World Bank’s business-lending arm backed palm oil producer amid deadly land war

ICIJ and the Huffington Post report: Glenda Chávez walks between the orange trees of her family’s grove, approaching a low wire fence that divides her property from Corporación Dinant’s Paso Aguán plantation. On Dinant’s side of the fence, rows of spiky palm oil trees stretch for miles across the green landscape of northern Honduras.

“Here,” she says in a soft, determined voice, pointing to a spot on her side of the fence where a search party found the last traces of her father’s life.

Gregorio Chávez, a preacher and farmer, disappeared in July 2012. Hours later, men from their peasant community found the machete he’d taken with him to tend to his vegetables. The men also found drag marks in the dirt leading toward Dinant’s property, Glenda says.

Four days after Gregorio Chávez disappeared, searchers discovered the preacher’s body on the Paso Aguán plantation, buried under a pile of palm fronds. He had been killed by blows to his head, and his body showed signs that he may have been tortured, according to a government special prosecutor investigating his death. Glenda and the other villagers immediately suspected he had been killed for speaking out from the pulpit against Dinant, their adversary in a battle over ownership of land that the company long ago incorporated into its vast palm oil operations.

“These plantations are bathed in blood,” Glenda Chávez says. “Not only has my father died, but more than 100 peasants have died in defense of the land.”

Special prosecutor Javier Guzmán says security guards employed by Dinant are “the leading suspects” in Gregorio Chávez’s killing, but no one has been charged in the case. The company vigorously denies it had anything to do with his death.

The preacher’s death was one of 133 killings that have been linked to the land conflicts in Honduras’ Bajo Aguán valley, according to Guzmán, who was appointed by the federal government to investigate the wave of violence that has ripped through the area in recent years. The circumstances of these deaths remain fiercely disputed in a struggle that has pitted Dinant and other large corporate landholders against peasant collectives, with both sides involved in violence that has at times turned gruesome.

The conflict has drawn international scrutiny in part because Dinant, one of its central protagonists, has been financed by the World Bank Group.

Dinant was backed by the International Finance Corporation, an arm of the World Bank conglomerate that lends to private companies. The IFC supported Dinant, one of Central America’s biggest palm oil and food producers, throughout the recent land conflicts. It provided $15 million directly to Dinant in 2009 and later channelled $70 million in 2011 to a Honduran bank that was one of Dinant’s largest financiers.

In doing so, the IFC aligned itself with one of the key players in a deadly civil conflict, staking its money and reputation on a powerful corporation with a questionable history. The IFC ignored easily obtainable evidence that should have warned it away from doing business with Dinant, the lender’s internal ombudsman later found. [Continue reading…]

Last December, Jeff Conant reported: As one of the fastest growing global commodities, palm oil has recently earned a reputation as a major contributor to tropical deforestation and, therefore, to climate change as well.

About 50 million metric tons of palm oil is produced per year – more than double the amount produced a decade ago – and this growth appears likely to continue for the foreseeable future. Because oil palm trees, native to West Africa, require the same conditions as tropical rainforests, nearly every drop of palm oil that hits the global market comes at the expense of natural forests that have been, or will be, burned, bulldozed and replaced with plantations.

With deforestation garnering headlines due to forests’ crucial role in regulating the climate, global commodity producers, from Nestle and Unilever in Europe, to Cargill in the United States to Wilmar International in Indonesia, are recognizing the need to provide products that are “deforestation-free.” Other corporate-led initiatives like the public-private Tropical Forest Alliance that promises to reduce the deforestation associated with palm oil, soy, beef, paper and pulp, and the recent New York Declaration on Forests signed at the UN Climate Summit in New York, suggest that saving the world’s forests is now squarely on the corporate sustainability agenda.

But what is being left behind is the other significant impact of palm oil and other agro-industrial commodities – namely human rights. Commitments to protect forests and conservation areas can, if well implemented, address environmental concerns by delimiting the areas of land available for conversion to palm oil. But natural resource exploitation is inextricably linked to human exploitation, and such commitments do little to address this.

A case in point is Grupo Dinant, a Honduran palm oil company that declared last month that it has been awarded international environmental certifications for its achievements in environmental management and occupational health and safety. Dinant has also been making overtures toward joining the Roundtable on Sustainable Palm Oil (RSPO), including hosting the RSPO’s 4th Latin American conference in Honduras in 2013. But, Dinant, which produces about 60 percent of the palm oil in Honduras, is at the center of what has been called “the most serious situation in terms of violence against peasants in Central America in the last 15 years.” [Continue reading…]

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