Ugandan palm oil firm, part-funded by UK Govt, taken to court over land-grab claims

Farmers in Uganda evicted by palm oil plantations are today filing a lawsuit against a joint venture co-owned by oil palm giant Wilmar International. They are claiming restitution for their grabbed land and fair compensation for damages, three years after their land was taken for plantation development.

Additional financing for the project came from the Ugandan government and the UN International Fund for Agricultural Development (IFAD).  The UK was the largest contributor to the most recent funding  of IFAD.

Friends of the Earth International is backing the community’s land grab case, filed after three years of talks with the Ugandan government and the company, which has failed to bring them justice.

The land grab occurred on the islands of Kalangala – situated in Lake Victoria, Uganda – in 2011, leaving at least one hundred small-scale farmers landless.  Displaced smallholders received little, if any, compensation.

John Muyiisa, one of the plaintiffs said:

“When I lost that land, I did not only lose my livelihood, I also lost my pension and a secured income for my children and grandchildren. I did all I could to get the land back – I even went to the office of the President of Uganda. Now I am looking to the court to provide us with justice.”

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. 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.”

Wilmar International receives money from several European banks and financiers. Friends of the Earth groups in Europe and the US have regularly brought the case to the attention of Wilmar International [4] and their European and US financiers.

Samuel Lowe, land campaigner at Friends of the Earth England, Wales and Northern Ireland, conducted a field visit in January 2015 to talk to John Muyiisa and other affected people, as well as to local leaders and government officials in Kalangala. The environment charity believes it now clear that strong regulation is needed to prevent European financiers supporting such damaging projects.

Samuel Lowe said: “This case clearly shows that we cannot expect companies and financiers to regulate themselves. 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 – our Government must carry out stricter monitoring of where the money is going.”

John Muyiisa and the other plaintiffs 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.

ENDS

Notes to editors:
1. The project is carried out by Oil Palm Uganda Limited (OPUL). OPUL is a subsidiary of Bidco Uganda, which holds 90% of its shares. Bidco Uganda is a joint venture formed between Wilmar International, Josovina Commodities and Bidco Oil Refineries, a Kenya-based company. Wilmar International holds at least 39% of the shares of the joint venture and is providing technical expertise for the project.

2. The UN International Fund for Agricultural Development (IFAD) provides loans and grants to around 119 national governments.

3. The court case comes after various attempts by NAPE/Friends of the Earth Uganda to resolve the land conflict by bringing all stakeholders together and initiating a commission to investigate the problems and provide recommendations.

4. Against the tide: tackling palm oil in Indonesia

5. European banks fuel land grabs in Uganda