Document content

• THE
  U N TO UC H A B L E S

  Rimbunan Hijau’s
  world of forest crime
  & political patronage

• Page 2 of 20

• EXECUTIVE SUMMARY

  The global trade in illegal and destructively In these countries, the operations of Rimbunan
  logged timber is now out of control. Hijau are often characterised by a disregard for the
  law with documented illegalities in many aspects of
  Unlawful access to forest resources,
  their operations.
  environmental damage and forest destruction,
  human rights abuses and social dislocation of forest- Illegal access to forest resources, environmental
  dwelling peoples in some of the poorest areas of the damage and human rights abuses are repeated
  world, are being fuelled by those who buy timber complaints. But the company seems impervious to
  and timber products from these illegal sources. criticism and appears to be protected by an
  extensive and well-established network of political
  One major player in this field is Rimbunan Hijau.
  patronage and media control.
  Rimbunan Hijau is a global conglomerate of
  Timber produced by Rimbunan Hijau is traded
  companies controlled by the Tiong family from
  across the globe with little concern for the
  Sarawak in Malaysia. Initially built as a timber
  environmental damage, misery and suffering
  empire, the company now has extensive interests in
  caused in producer countries.
  logging, timber processing, publishing, property
  investment, new technology and travel. Rimbunan Hijau’s illegal timber and timber
  products are being traded across-the-counter in
  Rimbunan Hijau dominates the logging industry
  Asia, America, Europe, Japan, Australia and New
  in Papua New Guinea and is a powerful industry
  Zealand.
  player in Malaysia and Equatorial Guinea. It also has
  significant forestry interests in Gabon, Indonesia,
  Vanuatu, New Zealand, and Russia.1

  Kuwene Nakeye, a landowner from the Haya clan, Kosuo tribe in a reserve she protected from logging. Kuwene is seen here with her nephew Alex Ubiye.They
  have worked together to protect their land from logging by Rimbunan Hijau.© Scheltema/Greenpeace

  THIS REPORT
  • Examines the extent and impact of Rimbunan Hijau’s (RH) timber operations in five key countries;
  • Highlights the environmental damage, human rights abuses and social suffering caused by RH;
  • Reveals some of the networks of political patronage that protect RH;
  • Details the global trade in illegal timber from RH logging operations;
  • Suggests simple and effective solutions to forest crimes and to mitigate the activities of companies like RH.

  2 THE UNTOUCHABLES
  Rimbunan Hijau’s world of forest crime & political patronage

• Page 3 of 20

• THE GLOBAL FOREST CRISIS

  Ancient forests are fundamental to life on Earth.
  They provide a home and vital sustenance to
  millions of people. They provide a habitat for
  “Some 350 million of the poorest people on Earth are
  innumerable species of plants and animals. And entirely dependent on forests for their survival”
  4
  they perform vital ecological functions. World Commission on Forests and Sustainable Development 1999.
  Ancient forests are the place that millions of
  indigenous peoples call home. Some of these
  peoples constitute the poorest and most the social, environmental and legal problems that
  disadvantaged of all world citizens. They suffer characterise the logging operations of companies
  human rights abuses, great poverty, disease and like Rimbunan Hijau.
  other social problems as forest areas are harvested, The actions of forest plunderers amount to far
  with little or no consideration for their plight or more than just a huge ecological disaster.
  livelihoods.
  They have severe impacts on local people and on
  Now, just 20 the national economies of some of the Least
  percent of the Earth’s Developed Countries (LDCs) in the world.
  “…landowners were forced original forest cover
  to sign papers with a remains as large intact KEY POINTS
  barrel of a gun at their areas; with more than 1. Much of the global trade in timber and timber
  back. In the presence of a third of these under products is unlawful.
  police and company threat. Industrial-scale
  logging poses the 2. Destructively and illegally extracted timber
  officials, without proper exacts a ruinous toll on forest eco-systems and
  single largest menace
  legal advice, with guns to the forests’ on the lives of forest-dwelling peoples. It cheats
  pointed at them.” survival.2 developing countries of revenue and resources
  Annie Kajir, Human Rights Lawyer, Port necessary for survival and national
  Moresby, Papua New Guinea. 3
  Across the globe, development.
  trans-national
  corporations continue 3. Companies like Rimbunan Hijau operate across
  to operate national boundaries and are a key participant in
  destructively, and often outside of the law, as they the illegal harvesting of timber.
  harvest the world’s last remaining accessible forest 4. Such companies operate with impunity and
  resources. cultivate a network of political patronage that
  Malaysian logging company, Rimbunan Hijau breeds off political systems that are under
  (RH) is one such corporation. immense stress in Southern nations.

  Logging destruction is fuelled by a complacent 5. Only measures at both the producer level (where
  international marketplace. In addition, consuming forests must be protected from illegal and
  nations worldwide, eager to fulfil a relentless destructive logging) and at the consumer level
  demand for wood and paper, turn a blind eye to (where illegal timber and timber products must
  be identified and banned) will
  effectively address the problem.
  6. International and bilateral
  political processes, such as the
  Convention for Biological
  Diversity (CBD), are an
  opportunity for governments to
  fund the protection of ancient
  forests and put in place strict
  international guidelines and
  programmes to achieve the
  “significant reduction in
  biodiversity loss by 2010”, agreed
  to at the Johannesburg Earth
  Summit in 2002.

  Pepsy Diabe, Kamala clan, Kusuo
  Tribe stands amidst devastation
  of recent logging, Wawoi Guavi,
  Papua New Guinea. ©
  Scheltema/Greenpeace

  THE UNTOUCHABLES 3
  Rimbunan Hijau’s world of forest crime & political patronage

• Page 4 of 20

• WHO IS RIMBUNAN HIJAU?

  Rimbunan Hijau is a conglomeration of many corporate shareholdings and takeovers.
  hundreds of companies spread across three
  In Papua New Guinea for example, Greenpeace
  continents all owned and controlled by the Tiong
  research has identified over 60 separate companies
  family but which sometimes have no other official
  as being owned or politically controlled by the Tiong
  connection.
  family — but only a small minority are openly
  Rimbunan Hijau has business interests in Australia, acknowledged as being a part of the Rimbunan
  British Guyana, China, Equatorial Guinea, Hong Hijau group. The ownership and control of the rest is
  Kong, Indonesia, Gabon, Malaysia, Aotearoa (New obscured by undisclosed buyouts, proxy directors and
  Zealand), Papua New Guinea, Russia, Singapore, shareholders, outdated company records, foreign
  Vanuatu and an estimated annual turnover in excess ownership and widespread use of tax havens.7
  of US$1 billion according to the Malaysia-China
  Business Council. 5 MALAYSIAN MULTINATIONAL
  The Tiong family has built Rimbunan Hijau into an LOGGING COMPANIES
  immense corporate empire that started out as a Multinational Malaysian logging companies got
  logging company but which now extends to include their start in Malaysia’s rainforests.
  interests in timber processing, agriculture (cocoa and Malaysian logging companies are often registered
  oil palm), aquaculture, insurance, banking, as family-owned private limited companies, allowing
  publishing6, optical fibres, information technology, them to operate secretly as they are not publicly
  shipping, retailing, travel, real estate and property listed corporations.
  development, mineral and mining development and
  print media. Many of these companies have political
  connections that helped them secure large areas of
  The business dealings and corporate structure of forest.
  Rimbunan Hijau as a company are not open or
  transparent, particularly as regards its many Within a couple of decades they left large areas of
  Malaysia deforested.
  Less than 15 percent of
  Malaysia’s forests today
  remain intact8.
  After years of
  destructive logging
  practices, the Malaysian
  government began to
  enact stricter regulations
  to attempt to save what
  little rainforest was left
  in the country. This
  caused the Malaysian
  companies to look
  elsewhere for lumber —
  a path which led them
  to Indonesia, Papua New
  Guinea and other parts
  of the world.

