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RECOMMENDATIONSHuman Rights Watch recommends that the Greater Nile Petroleum Operating Company (GNPOC), the Lundin Block 5A Consortium, the Petronas 5B Consortium, and each of their member companies, namely Talisman Energy (and its successors), CNPC, Petronas, Lundin Oil, OMV (and its successors), and Sudapet should suspend their activities in Sudan. None of these nor any oil company, including TotalFinaElf, nor industry contractors and subcontractors, should resume or commence operations in
Sudan unless the following minimum benchmarks are met:
I. Minimum Benchmarks Displacement The companies The companies adequately finance a team, under the supervision of the U.N. High Commissioner for Human Rights, composed of independent experts on southern Sudan to compile an authoritative, credible survey of the identities and numbers of civilians forcibly displaced in or from the relevant oil concessions. The survey should attempt to determine the scope of human rights abuses since displacement from oil concession areas began, and who was responsible for their forcible displacement.
Its findings should be made public. The survey should be in a form usable for determining future compensation.
The government provides temporary accommodation for those who have been displaced in accordance with the standards utilized by the UNHCR, including the U.N. Guiding Principles on Internal Displacement.1605 Furthermore, the government implements a credible and verifiable process to allow those forcibly displaced to return to their homes, with adequate compensation. If return is not possible, it provides them with adequate compensation for an acceptable place of relocation. The U.N. Guiding
Principles on Internal Displacement state that:
Competent authorities have the duty and responsibility to assist returned and/or resettled internally displaced persons to recover, to the extent possible, their property and possessions which they left behind or were dispossessed of upon their displacement.
When recovery of such property and possessions is not possible, competent authorities shall provide or assist these persons in obtaining appropriate compensation or another form of just reparation.... (Principle 29(2)) [Furthermore,] competent authorities have the primary duty and responsibility to establish conditions, as well as provide the means, which allow internally displaced persons to return voluntarily…to their homes or places of habitual residence, or to resettle voluntarily in another part of the country.... (Principle 28) The compensation should include not only relocation funds, but also compensation for the loss of livelihood, family members, and property, and pain and suffering as a result of government army or militia attack and subsequent displacement.
The government protects returnees from all forms of harassment, abuse, or further displacement by its agents or others, and provides full access for independent monitoring of the conditions of their resettlement.
1605 U.N. Guiding Principles on Internal Displacement, Principle 29 (2), http://www.reliefweb.int/ocha_ol/pub/idp_gp/idp.html.
Although non-binding, the Guiding Principles are based upon and reflect international humanitarian and human rights law, which are binding.
The government ceases all use of oil company airfields, transport, and infrastructure for military purposes, except to treat or evacuate the injured, wounded, or dead.
The government takes credible, verifiable steps to cease forced displacement from concession areas, and targeted or indiscriminate aerial bombardment or other attacks on civilian areas, including on civilian infrastructure such as relief sites, hospitals, churches, and schools.
The government permits unimpeded access to the oil-producing areas for Sudanese citizens, international organizations, human rights monitors, journalists, and humanitarian organizations.
Transparency The companies Oil companies, consortia members, and subcontractors disclose whether they have provided cash or in kind equipment or services for military, security, or dual use purposes.
The government The government adheres in full to the International Monetary Fund (IMF) Code of Good Practices for Fiscal Transparency (see Appendix B). The government publishes the audits that the IMF Auditor General has conducted of Sudapet oil revenue and Sudanese government revenue from 1999 through 2002, and of the year 2003, and future such audits.
II. Failure to meet benchmarks
To the European Union and its member states (notably Sweden, Austria, France, Germany, and the United Kingdom), and the governments of Canada, China, and Malaysia, and any other state where oil companies operating in Sudan are
Should the minimum benchmarks not be met within six months and companies based in your countries fail to withdraw from Sudan, pressure them to do so through targeted legislation and other measures.
III. Additional Recommendations
To the companies:
Publicly and privately condemn human rights violations by all parties in Sudan, and the inappropriate use of oil facilities by the government forces, and establish procedures to ensure that the activities of the consortia, their company members, and theirsubcontractors do not result in, benefit from, or contribute to human rights abuses.
