1 May 4, 2016 Regulatory Complaints UK Regulation London Stock

May4,2016
RegulatoryComplaints
UKRegulation
LondonStockExchange
Attn:MarcusStuttard,HeadofUKMarketsandAIM
Attn:ClaireDorrian,AIMProductManagement
Attn:UmerahAkram,AIMPolicy
10PaternosterSquare
LondonEC4M7LS
FinancialConductAuthority,UKListingAuthority
25TheNorthColonnade
CanaryWharf
LondonE145HS
To:AlternativeInvestmentMarketoftheLondonStockExchange,theUKFinancialConduct
Authority,andtheUKListingAuthority
Wetheundersignedorganizationswritetonotifyyouofourgraveconcernsrelatedtoongoing
illegaldeforestationofatleast11,118hectaresinthePeruvianAmazonbeingfinancedbycapital
generatedintheAlternativeInvestmentsMarket(AIM)oftheLondonStockExchange(LSE).The
illegallydeforestedareaisequivalenttoabout45timestheareaofLondon’sfamousHydeParkand
KensingtonGardens,combined.1Thecompanyimplicated,UnitedCacaoLimitedSEZC(hereinafter,
UnitedCacao)whosetickersymbolis“CHOC,”alongwithitsPeruviansubsidiaries,begantradingon
AIMinDecember2014.Atthattime,oneofthecompany’ssubsidiaries,CacaodelPeruNorte,was
responsibleforatleast1,944hectares2ofillegaldeforestationofAmazonrainforest.3Theillegal
clearingofrainforestbyCacaodelPeruNortehascontinuedtodate4despiteordersbythePeruvian
MinistryofAgriculturetoceaseallsuchoperationsonDec.9,2014.5
TworelatedPeruviancompaniestowhichUnitedCacaohasprovidedfinancing,Plantacionesde
PucallpaandPlantacionesdeUcayali,6,7areresponsibleforatleastanadditional9,174hectaresof
illegaldeforestationinthePeruvianAmazon.8,9ThePeruviangovernmenthasalsoorderedthese
1
Together,theseparkscoveranareaof615acres,orabout248hectares.TheRoyalParks.(2016).HydePark.
KensingtonPark.London.<https://www.royalparks.org.uk/parks/hyde-park>
<https://www.royalparks.org.uk/parks/kensington-gardens>
2
DirecciónGeneraldeAsuntosAmbientalesAgrarios,MinisteriodeAgriculturayRiego.(2014,December9).
ResolucióndeDirecciónGeneralN°462-2014-MINAGRI-DVDIAR-DGAAA.Lima,Peru.
3
DirecciónGeneraldeAsuntosAmbientalesAgrarios,MinisteriodeAgriculturayRiego.(2014,October13).
Informe1008-14-MINAGRI-DVDIAR-DGAAA-DGAA-112228-14.Lima,Peru.
4
FinerM,NovoaS.(2016).UnitedCacaoContinuesDeforestationofPrimaryForestinTamshiyacu(Loreto,
Peru).MAAP:#27.<http://maaproject.org/2016/united-cacao/>
5
DirecciónGeneraldeAsuntosAmbientalesAgrarios,MinisteriodeAgriculturayRiego.(2014,December9).
ResolucióndeDirecciónGeneralN°462-2014-MINAGRI-DVDIAR-DGAAA.Lima,Peru.
6
UnitedCacaoLimitedSEZC.(2015,June).BuildingCommunitiesGrowingCacao:AnnualReport2014.p.42.
7
UnitedCacaoLimitedSEZC.(2015,September29).HalfYearlyReport.London.
8
DirecciónGeneraldeAsuntosAmbientalesAgrarios,MinisteriodeAgriculturayRiego.(2015,September2).
ResolucióndeDirecciónGeneralN°270-2015-MINAGRI-DVDIAR-DGAAA.Lima,Peru.
9
DirecciónGeneraldeAsuntosAmbientalesAgrarios,MinisteriodeAgriculturayRiego.(2014,December9).