  Equipment at an RH
  logging camp in Kandrian,
  Papua New Guinea
  © Solness/Greenpeace

  “Established in 1975, Rimbunan Hijau Group has a first large scale plywood mill under Rimbunan Hijau
  diversified portfolio of businesses with estimated annual Plywood Sdn. Bhd. The Group is also the major
  turnover exceeding USD 1 billion, with shareholder of Jaya Tiasa Holdings Bhd and Subur Tiasa
  most items exported. Currently comprising 10,000 Holdings Bhd, the public listed companies on the Kuala
  employees in Malaysia, the Group continues to expand, Lumpur Stock Exchange with market capitalisation of
  including diversifying overseas. Over the about more than RM 2 billion and the largest plywood,
  years, Rimbunan Hijau Group has built up extensive veneer and particleboard producer in
  experience in logging, sawmilling, export of logs and Malaysia.In addition to its operations in Malaysia,
  sawntimber and downstream processing activities, Rimbunan Hijau Group has expanded internationally to
  ranging from plywood to medium density fibreboard Papua New Guinea, New Zealand, Australia, China, Hong
  and particleboard. Rimbunan Hijau Group is also a Kong, Singapore, Gabon, Rusia, Congo, Equatorial
  pioneer in supporting Sarawak’s emphasis on Guinea & British Guyana.”9
  downstream activities. In 1985, it established the state’s Malaysian German Chamber of Commerce and Industry

  4 THE UNTOUCHABLES
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• Page 5 of 20

• POLITICAL PATRONAGE interests and has led “to changes in legislation that
  Rimbunan Hijau enjoys wide political patronage. favour corporate activities and which result in the
  In Malaysia the Tiongs have been highly astute in disregard and repression of many actors within civil
  forming strategic alliances with the Malay political society.”11
  elite and are personally involved in the SUPP – the In Papua New Guinea Rimbunan Hijau is also
  main Chinese Party in Sarawak. closely connected to the political elite.
  In the early nineties, the brother of Sarawak’s For example, one recent Deputy Prime Minister
  Chief Minister (who controled the allocation of was criticised in an Ombudsman investigation for
  logging concessions) was a director of a Rimbunan unlawfully pressuring the National Forest Board to
  Hijau company and a sister of the Chief Minister favour Rimbunan Hijau with an illegal timber
  was a Tiong business partner. permit extension. 12
  Tiong Hiew King has himself been a State The Minister for Justice is Chair of a company
  Senator, a position that was also occupied by one of that holds a timber permit that it sub-contracts to
  his sons, and Tiong family companies have shared Rimbunan Hijau. A National Intelligence
  control of their subsidiaries with Provincial Ministers Organisation report alleges a provincial Governor
  and party officials.10 and two Members of Parliament were on Rimbunan
  In Sarawak these ties have resulted in a blurring Hijau’s payroll.13
  of the distinction between government and logging

  CORPORATE RESPONSIBILITY

  Office of the National newspaper,
  which is owned by Rimbunan
  Hijau, in Port Moresby, Papua New
  Guinea © Solness/Greenpeace

  Rimbunan Hijau is just one of a number of – the World Summit on Sustainable Development –
  Malaysian companies that have global timber made a positive statement on corporate
  interests. Many of these companies have been accountability. WSSD called for: “Active promotion
  criticised for poor environmental, social and human of corporate responsibility and accountability
  rights records.14 including through the full development and
  effective implementation of intergovernmental
  If Malaysia is to be seen as a good global citizen
  agreements and measures.”
  this attitude must change. Malaysia will attempt to
  portray a commitment to the environment when Malaysia is a signatory to the WSSD plan of
  hosting the Seventh Conference of the Parties implementation and must start to make its rhetoric
  (COP7) of the United Nations Convention on match its actions.
  Biological Diversity in Kuala Lumpur in February
  In order to make real its commitment to WSSD,
  2004.
  the Malaysian government must consider:
  Globally, there are growing calls for
  • Pursuit of amendments to its Corporations Law
  governments to hold transnational corporations
  to increase corporate accountability;
  accountable for their actions in foreign countries.
  This is especially important for companies operating • Passage of legislation to impose standards on
  in smaller or less developed countries where the Malaysian companies operating overseas;
  rule of law and governance frameworks may be • Actively supporting international mechanisms
  weak. that increase the accountability of its
  The final text of the Johannesburg Earth Summit transnational corporations.

  THE UNTOUCHABLES 5
  Rimbunan Hijau’s world of forest crime & political patronage

• Page 6 of 20

• PAPUA NEW GUINEA

  Guinea’s only veneer mill and
  its largest sawmill.
  In Papua New Guinea
  Rimbunan Hijau controls
  companies involved in
  commercial printing, travel,
  wholesale and retail sales,
  shipping, property
  development and owns a
  daily newspaper, The
  National.
  Rimbunan Hijau has close
  connections to Papua New
  Guinea’s political elite. The
  Prime Minister has been
  directly involved in the
  logging industry16 and his
  Deputy has been criticised in
  an Ombudsman Commission
  report for ‘arbitrary and
  irresponsible’ interference in
  directing the unlawful
  allocation of the Kamula Dosa
  logging concession to
  Rimbunan Hijau.17
  The Secretary of the
  Department of Environment
  Wawoi Falls from the air, Wawoi Guawi, Papua New Guinea.© Greenpeace
  and Conservation was also criticised by the
  Ombudsman Commission for his role in the same
  Papua New Guinea is a South Pacific nation of affair.
  some five million people, most of who still depend
  on the environment for their daily subsistence. The Minister for Justice is the Chair of a
  company18 that holds the permit for the East Kikori
  The logging industry has already acquired 70 logging concession. His company employs
  percent of available forest resources and Rimbunan Rimbunan Hijau as its logging contractor.
  Hijau is at the forefront of attempts to gain access
  to what remains. The Minister for Planning, the Minister for
  Privatisation and the Chief Secretary are other
  prominent leaders with well-documented links to
  the logging industry in PNG.19
  RIMBUNAN HIJAU IN PNG
  Rimbunan Hijau is the dominant player in the
  forest industry in Papua New Guinea and it has
  significant investments in other sectors of the
  economy.
  Rimbunan Hijau maintains a veil of secrecy over
  the true extent of its logging and other business
  interests but it has interests in more than 60
  interlinked companies that are registered in Papua
  New Guinea.
  These companies control more than 50 percent
  of Papua New Guinea’s large-scale commercial
  logging operations and at least 55 percent of log
  exports.
  Greenpeace estimates that Rimbunan Hijau
  controls timber rights in more than three million
  hectares of forest and in 2002 alone, exported logs
  worth more than US$50 million from Papua New
  Guinea. 15
  Rimbunan Hijau also operates Papua New

  The rainforests of Papua New Guinea and Asia Pacific shelter
  regions of unusually high biodiversity. © Dorreboom/Greenpeace