Engage high-level government officials in active dialogue about human rights on a regular and timely basis. Actively monitor the status of Sudanese government or U.N. human rights investigations and press for their resolution.
Contribute to a trust fund to benefit the victims of human rights abuses in the oil producing areas, including compensation for those forcibly displaced. The fund should be transparent and fully audited.
Contribute to a fund to establish an independent human rights monitoring organization for all Sudan oilfields and related territory, and work to ensure that the organization has full access to the oil producing areas. The organization should include qualified, salaried, and experienced full-time staff based in the area and region, with supervision by the U.N. High Commissioner for Human Rights, and other independent human rights professionals.
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Adopt internal guidelines for the provision of security by public or private forces for facilities in oil producing areas, emphasizing the need to respect human rights, to institute effective monitoring to ensure the guidelines are being followed, and to initiate disciplinary proceedings when they are violated.
Those guidelines should prevent conduct that would be in violation of the international humanitarian rules of war if carried out by government or rebel forces and be in line with the U.N. Code of Conduct for Law Enforcement Officials, U.N. Basic Principles on the Use of Force and Firearms by Law Enforcement Officials, and the various corporate codes of conduct in effect.
Allow and cooperate with independent verification of compliance by GNPOC, Lundin, and Petronas consortia, their members, and subcontractors, with international human rights and humanitarian law standards.
Issue independent and verified reports on the government’s compliance with international standards of human rights and humanitarian law. Issue independent and verified reports on internal company compliance with the International Code of Ethics for Canadian Business or any other code of conduct which any of the consortia, companies, or subcontractors may have adopted.
Ensure human rights training for all public or private security providers, based on the U.N. Code of Conduct for Law Enforcement Officers and international humanitarian law.
To the Government of Sudan:
Protect all civilians in war zones and refrain from targeted or indiscriminate attacks upon population centers or other civilian settlements, and on civilian objects including relief sites, hospitals, churches, and schools.
Demonstrate your commitment to international human rights and humanitarian law by ratifying or acceding to and respecting the Convention on the Prohibition of the use, stockpiling, production and transfer of antipersonnel mines and on their destruction (the Mine Ban Treaty); the Convention Against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment; the Convention for an
International Criminal Court; and the Optional Protocol to the Convention on the Rights of the Child on the involvement of children in armed conflict.
Disarm and disband the Baggara militia (muraheleen), on account of their abusive record, and any Popular Defence Force or army units in which they are included.
Cease funding or using in any military activities any other armed groups who are reported to have carried out widespread and systematic abuses.
Ensure that any military unit operating with the Sudanese army observes the same rules of international humanitarian law by which the Sudanese government is bound.
Investigate and prosecute those alleged to be responsible for attacking civilians and civilian objects, looting, kidnapping, abducting, or engaging in forced labor practices or slavery.
Permit the ICRC to conduct inspections of all detention and jail facilities, and to conduct private interviews with any prisoners or others detained in connection with the conflict. Permit the ICRC to have access to military places of detention.
Contribute to a trust fund for the compensation of individuals who have been displaced by the government or government agents from their homes in the oil concessions. The fund should be transparent and fully audited.
Adhere in full to the IMF Code of Good Practices on Fiscal Transparency and publish a detailed account of military expenditures and the source of such revenue under IMF guidance, allowing for a reasonable balance between full detail and valid national security concerns.
Develop legislation and regulations requiring present owners and prospective purchasers of oil concessions and other oil facilities to conduct an independent human rights and environmental impact assessment and to protect the human rights of those living in or near the oil projects.
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To the United States:
Condemn abuses by all parties to the conflict—including the Sudanese government armed forces and its ethnic militias, SSDF, Baggara militias, Popular Defence Force, SPLM/A, and others—and insist that those responsible for abuses be held accountable.
Continue existing sanctions on Sudan until concrete and measurable progress has been made toward ceasing human rights abuses.
Avoid providing funding, directly or indirectly, to or through any rebel movement, armed force, or coalition, whether it be U.S. AID or Economic Support Funds or other, until that rebel, armed, or coalition force has demonstrated that it will respect human rights and humanitarian law in the conduct of its own troops, officers and members. Specific actions would include investigation and appropriate punishment for human rights abusers, past and present.
