Deal #1999

Old plantation established in 1911 under Belgium colonial rule. Owned by Unilever. Sold to Feronia in 2009. US$3.6m has been ring-fenced to support the company to strengthen business standards and enhance community facilities -- this includes: refurbishment of the housing and sanitation available to workers; a road maintenance program to update the infrastructure on Feronia land that all local people can use; appointing new health & safety staff and community relations managers; undertaking a comprehensive study of the needs of workers and the local community; a new grievance procedure for workers and community; and land mapping to clearly mark out where the company's land extends. The community is affected by water pollution as a result of chemical spraying from the company. DEG financing amounts to USD 16.5 million. A complaint was submitted through the DEG complaints mechanism. On January 7th, 2018 it determined that the complaint was admissible under the criteria of the Independent Complaints Mechanism Policy, and the case is under review. Given the ongoing legal battles, internal conflicts, and lack of transparency (evidenced by the absence of published annual balance sheets since SKKM2's involvement), the future of PHC SA is uncertain. The company's operations and reputation are severely tarnished, and without a resolution to the governance and financial management issues, its survival is in jeopardy.