  6 THE UNTOUCHABLES
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• RIMBUNAN HIJAU AND ILLEGAL LOGGING publicly advertised in a
  Most large-scale logging operations in Papua competitive bidding
  process to ensure the ROBBER BARONS
  New Guinea, including those operated by
  Rimbunan Hijau, are unlawful as they are in best possible deal for The latest official inquiry into
  fundamental breach of a number of basic legal the local resource the forestry sector in Papua New
  requirements. owners. But Rimbunan Guinea found that all six new
  Hijau has made a permits and permit extensions
  Most logging operations do not have the number of attempts to reviewed were unlawful. This is
  informed consent of the local resource owners avoid this process and how the Review of Disputed
  (most of whom have never even been correctly to unlawfully acquire Forest Allocations, 2003,
  identified)20, they have not been initiated and the logging rights. described the logging companies
  allocated according to the requirements of the operating in PNG:
  Forestry Act, they are being operated in almost In 1997 Rimbunan
  complete defiance of environmental laws and Hijau was granted an ‘the overwhelming conclusion
  regulations and they are not sustainable, which is a unlawful geographical is that the robber barons are now
  specific requirement of both the PNG Constitution extension to its Wawoi as active as they ever were. They
  and the Forestry Act.21 Guavi timber permit are not only free to roam, but are
  that covered the whole in fact encouraged to do so by
  An independent review was recently ordered by of the Kamula Dosa persons whose proper role is to
  the government into a number of new logging concession area. The exercise control over them…Only
  permits and extensions.22 Three of the reviews extension was a Commission of Inquiry could
  involved logging projects operated by Rimbunan subsequently hope to unearth the entire
  Hijau; Wawoi Guavi, Vailala Blocks 2 and 3 and investigated and picture and unravel the web of
  Passismanua. overturned by the deceit’.29
  The review found that the extensions to all three Ombudsman
  The Review looked specifically
  projects were unlawful as they breached legal Commission.27
  at two of Rimbunan Hijau’s
  requirements and had not followed due process. The Ombudsman largest logging operations,
  The review reached the ‘unavoidable conclusion criticised a number of Wawoi Guavi and Vailala. In
  that there have been serious departures and politicians for respect of these two concessions
  breaches from due process and there are serious influencing the decision the Review stated:
  anomalies in the timber permits and agreements’.23 of the National Forest
  ‘The time has come for a full
  As well as declaring the project extensions Board and Board
  investigation into the affairs of
  unlawful, the review also found that the original members for flouting
  these companies (both RH
  timber permits for Vailala Blocks 2 and 3 and the law and putting the
  subsidiaries). They should be
  Wawoi Guavi were also unlawful and that the interests of RH above
  compelled to produce documents
  timber rights had never been properly acquired those of the resource
  and account for their actions’.30
  from the landowners.24 owners and the State.28
  Despite these findings the
  Rimbunan Hijau managed to keep its The Ombudsman
  Prime Minister has said:
  involvement in the unlawful extension of the recommended action
  Passismanua timber permit out of the PNG media by against a number of “I must congratulate
  threatening a defamation action against the Post Board Members and Rimbunan Hijau for investing
  Courier newspaper.25 Rimbunan Hijau’s denial of Rimbunan Hijau, but heavily in the forestry
  involvement to the media was contradicted in the those recommendations sector…(this) is in line with
  subsequent review, which confirmed that RH was have not been government policies…The
  the logging company for Passismanua.26 enforced. company and other genuine
  forestry companies must be
  In 2002, Rimbunan
  supported.”31
  Hijau again tried to
  KAMULA DOSA unlawfully secure the
  Kamula Dosa is Papua New Guinea’s largest logging rights for
  unallocated logging concession in the western part Kamula Dosa. A Cabinet submission sponsored by
  of the country. It covers over 800,000 hectares and the then Deputy Prime Minister and a number of his
  contains an estimated 11.2 million cubic metres of Ministerial colleagues proposed that Rimbunan
  commercial timber. Hijau should be given unique tax concessions and
  unlimited access to Kamula Dosa without having to
  The concession is the biggest prize currently follow the legal allocation process or proper
  available to the logging industry in PNG and it is procedures.
  coveted by a number of logging companies
  including Rimbunan Hijau. The submission was withdrawn after it was
  publicly exposed.
  Forestry laws require that the timber rights be

  THE UNTOUCHABLES 7
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• Page 8 of 20

• THE SOCIAL IMPACTS OF LOGGING
  A number of reports32 have documented the negative social impacts of the logging industry in Papua
  New Guinea. These negative impacts include:
  Diminished food security – reduced availability of foods from within the forests (meat, insects, herbage,
  fungi, fish), loss of gardens and food stands from poor logging practices, loss of water resources and reef
  systems.
  Loss of clean water supplies – soil erosion, poor roading and waste disposal all pollute water courses.
  Poorer health – nutrition problems, water pollution, increased malaria, introduction of sexual diseases,
  intoxication, industrial injuries, loss of traditional medicines.
  Loss of local economic resources – loss of forest products that are traditionally traded including foods,
  resins, timber for construction and canoes, building materials, medicines.
  Undermining of social systems – community values undermined, social conflict, alcohol, prostitution, land
  disputes, displacement of families from forest areas, marginalisation of women.
  Increased gender burdens – women have to work longer and harder to look after their families
  Increased conflict – with logging companies, forestry officials and police and between different local
  factions or community groups

  HUMAN RIGHTS ABUSES
  For many years, local people living within timber
  permit areas have complained of the abuse of their
  WOMEN SUFFER MOST
  fundamental human rights by timber companies
  and by police personnel paid by these companies.
  The alleged abuses include the deprivation of
  property, cruel, inhuman and degrading treatment,
  denial of personal security, unlawful detention,
  invasion of privacy, denial of freedom of movement
  and freedom of speech, and a failure to provide
  good working conditions and adequate and equal

  © Scheltema/Greenpeace
  pay.33
  These are all breaches of the United Nations
  Universal Declaration on Human Rights.
  The complaints and allegations of the local
  people are well-documented and include signed
  statements and written letters of complaint to the
  “Allegations of human rights abuses
  Royal PNG Constabulary and a personal video
  against women working in isolated logging
  testimony of some of the victims.
  camps are being documented by unions both
  SPECIFIC ALLEGATIONS INCLUDE: in PNG and internationally.
  • People being forced to sign agreements under Many of these camps are so isolated the
  duress including at gunpoint and threats of only way in or out is by plane. Once in the
  imprisonment and even death.34 camps, many women claim they are forced to
  • The use of armed police officers with guns drawn have sex with company officials and the police
  to emphasise the ability of company personnel to who work for them.
  enforce their threats.35 Union officials have taken dozens of
  • Use of police ‘mobile squads’ to quell any statements from women and girls who say
  industrial unrest amongst logging company they are routinely threatened with guns that
  employees.36 are fired to scare them into having sex.

  • Use of firearms by logging company managers to Women who become pregnant are faced
  threaten and intimidate local people.37 with a choice of an abortion or facing ejection
  from the camps, with no way to travel the
  • Torture, physical abuse and unlawful detention hundreds of kilometres home.” (ACF 2003)
  of local people by police officers ‘employed’ by
  the logging company.38
  • Rape of female employees by logging company
  managers and police.39

  8 THE UNTOUCHABLES
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• Page 9 of 20

• Wawoi Guavi timber concessions,
  Papua New Guinea.

  THE ENVIRONMENTAL IMPACTS
  OF LOGGING
  Environmental studies40 indicate
  that logging by Rimbunan Hijau in
  Papua New Guinea is among the most
  environmentally destructive of any
  selective logging operations studied anywhere on WAWOI GUAVI
  the planet. Losses to the residual stand have been In an unpublished report44 commissioned by
  recorded at more than 100 trees per hectare. What Greenpeace, scientist Dr David Melick has studied
  is supposed to be selective logging is effectively the environmental impacts of logging by Rimbunan
  clear felling. Hijau in its Wawoi Guavi timber concession in
  The logging mainly ignores the prescriptions in Western Province.
  the PNG Logging Code of Practice. Buffer zones are The research uncovered an extensive catalogue
  not respected, logging tracks are bulldozed through of breaches of PNG’s Logging Code of Practice. The
  streams, poor road construction wastes logs and report identified 261 separate breaches of 18 key
  pollutes water courses, oil and other waste logging standards.
  pollution is endemic, standing water attracts
  mosquitos and increases the incidence of malaria, These breaches were seen to have serious
  and undersized logs are constantly felled.41 environmental impacts, including injury to
  waterways and watersheds, severe erosion and
  Papua New Guinea’s Constitution and Forestry serious pollution to soil and waterways from oil and
  Act require that all forest operations are carried out toxic chemicals.
  in a sustainable manner and that resources are
  protected for future generations. In reality, these The study also found frequent damage to
  prescriptions are ignored and the average life of a cultural sites from logging operations and the
  logging concession is just 12 years.42 This is less than felling and removal of undersized trees.
  one-third of the legally mandated 40-year cutting Although Greenpeace and Dr Melick were in the
  cycle and is also ecologically inadequate. area at the invitation of landowners, Rimbunan
  Hijau used the Southern Command Police Task force
  NO MONITORING OR ENFORCEMENT to try and
  Despite the very poor environmental intimidate
  performance of logging companies in PNG, no them and to
  action is ever taken against them. The Department restrict access “Having examined some of the
  of Environment and Conservation does not even into the forest.
  have a forestry monitoring team and the 2002 RH also placed
  logging operations, it is now
  Ombudsman Commission found that the locked chains difficult to view the responsible
  Department head, Wari Iamo has gone out of his and logs across environmental position espoused
  way to support Rimbunan Hijau.43 roads to on behalf of Rimbunan Hijau with
  Wari Iamo has been criticised by the Ombudsman inhibit anything other than cynicism”
  Commission for neglect of duty for supporting an movement in (Melick 2003)
  illegal logging permit extension for Rimbunan the area.
  Hijau. When disciplinary proceedings were initiated
  against him by his former Minister for a series of
  offences, the Prime Minister himself intervened,
  sacking his Minister and re-instating the suspended
  Secretary.

