DEPARTMENT FOR
BUSINESS, ENTERPRISE AND REGULATORY REFORM News Release (2008/183)
issued by The Government News Network on 28 August 2008
A minerals company
failed to make sure its activities did not support armed conflict
and forced labour in Democratic Republic of Congo (DRC), a British
government investigation has found.
Afrimex sourced minerals from an area of eastern DRC occupied by
rebel troops until 2003. The firm has now been criticised for
failing to make sure its trading activities were not contributing
to conflict and human rights abuses.
The government investigation found that rebel soldiers extracted
money from the firm's supply chain, helping them fund their campaign.
Through its lack of diligence, the firm failed to contribute
towards ending the use of child labour and forced labour.
Trade minister Gareth Thomas said:
"We are determined to promote the highest ethical standards
and companies trading in conflict areas should take all possible
steps to meet them.
"By operating ethically, British firms investing in
developing countries will contribute to peace and prosperity - not
to war and human rights abuses."
A complaint against Afrimex's activities between 1998 and
2007 was made last year by campaign organisation Global Witness,
triggering an investigation by the UK National Contact Point (NCP).
The NCP's final statement on the complaint against Afrimex
made four recommendations:
* The government expects all UK businesses to be able to prove
they meet the OECD guidelines
* UK companies should use their influence over trading partners
in DRC to ensure due diligence is applied to the supply chain
* Afrimex should create a corporate responsibility document based
on an assessment of its supply chain's impact on human
rights. This should be integrated into their operations
* The company should use the OECD's Risk Awareness Tool for
Multinational Enterprises in Weak Governance Zones to help stay
within the rules
Notes to Editors
1. The National Contact Point's final statement on the case
will be published at http://www.csr.gov.uk/ncp_comp4.htm
on Thursday 28th August.
2. The OECD Guidelines on Multinational Enterprises set out
standards that member states expect business to adhere to,
wherever they are trading and operating overseas. The Guidelines
cover a broad range of issues in business ethics, including
industrial relations, the environment, and corruption.
3. The UK National Contact Point initially brings parties
together to mediate a solution to complaints brought against
companies registered in or operating from the UK. It is only if
mediation fails that the NCP investigates. If it considers that a
company has not met the requirements of the guidelines it will
issue a statement detailing this decision and making
recommendations on how the firm can come into line with the
guidelines in future.
4. Global Witness brought the complaint against Afrimex in
February 2007, alleging breaches of the rules dating back to 1998.
The NCP investigation covered the period since June 2000, when the
current guidelines came into effect.
5. The guidelines are not legally binding, but all OECD members
and a number of non-members are committed to promoting adherence
to them.
6. The Department for Business Enterprise and Regulatory Reform
helps UK business succeed in an increasingly competitive world. It
promotes business growth and a strong enterprise economy, leads
the better regulation agenda and champions free and fair markets.
It is the shareholder in a number of Government-owned assets and
it works to secure, clean and competitively priced energy supplies
Department for Business, Enterprise & Regulatory
Reform
7th Floor, 1 Victoria Street, London SW1H 0ET
Public enquiries +44 (0)20 7215 5000
Textphone +44 (0)20 7215
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http://www.berr.gov.uk