UN, banks and oil palm giants feast on the stolen land of Uganda’s dispossessed
By Anne van Schaik & Oliver Tickell | Ecologist | February 19, 2015
A small community in Uganda is challenging a UN-backed international oil palm venture that has expropriated small farmers and obliterated an entire forest on a Lake Victoria island to establish a vast plantation. Three years after the grab, Friends of the Earth groups are backing the islanders legal action, which is launched today.
Fighting a land grab can seem like a hopeless cause: the odds are hardly even when farmers without land or a source of income are pitted against multinational corporations, European banks and UN Agencies. However in Uganda, one community is fighting back.
Four years ago, an oil palm plantation partly operated by the oil palm giant Wilmar International began on Bugula, a highly biodiverse island on Lake Victoria. Then home to about one hundred small-scale farmers, the project was sold to them with extravagant promises of employment and development.
Yet today, 3,600 hectares of pristine forest have been destroyed, replaced with a vast swathe of oil palm, and many farmers and their families find themselves destitute with little compensation – if any – awarded to them for the loss of their land.
Finding themselves in increasingly desperate circumstances, three of them are today launching their legal action on behalf of the rest of the community against the oil palm company, Oil Palm Uganda Limited (OPUL), demanding the restitution of their land and compensation for lost crops and income.
Although nominally independent, OPUL is 90% owned by Bidco Uganda, itself a joint venture between the oil palm giant Wilmar International, Josovina Commodities and Bidco Oil Refineries, a Kenya-based company. Wilmar International holds at least 39% of the shares in OPUL and is providing technical expertise for the project.
In launching the legal action in Masaka today, the Bugula islanders are taking on more than just these mighty corporations.
The oil palm project is backed by the Ugandan government, which even helped to finance it, and by a United Nations agency: the UN International Fund for Agricultural Development (IFAD), which is “directly overseeing” the project after providing a $52 million loan.
So this is ‘improving access to land and tenure security’?
Established in 1974 after the World Food Conference, IFAD’s ‘motto’ is “Enabling poor rural people to overcome poverty”. Its Financing Policies and Criteria state that the projects it finances should incorporate “engagement with indigenous peoples” and “improving access to land and tenure security”.
The Bugula project is carried out under IFAD’s ‘Vegetable Oil Development Project – Phase 2‘ which claims to be aimed at “increasing the domestic production of vegetable oil and its byproducts, thus raising rural incomes for smallholder producers and ensuring the supply of affordable vegetable oil products to Ugandan consumers.”
According to IFAD, “Oil palm activities are carried out on Bugula Island in Kalangala District (Ssesse islands) and Buvuma Island in Mukono District. In the course of the project, about 3,000 smallholder farmers will directly benefit from oil palm development and 136,000 households from oilseed development. The project is directly supervised by IFAD.”
It records a total project cost of $146.2 million, to which it is contributing a $52.0 million loan repayable in 2018, co-financed with SNV Netherlands Development Organization, which is contributing $0.3 million. It claims to benefit 139,000 households.
The Ecologist spoke today with Alessandro Marini, IFAD’s Country Representative for Uganda by telephone, but he repeatedly refused to comment at that time because he was “on his way into a meeting”. He has since failed to respond to our email requesting his views.
The UK is the single biggest contributor to IFAD.
John Muyiisa’s story
In January, Anne van Schaik of Friends of the Earth Europe joined NAPE / Friends of the Earth Uganda in a fact-finding mission to Bugula Island, Kalangala, and visited the house of John Muyiisa, one of the plaintiffs.
John saw his 43-acre plot taken for the palm oil project, and has since not stopped fighting to get it back. John showed us the state of his house, which is about to collapse because he doesn’t have the resources to repair it. The foundations of the new house he was planning to build for his family have been left abandoned since the project began.
When he showed us the small plot that was left to him, John said: “We all depended on this land. My land was not only my income but also a secured future income for my children. It would have provided me with the money I needed to buy a new house. Now I have lost my land and our plans are shattered.” These concerns have found little sympathy among local government officials.
We also visited the nearby island of Buvuma, where IFAD has financed another oil palm project. When we expressed our interest to hear from the local community about the effects of the island’s palm oil project, they exhausted themselves by explaining the benefits of the project.