ResolucióndeDirecciónGeneralN°463-2014-MINAGRI-DVDIAR-DGAAA.Lima,Peru.
1
companiestoceaseoperations.10,11ThoughAIM-tradedcompaniesarenotrequiredtodisclosethe
samelevelofinformationaboutrelatedcompaniesasforthelistedentityanditsdirect,fully-owned
subsidiaries,theoperationsoftheserelatedcompaniesarerelevant.PlantacionesdeUcayaliand
PlantacionesdePucallpahavederivedsignificantfinancingfromUnitedCacao(overUSD$3,000,000
byDecember2014)12andplayaprominentroleastwoofthethreePeruviancorporateentities
controlledbyUnitedCacao’sCEO,DennisMelka,whichareengagedinongoingillegal
deforestation.13,14PlantacionesdePucallpahasbeenaccusedbyseveralindigenousgroupsand
representativesofviolatingindigenousrightstotheirtraditionallands,andarecentpreliminary
resolutionfromtheRoundtableonSustainablePalmOilconfirmedthatavailableevidence
supportedthisclaim.15,16
AIMmustundertakearobustandtransparentinvestigationintoUnitedCacao,itsPeruvian
operationsandrelatedcompanies,todeterminecompliancewithAIMrulesandprocedures,
pursuanttoauthoritiesgrantedinRules40-42ofAIMRulesforCompanies17aswellasAIM’s
DisciplinaryProceduresandAppealsHandbook.18
ThoughUnitedCacaoisregisteredintheCaymanIslands,companystatementsdonotalludetoany
operationsofUnitedCacaoitself,otherthanbeingtheownerofsubsidiariesoperatinginPeru.
UnitedCacao’ssubsidiariesandrelatedcompaniesinPerucarryoutitscorebusiness,andareall
legallycontrolledbyUnitedCacao’sCEO,DennisMelka.TheextenttowhichUnitedCacaohas
accuratelyrepresenteditssubsidiaryoperationsdeterminesitscompliancewithAIM’srulesfor
disclosure,whileitsfundingofrelatedcompaniesoperatinginviolationofPeruvianlawthreatens
thereputationofAIMitself.InparallelandasacomplementtotheAIMinvestigation,theUK
FinancialConductAuthorityandtheUKListingAuthoritymustinvestigatewhetherUnitedCacaohas
brokenlawsortradingrulesintheUnitedKingdombyitsmisrepresentationsandfalsestatements,
asdescribedintheattachedbriefing:“LondonStockExchangeFinancingforIllegalDeforestationin
PeruviaAIM-listedUnitedCacaoLtd.SEZC.”
ThePeruviangovernmentinitiatedlegalactionagainsttheUnitedCacao’sPeruviansubsidiary,
CacaodelPeruNorte,asearlyas2013,19,20priortothecompany’sinitialpublicofferinginDecember
10
DirecciónGeneraldeAsuntosAmbientalesAgrarios,MinisteriodeAgriculturayRiego.(2015,September2).
ResolucióndeDirecciónGeneralN°270-2015-MINAGRI-DVDIAR-DGAAA.Lima,Peru.
11
DirecciónGeneraldeAsuntosAmbientalesAgrarios,MinisteriodeAgriculturayRiego.(2014,December9).
ResolucióndeDirecciónGeneralN°463-2014-MINAGRI-DVDIAR-DGAAA.Lima,Peru.
12
UnitedCacaoLimitedSEZC.(2015,June).BuildingCommunitiesGrowingCacao:AnnualReport2014.p.40.
13
DirecciónGeneraldeAsuntosAmbientalesAgrarios,MinisteriodeAgriculturayRiego.(2015,September2).
ResolucióndeDirecciónGeneralN°270-2015-MINAGRI-DVDIAR-DGAAA.Lima,Peru.
14
DirecciónGeneraldeAsuntosAmbientalesAgrarios,MinisteriodeAgriculturayRiego.(2014,December9).
ResolucióndeDirecciónGeneralN°463-2014-MINAGRI-DVDIAR-DGAAA.Lima,Peru.