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• Page 10 of 20

• INDONESIA

  Indonesia has 10 percent of the world’s timber products from Malaysia, saying that they
  remaining tropical forests. They are home to some contain a large amount of illegal wood from
  50 million indigenous people. These forests teem Indonesia.49
  with unique wildlife and the highest diversity of
  In Indonesia, much of the logging is unlawful
  trees and vines found anywhere in the world.
  because it is done without a government permit or
  Hundreds of unique mammal and bird species licence. This is possible because of the bribes that
  live in the forests of Indonesia, often only on a are paid to police, forestry officials and politicians.50
  single island. Kidnapping, bribery and attempted murder have all
  been documented as the methods used by the
  Yet, if the current rates of logging and forest
  logging companies to protect their illegal trade.51
  conversion continue, the lowland dry forests of
  Sumatra and Indonesian Borneo will have been ILLEGAL LOGGING, RIMBUNAN HIJAU AND
  completely destroyed by 2010.45
  THE MILITARY
  Indonesia is one of the major sources of illegally
  “Military involvement in illegal activities is taken
  traded tropical timber. According to government
  for granted in Indonesia. Hundreds of reports of
  estimates, as much as 90 percent of the country’s
  military involvement in illegal logging have
  production is unlawful, amounting to some 50
  emerged and there is recognition of this serious
  million cubic metres
  problem within government. Reports of military
  each year.46
  personnel owning illegal sawmills, backing timber
  Evidence shows that barons and applying pressure for the release of
  “Rimbunan Hijau has this illegal production confiscated logs are common and widespread.”52
  become one of the most and trade is continuing
  The Environment Investigation Agency (EIA)53 in
  ruthless logging companies despite a log export
  London and the Indonesian group Telapak have
  ban introduced in
  in the world due to abuses Indonesia in November
  reported links between the company PT Rimbunan
  of national laws and Hijau Jaya and the Indonesian military. EIA and
  200148. The primary
  Telapak visited communities in West Papua and
  regulations, human rights destination of illegal
  obtained documents clearly linking a military officer
  violations and contractual timber exports from
  to PT Rimbunan Hijau Jaya and illegal logging.
  breaches” Indonesia is Malaysia
  Richard Wilcox. Asian Economies Fuel where log imports are In a brief presented to the Indonesian
  Forest Meltdown, published in continuing, despite a Government they described how the illegal logging
  The New Observer47 ban on log imports is being facilitated by the use of ‘military power’
  from Indonesia that is used to threaten local communities.54
  introduced in June Illegal logging by PT Rimbunan Hijau Jaya has
  2002. been reported at three sites and is occurring despite
  In October 2003, the Indonesian Minister of the opposition of the majority of the local people.
  Forestry called on the European Union to reject Letters of complaint were sent to forestry officials
  in 2002 but a promised
  investigation has never
  eventuated.
  The EIA and Telapak have
  called on the Indonesian
  Government to take decisive
  action to prevent the export of
  illegally felled logs and to
  discipline and prosecute
  military officers involved with
  logging companies in illegal
  activities.

  Merbau Logs cut on Knasaimos land © EIA/Telapak 2003

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• Landowner Sakas Aomono is dressed
  in the traditional warrior gear, used
  when going out fighting.

  Aonoma’s grandparents used the local
  Bula creek as medicine. “They would
  use this creek when they were sick, it
  would make them better. This creek
  has faded away. It cannot heal people
  because they came and disturbed the
  beliefs we have. It will not be the
  same as before. There’s no fish since
  the company came. Before my mother
  and father used to do this, now there
  is nothing. Our medicine is not like
  before.

  “By looking at that place I feel very
  sad and upset and frustrated about
  my land being destroyed”.
  Sakas Aonomo from Bula Creek, Middle Fly District, Western Province, PNG
  © Scheltema/Greenpeace

  EQUATORIAL GUINEA
  Rimbunan Hijau operates in a number of About 85 per cent of
  African countries including Gabon and the African rainforest
  Equatorial Guinea, where its subsidiary that once spread across
  Shimmer International and its many Equatorial Guinea,
  Cameroon, Central
  associated companies have been a dominant
  African Republic,
  player in the logging sector55 under the Congo Brazzaville, the
  “sponsorship of the Minister for Forests”56, Democratic Republic of
  who is also the President’s son57. Congo and Gabon has
  been lost. Industrial
  In Equatorial Guinea, some 70 percent of logging threatens most
  the forest has been allocated for large-scale of what remains.
  industrial logging58 despite the importance of © Mauthe/Greenpeace
  the forest for the daily subsistence of the
  largely rural population.
  Although local laws require that 60
  percent of log production must be processed
  on-shore, most timber is still being exported
  as cheap raw logs59. This deprives the country
  of resource revenues, economic investment
  and employment opportunities.
  Enforcement of legal requirements is
  virtually non-existent in commercial logging,
  according to the World Rainforest Movement
  (WRM) and although logging companies are
  required by law to provide health, education
  and social facilities for local communities,
  enforcement is very poor.60

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• MALAYSIA

  “Members of our
  community are
  suffering from
  poor health due
  to the lack of a
  A Rimbunan Hijau logging tractor and feller team works in a logging concession in the middle Baram valley, Malaysia. © Dang/Greenpeace
  balanced diet
  Malaysia is one of the world’s major producers Widely documented negative and air and
  and exporters of tropical timber. It is the home base social consequences of the water pollution
  for Rimbunan Hijau and a number of other major logging industry include a severe caused by
  transnational logging companies. impact on food security, pollution
  of water supplies, increasing
  logging
  The majority of Malaysia’s timber production activities.”
  incidences of ill-health and
  comes from Sarawak where about 70 percent of the Long Sayan Declaration
  disease, the disruption of local
  economies and changes in social
  “Our forest and land have been supplying us with stability.63
  abundant resources and providing us with sources of In 2002, the Penan people documented the
  income and have also shaped our culture, beliefs and abuses they have suffered at the hands of the
  customs. Thus, to destroy the forest has the same logging industry in the Long Sayan Declaration.64
  The Penan are particularly affected as they are a
  impact of destroying our community.”
  semi-nomadic forest dwelling people- their forest
  Long Sayan Declaration
  has been their home for thousands of years. Their
  fight against logging is a fight for their lives.
  land area has been allocated for logging. Here,
  Over 700 people from 40 communities
  Rimbunan Hijau has an estimated 800,000 hectares
  formulated the Declaration to clearly spell out their
  of production forest.61
  suffering as a people displaced and abused by the
  Rimbunan Hijau produces 3-4 million cubic logging industry.
  metres of logs per year, which gives the company a
  The Declaration details the food shortages,
  20-25 percent share of the Malaysian timber
  frequent illnesses and income loss brought about by
  industry.62
  logging operations and calls for immediate
  government action as the very survival of the Penan
  SOCIAL IMPACTS OF LOGGING people is severely threatened by the logging
  Logging companies active in Sarawak are well- industry, which continues to reap huge profits from
  known to indigenous dyak peoples for seriously the sales of timber resources extracted from their
  undermining their livelihoods and survival. ancestral land with impunity.