“There will be electricity, employment, new roads, and extra income for local palm oil growers”, officials told us. This sounded all-too familiar to what we heard during a visit in 2013, but two years on, these promises seem emptier than ever.
Once we had finished speaking with the officials, we joined them at a community meeting at the district house to discuss compensation for lost land. When the chairperson gave farmers the floor to talk about the effects of the project, many raised their hands.
They talked about how the compensation had been inadequate, how it is totally unclear to them how it had been calculated, and how some of them didn’t want to leave their land but were given no choice. Clearly embarrassed and annoyed, a local official responded and corrected them. “People should not first sign an agreement and then complain after”, he said.
His unsympathetic stance was mirrored by other government officials on both islands. Often we heard jokes about how farmers drank away their compensation money in bars, got themselves a second wife or otherwise managed to fritter it away.
This indifference, although unspoken, is implicitly shared by IFAD, BIDCO, OPUL and Wilmar. Indeed, the chain of responsibility stretches back further – to banks in Europe and the USA whose financial support sets the wheels in motion for these devastating land grabs.
Europe’s mega-banks financing palm oil explosion
Taking the case of Wilmar International, in 2014 US and EU financiers had a total of €371 million of shares in the corporation, and 1.1 billion Euro in loans outstanding to them.
For instance in the Netherlands, ING held more than €26 million in shares; the British bank HSBC held €298 million in loans, while BNP Paribas and Dutch Rabobank held €189 million and €111 million respectively. Deutsche Bank held €4 million in shares and €12 million in outstanding loans.
Like Wilmar, many of these financiers have adopted policies to address the environmental, social and governance impacts of their investments. However, there is no accountability mechanism in place for most of these commitments, and so there is no financial or legal incentive for financiers to follow through.
This means that many European financial institutions, through their investments in agribusiness projects, are supporting a significant number of what are in fact land grabs in the global South. Such incidents are widespread and growing: new cases are reported to civil society organisations on a near-weekly basis in countries from Cambodia and Papua New Guinea to Indonesia, Myanmar and Nigeria.
Europe needs to take action at the political level. Both by ensuring financial institutions on its soil are not complicit in land grabs, and by voting this year to finish reforms to halt the expansion of agrofuels which compete for cropland.
UN-IFAD must hang its head in shame
And clearly IFAD is an organization crying out for abolition. Its financing of the Bugula Island land grab is in clear violation of its financing principles and criteria, indeed the very purpose of its existence – “Enabling poor rural people to overcome poverty”
While IFAD speaks of “community-driven development approach to fighting rural poverty“, “improving access to land and tenure security”, “dynamic and inclusive rural development“, “food and nutrition security for all”, “inclusive growth and poverty eradication”, and “sustainable smallholder agriculture” it is actually financing land-grabbing projects that achieve the precise reverse of all its empty rhetoric.
Indeed it is robbing poor farmers and farming communities of their land and livelihoods, leaving them destitute, and handing over their wealth for plunder by foreign corporations and profiteering financiers.
As for John and the rest of the former farmers of Bugula, the next steps in their fight for justice will be taken in court in Masaka. With pressure coming at them from both sides, the message to oil IFAD, palm companies and financiers alike is clear: the battle against land grabs is on.
Action: to support John Muyiisa’s struggle in his search for legal redress for the farmers of Kalangala, please visit our crowdfunding page.
Uruguay Discovers ‘Extremely Encouraging’ Oil Deposits
teleSUR | January 14, 2015
Australian company Petrel Energy has announced that it has found and certified the existence of 20 potential oil deposits in the north of Uruguay, the only country in the region that imports all the hydrocarbons that it consumes.
Uruguayan state petrol enterprise ANCAP said that the certification includes “20 conventional explorations,” with an estimation of risk-free resources “of up to 1.8 billion recoverable barrels which implies 5.6 billion barrels originally in the sub-soil.”
ANCAP emphasized that there may be more oil yet to discover, for which “more exploratory work is required, like various drillings, in order to determine the existence of significant hydrocrabon accumulations.”
The results are “extremely encouraging,” the company said, adding that the Australian company Schuepach confirmed that it will drill four exploratory wells in the zone between 2015 and 2017.
In recent years, Uruguay set itself the task of trying to find oil in its territory, sparking several offshore projects in 2009 and 2012.
