Oil trader Vitol silent about its activities in high-risk Nigeria

New report criticises Swiss-Dutch oil giant for lack of transparency and calls for mandatory due diligence. Oil trader Vitol is one of the world’s biggest companies, yet its operations have largely remained under the radar. A new report by SOMO and CISLAC sheds light on Vitol’s activities in the high-risk oil sector of Nigeria, questions the company’s lack of transparency and failure to comply with international standards for responsible business conduct, and calls for new legislation to hold companies like Vitol accountable for the impact of their activities abroad. Public information about Vitol is scarce. As a privatelyowned company, the global oil trader shares very little information about its activities, ownership and human rights policies compared to stock-listed companies of similar size such as Apple, and much less than is expected by international

standards.

High risks This lack of transparency is problematic given the high risks associated with oil trading. In many oil producing countries, oil revenues comprise a significant portion of the government budget and, in some cases, are the country’s largest revenue stream. This is true in Nigeria, where oil sales are also notoriously opaque. This combination of very high potential gains and opacity surrounding oil sales has proved conducive to corruption and fraud. Vitol and other oil traders have been named in relation to various controversial practices. Vitol denies involvement in these controversies, but the company also chooses not to disclose information that could improve transparency and accountability in the sector. Vitol’s lack of transparency also extends to how it addresses human rights and environmental impacts in its supply chain. This is a serious concern, as the Nigerian oil sector is frequently associated with severe social and environmental impacts.

Chinedu Bassey, Programme Manager at the Civil

Society Legislative Advocacy Centre (CISLAC): “In

Nigeria, people are confronted with the grim realities of the oil industry on a daily basis, whether because of the pollution during exploration, or because of the corruption that deprives the Nigerian state of the necessary funds for healthcare, education and other essential services.”

Saskia van Drunen, Senior Researcher at the Centre for Research on Multinational Corporations (SOMO):

“The international normative framework for responsible business conduct stipulates that companies operating in high-risk sectors and contexts, should have particularly stringent due diligence procedures in place, including enhanced, proactive communication about how they address human rights and environmental risks associated with their activities. Vitol fails to do so.”

Urgent need for binding due diligence legislation. The case of Vitol, a company with Dutch roots currently headquartered in Switzerland, highlights the urgent need for legislation both in the Netherlands (where Vitol was founded) and at the European level to make robust, risk-based due diligence mandatory for companies. Concrete legislative proposals for mandatory due diligence are currently being discussed in the EU and in various national parliaments, including the Netherlands. Also, negotiations for a UN treaty on business and human rights will start again next week. In the meantime, governments should step up their efforts to ensure that companies domiciled in their territories abide by the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights.

Contact: Camiel Donicie, c.donicie@somo.nl Tel: +31 20 6391291

Uganda presidential elections would not be held until 2021 but already bloodshed is taking place right now and the world is watching with amaze fear that it would get bloodier in the coming weeks and months before the polls. Uganda is not unfamiliar with electoral violence and

accusation of electoral malpractices but this time around, the President is being challenged by a much younger opponent who is gathering momentum among the younger population and adults who are tired of the one party rule of President Museveni who is contesting as President after being in power since 1986. His biggest challenger is a 34 year old former musician turned politician, Robert Kyagulanyi Ssentamu, known by his stage name Bobi Wine, is a Ugandan politician, singer, actor, and businessman. He currently serves as Member of Parliament for Kyadondo County East constituency in Wakiso District, in Uganda’s Central Region. The government has tried to use all tactics in the book and outside of the book to stop his candidature but to no avail. He would be on the ballot but there is rumour of plant to assassinate him and blame it on other opposition parties to the President party. As at press time, he was adopted during a political rally with his supporters and he was alleged to have violated the covid-19 protocols. His whereabouts are known and protests by his supporters were met with violence reprisal from the military forces being used by the ruling party to intimidate opponents, many people were reported to have been shot and killed and their bodies removed by the military and taken away. The military authority through the son of the president had threatened in the past that they would stop him at all cost if plans to disrupt the electoral process but the question is why would he want to do that as he plans to wrestle power off the long-time president at the polls. His only chance is to ensure that there is a free and fair election in Uganda. That desire is under threat as things continue to degenerate. It would be recalled that long-time rival of the President, Dr. Besigye pulled out of the race on the grounds that the elections would not be free nor fair as President Museveni would not have a fair playing field. Those signs are emerging as his party continues to campaign across the country and the opposition is forbidden to campaign and where they tried to force their way through, they are met with violence attacks and killings by the armed forces being used by the government. The senior Presidential Adviser for Special Operations, Lt. Gen. Muhoozi Kainerugaba, the son of the President has warned Robert Kyagukanyi (Bobi Wine) against jeopardizing peace saying he will be defeated. “I told you my younger brother that you can never intimidate us. We are much

stronger than you can ever imagine to be. If you want to fight we will simply defeat you. We want peace but if you attempt to fight us then bring it on”. Lt. General Muhoozi posted in a tweet recently. In another statement, the police spokesperson confirmed they have arrested Bobi Wine and that if the allegations for which he is being held is uphold that he blocked the President convoy, he make face death penalty by hanging if found guilty. There are all sorts of attempts to stop the popularity of this young politician that is spreading as wildfire across Uganda. Museveni in his youth, fought through the powers of the gun to seize power and become President but he is under threat now with removal through political ballot and not gun. Time would tell if this young man and his coalition partners would succeed where many others failed. Some citizens in Kampala accused the authorities of deliberately shooting and killing innocent citizens on the excuse of seeking opposition thugs aligned to Bobi Wine. The people are angry and believe this is a sign of things to come before the elections in 2021. “The government wants to prevent the opposition by targeting the citizens and bring fear into them to abandon their voting rights and they can cook up their figures for the elections. It is not the first time they did it with Dr. Kizza Besigye but we would not fall into their tricks this time around”, a taxi driver in Kampala was quoted saying. Mr. Bobi Wine was arrested accused of blocking the president convoy; the president himself has angrily said Bobi Wine does not have any right to abuse him and should be punished for that, according to the President he calls me names; he has no right to do that. Well if that is the case, should his supporters be shot with live ammunition and killed? The tension is high because a rumour has it that other opposition candidates are considering to support the young man, Bobi Wine who seems to be gaining a monitor that could unseat the President but the government would fight dirty to stop such moves. A candidate needs to secure more than 50% of the vote to avoid a run-off with the second-ranked contender. Ugandans are also voting in parliamentary elections, it is becoming a contest of young versus old, political elite versus inexperienced youths and opposition alliance versus the government political party and the establishment. We all cross our fingers to see how this contest plays out in Uganda in 2021. The battle and the heat is on already from 2020.