The French energy giant TotalEnergies appeared in a Paris court after years of delay in a case in which six NGOs accuse it of “failing in its duty of vigilance” on two massive oil drilling and pipeline projects in Uganda and Tanzania.
The French organisation Survie, along with Friends of the Earth and four Ugandan NGOs, accuse TotalEnergies disregarding human rights and the environment as it moves forward with the massive infrastructure deals.
The “Tilenga” 419-well drilling project in Uganda, which is partly located in a natural park, and the East African Crude Oil Pipeline (EACOP) project are intended to transport hydrocarbons to the Indian Ocean by crossing 1,400 kilometres of Tanzania.
Once built, EACOP will be the longest oil pipeline in the world.
The NGOs are calling on the company to comply with a 2017 French law passed that compels multinationals to respect “duty of care” regarding their activities.
The legislation obliges TotalEnergies to “prevent serious violations of human rights, health and safety of people and the environment” when dealing with foreign subcontractors and suppliers through a “vigilance plan” that must map risks and establish measures to prevent them.
The core elements of the case will finally be examined three years after filing this first-ever lawsuit based on the pioneering French law on the duty of vigilance of transnational corporations, adopted in 2017.
Court case hindered by technicalities
The case has been delayed for three years due to a procedural battle that TotalEnergies eventually.
The active phase of the project began in February, and oil production in Uganda is due to start in 2025, despite condemnation of the project by the European Parliament, four United Nations special rapporteurs and numerous political leaders and associations.
Wednesday’s hearing in Paris – which was attended by several associations and politicians, including the MPs who instigated the law – is the first to be held on the merits of the case before the courts since the legislation was passed by the French parliament five years ago.
The NGOs’ lawyer, Louis Cofflard told the court he regretted that TotalEnergies had not taken advantage of the past three years of proceedings to “commit itself and comply with its obligations”, adding that there was a “certain form of cynicism” on the part of the oil and gas group.
Outlining the alleged shortcomings of TotalEnergies’ vigilance plan, he expressed his regret that it did not include “the environmental risks and climate impacts associated with the project”.
Land seizures
Some “118,000 partial expropriations [of land] are necessary” she said, but the people who need to be compensated – often small farmers – are “deprived of the right to work their land before receiving any compensation.”
The court heard that some 28,000 people are still waiting for compensation and TotalEnergies is not taking any measures to prevent thousands of farmers from being deprived of the right to use their land.
Gagey called on the court to order the group to pay them immediately.
TotalEnergies: NGOs are ‘obstinate’
TotalEnergies’ lawyer, Antonin Lévy, said he could have “spent five hours denouncing the failings” and untruths of the NGOs, but preferred to focus on “the inadmissibility of their claim.”
He noted that the summons issued in 2019 was aimed at the 2018 vigilance plan – which has since evolved.
Plus, he argued that that the Paris court cannot take extra-territorial action, maintaining that the project is led by TotalEnergies Uganda, a subsidiary of the French group.
The NGOs want to put “TotalEnergies, Tilenga and EACOP, Tanzania, Uganda and their leaders on trial”, he said, denouncing the “obstinacy in trying to be the emblematic case, the one that will perhaps set a precedent, to the detriment of the populations concerned.”
The case will be deliberated by the court until 28 February 2023.
Source: allafrica.com
Share this news
This Year’s Most Read News Stories
President Samia takes on Tanzania’s web of corruption
The President takes on the web of corruption in the Tanzanian government and quasi-government institutions flagged by the newest report by Controller & Auditor-General Charles Kichere. Continue Reading
ACT Unaware of Mwinyi’s joint committee on Zanzibar reforms
Opposition party ACT Wazalendo has said it is not aware of a special committee on reforms and has directed the party’s leadership to follow up on the decision of the Central Committee which directed its leaders to meet with President Hussein Ali Mwinyi.Continue Reading
Britam half-year net profit hits Sh2bn on higher investment income
Insurer and financial services provider Britam posted a 22.5 percent jump in net earnings for the half-year ended June 2024, to Sh2 billion, buoyed by increased investment income.
The rise in half-year net profit from Sh1.64 billion posted in a similar period last year came on the back of net investment income rising 2.5 times to Sh13.27 billion from Sh5.3 billion.
“We are confident in the growth and performance trend that Britam has achieved, supported by its subsidiaries in Kenya and the region. Our business is expanding its revenue base while effectively managing costs,” Britam Chief Executive Officer Tom Gitogo said.
“Our customer-centric approach is fueling growth in our customer base and product uptake, particularly through micro-insurance, partnerships, and digital channels.”
The investment income growth was fueled by interest and dividend income rising 34 percent to Sh9.1 billion, which the insurer attributed to growth in revenue and the gains from the realignment of the group’s investment portfolio.
Britam also booked a Sh3.79 billion gain on financial assets at a fair value, compared with a Sh1.8 billion loss posted in a similar period last year.
The increased investment income helped offset the 12.7 percent decline in net insurance service result to Sh2.13 billion in the wake of claims paid out rising at a faster pace than that of premiums received.
Britam said insurance revenue, which is money from written premiums, increased to Sh17.8 billion from Sh16.6 billion, primarily driven by growth in the Kenya insurance business and regional general insurance businesses, which contributed 30 percent of the revenue.
The group has a presence in seven countries in Africa namely Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique, and Malawi.
Britam’s insurance service expense hit Sh13.6 billion from Sh11.3 billion, while net insurance finance expenses rose 2.6 times to Sh12.3 billion during the same period.
“Net insurance finance expenses increased mainly due to growth in interest cost for the deposit administration business driven by better investment performance. This has also been impacted by a decline in the yield curve, which has led to an increase in the insurance contract liabilities. The increase has been offset by a matching increase in fair value gain on assets,” said Britam.
Britam’s growth in profit is in line with that of other Nairobi Securities Exchange-listed insurers, which have seen a rise in profits.
Jubilee Holdings net profit in the six months increased by 22.7 percent to Sh2.5 billion on increased income from insurance, helping the insurer maintain Sh2 per share interim dividend.
CIC Insurance Group posted a 0.64 percent rise in net profit to Sh709.99 million in the same period as net earnings of Liberty Kenya nearly tripled to Sh632 million from Sh213 million, while Sanlam Kenya emerged from a loss to post a Sh282.2 million net profit.