Energy bills surge for poorest in UK: Official data
Press TV – January 14, 2015
Official figures show the energy bills of the poorest 10 percent of British households have grown at almost twice as the average rate in the country under the Tory-led Coalition government.
The research by the House of Commons Library published on Wednesday showed electricity bills for the affected group rose by 39.7 percent between 2010 and 2013, compared to 7.5 percent for the top 10 percent of British households and 22.2 percent on average.
In addition, the poorest group saw their gas bills increased by 53.3 percent compared to 23.9 percent for the top 10 percent and 29.2 percent for the average British home.
Shadow Energy Secretary Caroline Flint said since Prime Minister David Cameron’s government took office in 2010 the average household energy bill has risen by 260 pounds.
“These figures show that the poorest households are paying the heaviest price for the Tories’ failure to stand up to the energy companies and ensure that the full savings from wholesale cost falls are passed on to all consumers,” said Flint.
Ann Robinson, director of consumer policy at the uSwitch.com website also called for lower energy tariffs amid falling world oil and gas prices.
“Given the huge reduction in wholesale prices – which make up around half of energy bills – we believe standard tariffs can and should be cut even further,” said Robinson.
The data comes just days after British think tank Policy Exchange revealed that of the 2.3 million homes living in fuel poverty, 1.1 million are working households with one or more members holding employment.
The UK has seen rising energy costs in recent years. A separate report has shown that the average gap between the family’s energy bill and what it can afford is estimated to be around £400.
Climate Policy Risk: Who’s In Denial?
By Marlo Lewis | Cooler Heads | December 19, 2014
Earlier this week, economist Roger Bezdek gave a presentation at the Ronald Reagan Building titled “Carbon Dioxide: Social Cost or Social Benefit?” Washington Post columnist Dana Milbank covered the event and published a short review titled “The new climate denialism: More carbon dioxide is a good thing.”
Granted, it’s hard to develop an argument about a complex, technical subject in a 760-word column, but Milbank doesn’t even try. He takes cheap shots and spouts off without knowing whereof he speaks.
Milbank starts with a snarky putdown, asserting that “though Bezdek is an economist, not a scientist, he played one on Monday.” How so? Some of Bezdek’s slides show the fertilization effects of carbon dioxide (CO2) emissions on crop yields and plant growth. For example:
That is not playing scientist, it is citing scientific research.
Another slide shows that, over the past 250 years, CO2 emissions closely correlate with population growth, life expectancy, and per capita GDP.
Milbank retorts that “correlation is not the same as causation.” Deep! But does he really think unprecedented improvements in the human condition — a greater than doubling of average human life expectancy, an eight-fold increase in the sheer abundance of human life, and an eleven-fold increase in global per capita GDP — would have occurred without fossil fuels?
Milbank repeatedly misfires, as the excerpts below (indented in blue) and my comments (standard width in black) show.
For years, the fossil-fuel industries have been telling us that global warming is a hoax based on junk science.
Name a single CEO of any major energy company or trade association who says that! If there are any, they are outliers. Skeptics argue that predictions of catastrophic global warming are based on speculative interpretations of selective evidence and models projections that increasingly diverge from observations. That’s a different thesis — and much harder to refute. Milbank inveighs against a straw man.
But now these industries are floating an intriguing new argument: They’re admitting that human use of coal, oil and gas is causing carbon dioxide in the atmosphere to rise — but they’re saying this is a good thing.
New argument? The Center for the Study of Carbon Dioxide and Global Change has emphasized the ecological and health benefits of atmospheric CO2 enrichment since its inception in 1998. Founder Sherwood Idso’s first peer-reviewed paper on the subject was published in 1991.
I pointed out to Bezdek that increasing energy use fueled the economic growth, and CO2 was just a byproduct. So wouldn’t it make more sense to use cleaner energy?
CO2 does not dirty the air, so reducing/capturing CO2 emissions does not make energy cleaner. CO2 is not “just” a byproduct; it is the inescapable byproduct. Thus, UN emission reduction targets endanger both existing economic, health, and welfare benefits and progress towards a wealthier, healthier world.
He [Bezdek] went on to point out that “35,000 people every year in the United States die in automobile accidents, but the solution is not to ban automobiles. You try to make them safer.” And the solution to climate change is not to ban energy but to make it cleaner.
