Banks, Human Rights and the Equator Principles

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In January 2014 the press in Cambodia and Australia released a number of articles concerning the role of the ANZ Royal Bank in financing the activities of the Phnom Penh Sugar Company (“PPS”), which owns and operates a highly controversial sugar plantation and refinery in Kampong Speu Province, Cambodia. In February 2010, PPS began illegally seizing and bulldozing farm and residential land belonging to more than 1,500 families in the Thpong and Oral districts in the Kampong Spue province. An estimated 100 families in Pis and Plourch villages were forcibly evicted from their homes. As a result the families are faced with food insecurity, job insecurity and homelessness and many had to pull their children out from school to work for PPS as it was the only source of income available. The Australia and New Zealand Banking Group Ltd. (“ANZ”) is a major controlling entity of ANZ Royal Bank and one of the signatories to the Equator Principles (“EPs). Many consider that ANZ acted contrary to the guidelines contained in the EPs thereby facilitating the human rights abuses committed by PPS.

Put simply the EPs are a set of guidelines developed by major financial institutions (over 80 major financial institutions in 34 countries) in 2003 and revised in June 2013 (EP III) which aim to assist them in making better lending decisions in regards to the environment and society. The aim of the EPs is to put checks and balances in place so that financiers can refuse to finance projects, which could negatively impact human rights and the environment.

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Raise your glass: refugee rights eroded as Australia and Cambodia sign deal

Last Friday, Cambodian Minister of Interior Sar Kheng and Australian Minister for Immigration Scott Morrison clinked champagne glasses upon signing the Memorandum of Understanding (the “MoU”) that confirmed the agreement to transfer refugees under Australia’s care to Cambodia. Naturally, there is reason to celebrate: Australia can offload its humanitarian duty and further entrench its policy of deterrence. Cambodia will pocket $35 million in aid over the next four years, money that will arguably end up in the hands of a corrupt few. As the pair congratulated themselves, the rights of refugees embodied in international law took yet another hit.

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To refugees on Nauru, the deal doesn’t conjure sentiments of celebration. Over the weekend they were presented with a video message from Morrison outlining a stark decision: ‘voluntarily’ resettle in Cambodia, or remain on Nauru for a further five years. Either way, it was yet again confirmed that they would never resettle in Australia. For many of the refugees, their pasts have been marked by trauma, and this was the final straw. Five individuals, including four minors, have sown their lips closed in protest, and two others have attempted suicide. They will be passed from a dire situation in Australian detention, which has been deemed harmful by the United Nations High Commissioner for Refugees (“UNHCR”), to a dire situation in Cambodia.

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Australia’s Cambodia refugee deal: a threat to refugees around the world

Today – 20 June 2014 – is World Refugee Day. Around the world, people are raising awareness about the plight of millions of people who have been displaced by war, persecution, abuse, and fear. Yet, despite international law which requires countries to protect refugees and asylum seekers, the international community continues to fail to protect the human rights of these people. Here in Cambodia, an unwelcome agreement with Australia is threatening to erode international law and to affect the fundamental rights of hundreds of refugees and asylum seekers.

February 2014: The Australian press reveals negotiations between the Australian and Cambodian governments. A Memorandum of Understanding has been drafted, under which hundreds of people who had initially sought asylum in Australia may be sent to Cambodia. Details of the agreement have been kept secret, but the media mentions that it could affect up to 2,500 people. The Cambodian government repeats that the people concerned by the agreement will be coming to Cambodia on a volunteer basis. Still, can such a choice be freely made, as Australia has made it clear that those people will never be admitted on its soil?

The refugees and asylum seekers in question are those whom Australia shuts far away from its borders, in Nauru and on Papua New Guinea’s Manus Island, which according to Amnesty International, amounts to arbitrary detention and illegal expulsion of asylum seekers. In Manus, poor living conditions led to violent protests, one death, and about sixty persons injured in February. Australia is certainly ill-at-ease with these shameful events. Sadly, it has decided to replace one illegal option with another.

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