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• As is the case in Papua New Guinea, Indonesia and other destructive development activities within
  and Africa, Malaysia also suffers severe and their customary land and against infringement of
  uncontrolled environmental impacts from logging their rights. In response they have been harassed,
  activities. intimidated, suppressed and arrested by the
  government and companies.
  Careless and negligent logging practices impact
  on local watersheds and cause soil erosion; they Supporting these company interests, police and
  disrupt local climates and cause or exacerbate forest forest department officials have arbitrarily arrested
  fires. There is also a toll on bio-diversity within and detained those indigenous people who put up
  forests, and the marine environment. any form of protest, even though such protests are
  undertaken within the confines of their own lands
  A report by the World Rainforest Movement
  and they have legitimate rights under the law to
  (WRM) and Forests Monitor in 1998, listed a number
  such forms of protest.67
  of Malaysian citizens who had their human rights
  abused and freedom of movement restricted as a In one such protest in
  result of their opposition to illegal logging. In each August 2000, more than
  case, the named individuals had been prevented by 100 Penan people in the
  government officials from travelling to attend Apoh and Tutoh regions
  international meetings and then had their passports barricaded a logging
  “The activities of the
  withdrawn.65 road to prevent access Sarawak timber company
  by three timber Rimbunan Hijau have
  There is evidence that Rimbunan Hijau is now
  trying to apply similar tactics in Papua New Guinea.
  companies including a wreaked environmental and
  subsidiary of Rimbunan social havoc in Sarawak for
  In November 2003, threats were issued to a local
  Hijau.68
  airline to only fly RH approved passengers to an years through their
  airstrip inside its Wawoi Guavi logging concession The action was taken widespread logging
  and to deny travel to any non-government after numerous verbal activities.”
  organisations.66 and written appeals but
  Utusan Konsumer, Penang, (Nov 1993)69
  their problems were
  ignored. The people
  accuse the logging
  The top politicians in Sarawak have companies of hiring
  long been awarding logging gangsters to threaten them not to pursue their
  claims of encroachment, illegal logging and
  concessions to themselves, their damage to fruit gardens and burial sites.
  families and their supporters.”
  WRM and Forest Monitor (1998) Protests and blockades continued through 2002
  and 2003.

  SOCIAL CONFLICT
  AND HUMAN
  RIGHTS ABUSES IN
  SARAWAK
  Indigenous peoples
  in Sarawak have lodged
  many complaints to the
  authorities about
  logging-related and
  land rights problems,
  but their complaints
  have constantly been
  ignored.
  Over the last 20
  years, thousands of
  indigenous dyak people
  in Sarawak have been
  blockading and
  protesting against
  logging, plantations

  Previously logged Malaysian forests in the early morning fog. A Rimbunan Hijau logging road is just visible in the foreground.
  © Dang/Greenpeace

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• Page 14 of 20

• RUSSIA

  Spread over 774 million hectares, Russia has the The Forest Club of Russia have expressed
  biggest forest area in the world. This represents concerns about Rimbunan Hijau’s logging
  about 24 percent of all the forests on our planet. operations:
  About two-thirds of these forests are located in the
  “Logging in the upstream of river Soukpai by the
  remote northern regions of Siberia and in the Far
  RH company will result in destruction of the
  East.
  existing forest ecosystems of the basin, spreading
  In the more densely populated areas of of forest fires, soil erosion and disturbance to the
  European Russia, Southern Siberia and parts of the hydrologic balance of local rivers… that now serves
  Far East, forests have been severely over-logged as an important sources of means of subsistence
  during the last 50 years, placing great pressure on for most of the local residents.”72
  remaining resources. Rimbunan Hijau has been repeatedly fined for
  All Russian forests are State-owned; with no violations of logging regulations and environmental
  private ownership. The State is responsible for laws.73
  protection and management of forests, even in In 2002, Rimbunan Hijau exported 700,000 cubic
  concession areas. The forest service is the biggest in meters of timber from Russia with a value of US$58
  the world, employing about 220,000 people. million (2001).74 Seventy-six percent of this was sold
  Environmental activists in the Russian Far East to China. Most of this trade is believed to be with
  are becoming increasingly concerned about the small buyers around the border town of Suienghe.
  extent of illegal logging in the region. The remaining 24 percent was exported to Pacific
  Barter Trade Limited in Hong Kong.
  They say the rich timber resources of the ancient
  forests are being plundered despite Russia’s strict
  laws on logging. Environmentalists blame
  corruption by local officials and lack of funds to
  enforce controls on timber shipments.70
  Rimbunan Hijau has been operating in Russia
  since 1997 when it acquired the rights to harvest
  305,000 hectares of State forest in a region that had
  been earmarked for environmental protection.71
  Since 1997, RH has acquired further large-scale
  concession areas in the Ul’chsky/Solnechny and
  Vaninsky districts.

  Region where Rimbunan Hijau already has forest
  concessions
  Region where Rimbunan Hijau plans to secure
  forest concessions

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• Page 15 of 20

• NEW ZEALAND/ AOTEAROA

  Principles and Criteria”78.
  It is barely credible that Ernslaw One could
  demonstrate such a commitment when it is part of
  the Rimbunan Hijau group of companies that so
  demonstrably fails to live up to the most basic social
  and environmental standards in almost all of its
  logging operations.
  However, even in New Zealand/Aotearoa Ernslaw
  One’s plantation forest operations still have some
  way to go to meet FSC responsible management
  standards. The certification of its North Island
  operations was subject to 25 conditions that
  identify failures to comply with FSC standards and
  Rimbunan Hijau has committed to FSC in New Zealand but still has a which require stipulated remediation, most of them
  way to go to improve plantation management, especially stream within 12 months.
  protection. © Greenpeace
  In particular, there are major concerns on their
  Although the forest industry in New Zealand/ clear-fell logging practices in catchments of their
  Aotearoa is based on the plantation production of plantations in the Coromandel in the North East of
  softwood species, Rimbunan Hijau is a major player. the North Island that are prone to severe high
  rainfall events. In the implementation of the local
  Rimbunan Hijau’s first forestry investment in law, the Resource Management Act, a number of
  Aotearoa was the purchase of five forest licenses local community organisations and neighbours of
  from the national government in 1990 through the the company have been battling to protect local
  Tiong controlled company, Ernslaw One.75 streams and harbour.
  This gave the company logging rights in three Dairy farmer Paul Bibby, whose farm is a
  regions, Coromandel, Manawatu and Otago. Since neighbour of Coromandel’s Whangapoua Forest,
  then the company has diversified its interests appeared on TVNZ’s “Frontline” investigation of the
  through investments in wood processing, timber company79 in 1994. His concern was that it was
  importing and wholesale, land and property logging too much, too fast and that the bare
  development, scientific products, fish farming and hillsides would lead to a major silt problem, as had
  ports.76 In particular, the timber importing happened previously in the days of Forest Service
  enterprise The Lumberbank, is importing timber ownership. Both farms and Whangapoua Harbour
  from Rimbunan Hijau’s illegal operations in Papua had been badly silted in the past, causing some
  New Guinea. This is a major part of the 4,000 m3 of farms to be inundated under a metre of silt. The
  sawn timber imported into New Zealand from PNG company has denied that it is engaged in any
  in 2003. environmentally unsound practices on the
  Since 1990, Ernslaw One has expanded its forest Coromandel.
  estate from an initial 22,000 hectares to 53,000
  hectares through the purchase of further
  plantations and the conversion of farmland. “Ernslaw One had gone through the motions of
  In stark contrast to the performance and consulting the locals but totally refused to
  management of Rimbunan Hijau’s forest operations accommodate any of the residents association’s Draft
  in tropical countries (and Russia), in New
  Code of Logging Practice. After rain, the dirty water
  Zealand/Aotearoa, it is seeking to be a responsible
  forest manager. According to the company’s now extends right out through the harbour. We’ve
  website: had absolutely no satisfaction from the company.”
  Paul Bibby, on behalf of the Whangapoua Environmental Protection Society.
  “Ernslaw One firmly believes in caring for the
  environment, and strives to ensure that it’s forest
  and timber processing operations meet the
  Local people were astounded to discover that
  requirements of sound environmental
  the local District Council had agreed to reduce the
  management. It’s plantation forests are managed as
  width of the riparian strips (strips either side of a
  a sustainable resource.”77
  stream, river or lake that is protected) from 20
  Ernslaw One has all its plantation operations metres to five metres without consulting them.
  certified under the globally recognised green- There are also complaints that shellfish beds in the
  labelling Forest Stewardship Council (FSC) scheme. harbour are being buried by silt. More recently, the
  To become FSC certified, Ernslaw One was company has created further controversy by buying
  required under FSC rules, to “demonstrate a long- up an adjacent dairy farm and proposing to build a
  term commitment to the Forest Stewardship Council large sawmill and processing plant.