Making energy “cleaner” in the present context means banning (rapidly phasing out) the carbon-based fuels that currently supply 82% of U.S. and world energy consumption, and are projected — absent additional market-rigging interventions — to supply 80% of U.S. energy in 2040.
The presentation began as a standard recitation of the climate-change denial position, that “there’s been no global warming for almost two decades” and that forecasts are “based on flawed science.”
Milbank provides no evidence that the “standard recitation” is incorrect – very likely because he can’t.
So instead, he resorts to name calling and labels Bezdek a ‘denialist.’
Enough back and forth. What matters is the big picture. Some 1.3 billion people in developing countries have no access to electricity and 2.3 billion people face chronic electricity shortages.
Source: International Institute for Applied Systems Analysis
Even in Europe and the United States, millions of low-income households struggle with high energy costs. Many must choose between heating and eating.
Source: EU Fuel Poverty Network
Source: Bezdek (2014)
Forcing an energy-starved planet to abandon fossil fuels before cheaper substitutes are available is bound to have profound social costs. That is Bezdek’s thesis, and it is spot on. Milbank is in denial.
Amid soaring fuel bills 25,000 UK pensioners to die this winter from cold weather
Press TV – November 12, 2014
A report says that a pensioner will die from cold weather every seven minutes in Britain this winter, amid soaring fuel bills.
The Age UK charity released the report on Tuesday, saying that, this winter, 25,000 elderly people in England and Wales will die as a result of the cold weather and due to high fuel costs and poorly insulated homes.
The charity also revealed that one in three pensioners, or more than 5 million elderly people, are worried that they will not be able to afford to warm their houses.
Caroline Abrahams, the charity’s director, said a growing number of people in Britain are facing difficulties in heating their homes properly.
“No older person should worry that they could die from the cold in their own home,” said Abrahams, adding, “Fuel poverty is a national scandal which has claimed the lives of too many people – both old and young – for far too long and left many more suffering from preventable illness.”
Abrahams called for a long-term solution to the problem, such as bringing Britain’s housing up to a high energy efficiency standard.
The government responded to the charity’s report by insisting that officials are already doing enough to protect elderly Britons struggling to heat their homes.
The UK has seen rising energy costs in recent years. A separate report published earlier this year revealed that the prices of domestic energy in the UK rose by 45 percent between 2008 and 2014.
Hungary under US pressure due to South Stream
politics.hu | November 6, 2014
The United States is putting Hungary under great pressure due to its objections to the Russian-backed South Stream pipeline and the expansion of the Paks nuclear power station, Prime Minister Viktor Orban said in Munich on Thursday evening, after an address delivered at the Hanns Seidel Foundation.
At a question and answer session, Orban said the pipeline and expansion project were primarily economic issues, but they had become entangled in “geopolitical, military-policy and security-policy issues” due to the Ukraine-Russia conflict.
Washington interprets both issues as “getting closer to Russia”, whereas “we don’t want to get any closer to anyone; neither do we wish to distance ourselves from anyone.”
“We are not pursuing a Russia-friendly policy but a Hungary-friendly policy,” he added.
The prime minister said that construction of the South Stream gas pipeline and the Paks expansion were both in Hungary’s national interest.
The construction of South Stream, which is a “twin” of Nord Stream that supplies Russian gas to Germany, bypassing Ukraine, serves Hungary’s interests, ensuring secure gas supplies by eliminating risks posed by the situation in Ukraine, Orban said. Even if this project does not diversify gas sources, it does diversify delivery routes, he added.
Concerning the upgrade of Hungary’s sole nuclear power plant at Paks, Orban said cheap energy was key in strengthening Hungary’s competitiveness. Unlike Germany, Hungary does not have vast funds to direct towards supporting renewable energy production, and the country’s own energy resources are scarce, he said.
The “only possible means” for Hungary to reduce its dependence on external energy resources is the expansion of the state-owned Paks nuclear plant, he said. Since the plant has been built using Russian technology it is “evident” that its expansion must be carried out in cooperation with the Russians, Orban said. Yet the US interprets this as Hungary’s “moving closer to Russia” at a time when its position is that Europe should instead “move away” from Russia rather than cooperate with it. This is why the US “is strongly opposed” to Paks, Orban said, noting the US “would have also been rather keen” on constructing its two new blocks. … Full article
Protests in Egypt against energy price hikes and politicised trials
MEMO | September 20, 2014
Opponents of the military coup have organised mass protests across Egypt condemning the deterioration of living conditions, price hikes and the ongoing electricity crisis. They are also calling for the prosecution of President Abdel Fattah Al-Sisi for “crimes against humanity”.
