Tag Archives: poverty

Justica Ambiental’s intervention at Eni Annual General Meeting

14 June 2019

Rome

I represent an organisation called Justica Ambiental/Friends of the Earth Mozambique in maputo. Ive come quite a long way to ask Eni some questionsI will ask in particular questions about the onshore and offshore work in Area 1 and Area 4 of the Rovuma Basin in Mozambique, which includes the Coral Floating Liquid Natural Gas Project, and the Mozambique Liquid Natural Gas Project, and the offshore oil and gas exploration in Block ER236 off the South Coast of Durban in South Africa.

we want to give some context to the shareholders:

Although the extraction in Mozambique has not yet begun, already the project has taken land from thousands of local communities and forcefully removed them from their homes. We work with and visit most regularly the villages of Milamba. Senga and Quitupo. The project has taken away peoples agricultural land, and has instead provided them with compensatory land which is far from their homes and in many cases, inarable. Fishing communities which live within 100 metres of the sea are now being moved 10 km inland.

Furthermore, the noise from the drilling will chase fish away from the regular fishing area, and the drilling and dredging will raise mud from the seabed which will make fishing even more difficult with little visibility.

There is little to no information about the type of compensation people will receive. Communities think the ways in which peoples compensation has been measured and assessed is ridiculous. For example, the company assesses someones land by counting their belongings and compensating them financially for those goods. Another way is by counting the number of palm trees that one person has on their land. Most people have been given a standard size of land of 1 hectare. This is regardless of whether they currently have 1 hectare, 5 hectares, or even ten hectares.

80% of Mozambicans dont have access to electricity, and need energy to live dignified lives. Despite this incredibly low electricity rate, the LNG projects will not help Mozambique and its people benefit from its resources. Instead the LNG will be processes and exported to other countries, in particular Asia and Europe.

The projects will have a huge negative impact on the local environment, destroying areas of pristine coral reefs, mangroves, and seagrass beds, including endangered flora and fauna in the Quirimbas Archipelago, a UNESCO Biosphere.

Mozambique is a country that is already facing the impacts of climate change. In the last two months, two cyclones hit the country hard, as we saw most recent with Cyclone Idai and Cyclone Kenneth that together killed over 600 people and affected at least 2 million.. The EIA admits that the contribution of the projects greenhouse gases to Mozambiques carbon emissions will be major.

This project will require a huge investment by the Mozambican government, which would be better spent on social programs and renewable energy development. The project itself will require an investment of up US$ 30 billion. This project will divert funds that should be going to education and other social necessities, including $2 billion that the World Bank estimates is necessary to rebuild the country after the cyclones, in order to build and maintain infrastructure needed for the gas projects.

Over the last year and a half, there as been a scourge of attacks on communities in the gas region, which many communities believe are linked to the gas projects because they only began once gas companies became visible. In order to ensure the security of the gas companies and contractors, the military has been deployed in the area and maintains a strong presence, and several foreign private security companies have been contracted by the companies.


SOUTH AFRICA

While the human rights and environmental violations against the people of the South Coast are many, the particular issue Id like to raise is that of the lack of meaningful public participation with the affected communities, who were totally excluded from the process.

Exclusivity of meetings:

Eni held a total of 5 meetings.

Three of them were at upper end hotels and country clubs in the middle class areas of Richards Bay, Port Shepstone and in Durban. This is extremely unrepresentative of the vast majority of people who will be affected, many of whom live in dire poverty: communities of as Kosi Bay, Sodwana Bay, St Lucia,, Hluluwe, Mtubatuba, Mtunzini, Stanger, Tongaat, La Mercy, Umdloti, Verulam, Umhlanga, Central Durban, Bluff, Merebank, Isipingo, Amanzimtoti, Illovu, Umkomaas, Ifafa Beach, Scottsburgh, Margate, Mtwalume, Port Edward and surrounding townships like Chatsworth, Inanda, Umlazi, Phoenix and KwaMakhuta. This is blatant social exclusion and discrimination.

During the two so-called public participation meetings with poorer communities in February and October 2018, attended by both Eni and consultants Environmental Resources Management, the majority of people affected were not invited. The meetings, held by Allesandro Gelmetti and Fabrizio Fecoraro were held in a tiny room with no chairs. Eni had not invited any government officials.

[Sasol head of group medial liaison Alex Anderson, confirming the meeting, said: Eni, our partner, is the operator and the entity managing this process. Sasol is committed to open and transparent engagement with all stakeholders on this project, as its an ongoing process over the coming year. We value the engagement and the feedback we receive, so that we consider stakeholder concerns into the development of the project.]

