[Summary] JPRM, PSPD and KTNC Watch have filed an OECD Guidelines complaint against the Korea Eximbank and Daewoo E&C
- Int. Solidarity
- 2018.10.15 (09:44:33)
The Jalaur River for the People Movement(JPRM), People's Solidrity for Participatory Democracy(PSPD) and Korean Transnational Corporations Watch(KTNC Watch) have filed an OECD Guidelines complaint against the Export-Import Bank of Korea and Daewoo Engineering & Construction Co. on 15 October 2018. Here is the summary of the complaint.
The Jalaur Multipurpose Project Phase 2 (JRMPII)
- The Jalaur River for the People Movement (“JPRM”) is a civil organization which is established in March, 2013 by the local residents who reside in downstream of the Jalaur River to oppose the project of construction of a multipurpose dam in Jalaur River.
- People’s Solidarity for Participatory Democracy (“PSPD”) is a non-governmental organization based in Seoul, South Korea, founded in 1994. PSPD has been working on protecting people’s participation in government decision making processes and socio-economic reforms, by closely monitoring the abuse of power of the state and corporations to enhance transparency and accountability.
- Korean Transnational Corporations Watch (“KTNC Watch”) is a network of civil society organizations in various fields including human rights, labour rights, environment, and Public Interest Law. It aims to tackle the issues related to operation of Korean transnational corporations.
- The Export-Import Bank of Korea is an entrusted body of Korean government with management and operation of the Economic Development Cooperation Fund. Thus, it is the subject of the management and operation of EDCF in relation to ‘Jalaur River Multipurpose Dam Construction Project.’
- Daewoo Engineering & Construction Co. is the contractor and executor of The Jalaur Multipurpose Project Phase 2 (JRMPII) which is run within Economic Development Cooperation Fund (EDCF).
3. A Breach of OECD Guideline for Multinational Enterprises
1) A Breach of General Policies
The Export-Import Bank of Korea, which is entrusted body with the operation and management of EDCF (respondent 1) and Daewoo, the executor of the project (respondent 2) are obliged to protect internationally recognized human rights of the people who are affected by their projects and to adhere to the regulations and policies of the country in which they operate. While the respondents are aware of the violation of Indigenous People's Rights Act of 1997 of the Philippines and UN Declaration on the Rights of Indigenous Peoples in relation to informed consent as a prerequisite of execution of the project, they consistently neglect the indigenous people and their organizations which had been opposing the project and take no steps to converse with these people. Accordingly, it is the violation of General Policies in OECD Guidelines for Multinational Enterprises, which states that ‘enterprises should take fully into account established policies in the country where they operate, and consider the views of their stakeholders.’ Specifically, it is a violation of article 2 of the section which announces that ‘multinational enterprises should respect the human rights of those affected by their activities consistent with the host government’s international obligations and commitments.’
2) A Violation of Environment Guideline
While the Respondent 1 has asserted that there is no safety risk with the project, it is of fact that the project area is where the West Panay fault is situated. Thus the risk of earthquake is not obscure, rather prominent. As 20,000 local residents in sixteen villages will be affected by the project, not to mention Respondent 1 who is responsible to the managing and operating of fund, also the respondent 1 who executes the project clearly violate OECD Guideline section 6 Environment, which states enterprises are obliged to ‘establish and maintain a system of environmental management appropriate to the enterprise, including:
- collection and evaluation of adequate and timely information regarding the environmental, health, and safety impacts of their activities;
- regular monitoring and verification of progress toward environmental, health, and safety objectives or targets.
- engage in adequate and timely communication and consultation with the communities directly affected by the environmental, health and safety policies of the enterprise and by their implementation.
3) A Violation of Human Rights section of OECD Guideline
① The appropriateness of the project in relation the following factors:
- Despite of the fact that there is concern over possibility of earthquake, no actions are taken to conduct periodical and consistent research of safety, and to reassure the residents who are worried of the risk of earthquake
- Indigenous people have been involuntarily displaced with no eminent plan for them
- No compensation has been made for the involuntarily displaced people and other local resident whose land or cemeteries of ancestors could be under the effect of the project
② In relation to the due diligence process, the fact that the entire procedure was initiated without obtaining informed consents as the prerequisite of carrying out the project which is against the domestic laws and international law.
Accordingly, the project has made adverse human rights impacts on the affected people. Although the respondents are conscious of such inappropriateness, they have been carrying out the project and we could conclude that they violated all regulations under the VI. Human Rights sector of OECD guidelines.
On the basis of the fact that respondent 1 who manages and operates the EDCF and respondent 2 who is a contractor and executor of the relevant project has been progressing the project in despite of the fact the indigenous people who will be directly affected have been raising questions regarding the appropriateness of the project, which is a clear violation of various sections of OECD guideline, complaint 1 who will be under direct impact of the project and respondent 2 who is concerned of adverse human rights impact of the project, became to file the complaint regarding such violation and breach.