The protests came in response to a call by the Anti-Coup Alliance, which called for a “new revolutionary week” starting Friday under the slogan, “The oath of the revolution and the vow of the martyr”.
In the affluent Maadi neighborhood in Cairo, protesters denounced lifting subsidies and the increase in fuel prices. They also chanted for the release of all political prisoners and putting an end to torture in prisons.
In Hilwan, the alliance organised a morning protest against military rule and worsening living conditions. They vowed to continue protests until the leader of the coup is prosecuted.
In Baltim town in Kafr Al-Sheikh governorate, protesters condemned politicised trials and price hikes. In Desouk, protesters waved pictures of Mohamed Morsi and Rabaa signs and chanted against the deteriorating living conditions and poor services, especially electricity.
‘Sanctions war’ has nothing to do with Ukraine; it’s just a pretext – Rusal CEO
RT | September 19, 2014
The Ukrainian conflict was just a trigger for the sanctions, which demonstrated the failure of all previous efforts to set up healthy relations between Russia and the West, Russian tycoon and head of Rusal, Oleg Deripaska, told RT in Sochi.
“I think the sanctions have nothing to do with Ukraine. Ukraine was just a reason. [The sanctions] were a failure of any attempt which was taken in the past to build normal relations between Europe and Russia – from both sides,” Deripaska told RT at the Investment Forum in Sochi.
Oleg Deripaska said the West started pressing Russia before the first sanctions were imposed – just ahead of the Sochi Olympics.
“We should give a lot of credit to Sochi, [as it showed] a different world, [despite] whatever appeared in the Western press,” he said.
Asked if people across the globe are more anti-Russia than ever, Deripaska answered that “it’s not people, it’s [about] various lobbying groups and various interests.”
“You remember all the complaints before the Olympics. They’ve been intentionally stopping any efforts from the Russian side to be normal, to look normal in the West. My view is we should go down as deep as possible, as quick as possible, and then touch the bottom and go up, and think what’s actually common between us, if there is any chance to have this Portugal-Vladivostok trade zone and opportunities to live together.”
Sanctions against Russia ‘violate’ core principles of WTO – Putin
RT | September 18, 2014
President Vladimir Putin has said that sanctions against Russia directly violate World Trade Organization (WTO) principles, and that Russia will continue to defend its economy with protective measures.
The sanctions violate the main principles of equal access for all WTO members to economic activity and access to goods and services in the market, Putin said at a meeting with advisers in the Kremlin on Thursday.
“The limitations introduced against our country are nothing but a violation by some of our partners of the basic principles of the WTO,” the President said, adding that sanctions “undermine free enterprise competition.”
On September 12, the US and EU expanded sanctions against Russia aimed at hurting Russia’s main industry – oil. The US and EU have led sanctions against Russia, along with Japan, Australia, Switzerland, and others over Moscow’s alleged meddling in the Ukraine conflict.
The best way for Russia to counter these unfair advantages is to develop its domestic market, the President said.
“In response, we took protective measures, and I would like to stress that they are protective; they are not the result of our desire to punish any of our partners or influence their decision in any way.”
Russia introduced protective measures over food supplies on August 7 in response to Western sanctions. The Kremlin and White House sanctions tit-for-tat has been escalating since March, when Crimea voted to rejoin Russia.
The food ban is due to only last a year, but at today’s meeting the President said that Russia needs to focus on increasing its market competitiveness over the next eighteen months to two years.
One of Russia’s main competitive advantages is its huge domestic market, and it should be filled with more Russian-made products, Putin said.
The President said that Russia’s decision to join the WTO in 2012 was a difficult transition for the country, but that it raised economic standards.
At the meeting President Putin laid out a list of economic priorities for the Russian state. At the top are developing the infrastructure, boosting lending, continuing to develop the agricultural and technology sectors, and increasing overall competition.
Russia joined the WTO in 2012 after nearly two decades of back and forth negotiations on the conditions for entry.