Eni says it dropped the finalised EIAs off at 5 libraries for the interested parties to read. However these libraries are difficult for most of the affected communities to travel to, and one of the libraries, Port Shepstone library, was in fact closed for renovations at the time.

QUESTIONS:

Civil society in Mozambique:

The response to our question was not answered, and I would like to reformulate it.

Is Eni working with any Mozambican organisations as part of its community engagement, and which are they?

Is Eni working with any organisations, Mozambican and from elsewhere, who are NOT paid by the company?

Reforestation:

Id like to quote an article in the FT article David Sheppard and Leslie Cook 15 March 2019- Eni to plant vast forest in push to cut greenhouse gas emissions, which says, I quote:

by planting trees which absorb CO2 from the atmosphere, companies like Eni are looking to offset their pollution that their traditional operations create.

Italian energy giant Eni will plant a forest 4 times the size of Wales as part of plans to cut greenhouse gas emissions

1. Does Eni dispute the truthfulness of the Financial Times article

Eni says that it has already begun the contract process with the governments of the countries in Southern Africa, where these forest projects will take place.

1. Has the company assessed whether there actually is 81 000 hectares of unused land available for this project?

2. Has Eni already held any public participation meetings with the communities who live on the land that will be used for ?

3. who is doing this assessment and when will it begin

4. how many communities and people will be affected?

EIA s:

1. In the case of Area 1, Eni responded that the responsibility for ongoing public participation with the communities of Cabo Delgado lies with Anadarko for the joint EIA. Does Eni confirm it is relying on another company to guarantee that its own project fulfills requirements for an EIA?

2. Also on Area 1, the last EIA was done in 2014? Why does Eni rely on an impact assessment that is 5 years old?

3. Eni has responded that it only concluded its EIA in 2014, but had already begun seismic studies in 2007 and prepared for exploration in 2010. Furthermore, Eni only received its license from the Mozambique government in 2015. This is a whole 8 years after it had begun seismic studies.

Why did Eni begin studies that affect the environment and people before completing an EIA?

Decarbonisation:

This question was not sufficiently answered: I have asked why Enis decarbonisation strategy does not align with its actions in Mozambique, where the EIA says, and I quote from Chapter 12: The project is expected to emit approximately 13 million tonnes of CO2 during full operation of 6 LNG trains.

By 2022 the project will increase the level of Mozambiques GHG emissions by 9.4%

The duration of the impact is regarded as permanent, as science has indicated that the persistence of carbon dioxide in the atmosphere is said to range between 100 and 500 years, and therefore continues beyond the life of the project.

I ask again, how does this align with Enis decarbonisation strategy?

Private security:

1. Who is Eni using as their private security companies in Mozambique and in South Africa?

2. What was the legal process the company went through to contract these private security companies?

3. If any companies are not registered locally, what legal process did Eni go through to bring them to Mozambique and South Africa?

Contractors:

1. Will Eni provide us with a list of all their contractors in Mozambique and in South Africa?

2. if not why not?

Jobs in South Africa:

You have not answered our question here

How many jobs will Eni create at its operation in SA?

How many of these jobs will be paid by Eni?

Contract

I ask this in the name of the South Durban Community Environmental Alliance. The organisation requested Eni to make available the contract signed with the Dept of Environmental Affairs and Petroleum Agency South Africa that gives Eni permission to conduct seismic testing. Eni has said no, because the right to the document lies with a contractor.

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JA! Visit finds confusion and distrust in Cabo Delgado gas region

DSCF2153When JA! team visited Pemba at the end of February, 2019, the biggest city in Cabo Delgado province, to learn about the current situation of the ‘gas rush’ in northern Mozambique, it quickly became apparent to us that there is very little clarity and transparency about what is actually happening in the gas industry. Attacks on communities, land grabs, the stage of the companies’ operations, and even which companies are involved, have left people uncertain and confused.

 

The industry is constantly changing, with one example at the time being the pending takeover of US company Anadarko, which is the leader of one of the two major projects since it first ‘discovered’ gas in the Rovuma Basin in 2010. Just two weeks ago, Chevron put in a bit to purchase Anadarko for $ 33 billion, and a mere few days later, Occidental Petroleum tried to outbid them with $ 38 billion.