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• SOLOMON ISLANDS

  Rimbunan Hijau interests in the Solomon Islands documented as providing little benefit to the
  are mainly through the Earthmovers Solomon country and for destructive practices, including:
  Islands group, including Pacific Timbers Ltd, and transfer pricing and under reporting of log
  more recently, a company called Delta. Rimbunan receipts81 82, payments to members of parliament to
  Hijau’s Solomon Islands subsidiaries have been part overturn the government83, what has been
  of a handful of Asian corporate groups that have described as “the worst logging seen in any tropical
  been logging at more than four times the forest”84 85, social impacts86, and poor worker
  sustainable rate80. They have been criticised and conditions87.

  Solomon Islands has witnessed poor logging practices at the hands of a number of logging companies. © Solness/Greenpeace

  VANUATU

  Rimbunan Hijau operations in Vanuatu, while not There have been other controversies over the
  of the scale of elsewhere, have always been project. For example;
  controversial. In the early 1990s subsidiary
  • An official inspection visit on one occasion in
  companies were involved in logging opposed by
  1997 identified trees which had been cut
  landowners in remnant forest on the island of
  illegally;
  Erromango. Their Santo Veneers operation on Santo
  Island have been a source of conflict with local • The company is believed to be entering into
  landholders since it started operating. In 1995, locals contracts after having identified only a few of
  burned a Santo Veneers bulldozer in protest at the the legitimate landholders, rather than all of
  company logging in an area for which they had no them as required by law;
  contract. The Supreme Court acquitted the local • There are also believed to be other contractual
  family concerned “after hearing evidence that Santo irregularities and reports of logging in protected
  Veneers and Timbers Limited were logging in an areas.89
  area where they had no contract and continued to
  log the area even after the burning of their Santo Veneer logging has nearly exhausted the
  bulldozer and a court injunction not to log there”.88 commercial natural forests on Santo Island, largely
  due to the over-estimation of commercial volumes
  contained in the forests and required to meet the
  veneer processing plant.

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• MARKETS AND CHAIN OF CUSTODY

  The international trade in tropical timber only Rimbunan Hijau’s major markets for sawn timber
  exists because of the demand from the market from Papua New Guinea are in Australia and New
  place. The trade in illegal timber and the human Zealand/Aotearoa.
  and environmental suffering that it causes are the
  In Australia, RH controls a subsidiary named TLB
  direct result of a market where the buyers of timber
  Timber that operates out of Brisbane. This
  and timber products do not discriminate between
  company sells illegal and destructively logged
  timbers from different sources.
  timber to many small companies and individuals in
  LOG EXPORTS Australia. This timber is then turned into mouldings
  and other building components.
  The major export markets for raw log exports
  from Papua New Guinea, Indonesia, Malaysia and According to figures from the Forest Authority in
  Russia are China and Japan.90 PNG, in 2002 Australia imported 16,653 cubic
  metres of rough sawn timber from Papua New
  For instance, of 1.85 million cubic metres of
  Guinea.
  declared exports from Papua New Guinea in 2002,
  62 percent went to China and Hong Kong and 23 This timber is tainted with illegality, human
  percent to Japan. These figures reflect a trend rights abuses, environmental destruction, and
  where, over the last three years, log exports to negative social impacts.
  Japan have declined as China has become the
  dominant market. VENEER AND PLYWOOD
  In both countries species like Calophyllum are Other processed commodities experienced sharp
  used to produce cheap plywood for the increases in past years, mainly due to the
  construction sector, with large Japanese trading installation of Rimbunan Hijau’s Panakawa mill in
  houses like Nissho Iwai facilitating the trade. Western Province. Exports of veneer rose from
  1,700 cubic metres in 1999 to 71,615 cubic metres in
  SAWN TIMBER 2002 and plywood exports likewise increased from
  Sawn timber is the fastest-growing timber export 7,000 cubic metres in 1999 to 70,083 cubic metres in
  from Papua New Guinea. Volumes have risen 2002.92
  dramatically from 23,000 cubic metres in 1999 to Again Asian market countries such as China,
  42,348 cubic metres in 200291. This reflects the Taiwan and Korea imported the bulk of these
  commissioning of Rimbunan Hijau’s major sawmill timber products.
  at Kamusie in Western Province.

  RH timber bound for TLB in Australia being loaded in Port Moresby, Papua New Guinea. © Scheltema/Greenpeace

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• SUMMARY

  The findings illustrated in this report have clearly products that come from Rimbunan Hijau’s forest
  identified Rimbunan Hijau as being involved in operations have been traced into the stores of some
  significant forest crime. It is destructively logging of the world’s most affluent nations.
  vast areas of ancient forest in defiance of national
  After decades of conferences and international
  laws, local customs and the rights of resource
  commitments including the Convention on
  owners. It is causing large-scale environmental
  Biological Diversity, Forest Law Enforcement and
  damage and increasing the poverty of local people
  Governance processes, International Tropical Timber
  under the protection of political elites.
  Agreement and the United Nations Forum on
  Rimbunan Hijau controls industrial-scale logging Forests, now is the time for action.
  operations in at least eight countries and operates
  Rimbunan Hijau is a transnational corporation
  across three continents. Many of its logging
  that represents everything that is wrong with the
  operations are characterised by illegal access,
  way in which forest resources are being managed.
  environmental damage, human rights abuses, social
  Rimbunan Hijau presents the perfect test against
  conflict and political corruption.
  which to judge the resolve of the international
  Timber harvested by Rimbunan Hijau is traded community to deal effectively with the problems of
  around the world – as logs, sawn timber, veneers forest crime and the trade in illegal timber.
  and plywood and as finished products like furniture
  Greenpeace calls on the international community
  and ornamental blinds.
  to take up the challenge and match the global
  Traded and re-traded through Asian, American rhetoric with effective action.
  and European ports, the illegal timber and timber

  SOLUTIONS

  GREENPEACE URGES:
  • Protection of remaining forest areas from illegal and destructive logging;
  • International financial support to individual countries to replace foregone
  logging revenues;
  • Effective international action to enforce corporate responsibility and sanction
  corporations that operate outside the law;
  • International initiatives to stop the cross-border trade in illegal timber and
  timber products, including consumer nation timber import controls;
  • Further support for market-based initiatives that identify and label products
  from sources that are environmentally, socially and economically sustainable.
  © Scheltema/Greenpeace

