Uganda: support of insurer Marsh to Eacop pipeline project targeted by complaint with OECD

The American insurance broker cannot be exempt from social and environmental damage caused by the Totalenergies project in East Africa, according to the coalition of NGOs at the origin of the initiative.

by Laurence Caramel

The pressure continues to climb on financial institutions associated with the very controversial oil operating project of Totalenergies in Uganda. Tuesday, February 7, the American NGO inclusive Development International (IDI) and ten Ugandan and Tanzanian organizations – whose names have not been disclosed for fear of reprisals – announced that they had filed a complaint against the insurer Marsh to the ‘ OECD for violation of guiding principles that govern the action of multinationals in respect of human rights and the environment in particular.

Without the support of insurance and reinsurance companies, such as Marsh, the construction of the East African Crude Oil Pipeline (EACOP) pipeline which will cross Uganda and Tanzania over more than 1,400 kilometers to allow oil extracted From Lake Albert to be exported by the Indian Ocean, could not see the light of day, according to the complainants.

“The role of an insurance broker is often invisible, which allows him to avoid having to face his responsibilities. That of Marsh deserves to be examined closely because, despite a large Opposition and overwhelming evidence that the project will be a disaster for Ugandans and for the planet, it allows the Eacop project to move forward, “denounces Coleen Scott, on behalf of Ini in a press release. Marsh is part of the World Group Marsh McLennan which employs 85,000 employees and generates $ 20 billion in annual turnover.

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The complaint was received by the US focal point of the OECD hosted by the State Department in Washington. The latter must first rule on the admissibility of the complaint within three months then if this is the case, initiate mediation between the parties in order to achieve a possible agreement. The OECD guiding principles being optional, this initiative cannot lead to a judicial decision but for large companies concerned with displaying their commitment to sustainable development, it throws an unfortunate shadow on their reputation. This is a first in the insurance brokerage sector.

On the other hand, several arrests have already targeted oil companies. In 2013, the Global Fund for Nature (WWF) had seized the OECD on the risks that the exploration projects of British Soco International in the Virunga National Park in the Democratic Park of Congo (DRC) run. Park in which Totalenergies also has a concession.

serious damages

In the case of Marsh, the complaint filed by the Coalition of NGOs alleys that by agreeing to participate in the Eacop guarantee, the broker contributes to the serious damages that the project has already caused or that ‘He should cause. Among them are listed “inappropriate land acquisition processes characterized by the absence of rapid and adequate compensation [communities]”, “harassment, intimidation, arrest of peasants, members of NGOs, of Critical journalists “,” threats to natural resources on which populations depend to live, and in particular the risk of spill of hydrocarbons affecting freshwater resources, or even the increase in emissions of co 2 Who will bring the world closer to a climate disaster “. The complainants ask that Marsh put back “his operations in accordance with the principles of the OECD by withdrawing from his role as a broker” for totalnergies.

The action carried out with the OECD is added to the numerous initiatives conducted by civil society organizations both in Africa and in industrialized countries to try to hinder the fossil project of Totalenergies in Uganda. “The complaint filed today against Marsh is an important step contributing to the international mobilization against the Total Eacop project. Insurers like Marsh have a clear responsibility by making possible such climaticid projects. They cannot close their eyes and make Fi of multiple proofs of human rights violations and the risks of irreversible damage to the environment, “reacted Juliette Renaud, campaign manager at Friends of the Earth France. The organization, for its part, has initiated a procedure against the Major for non-compliance with the French law on the duty of vigilance. The verdict must be rendered by the Paris court on February 28.

/Media reports cited above.