing tendencies and criminalization of community land rights and environmental defenders and activists’ work.

In the petition, Witness Radio alleges that Fred Kato Mugamba fabricated these charges in collusion with John Angwadya, a former local council member and chairperson of one of the targeted villages, Rwabunyonyi, as part of a strategy to facilitate the unlawful eviction of the community from their land.

“It is deeply concerning that the accused remain in protracted detention despite the constitutional guarantee of a fair and speedy trial and right to liberty. This is a clear violation of defenders’ fundamental rights and raises serious concerns about the criminal justice system’s integrity in this matter. The prolonged delay in their trial and the apparent ulterior motive behind the charges necessitate immediate intervention to prevent the miscarriage of justice,” the petition reads in part.

Despite multiple attempts by the community to engage various stakeholders, including Hoima’s district leadership, the Hoima District Police, the State House Land Protection Unit, and the State Minister for Lands, Dr. Sam Mayanja, their efforts have been futile. Instead of finding justice, those who resist are met with criminal charges and continued evictions, leaving many families landless and helpless.

“The efforts of our clients and community individuals engaging the different offices are viewed as a threat to the evictors, hence fabricating different charges against the accused persons to pave the way for the land grabbers to occupy the land in the absence of the accused persons. It is evident that the pending charges of murder and aggravated robbery are being made as a tool to harass and deprive our clients and family members,” the petition further reads.

In the petition to the Director of Public Prosecutions (DPP), Witness Radio has called for an urgent review of the circumstances surrounding the arrests and prosecutions of the accused. Witness Radio is requesting the issuance of a Nolle Prosequi to quash the charges and the immediate release of the prisoners.

The organization also demands that the case be expedited to prevent further unwarranted deprivation of liberty and calls for an independent investigation into any potential abuses within the criminal justice system.

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The joint final review of the National Land Policy 2013, a significant and collaborative effort between the government and Civil society organizations, is underway.

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By Witness Radio team.

Under the leadership of the Ministry of Lands, Housing, and Urban Development (MLHUD), and in partnership with Civil Society Organizations (CSOs) led by Participatory Ecological Land Use Management (PELUM), a crucial final review of the National Land Policy (NLP) 2013 is taking place in Kampala.

The Consultative event is a unique and empowering opportunity for all land actors to actively contribute to shaping Uganda’s land governance framework. It seeks to engage CSOs in shaping reforms in the much-awaited National Land Policy, addressing pressing land-related concerns such as land grabbing, promoting equity in land access, and enhancing strategies for sustainable land management.

The land ministry is expected to present a revised 2024 draft of the basis for discussion and obtaining valuable input from land actors and PELUM Uganda members to boost the policy framework.

Uganda first adopted the National Land Policy in 2013 to ensure the efficient, equitable, and optimal utilization of land and land-based resources for national development. Grounded in principles drawn from the 1995 Constitution and other macro-policy frameworks such as Uganda Vision 2040 and the National Development Plan (NDP), the NLP has served as a comprehensive guideline for Uganda’s land ownership and management.

With a decade of implementation behind it, the Ministry of Lands, Housing, and Urban Development is now reviewing the policy to integrate emerging trends and challenges. This review is crucial as it will ensure the policy’s relevance in the evolving land governance landscape, directly impacting your daily lives. The consultation process underscores the government’s unwavering commitment to inclusive decision-making by involving civil society and key stakeholders in policy formulation, ensuring everyone’s voice is heard and valued.

The event will be broadcast live on Witness Radio. To listen live, download the Witness Radio App from the Play Store or visit our website, www.witnessradio.org.

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Businesses, banks and activists resist EC plans to strip back human rights legislation

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Today the European Commission introduced their ‘Omnibus simplification package’ to amend key laws of the EU Green Deal, including CSDDD, CSRD and Taxonomy. The package proposes significant changes, including the removal of civil liability provisions in the CSDDD and removing 80% of companies from scope in the CSRD.

The earlier announcement from the European Commission as well as the leaked draft to reform recently-agreed EU laws such as the CSDDD has already come under attack from businesses, expertsinvestors and activists alike.

The UN Global Compact and companies including Unilever, Vattenfall and Nestlé have also expressed their concern. Nestlé Europe’s Bart Vandewaetere said that it had “been reporting on [environmental impact and human rights issues in the supply chain] ourselves for years. European regulations mean that more companies have to start doing that. That creates a level playing field and we welcome that.”

Former president of Ireland Mary Robinson added: “Von der Leyen’s new Commission’s attempt to eviscerate these sustainability laws must not be agreed by the European Parliament and by the member states.”

The European Banking Federation warned that weakening the CSRD could create challenges for banks, echoing concerns from more than 160 investors who cautioned that the Omnibus package could harm investment and increase legal uncertainty.

CSOs such as the European Coalition for Corporate Justice (ECCJ)WWF and the Clean Clothes Campaign have also sharply criticised the proposal. The ECCJ writes the proposal is “not simplification, but full-scale deregulation designed to dismantle corporate accountability”.

Workers’ organisations and trade unions from garment-producing countries across Asia, Europe and Latin America also opposed the ‘Omnibus’ this week, highlighting the risk the proposal will “exclude most supply chain workers” including 49 million home workers.

Source: Business & Human Rights Resource Centre

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