Environmental non-governmental organization Greenpeace has accused a corporation with ties to Singapore-based firm Wilmar International of rainforest destruction in Papua, Indonesia.
In a press release yesterday, Greenpeace alleged that Gama Corp is responsible for the deforestation of an area twice the size of Paris based on flyover analyses they conducted back in March.
Greenpeace also claims that Gama Corp is a shell company for the world’s largest palm oil company, Wilmar International — a claim that the agribusiness giant fiercely disputes.
“Mapping and satellite analysis shows that Gama destroyed at least 21,500ha of rainforest or peatland,” noted the environmental NGO.
According to Greenpeace, Gama was set up by Wilmar’s co-founder Martua Sitorus and his brother, Ganda, in 2011, while Ganda’s sons — Andy and Darwin Indigo — manage concessions for Gama. Darwin Indigo is also General Manager of Wilmar.
In a letter faxed to Greenpeace, Wilmar CEO Kuok Khoon Hong acknowledged having business dealings with Gama but went through great pains to demonstrate that, despite family ties between the two companies, they are completely separate entities.
“The fact that they are relatives of Mr Sitorus, does not mean that Gama Corp exercises management control over Wilmar or that Wilmar exercises management control over Gama Corp,” Hong said in the letter.
In the same letter, Wilmar conceded that Gama Corp and its suppliers may be associated with deforestation practices and vowed to cease buying from those suppliers itself.
The question over the link between the businesses is a point of contention for both sides due to Wilmar’s voluntary commitment to end deforestation nearly five years ago. In 2013 they were the first palm oil trader to enact a “no deforestation, no peat, no exploitation” policy – an internal mandate applied to both its own plantations and those of its suppliers.
For Wilmar, admitting executive ties with Gama would mean it is in violation of its own policies and potentially tarnish its reputation as an eco-friendly corporation.
In response to the Greenpeace report, a Wilmar spokesperson reiterated the separation between Wilmar and Gama Corp, and its new policy that it would cease sourcing from Gama Corp’s suppliers Gama which Greenpeace identified in their report.
“Wilmar will not buy from any company that cannot prove to our satisfaction that they do not belong to Gama Corp because of the alleged identified non-compliance with Wilmar’s No Deforestation, No Peat and No Exploitation (NDPE) Policy,” the spokesperson said.