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• REFERENCES
  Australian Conservation Foundation (2003) Erskine (1999a) An Environmental Impact Islands, Suva, Fiji. Office of Counter Intelligence Baimaru Field
  Submission to the Senate Foreign Affairs, Assessment of Logging Operations in Block 3 Greenpeace (2002) Partners in Crime: Report.
  Defence and Trade References Committee of the Wawoi Guavi TRP, Kamusie, Western Malaysian loggers, timber markets and the Pwesei (2000) Environmental and Social Impact
  Inquiry into Australia’s Relationship with Province, Papua New Guinea. politics of self interest in Papua New Guinea. Assessment of Logging Operations in the
  Papua New Guinea and other Pacific Island Erskine (1999b) Environmental and social Greenpeace International, Amsterdam. West Coast of Manus Area, Manus Province.
  Countries impact assessment of logging operations in Independent Forestry Review Team (2001) Review of Disputed Forest Allocations (2003a)
  Barnett T (1987) Commission of Inquiry into the Vanimo Timber Area, Sandaun Province, Auditing forestry projects currently ‘in Report on Confidential Matters.
  Aspects of the Timber Industry in Papua New Papua New Guinea. process’ for compliance with the Review of Disputed Forest Allocations (2003b)
  Guinea Frontline (1994) Television New Zealand requirements of policy, the Forestry Act and Summary of Findings and Recommendations.
  BBC (2001) Illegal logging spreads in Russia. Forest Information Service (2003a) Rimbunan other regulations and guidelines. Review of Disputed Forest Allocations (2003c)
  Francis Markus Hijau Corporate Map. Unpublished report for Independent Forestry Review Team (2003) Review of Wawoi Guavi Blocks 1,2 and 3.
  Brunois (1999) The Ecological Impacts of the Greenpeace. Review of disputed forest allocations. Review of Disputed Forest Allocations (2003d)
  Wawoi Guavi Company’s Logging Forest Information Service (2003b) Rimbunan International Network of Forests and Review of Vailala TRP Blocks 2 and 3.
  Exploitation on the Territory and Society of Hijau Logging Concessions. Unpublished Communities (2002) Global Forests, Global Sahabat Alam Malaysia (1989) The battle for
  the Kasau People, Avenir des Peuples des report for Greenpeace. Citizens. Sarawak’s forests.
  Forets Tropicales. Paris. Forest Information Service (2003c) Rimbunan The Jakarta Post (Oct. 15, 2003) EU Urged to Sahabat Alam Malaysia (2000) Penan stage
  Bryant et al (1997) The lost frontier forests. Hijau Logging Operations. Unpublished Reject KL Wood Products protest against logging companies.
  WRI, WCMC, Washington DC. report for Greenpeace. Kocher-Schmidt (1999) Vanimo – Kilimeri Special Broadcasting Service (SBS) (2001)
  Central Bank of Solomon Islands (1995) Forest Information Service (2003d) The Impacts Intensive Interdisciplinary Research Report. Papua New Guinea – Wilderness laid waste
  Annual Report, Honiara of Large-scale Logging. Unpublished report Kocher-Schmidt (2000) Lessons learned from by corruption. Dateline May 2nd 2001
  Duncan, Prof.R.C. (1994) Melanesian Forestry for Greenpeace. the Vanimo Timber Rights Purchase area. Solomon Star (November 10, 1995) 7 million
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  Development Assistance Bureau Guavi Case Study. Unpublished report for report Solomon Star (March 1998) Earthmovers
  Eco-Forestry Forum (2002) PNG forest Greenpeace. Melick, Dr D. (2003) A Preliminary ordered to pay workers
  resources and the log export industry. PNG Forest Monitor (March 2001) Sold Down the Environmental Investigation of the Logging Trading Post (17 January 1996), Vanuatu
  Eco-Forestry Forum, Port Moresby. River Operations in the Wawoi Guavi Area, Timber Trade Federation (2003) ‘Report on a
  EIA and Telapak (2003a) Timber traffickers: Country Profile: Equatorial Guinea. Western Province, Papua New Guinea. Mission to Indonesia 20-31st January 2003’
  How Malaysia and Singapore and reaping a http://www.forestsmonitor.org/reports/soldd Unpublished report for Greenpeace. World Commission on Forests and Sustainable
  profit from the illegal destruction of ownriver/guinea.htm Olsen and Turnbull (18 August 1993) Development (1999) Our forests our future.
  Indonesia’s forests. Forests.org (2001) Rimbunan Hijau moves to Assessment of the growth rates of logged Cambridge University Press, Cambridge.
  EIA and Telapak (2003b) Above the law: destroy Russia’s forests. and unlogged forests in the Solomon Islands. World Rainforest Movement (WRM) 2001.
  Corruption, collusion, nepotism and the fate Four Corners (2002) The timber mafia. Solomon Islands National Forest Resources Equatorial Guinea: Transnational loggers in
  of Indonesia’s forests. Broadcast on ABC television August 2, 2002. Inventory, Working Paper the forest. WRM Bulletin Number 49, August
  EIA and Telapak (2003c) Brief on military Greenpeace (1999) Buying Destruction. Ombudsman Commission (2002) Final Report 2001.
  officer involved in illegal logging. Greenpeace International, Amsterdam. Investigation into a Decision of the National World Rainforest Movement and Forest
  EMW (1995) ed. Frank Kurschner-Pelkmann, Greenpeace Australia Pacific and Oliver, Pam Forest Board to Award Kamula Dosa to Monitor (1998). High Stakes: The need to
  Maureen Trott, Inken Wohlbrand Our trees (2001) Caught Between Two Worlds- a social Wawoi Guavi Timber Company (a subsidiary control transnational logging companies.
  and all the wildlife have gone. Association of impact study of large and small-scale of Rimbunan Hijau). World Rainforest Movement and Forest
  Protestant Churches in Germany, Hamburg. development in Marovo Lagoon, Solomon National Intelligence Organisation (2000) Monitor.

