Golden VeroleumLiberia’s response re report by Forest Peoples Programme,Sawit Watch & TUK Indonesia

Business & Human Rights Resource Centre invited Golden Veroleum Liberia and other companies named in the report to respond to these reports:

“Sustainable Palm Oil: Marketing Ploy or True Commitment? New Research Questions Effectiveness of RSPO Standards”, Forest Peoples Programme, Sawit Watch and TUK Indonesia, 7 November 2013

Report: [PDF] “Conflict or consent? The oil palm sector at crossroads” Forest Peoples Programme, Sawit Watch and TUK Indonesia, November 2013

GVL provided this response:

A long-term commitment to the development of Liberia

As a committed, long-term investor in Liberia, GVL welcomes constructive, independent input into the conduct of its operations. As such, GVL notes the report “Conflict or Consent: The Oil Palm Sector at a Crossroads" published last week by the Forest Peoples Programme (FPP) and acknowledges FPP’s work to improve the operations of palm oil companies.

In Chapter 13, the FPP report examines GVL’s work in Liberia and GVL’s compliance with the processes of Free Prior Informed Consent (FPIC). GVL always seeks to honor its obligations as a member of the Roundtable for Sustainable Palm Oil (RSPO), its responsibility to protect the environment and to work harmoniously with local communities through the FPIC process. We aim to act swiftly to address any concerns raised about our operations in Liberia whether they are raised through the RSPO or directly with us. In 2012, in response to a number of complaints made by some members of the communities within GVL’s concession area, we approached an independent non-profit organization, The Forest Trust (TFT), and asked them to prepare a detailed report.

FPP state that this TFT report 'largely confirmed community concerns' about GVL's operations’ and that communities 'have not been involved... not adequately consulted’ on areas of historical and local importance. Yet, and while we acknowledge that mistakes were made, the TFT report describes the overall number of complaints as “relatively low” and noted that “not a single community member told us that he did not want GVL in Butaw.”

In its report, TFT made a series of recommendations on how GVL might improve its FPIC processes, all of which we have now implemented or are in the process of implementing. GVL is committed to respecting the sovereignty, culture and traditions of our host communities. We are learning all the time and welcomed the TFT recommendations on how we can improve our consultation procedures.

We consider that the FPP report does not accurately convey the considerable progress we have made in the past 10 months in improving our FPIC work and strengthening our relationship with the communities with whom we work.

The FPP report also claims that GVL's concession contract ‘violates national law and the constitution’ of Liberia. This fails to recognize that GVL was invited to invest by the Liberian government and its concession agreement was ratified by an act the Liberian Parliament. GVL works within the legal framework of Liberia and recognizes communities’ traditional rights to their land.

Any agreement to develop oil palm farms is the result of negotiation with communities who invite GVL to develop in their areas and is based on detailed terms including payment. compensation and numerous other benefits. If a community determines it does not want GVL to develop in its are or a farmer does not wish to release his land for compensation, GVL respects this and does not proceed with development in the specified location.

Regarding employment, GVL is committed to investing in Liberia for a minimum of 65 years, during which time we look forward to mutually rewarding long term collaboration with our host communities It remains GVL’s aim to fully develop its concession, which at maturity will employ up to 40,000 Liberian citizens in a wide range of skilled and unskilled employment. We took the difficult decision to reduce our workforce by 500 in Butaw with regret and in response to the economic realities of oil palm production, where the size of workforce and range of skills required are directly related to the location and area of land that the company is permitted to develop. It was most certainly not to “put immense pressure on communities” as is suggested.

GVL is a commercial enterprise, which is at the same time committed to improving the Liberian rural economy and is working to improve the lives and livelihoods of its employees and the wider communities in which we work. We consider as unfortunate and misguided the wording that we offer ‘vaguely defined benefits’. GVL has made tangible improvements to the infrastructure and amenities in towns in Sinoe and Grand Kru with millions of dollars in salaries and free rice as well as contractor and service revenues going into these communities for the first time. GVL has already built schools, clinics, improved roads and provided new wells, as well as enhancing access to education, healthcare, transport and clean water for workers, their dependents and members of surrounding communities.

Through constructive engagement with communities, NGOs and other stakeholders, GVL will continue to work to improve all aspects of its operations. It is our hope that in the future a closer relationship with NGOs will enable a more accurate reporting of the real progress that is being made on the ground, every day.