Ugandan farmers fighting threats and land grabbing allegations by Bidco have praised a draft report by UN investigators questioning the company’s business practices.
The report is the result of a complaint by the Bugala Farmers Association to the UN’s Social and Environmental Compliance Unit (SECU).
In the complaint, the farmers stated that the United Nations had not performed sufficient due diligence on Bidco before inviting it to join Business Call to Action, which is part of the United Nations Development Programme (UNDP).
The farmers provided evidence that Bidco has engaged in human rights, labour and environmental violations in the Kalangala District of Bugala Island, Lake Victoria, Uganda, where Bidco is accused of grabbing land from smallholder farmers.
Bidco was also accused of cutting down over 18,000 acres of rainforest to make way for a large-scale palm oil business.
The UN investigators found fault with the decision to invite Bidco into partnership with UNDP: “After the fieldwork and additional research, SECU concluded that the processes employed by UNDP for admission of Bidco were not consistent with UNDP policies.”
The report acknowledges that a partnership with Bidco “could adversely damage UNDP’s reputation and the communities it seeks to help”. It adds that Bidco’s activities “may be considered risky”.
The Ruiru-based Bidco has tried to distance itself from the allegations of land grabbing and environmental destruction in Uganda.
UNDP investigators found there is a clear link between the company’s corporate structure and operations in Uganda.
The investigators also determined that Bidco’s claim of not being involved in land acquisition in Uganda is not accurate.
The report says that Bidco “knew of, relied on, and encouraged the purchase by the government.” It adds that the company also “engaged in decisions and discussions related to the purchase.”
In light of the report findings, the Bugala Farmers Association has called on the United Nations to terminate its partnership with Bidco.
The report is available for public comments at http://APO.af/cWkh3e. This is possible until December 7.