Investigate allegations of abuses by any rebel formation, and issue a public report to Congress on rebel abuses every six months, with specific steps that the U.S. will take to help prevent such abuses in the future.
To the Canadian Government:
Put Sudan on the Area Control List for selective trade restrictions in support of human rights objectives.
Enact legislation that would permit Canada to apply unilateral economic sanctions to companies engaged in the oil business in Sudan. Apply sanctions if the minimum conditions listed above are not met within a limited time frame.
In conjunction with Canadian human rights experts and the nongovernmental Canadian-based organizations which have been associated with the Sudan oil campaign, establish and finance a Canadian monitoring office for the Sudan oilfields. It should operate under the direction of human rights experts and the campaigning NGOs, and issue reports on human rights abuses in the oilfields and related territory. It should monitor government and rebel conduct, as well as compliance by Canadian and other 532 Conclusions and Recommendations companies and the consortia of which they are members with the International Code of Ethics for Canadian Business, whether or not they have signed it.
To the governments of Canada, China, and Malaysia:
Contribute to a trust fund for the compensation of individuals who have been displaced by the government or government agents from their homes in the oil concessions. The fund should be transparent and fully audited.
To the European Union and its member states, notably Sweden, Austria, France,
Germany, and the United Kingdom:
Initiate a consultation with the government of Sudan under Article 96 of the Cotonou Agreement between the E.U. and the African-Caribbean-Pacific (ACP) states, and insist on measurable progress including remedies for past human rights abuses, an immediate cessation of government bans on relief flights and denial of access to relief operations, and cessation of targeting civilians and civilian objects. In particular the consultation must stress abuses in the oil areas.
Authorize and fund an independent and professional human rights and environmental assessment of all oil concession areas in Sudan where E.U. companies have invested or provided good or services, supervised by the U.N. High Commissioner for Human Rights—where at least a full year is provided for field work—to determine whether or not oil development has contributed to human rights abuses, the spread of the conflict, loss of livelihood of original residents, or potential or actual environmental damage.
Authorize and fund an independent and professional investigation of possible breaches of the E.U.
arms embargo on Sudan, including any arms sales or transfers by E.U. aspiring members.
Devise regulations for transnational companies incorporated or based in the E.U. regulating their conduct so that they do not become complicit, directly or indirectly, with human rights abuses in countries where they are doing business.
Seek from all companies incorporated or based in the E.U. which are engaged in oil-related business in Sudan detailed annual reports relating to their compliance with international business codes and international business human rights norms.
To the members of the United Nations Security Council:
Impose and enforce an embargo on trade or transfer of all arms and other war materiel between any person, company, or country and the Sudanese government or any rebels operating inside Sudan until concrete and measurable progress in compliance with international human rights and international humanitarian law is made toward ending human rights abuses, as established by the U.N. High Commissioner for Human Rights.
To the World Bank:
Refrain from lending to or funding of the government of Sudan, including funding for research, until the above minimum benchmark conditions are met.
To the rebel forces: the SPLM/A and other anti-government armed groups:
Publicly condemn abuses against civilians by your forces, and adhere to human rights and humanitarian law standards.
Conduct investigations of human rights and humanitarian law abuses.
Ensure the protection of civilians in war zones, including smaller ethnic groups, Muslims, women, and children.
Allow unimpeded access to humanitarian organizations, human rights monitors, and journalists.
Cooperate with efforts of international, national, and U.N. human rights monitors to investigate and publicize abuses of human rights and humanitarian law occurring within your territory.
Permit the ICRC (according to its modalities) to conduct inspections of all detention and jail facilities, and to conduct private interviews with any prisoners or others detained in connection with the conflict.
Immediately demobilize all child soldiers under the age of eighteen and cooperate with UNICEF, Rädda Barnen, and others in their efforts to reunite the children with their families.
For the SPLM/A, stop supporting Nuer factions, whether inside or outside of the SPLA, that engage in fighting other Nuer.
APPENDIX A: CHART OF BOMBING CONDUCTED BY THE GOVERNMENT OFSUDAN, 2000-2001 Best Estimates, Compiled Regularly from Reliable Sources by Sudan Focal Point-Africa, Nairobi1606 20001607
1606 These data are a conservative estimate taken only from confirmed reports. The numbers of bombs, injuries and deaths exceeded that which is listed here.