This has huge implications – communities who have been in communication with Anadarko about resettlement and compensation, or already signed agreements with them, the government’s financial agreements with Anadarko and investments in the project – these will all need to change, and more frighteningly, nobody knows how they will change.

 

Furthermore, the stages of the gas projects are constantly changing, new contractors come in and new deals are signed in the blink of eye. The official information out there is that In 2006, 10 trillion cubic feet of natural gas was discovered in the Rovuma Basin off the coast of northern Mozambique. There are two concession areas that the Mozambique government has already given the rights away to:

IMG_20190225_150151_9

Area 1, the location of the Mozambique LNG Project, which was led by Anadarko, but will now be led by Chevron and Occidental Petroleum, and Area 4, the location of the Coral LNG Project that is lead by Eni and Exxon.*

And both projects have secured purchasers which ultimately has given them the financial green light to operate.

 

Over the last year, there have been many violent attacks on villages in the gas region, and there are different theories about who is responsible and who benefits from them. Due to these attacks, on this trip the JA! Team was unable to travel to the communities with which we work near Palma.

Instead, our focal point that we work with closely, arranged to bring two community members to meet us in Pemba instead.

 

Even though we were unable to travel to Palma during this visit, just meeting with people in Pemba – NGOs, activists and journalists – pointed us to an increasing number of issues arising. Basically, the more people we spoke to, the more people we realized we needed to speak to.

Two people from communities being affected by the industry, Crisanto Silva from Senga, and Burahani Adinane from Milamba, traveled six hours to tell us about the situation they are facing now.

 

Mr Burahani told us how his community left Milamba in February and are staying with family in Palma because they felt very unsafe, in constant fear of being attacked. He says that at the end of last year, Anadarko made an agreement with the community telling them what they would receive as compensation. They have not yet signed that agreement with the government, and Anadarko has not returned that agreement document to them as they said they would, so they are in a constant state of uncertainty and limbo.

 

He says that the compensation assessment process has been ridiculous – one way the company assesses someone’s land is by counting their belongings and compensating them financially for those goods.

 

People with 5 hectares (ha) of land are going to get only 1.5 ha in compensation,” he says. “I have 64 ha but will only get 1.5 ha!  The company did the measurement by counting the number of trees in the plot. I had 583 trees, but how do I fit that in 1 hectare?”

 

The fishing community is being moved 10 km inland, away from the sea, where it will be very difficult for them to get to their fishing grounds, which will also be the location of a new port construction project. And actually, people have lost access to the sea even before the process has been completed.

 

Now we will be resettled from the sea,” says Mr Burahani,and personally, i don’t know how to do anything but fish”.

 

Crisanto Silva, from Senga, which is the village that the removed communities will be resettled in, told us about the problem of the military in the area. Following the violent attacks on villages, mainly those around or in the gas region,  that have been taking place since October 2017, the government has brought the military, allegedly to protect the communities from the attackers. Nobody is sure about who is responsible for the attacks, but there are many theories going around. The official government line is that they are carried out by Muslim extremists, but many others believe that gas companies, or powerful people in government are responsible themselves.

 

However, Mr Crisanto says that the military who is supposed to be protecting them, instill fear in the community instead. They stand around drinking beer, says Mr Crisanto, and give the people of Senga a curfew of 8pm, and then beat up people who are out after that. “But the army is only in the village till midnight,” Mr Crisanto says, “which I don’t understand… We are too afraid to go to the fields but the army refuses to escort us, so we are left without food.”

 

Mr Crisanto also says that he knows the ecosystem will be completely destroyed, and the Anadarko and Exxon factories are right next to the port that will be built. The port will go 2km into the sea, and the excavation is disturbing the sea bed. This is really affecting fishing patterns and the amount of fish in the area.

 

After speaking with the community members, we held several other meetings that provided important information. One of the other urgent issues is that of media oppression – two community journalists from Cabo Delgado were imprisoned for a long time, with one, Amade Abubacar, detained from 5 January to 23 April 2019. While the official reason for his arrest is unclear, Amnesty International says the he was arrested for documenting deadly attacks by armed groups against civilians.

 

This has left the few journalists who are not following the mainstream government rhetoric in constant fear of their lives or of losing their credibility if they write or say anything which does not align with it. The journalists we spoke with insisted on speaking to us in our hotel room because even being seen with us would put them in danger.