  FOOTNOTES
  1 International Network of Forests and Projects currently in process’. Of 32 50 EIA/Telapak (2003a & b) (www.thelumberbanknewzealand.co.nz
  Communities (2002) projects reviewed it was found that in 51 Ibid November 2003)
  2 Greenpeace defines ancient forests as every case sufficient steps had not been 52 EIA/Telepak, (2003b) 76 In Aotearoa RH has owned Ernslaw One,
  “the world’s remaining forests that have taken to identify landowners and inform 53 Pers comm, EIA and Greenpeace Oregon Group, Manuka Holdings, the
  been shaped largely by natural events them of their rights prior to the signing of December 2003 Salmond Smith Biolab group (including
  and that are little impacted by human logging agreements, Independent Review 54 EIA and Telepak, (2003c) Artel Industries, Biolab Scientific, Click
  activities”. Logging is a threat to 72% of Team (2001) 55 World Rainforest Movement ( 2001) Clack International, Selby Scientific,
  the world’s threatened ancient forests, 21 These problems have been noted in a 56 www.globaltimber.org.uk/eguinea Newman’s Export, Rhone-Poulenc
  compared to 20% threatened by number of reports including Independent 57 Forest Monitor (2001) Laboratory Products, and Johns Plastics) ,
  agricultural clearance and 38% by mining Review Team (2001 and 2003); Kocher- 58 World Rainforest Movement and Forest New Zealand King Salmon Company, Neil
  and road-building. Greenpeace (1999a); Schmidt (1999 and 2000), Melick (2003), Monitor (2001) Construction, Ascot Management
  Bryant et al (1997) Erskine (1999a and 1999b), Pwesei 59 World Rainforest Movement (2001) Corporation and Lumberbank. Foreign
  3 SBS Television, Dateline (2001). (2000), Greenpeace (2002) 60 Ibid Control Watchdog, CAFCA, (August
  4 Quoted by International Network of 22 An independent review established by the 61 International Network of Forests and 2003).
  Forests and Communities (2002) PNG government to investigate Communities (2002) 77 www.thelumberbanknewzealand. co.nz
  5 From the site of the Malaysia-China allegations that the six major new 62 EMW(1995) p.102 (Nov. 2003)
  Business Council logging concession allocations and permit 63 World Rainforest Movement and Forest 78 FSC certification requires an operation to
  www.mcbc.org.my/en/profile/pro_tionghk extensions in 2002 were unlawful. The Monitor (1998) p 33-35 at minimum:
  (Nov 2003) review comprised a forester, lawyer and 64 The Long Sayan Declaration, Sarawak ∑ • Comply with all the laws of a country,
  6 Rimbunan Hijau interests in newspaper landowner specialist. Penan Association, June 2002 ∑ • Respect indigenous peoples’ and local
  publishing include Sin Chew Jit Poh, the 23 Review of Disputed Allocations (2003). 65 WRM and Forest Monitor (1998) community rights,
  leading Chinese language daily in Covering letter to the Chief Secretary 66 Personal communications to Greenpeace ∑ • Be beneficial to local communities,
  Malaysia, The National, an English dated 25th March 2003 from PNG non government organisations ∑ • Sustain the forest resources,
  language daily in Papua New Guinea and 24 Review of Disputed Allocations (2003b,c (2003). ∑ • Maintain and protect biodiversity,
  Guang Ming Ribao, a Chinese daily in &d) 67 EMW (1995) ∑ • Minimise and phase out chemical
  Penang 25 Pers Comm with Post Courier staff (and 68 Sahabat Alam Malaysia (2000) pesticide use,
  7 Forest Information Service (2003a) confirmed by a copy of a letter from RH to 69 as quoted in EMW (1995) ∑ • Prohibit genetically engineered
  8 Bryant (1997) the PC) 70 BBC (2001) organisms,
  9 http://www.mgcc.com.my/mgcc/ 26 Review of Disputed Allocations (2003 b, c 71 In 1994 scientists at the Environmental ∑ • Have a detailed management plan,
  memdir.nsf/ba9e7b9d0ad61b7b47256bf and d) Issues Institute in Khabarovsk detailed ∑ • Monitor environmental and social
  200400d23/2e9982968473324348256b 27 Ombudsman Commission (2003) plans for the establishment of the indicators,
  ea0041d511?OpenDocument 28 Ombudsman Commission (2003) Verkhne-Soukpai Nature Preserve. This ∑ • Maintain and enhance High
  10 Marshall (1989) 29 Independent Forestry Review (2003a) at Preserve was included in the national list Conservation Value Forests, and
  11 World Rainforest Movement and Forest page 1 of Nature Preserves and National Parks ∑ • Restore natural forests if it is a
  Monitor (1998), pg 8 30 Independent Forestry Review (2003b) at approved by the Russian Federal plantation.
  12 Ombudsman Commission (2002) page 7 Government on 10th October 1995. 79 Frontline (30 October 1994)
  13 National Intelligence Organisation report 31 Statement of the Prime Minister given at When it was announced that Rimbunan 80 An AIDAB (Australian International
  (2000) his party’s fund raising dinner at the Hijau was to be allowed to log inside the Development Assistance Bureau) National
  14 World Rainforest Movement and Forest Grand Palace restaurant on 30th August proposed Nature Preserve the Regional Forest Resource Inventory in 1995 found
  Monitor (1998) 2003, www.pm.gov.pg/pmsoffice Administration claimed the area had logging was 4 time the sustainable rate,
  15 FIS (2003b) 32 EMW (1995), World Rainforest Movement already lost its environmental values due and subsequent official log export
  16 As the owner of 50% of the shares in the and Forest Monitor(1998), Kocher- to forest cuttings and fires. However a volumes have confirmed the
  Sepik River Development Corporation, the Schmidt (1999 and 2000), Erskine (1999a preliminary investigation in the area in unsustainable harvest has continued over
  holder of a logging permit for the Lower and 1999b), Pwesei (2000), SBS (2001), 1999 by the Biodiversity Conservation the last decade.
  Sepik Local Forest Agreement the Prime Greenpeace (2002), Melick (2003). Center and ScanEx Technical Centre 81 Central Bank of Solomon Is (1995). pp18.
  Minister was criticised in Barnett (1987) 33 The best summary of these problems can contradicted these claims 82 Duncan (1994) pp30
  as SRDC was supposed to be a be found in the television documentary (www.scanex.ru/rus/tematica/ 83 Solomon Star (1995)
  representative landowner company but it Dateline broadcast by SBS, an Australian project/sukpai) 84 Olsen and Turbull (1993)
  clearly was not, and the PM had put television station, on May 2, 2001. 72 Forest Club of Russia. 85 World Rainforest Movement and Forest
  pressure on the Minister and Secretary of 34 SBS (2001) WWW.forest.ru/eng/hot_spots Monitor (1998) pp57
  Forests to speed up the permit allocation 35 Ibid 73 In 2000 Rimbunan Hijau was fined for 86 Greenpeace Australia Pacific( 2001) pp
  (the project was also contrary to an 36 Ibid environmental violations (RBC 24.
  Australian funded Land Development 37 Ibid Khabarovski, 17 April 2000) and further 87 In 1998 Earthmovers was ordered to pay
  Feasibility Study process) 38 Ibid fines have followed according to the back pay of a 10% wage increase and
  17 Ombudsman Commission (2002) pp 96 39 Australian Conservation Foundation World Wide Fund for Nature (RBC Daily, reinstate workers over poor levels of pay
  and 97 (2003) 18 July 2003) and forests.org and working conditions Solomon Star
  18 Gopera Investments 40 Kocher-Schmidt (1999 and 2000), Erskine (www.forests.org/recent/2001/ ruhilogg). (1998)
  19 The Minister for Privatisation is a (1999a and 1999b), Pwesei (2000), 74 Forest Club of Russia 88 Trading Post (17 January 1996)
  shareholder in Heybridge Limited, the Melick (2003) www.forest.ru/eng/problems/ 89 WRM and Forest Monitor (1998)
  logging contractor to Sepik River 41 Ibid companies/rimbunan 90 www.ipa.gov.pg/forestry_sector.htm
  Development Corporation (a company 50 42 Eco-Forestry Forum (2002) 75 The Ernslaw One Group’s major 91 Post Courier (12/11/03) and FAO Forestry
  percent owned by the Prime Minister) in 43 This was a finding of the Ombudsman shareholder is Callander Limited with Trade Flow Database
  Lower Sepik. The Minister for Planning’s Commission in its investigation of the 79% ownership. Callander is a holding 92 Post Courier (12/11/03) and FAO data
  wife was a shareholder in Richard Gault Kamula Dosa affair, Ombudsman company registered in Liberia and is
  Industries, a logging company that was Commission (2002) controlled by members of the Tiong
  also part owned by the Kerawara logging 44 Melick (2003), pg 48 family. Other shareholdings are held by
  company. The Chief Secretary is a director 45 EIA/Telapak (2003 b) Habacus Pte Ltd of Singapore and Shiang
  of Media Assets Limited, the permit 46 Four Corners, (2002) Yang International Ltd, of Hong Kong (the
  holder for the Kapuluk logging 47 As quoted in World Rainforest Movement ownership split is 80/10/10). Managing
  concession. (2001) director of Ernslaw One, Thomas Song
  20 This problem was highlighted in the 48 EIA/Telapak (2003a) Chai Leng (known as Thomas Song)
  government’s 2001 ‘Audit of Forestry 49 The Jakarta Post (2003) reports to Dr Tiong Ik King.

  THE UNTOUCHABLES 19
  Rimbunan Hijau’s world of forest crime & political patronage

• Page 20 of 20

• January 2004
  Greenpeace International
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