1607 A report of the bombing conducted in January, February, April, and May 2000 is not available.
APPENDIX B: INTERNATIONAL MONETARY FUND, CODE OF GOOD PRACTICES
ON FISCAL TRANSPARENCYUpdated March 23, 2001 http://www.imf.org/external/np/fad/trans/code.htm (accessed May 23, 2002) Introduction This update of the Code of Good Practices on Fiscal Transparency, was approved by the Executive Board on March 23, 2001 and subsequently acknowledged by the IMF. The basic principles remain the same as those of the original Code. The revised version gives added emphasis to assurance of the quality of fiscal data and includes other minor modifications derived from experience in implementing the Code.
Modifications to the Code will continue to be considered periodically, in light of the experience with its application.
The Interim Committee stressed the importance of good governance when it adopted the Partnership for Sustainable Global Growth in September 1996, and again at its September 1997 meeting in Hong Kong SAR. Fiscal transparency would make a major contribution to the cause of good governance. It should lead to better-informed public debate about the design and results of fiscal policy, make governments more accountable for the implementation of fiscal policy, and thereby strengthen credibility and public understanding of macroeconomic policies and choices. In a globalized environment, fiscal transparency is of considerable importance to achieving macroeconomic stability and high-quality growth. However, it is only one aspect of good fiscal management, and attention has to be paid also to increasing the efficiency of government activity and establishing sound public finances.
Because of its fiscal management expertise and universal membership, the IMF is well placed to take the lead in promoting greater fiscal transparency. The IMFC is therefore seeking to encourage IMF member countries to implement the following Code of Good Practices on Fiscal Transparency. The Code is
based around the following key objectives: roles and responsibilities in government should be clear;
information on government activities should be provided to the public; budget preparation, execution, and reporting should be undertaken in an open manner; and fiscal information should attain widely accepted standards of data quality and be subject to independent assurances of integrity.
The Code sets out what governments should do to meet these objectives in terms of principles and practices. These principles and practices are distilled from the IMF's knowledge of fiscal management practices in member countries. The Code will facilitate surveillance of economic policies by country authorities, financial markets, and international institutions. Guidelines to the implementation of the Code are provided in a supporting manual, which has been revised in line with the changes in the Code, and updated in a number of areas.
The Code acknowledges diversity across countries in fiscal management systems and in cultural, constitutional, and legal environments, as well as differences across countries in the technical and administrative capacity to improve transparency. Most countries have scope for improvement in some aspects of fiscal transparency covered in the Code. Diversity and differences across countries, however, inevitably imply that many countries may not be able to move quickly to implement the Code. Moreover, it is recognized that there may be a need for technical assistance if existing fiscal management practices are to be changed. The IMF, together with other international organizations, will give some priority to providing technical assistance to those countries that need help and are strongly committed to improving fiscal transparency.
Revised Code of Good Practices on Fiscal Transparency I. Clarity of Roles and Responsibilities
1.1 The government sector should be distinguished from the rest of the public sector and from the rest of the economy, and policy and management roles within the public sector should be clear and publicly disclosed.
1.1.1 The structure and functions of government should be clearly specified.
1.1.2 The responsibilities of different levels of government, and of the executive branch, the legislative branch, and the judiciary, should be well defined.
1.1.3 Clear mechanisms for the coordination and management of budgetary and extrabudgetary activities should be established.
1.1.4 Relations between the government and nongovernment public sector agencies (i.e., the central bank, public financial institutions, and nonfinancial public enterprises) should be based on clear arrangements.
1.1.5 Government involvement in the private sector (e.g., through regulation and equity ownership) should be conducted in an open and public manner, and on the basis of clear rules and procedures that are applied in a nondiscriminatory way.
1.2 There should be a clear legal and administrative framework for fiscal management.
1.2.1 Any commitment or expenditure of public funds should be governed by comprehensive budget laws and openly available administrative rules.
1.2.2 Taxes, duties, fees, and charges should have an explicit legal basis. Tax laws and regulations should be easily accessible and understandable, and clear criteria should guide any administrative discretion in their application.
