Malaysian Palm Oil Importer Sues NGO Head for Forced Labor Evidence
Malaysian palm oil importer Sime Darby Plantation Berhad filed a lawsuit against Duncan Jepson, the managing director of non-governmental organization Liberty Shared, attempting to force the turnover of information relevant to an investigation into forced labor allegations filed by Jepson with the Securities Commission of Malaysia, the company detailed in a news release. The case was brought before the U.S. District Court for the Eastern District of Virginia on March 9 to get Jepson to provide information to help Sime Darby comply with the foreign proceeding in which Jepson alleged wrongful disclosures in the Malaysian company's 2019 Sustainability Report that resulted in the company reporting false or misleading statements about its use of forced labor. The Securities Commission investigation marks the second major governmental inquiry into allegations of forced labor in Sime Darby plantations, with CBP issuing a withhold release order on the importer's products in December.
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To address Jepson's forced labor concerns, Sime Darby appointed PwC Singapore, along with another individual recommended by Jepson, in October 2020 to “share with us the information necessary to address the alleged issues,” the release said. Sime Darby claims that neither appointed party has shared the necessary materials to address the forced labor concerns. “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,” the press release said.
Jepson's NGO Liberty Shared also filed a complaint with CBP alleging the use of forced labor in Sime Darby's Malaysian supply chain, establishing the WRO which went into effect on Dec. 30, 2020 (see 2012300007). The company claims that the summary of the investigation it was sent did not contain enough information to address the problem at its manufacturing sites. Liberty Shared didn't comment.
Email ITTNews@warren-news.com for a copy of the filing.