Super Fund Puts Profits Before People

Super Fund puts profits before people

The New Zealand Superannuation Fund's Chief Executive can see no need to end the Fund's $18 million investment in Total S.A., despite the fact that French oil giant Total has a major operation in Burma.

'CEO Adrian Orr says that the Fund is fulfilling its obligations to maximise financial returns without prejudicing New Zealand's 'responsible' reputation.  But I fail to see anything responsible in helping Total to go on working hand and glove with the Burmese military junta,' said Maire Leadbeater  for the Indonesia Human Rights Committee. 'We are conveying our concern to Mr Orr and to Finance Minister, Dr Cullen.'

'Mr Orr should listen to the advice of the Burmese leader Aung San Suu Kyi who has said that Total is the main supporter of the military regime.  It is impossible to do business with Burma without supporting the regime.  The oil and gas extraction industry provides the regime with its largest source of income, bringing in around a third of the country's export revenue.  Total relied on the Burmese military to provide security to build the pipeline which transports gas to Thailand. The human rights abuses which have been documented include allegations of rape, forced labour and mass displacements of villagers.'

The Burmese regime is estimated to spend up to half its budget on it huge (500,000 strong) army of repression.   Right now the regime is setting up detention camps because the jails are at bursting point after many thousands of monks and peaceful demonstrators were rounded up over the past week. There is no way that any of the New Zealand taxpayer's contributions should end up funding this kind of iniquity.

 This intransigent response will inevitably fuel further protests against the Super Fund's unethical and dangerous investments. The Super Fund hasn't yet heeded the call to divest its investments in nuclear weapons producing companies.  It also continues to invest in Freeport McMoran the giant gold and copper mine in West Papua which is responsible for tragic environmental and social devastation.  In West Papua also there are widespread allegations of human rights abuses perpetuated by the Indonesian military assigned to provide 'security' for the mining operation.

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4 October, 2007

Adrian Orr,
Chief Executive Officer
David May,
Chairman of the Board of Guardians,
New Zealand Superannuation Fund,
PO Box 106 607,
Auckland. 

Hon Dr Michael Cullen,
Minister of Finance,
Parliament Buildings,
Wellington

Dear Sirs,We are deeply concerned that the Superannuation Fund is not yet taking action to end its investment of over $18 million in Total S.A., the French oil firm which has a major operation in Burma.We note that Superannuation Fund CEO Adrian Orr says that the Fund is fulfilling its obligations to maximise financial returns without prejudicing New Zealand's 'responsible' reputation. 

But we believe that it cannot be considered 'responsible' to invest in a company which works very closely with the military junta in Burma. In the light of the current crisis situation this investment should be reviewed urgently.Effectively, given the regime's tight control over the economy, it is impossible to do business with Burma without supporting the regime.  Moreover, Burmese pro-democracy  leader, Aung San Suu Kyi,  has described  Total as the  main supporter of the military regime and has called on Total and other foreign companies not to invest in Burma.   

The oil and gas extraction industry provides the regime with its largest source of income, bringing in a third or more of the country's export revenue.  The Burmese regime is estimated to spend up to half its budget on its huge (500,000 strong) army of repression.  

Right now the regime is setting up detention camps because the jails are at bursting point after many thousands of monks and peaceful demonstrators were rounded up over the past week.

Total is also associated more directly with allegations of  grave human rights abuses,  as the company relied on the Burmese military to provide security when it built  the pipeline which transports gas to Thailand.

The list of these documented crimes against the Burmese people includes allegations of rape, forced labour and the mass displacements of villagers.

We urge both the New Zealand Government and the management and Board of the Superannuation Fund to review the decision to invest in Total Oil and all companies which continue to operate in Burma. 

The regime is ignoring international appeals to respect human rights and democracy but it cannot survive if its financial life-blood is removed. 

Other countries are imposing sanctions on investments and exports from Burma.  It is time New Zealand played its part.

Yours sincerely,
Maire Leadbeater
(for the Indonesia Human Rights Committee)

ENDS