1.2.3 Ethical standards of behavior for public servants should be clear and well publicized.
II. Public Availability of Information
2.1 The public should be provided with full information on the past, current, and projected fiscal activity of government.
2.1.1 The budget documentation, final accounts, and other fiscal reports for the public should cover all budgetary and extrabudgetary activities of the central government, and the consolidated fiscal position of the central government should be published.
2.1.2 Information comparable to that in the annual budget should be provided for the outturns of the two preceding fiscal years, together with forecasts of the main budget aggregates for two years following the budget.
2.1.3 Statements describing the nature and fiscal significance of central government contingent liabilities and tax expenditures, and of quasi-fiscal activities, should be part of the budget documentation.
2.1.4 The central government should publish full information on the level and composition of its debt and financial assets.
2.1.5 Where subnational levels of government are significant, their combined fiscal position and the consolidated fiscal position of the general government should be published.
2.2 A commitment should be made to the timely publication of fiscal information.
2.2.1 The publication of fiscal information should be a legal obligation of government.
2.2.2 Advance release date calendars for fiscal information should be announced.
III. Open Budget Preparation, Execution, and Reporting
3.1 The budget documentation should specify fiscal policy objectives, the macroeconomic framework, the policy basis for the budget, and identifiable major fiscal risks.
3.1.1 A statement of fiscal policy objectives and an assessment of fiscal sustainability should provide the framework for the annual budget.
3.1.2 Any fiscal rules that have been adopted (e.g., a balanced budget requirement or borrowing limits for subnational levels of government) should be clearly specified.
3.1.3 The annual budget should be prepared and presented within a comprehensive and consistent quantitative macroeconomic framework, and the main assumptions underlying the budget should be provided.
3.1.4 New policies being introduced in the annual budget should be clearly described.
3.1.5 Major fiscal risks should be identified and quantified where possible, including variations in economic assumptions and the uncertain costs of specific expenditure commitments (e.g., financial restructuring).
3.2 Budget information should be presented in a way that facilitates policy analysis and promotes accountability.
3.2.1 Budget data should be reported on a gross basis, distinguishing revenue, expenditure, and financing, with expenditure classified by economic, functional, and administrative category. Data on extrabudgetary activities should be reported on the same basis.
3.2.2 A statement of objectives to be achieved by major budget programs (e.g., improvement in relevant social indicators) should be provided.
3.2.3 The overall balance of the general government should be a standard summary indicator of the government's fiscal position. It should be supplemented where appropriate by other fiscal indicators for the general government (e.g., the operational balance, the structural balance, or the primary balance).
3.2.4 The public sector balance should be reported when nongovernment public sector agencies undertake significant quasi-fiscal activities.
3.3.1 There should be a comprehensive, integrated accounting system which provides a reliable basis for assessing payment arrears.
3.3.2 Procurement and employment regulations should be standardized and accessible to all interested parties.
3.3.3 Budget execution should be internally audited, and audit procedures should be open to review.
3.3.4 The national tax administration should be legally protected from political direction and should report regularly to the public on its activities.
3.4 There should be regular fiscal reporting to the legislature and the public.
3.4.1 A mid-year report on budget developments should be presented to the legislature. More frequent (at least quarterly) reports should also be published.
3.4.2 Final accounts should be presented to the legislature within a year of the end of the fiscal year.
3.4.3 Results achieved relative to the objectives of major budget programs should be presented to the legislature annually.
IV. Assurances of Integrity
4.1 Fiscal data should meet accepted data quality standards.
4.1.1 Budget data should reflect recent revenue and expenditure trends, underlying macroeconomic developments, and well-defined policy commitments.
4.1.2 The annual budget and final accounts should indicate the accounting basis (e.g., cash or accrual) and standards used in the compilation and presentation of budget data.
4.1.3 Specific assurances should be provided as to the quality of fiscal data. In particular, it should be indicated whether data in fiscal reports are internally consistent and have been reconciled with relevant data from other sources.
4.2 Fiscal information should be subjected to independent scrutiny.
4.2.1 A national audit body or equivalent organization, which is independent of the executive, should provide timely reports for the legislature and public on the financial integrity of government accounts.
4.2.2 Independent experts should be invited to assess fiscal forecasts, the macroeconomic forecasts on which they are based, and all underlying assumptions.
