U.S. NGO faces legal proceedings

KUALA LUMPUR: Sime Darby Plantation Bhd (SDP) has fought back against a US-based non-governmental organisation (NGO) which accuses it of using forced labour in its Malaysian estates.

For the first time in its 200-year history, SDP said it had resorted to taking legal action against an NGO.

It had commenced legal proceedings for discovery of critical information against Liberty Shared managing director Duncan Jepson on March 9 in the Eastern district of Virginia in the United States.

The proceedings were to obtain important information pertaining to a complaint filed by Jepson with the Securities Commission (SC), in which he had alleged wrongful disclosures in the company’s Sustainability Report 2019, said SDP in a statement today.

“Jepson is and was at all material times, the managing director of Liberty Shared, a non-governmental organisation. The SC commenced investigations into Jepson’s complaint and accordingly sought additional information from SD Plantation.

“As a responsible corporate citizen listed on the Malaysian bourse, the company will cooperate fully with the SC. Thus, it is vitally important that SDP is able to obtain limited but critical information from the complaint filed by Jepson,” it added.

Liberty Shared had filed a complaint with the United States Customs and Border Protection (USCBP) on April 20 last year alleging the use of forced labour in the production of palm oil in SDP’s Malaysian estates.

SDP was made aware of the complaint on July 7 last year when Liberty Shared issued a summary of the complaint on its website.

“This summary did not contain sufficient information to allow SDP to close any alleged gaps in our operations, which would have naturally benefited our workforce. This is the first time in SDP’s 200-year history that we have resorted to taking legal action against an NGO,” it said.

SDP said it had engaged with non-governmental and civil society organisations across the world, supportive and respectful of the important role they play in society.

“It is this relationship of mutual respect that has allowed SDP to become an industry leader, trusted by its peers, customers, and important stakeholders like highly reputable NGOs.

“It saddens us greatly that despite several direct and indirect engagements, Jepson continues to withhold vital information that could have helped the very workers he claims to champion.”

SDP added that it had appointed PwC Singapore last October on Jepson’s request, to share with it the information necessary to address the alleged issues found in its plantations.

“Subsequently, PwC Singapore appointed yet another individual who works closely with Jepson and Liberty Shared, again on Jepson’s request. Neither PwC Singapore nor the individual have been able to share the material information needed to address any issues that may exist in our plantations,” it said.

Meanwhile, SDP said Jepson had expressed his view that the appointment of NGOs to assist the company would not be ideal as, in his opinion, “social compliance specialists will not be able to offer an honest assessment of corporate governance and internal controls.”

“He also continues to withhold information despite repeated assurances that our main concern is the well- being of our workforce and that at SDP, whistleblowers are protected as a matter of course.

“SDP has taken the next responsible step and appointed a Third Party Human Rights Commission on March 1, 2021, to offer independent and expert assessments of SDP’s entire Malaysian operations,” it added.

Source: NST