 

We spoke with a few NGO’s, some of whom provided us with very interesting information. We learnt about the vast current issues with the resettlement process. For example, the areas where Anadarko plans to give people machambas (farmlands) is at high risk of attacks, and it is very difficult for civil society to physically go there to protect people from these attacks. Communities feel that monetary compensation is not enough, as it is their ancestral land that is being taken from them. When they have meetings with companies about the process, they are not given the space to ask questions, and when they hold meetings with civil society, the military appears to disrupt the meeting. Anadarko is also known to hold resettlement meetings with individual families, which is divisive, and there is growing hostility over who gets which machambas.

 

We also learnt that many areas in Cabo Delgado, including areas where people are given machambas, are actually not arable, because Portuguese colonizers used them to grow cotton plantations which utilized many chemicals and degraded the soils.

 

Another rather disturbing piece of information is that while we met several NGOs doing interesting work, there are very few in Cabo Delgado working on the gas issue that do not receive funding for some or other service from Anadarko. It raises questions of independence and transparency for us when NGOs receive money from the very companies they are supposed to be challenging.

 

After those few days we spent in Pemba, it became clear that things are changing very quickly – the presence of the companies and private security is growing, fear of attacks and military is increasing and people are already losing their homes and livelihoods. There is a sense of unease in the air – many people don’t want to talk, or if they do, are afraid to say anything openly against the government or industry.

 

There is no doubt that the need to stop the industry is urgent, as the devastation we are already seeing may be irreversible. We will continue to work closely with the affected communities, as part of a campaign that uses different approaches – local and international to stop gas in Mozambique!

Broken Lives,Stolen Futures. A short documentary made by JA! of the sad situation of the communities in Cabo Delgado, Mozambique, affected by the gas exploration..

 

Of Coral FLNG, ExxonMobil owns a 35.7 percent interest in Eni East Africa S.p.A. (to be renamed Mozambique Rovuma Venture S.p.A.), which holds a 70 percent interest in Area 4, and is co-owned with Eni (35.7 percent) and CNPC (28.6 percent). The remaining interests in Area 4 are held by Empresa Nacional de Hidrocarbonetos E.P. (10 percent), Kogas (10 percent) and Galp Energia (10 percent).


In Mozambique LNG, Anadarko (soon to be taken over by Chevron or Occidental Petroleum or?) leads the LNG project with a 26.5 percent ownership stake. Other owners include the Mozambique state energy company, 15 percent; Japan’s Mitsui Group, 20 percent; India’s ONGC Videsh, 16 percent; India’s Bharat, 10 percent; Thailand’s PTT Exploration and Production, 8.5 percent; and Oil India Ltd., 4 percent.

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Under Water

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CORPORATE IMPUNITY: STRATEGIES OF STRUGGLE (PART II)

As we mentioned in last month’s article, corporate impunity – the crime that does pay off – is a complicated matter. At the moment, our chests are still filled with the breath of fresh air brought to us at the end of last month by the second session of the Permanent People’s Tribunal (PPT), where a panel of 8 jurors and almost 200 participants listened attentively to the complaints of communities and activists who suffer first hand the consequences of a system that favours and protects transnational corporations. Experts noted and reiterated what is no longer news to us: the criminal behaviour of these corporations reflects the field of impunity in which they operate. In addition to providing us with a (unpublished) report of deliberations that will help to expose the behaviour of these companies, this jury also made clear that the mobilization of peoples and the opening of spaces like this court are a fundamental part of the fight for justice.

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About PPT, we have little more to say right now. You can find more information on the cases presented here, or read the press release of Southern Africa’s Campaign to Dismantle Corporate Power’s (of which we are part) here. This year, the visibility given to the different cases was notorious (like this article on ProSavana in the South African press), and there was also room for an update on the cases brought to the PPT last year in Swaziland. But this is not the time to slow down – after the PPT, more important moments regarding this issue are coming up.

Nowadays, there is a great legal asymmetry between, on the one hand, the endless regulations that protect and safeguard private investments (even shielding them from political decisions that may conflict with the companies’ financial expectations), and on the other, the non-existent coercive legislation which upholds human rights. Corporations rely on a wide range of international norms that act in their defence – from free trade agreements to investor-state dispute settlement mechanisms – but none that regulates their actions in the light of their impacts. Apparently, for years now we have been hoping that, by themselves, guiding principles or corporate social responsibility (voluntary, unilateral, and non-enforceable) become enough to prevent corporate human rights abuses by the corporations, but obviously, this has not happened and will not happen.04

The national laws of countries such as ours are very weak, not to mention the very limited capacity to enforce them and supervise them. That is one of the reasons why Shell remains unpunished despite the criminal spills it is responsible for in Nigeria, or why hundreds of people are being driven from their land to make way for palm plantations in Indonesia. This is why fighting for the enforcement of existing national legislation is an important step, but it can not be the only one if we really want to stop the impunity of these powerful corporations. It is necessary to think beyond. In today’s globalized world, corporations operate in different national jurisdictions, and take advantage of this to evade accountability. For us, expanding the limits of international law and demanding legal instruments that provide a path from where victims of such violations may demand justice seems to be as urgent or even more.

