Decision

Follow up statement: Crude Accountability complaint to UK NCP about KPO Consortium

Published 25 September 2019

This statement was published on 25 September 2019 by UK National Contact Point (UK NCP) for the OECD Guidelines for Multinational Enterprises.

Background

OECD Guidelines for Multinational Enterprises

1. The guidelines are voluntary principles for responsible business conduct in areas including employment, human rights and the environment. As an OECD member government, the UK is required to maintain a National Contact Point (NCP). The NCP promotes the guidelines, considers complaints about multinational enterprises based, or operating in the UK, have breached the guidelines.

2. The UK NCP is based in the Department for International Trade (DIT). A steering board including members from business, trade unions and civil society has general oversight of the NCP. The NCP is independent of DIT ministers, they are advised of NCP decisions but cannot change or influence them.

Follow up to final statements by the UK NCP

3. Where a final statement includes recommendations, or where an agreement between parties provides for it, the UK NCP approaches parties at a specified date to request an update. The NCP then publishes a further statement reflecting the parties’ responses and any further conclusions of the UK NCP.

Find more details of the NCP’s process and statements

UK NCP recommendations to KPO Consortium

4. The UK NCP’s final statement on the complaint from Crude Accountability against KPO can be viewed on gov.uk. It included the following recommendation that the KPO regards both Household A and Household B as entitled to resettlement arrangements consistent with the current (2012) IFC standard (because their entitlement to resettlement was unfulfilled when that standard took effect). The UK NCP recommends that KPO follows the steps identified in the standard to remedy any deficiencies in the arrangements offered to Household A and Household B and that it completes any action required by the end of May 2018.

5. You can read the Initial Assessment.

Response from the parties

6. The UK NCP contacted both parties by email on 31 May 2019 and invited them to provide updates on the recommendations by 5 July 2019 which could be used in the follow up statement.

Complainant

7. Following the correspondence of 31 May 2019, Crude Accountability responded on 21 June 2019.

8. Crude Accountability stated that Household A, one of 2 households living inside the Sanitary Protection Zone (SPZ), continue to be entitled to relocation compensation as a result of the 2010 court decision. They contend that Household A have had no contact with KPO since the specific instance complaint process began and that it appears that there has been no effort on the part of KPO to comply with the UK NCP recommendations.

9. Crude Accountability state that KPO’s contention that Household A have no property holdings is disingenuous because at the time of the court ruling the family did have property which they were forced to sell at huge financial loss.

10. Crude Accountability report that Household B withdrew their complaint against KPO in 2015 after receiving a separate offer for relocation and compensation from KPO and the local authorities, which was in no way related to the 2010 court decision requiring relocation and compensation for the family and was not part of the negotiated mediation through the OECD NCP process.

11. Household B were relocated to 3 two-room apartments in Aksai and 2 three-room homes in Araltal according to Crude Accountability. In their view this does not relieve the company of its obligations regarding the 2010 court decision.

Company

12. The UK NCP received an update from KPO on 5 July 2019. The UK NCP had also previously received an update from KPO on 28 May 2018.

13. KPO report that on 5 February 2018 the company informed the Akimat of Burlin District of the West Kazakhstan Oblast (WKO) of the final statement seeking their confirmation that the WKO Akimat will offer resettlement arrangements and or an equivalent cash offer to Household A and Household B. The WKO Akimat is the Kazakh Authority responsible for the resettlement under Kazakhstani law as provided under Decree of the Government of the Republic of Kazakhstan #595 of 28 July 2015.

14. On 16 April and 4 May 2018 Burlin District Akimat confirmed that (i) during the relocation Household B were provided with 3 two-room apartments in Aksai and 2 three-room houses in Araltal, where of all required compensations were provided in full and agreements were signed.

15. The Burlin District Akimat explained that with regard to Household A the main criteria for relocation from Berezovka and Bestau was to have a Burlin Justice Department registered property (as per certificate No. 7-43/603 dated 11.04.2018 issued by the Burlin Justice Department). In this case Household A did not qualify because it did not have title to real property in Berezovka.

UK NCP conclusions

16. In June 2010 the Specialized Interregional Economic Court decided that Households A and B had the right to be relocated outside the SPZ and that the responsibility for carry out this decision lay with the local authority.

17. Household A relocated in 2013 after the 2010 court judgement but before the 2018 registration date required by the Burlin Justice Department.

18. The UK NCP welcome the relocation of Household B even if the UK NCP process did not directly contribute to its achievement.

19. The UK NCP consider that KPO by contacting the Burlin District Deputy Akim made a reasonable effort to progress the process of resettlement arrangements for Households A and B and the steps taken are consistent with the IFC Performance Standard for Involuntary Resettlement.