4.2.3 A national statistics agency should be provided with the institutional independence to verify the quality of fiscal data.
APPENDIX C: CHRONOLOGY: OIL, DISPLACEMENT, & POLITICS IN SUDANPolitical and military events Effects of War/Displacement Oil Developments
July 11, 1999 Gen. Matiep’s July 1999 Government air power agents abduct two state stops Riek Machar advance at ministers and other civilians at Nhialdiu in WUN;
night; the two are found dead government/militia forces push and many others are detained south and displace thousands.
at the Matiep base.
September 2000 The U.S., in the U.N. General Assembly, keeps Sudan from a seat on the Security Council.
December 2000 Sudan’s national assembly, following elections, extends the state of emergency.
exchanges to disclose material displacement and government to ten oil fields within twelve business done with countries attacks on civilians in Western months.
“of particular concern” to State Upper Nile Department because of abuses.
June 2001 U.S. representatives June 2001 Gerhart Baum, U.N. May 2001 A coalition of pass Sudan Peace Act with special rapporteur for Sudan, reports European NGOs forms the capital market sanctions against that human rights worsened since European Campaign on Oil in foreign companies doing 2000, fueled by conflict over oil. Sudan to lobby to cease oil business with Sudan; law stalls operations in Sudan.
in the Senate.
September 6, 2001 President July 2001 Wild polio virus Bush assigns John Danforth as confirmed in Ruweng County;
his special envoy for peace in WHO urges new immunizations.
September 2001 After the September 11th attacks on the U.S., the Sudanese government announces its cooperation with the U.S. against terrorism.
Team issues its first report.
2002 Russia sold eight armored combat vehicles and four attack helicopters to Sudan, and Belarus sold Sudan fourteen large-caliber Russianmade artillery systems.
Late December 2002January 2003 Government dry season offensive in Block 5A.
February 4, 2003 After CPMT report documents Sudanese government ceasefire violations, the parties sign an addendum to the ceasefire agreement.
February 2003 Cmdr. Tito March 27, 2003 Lundin Biel defects to the government. announced the resumption of oil activities.
April 2003 After ten years, Sudanese government succeeds in achieving vote at U.N.
Commission on Human Rights not renewing the mandate of the special rapporteur on human rights.
ACKNOWLEDGMENTSThis report was researched in southern Sudan, Khartoum, Nairobi, and elsewhere from February 1999 to November 2002 by Jemera Rone, Sudan researcher for the Africa Division of Human Rights Watch, and written by her. The information provided is up to date through November 2002, with some exceptions.
Jemera Rone was assisted by research assistants Cecilia Lund, Ryan Hahn, Colin Relihan, Claire Johnson, Rose S. Shuman, Caroline Conway, Alex Belser, Melinda Coolidge, Luisa Boyarski, Shannon Sinton, and Linda Bembatoum.
The report was edited by Bronwen Manby, associate director of the Africa Division, Joseph Saunders, associate director of the Program office, and Michael McClintock and Malcolm Smart, formerly of the Program office of Human Rights Watch. Production and coordination assistance was provided by Jeff Scott and Colin Relihan, associates for the Africa Division, and Patrick Minges, director of publications.
Encouragement and support were provided by Peter Takirambudde, director of the Africa Division.
The manuscript was reviewed and helpful advice received from Douglas H. Johnson, John Ryle, Sharon E. Hutchinson, and Diane de Guzman.
Victor Kovner, Tom Burke, and Jennifer Williamson of Davis Wright Tremaine LLP in New York and Paul Sutton of Orchard in London reviewed the text and provided invaluable legal advice.
Human Rights Watch would like to thank all of the victims and witnesses of human rights abuses who spoke with us in our research. We gratefully acknowledge the support and invaluable assistance of the directors and staff at World Vision in 1999, and of other operational inter-governmental and nongovernmental organizations that wish to remain anonymous. We would also like to thank the Peace Desk of the New Sudan Council of Churches.
Support for this research was provided in part by the Steelworkers Fund for Humanity and World Vision Canada, and by the Richard and Rhoda Goldman Fund for work on the environment and human rights.
Douglas H. Johnson funded the creation of the maps of the oil regions published in this report and at http://rightsmaps.com/html/sudmap1.html.