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The Intergovernmental Working Group mandated to draft a binding Treaty on Transnational Corporations and Human Rights, set up by the UN Human Rights Council in 2014, will meet for the third time in October of this year, then, the concrete terms of the text to be included in the Treaty will be discussed. This initiative, which started with the governments of Ecuador and South Africa, has been gaining strength and supporters. Numerous countries, mostly in the Global South, have already expressed their support for the Treaty, as is the case of Uruguay, which sees in this instrument an opportunity to protect its public policies that are being threatened by the interests of transnational corporations. Mozambique, unfortunately, remains completely out of this discussion and didn’t even show up at the two sessions of the Working Group in the recent years.

An alliance was formed by civil society organizations from around the world to support the drafting of this law, and has actively participated in the sessions of the Working Group to ensure that it will truly represent the needs of those affected. One of the requirements of this alliance is that this treaty contains solid provisions that prohibit corporate interference in the process of formulating and implementing laws and policies. According to Friends of the Earth International (FoEI), also part of the Treaty Alliance, it must establish the criminal and civil liability of transnational corporations in order to fill existing legal gaps in international law, and should apply also to all subsidiary companies and those that form part of its supply chain. Learn more about FoEI’s contributions to the Treaty here.

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When existing legislation does not address all of society’s problems and needs, new legislation must be created. It was like that with the implementation of universal suffrage, with the abolition of slavery, and in so many other historical moments. We believe that we are about to reach an important milestone in the struggle for the sovereignty of peoples and against corporate impunity, and as the poet once said, there is nothing more powerful than an idea whose time has come.

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How much is enough?

Pemba1 040Last week we marched to deliver a declaration to our Southern African heads of state who met in Maputo for the SADC (Southern African Development Community) conference. We demanded that the SADC be reclaimed for the people of the region, for people-centred development, but as I sat in my office to read the weekly local news, I feel overwhelmed by sadness but also utter puzzlement.

Do our leaders really give a thought as to the real needs of the people?

In Mozambique, I sit and read about more multinational corporation investments being approved, unfortunately, there is very little doubt as to whom the government is catering.IMG_1499

In the same week, we witnessed a shocking contradiction of news. Macauweb reported that the government had approved two more forestry concessions for a British company, Obtala Resources group, covering an area of 117,618 hectares, to be located in Cabo Delgado and Nampula provinces. From these concessions, the group expects to extract 8994 cubic meters of wood with a high retail value. The concessions even include very valuable species such as African Blackwood.

At the same time, Verdade newspaper reported that local carpenters in Maputo are struggling to survive with some workshops closing down and workers losing their jobs and livelihoods. Why? It is because they are facing more and more difficulties in purchasing wood without which their profession is impossible.

Pemba3 024While Mozambique is exporting shiploads of wood, to the extent that we are one of the biggest suppliers of wood to the European and Asian markets, the carpenters of Mozambique can’t even etch out a decent, hard-working livelihood anymore. “The wood that is not ours anymore,” they lament.

This contradiction is what is known in Mozambique as “development”! Yet this contradiction is not new to us, however sad and shameful it seems, as we have been listening for many years to the woes of the local artisans increasingly facing a lack of wood. However, whenever communities raise their voices or when they lose hope and act to demand justice and their right to a decent life, they are treated as criminals, and their voices are shut down by threats, as happened in Cateme last January where people were protesting mistreatment in Vale’s coal-mining efforts.

This is just the tip of the iceberg, as we are hurtling towards becoming the poster-child for the “resource curse”, while at the same time we are touting how great our development numbers are.

The Marikana platinum miners who were shot dead by South African police last week were just demanding better wages in an industry that mints billions of US dollars every year. Similarly, the Mozambican carpenters are just asking for the chance to continue their trade and livelihood. People are not asking for hand-outs. They are asking for a chance for survival. They are asking the government to take their side for once and enforce policies that support the struggling masses.

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