Several NGOs has informed US President Barack Obama that American companies making investments in Burma are not making full disclosures.
In a joint letter to Obama yesterday, the NGOs led by Washington-based US Campaign for Burma, commended American companies that have complied with the July deadline for timely reporting - Capital Bank and Trust Company and Capital International Inc., Hercules Offshore Inc., and Crowley Marine Services Inc.
In a joint letter to Obama yesterday, the NGOs led by Washington-based US Campaign for Burma, commended American companies that have complied with the July deadline for timely reporting - Capital Bank and Trust Company and Capital International Inc., Hercules Offshore Inc., and Crowley Marine Services Inc.
At the same time it expressed concerns that these reports exhibit serious informational gaps.
The US Administration must correct these oversights and avoid
setting a precedent allowing companies to avoid forthright disclosures
in future reports, the letter said.
After the Obama Administration allowed US companies to make
investments in Burma by relaxing the sanctions in the South East Asian
nation, they were asked to make disclosures of their investment and
their practises as part of its effort to ensure no human rights
violation.
The Reporting Requirements were intended to help the US
Government and US businesses manage the impacts of investment and
safeguard human rights in Burma, as well as to provide the transparency
that civil society groups need in order to promote responsible
investment.
"In three separate reports, two related investment funds,
Capital Bank and Trust Company and Capital International Inc.
(collectively, 'Capital') declined to report on their human rights,
worker rights, anti-corruption, and environmental policies and
procedures, arrangements with security service providers, property
acquisition practises, payments to the Burmese government, or even the
general nature of their investments in Burma," the letter said.
As such these 26 NGOs urged the Obama Administration to clarify
that all investors in Burma are expected to report thoroughly on their
activities, even self-declared 'passive' investors.
'Passive' investors - just like hands on investors - should
explain in detail the nature and scope of their investment and the due
diligence, if any, they have conducted, they said.
"International standards concerning responsible corporate
investment, including the OECD Guidelines for Multinational Enterprises,
which the US has endorsed, demand human rights due diligence from all
companies that operate internationally, and apply equally to active and
passive investors," the NGOs said.
source: Business Standard
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