The joint venture between Wilmar and IFAD has received backing from major European banks and governments, including the UK government which was the largest contributor to the most recent funding of IFAD.
A previous report by Friends of the Earth (FoE), which is backing the case, claimed that the palm oil project on Uganda’s Kalangala Island had displaced local communities, increased food insecurity, rendered local water sources unusable, and caused 3,600 hectares of deforestation.
Around 100 small scale farmers were displaced by the land-grabbing activities – receiving ‘little, if any’ compensation, claims FoE.
After fighting to regain their land, and failing to get compensation from the venture or the Ugandan government, the farmers are now seeking to fight for damages in court, FoE added.
Frank Muramui, director of the National Association of Professional Environmentalists (NAPE)/Friends of the Earth Uganda, said: “Wilmar and the other palm oil companies are aware of the fact that communities have been displaced but have to date not been able to resolve the problems.”
“This project was sold to the residents of Kalangala with promises of employment and a brighter future,” added Muramui. “But they were not fairly compensated for the loss of their livelihoods, and now without access to land face a daily struggle to get by.”
The Ugandan farmers are now waiting for a hearing date in court in Masaka. If the judge sustains their complaint, over 100 farmers will receive compensation and the restitution of their land.
FoodNavigator has approached Wilmar International for comment on this issue, but at the time of publishing has recieved no reply.
Investment regulations
Wilmar International, a Singapore-based agribusiness company, has previously received money from several European banks and financiers. Household banking names such as HSBC, BNP Paribas, Deutsche Bank and Rabobank have offered over €1billion of financial assistance to Wilmar International, according to FoE and EurActiv.
Friends of the Earth said that the lack of resolution and compensation in the current case demonstrates clearly that strong regulation is needed to prevent European financiers supporting such damaging projects.
“This case clearly shows that we cannot expect companies and financiers to regulate themselves,” said Samuel Lowe, land campaigner at Friends of the Earth England, Wales and Northern Ireland. “We need binding regulations in Europe so financiers can no longer provide their services to companies engaged in land grabbing.”
“Further, UK taxpayer money should not be funnelled into projects that damage the very people and communities the Government claims to be supporting,” he added.