15
RoundtableonSustainablePalmOil.(2016,April,25).“PreliminaryDecision-ForestPeopleProgramme
ComplaintagainstPlantacionesdePucallpa,Peru.”KualaLumpur,Malaysia.
16
PueblosIndígenasKakataibos,Shipibo,yAwajun.(2015,August21).LetterfromIndigenousRepresentatives
totheMinistryofAgriculture.Lima,Peru.
17
LondonStockExchange.(2016,January1).AIMRulesforCompanies.(Rules40-42).London.p.13.
18
LondonStockExchange.(2014,May).AIMDisciplinaryProceduresandAppealsHandbook.London.
<http://www.londonstockexchange.com/companies-and-advisors/aim/advisers/aimnotices/aimdisciplinaryproceduresmay2014.pdf>
19
“CarpetaFiscal234-2013”asreferencedinOficinadeAsesoriaJuridica,MinisteriodeAgriculturayRiego.
(2014,September10).Informe1066-2014-MINAGRI-OGAJ.Lima,Peru.
20
“CarpetaFiscal234-2013”asreferencedinProcuraduriaPublicaEspecializadaenDelitosAmbientales,
MinisteriodelAmbiente.(2015,November19).InformeNo.22-2015-MINAM/PP.Lima,Peru.
2
2014.UnitedCacao’sAdmissionDocumentmisrepresentedtheextenttowhichlegalrulingsinPeru
favoredthecompanyatthattime,21asdidsubsequentstatementstoinvestors,22inviolationofAIM
rules.23
InadditiontotheongoinglegalactionsbroughtbythePeruviangovernment,detailedinFigure1of
theattachedbriefing,thenatureofthecrimeswhichthecompanystandsaccusedareanimportant
matterforAIMtoaddress.AllowingcompanieslistedonAIMtoraisecapitaltoviolateother
countries’nationallawsjeopardizesthe“integrityandreputation”ofthemarket,whichisgrounds
forsuspensionofacompany’strading,accordingtoAIMRules.24Theattachedbriefing25detailsthe
misrepresentationsandmaterialomissionsthatarecontainedinUnitedCacao’spublicstatements.
Thesemisrepresentationsandmaterialomissionsinclude,butarenotlimitedto:
•
•
•
Providingfalsestatements26aboutthedeforestationandillegalremovaloftimberfrom
projectsites.27
AssertinglegalinterpretationsofPeruvianlaw28thatwereneithercorrectnorsanctionedby
theappropriategovernmentauthoritiesinPeru.29
ClaimingthatagriculturalactivitiesexistedontheCompany’spropertiespriortothe
company’soperationsinPeru,30whengovernmentreports31andsatelliteimagery32clearly
showotherwise.
21
StrandHansonLimited,VSACapitalLimitedandKallpaSecuritiesSociedadAgentedeBolsaS.A.(2014,
November26).AdmissionDocument:UnitedCacaoLimitedSEZC.p.40.
22
UnitedCacaoLimitedSEZC.(2016,February15).Litigation&SettlementResults.London.
23
LondonStockExchange.(2016,January1).AIMRulesforCompanies.(Rules3,10,11).London.p.4,6.
24
LondonStockExchange.(2016,January1).AIMRulesforCompanies.(Rule40).London.p.13.
25
EnvironmentalInvestigationAgency.(2016,May4).LondonStockExchangeFinancingforIllegal
DeforestationinPeruviaAIM-listedUnitedCacaoLtd.SEZC.Washington,DC.
26
StrandHansonLimited,VSACapitalLimitedandKallpaSecuritiesSociedadAgentedeBolsaS.A.(2014,
November26).AdmissionDocument:UnitedCacaoLimitedSEZC.p.28.
27
EnvironmentalInvestigationAgency.(2016,May4).ClearCorporateConnections,LondonStockExchange
FinancingforIllegalDeforestationinPeruviaAIM-listedUnitedCacaoLtd.SEZC.Washington,DC.
28
StrandHansonLimited,VSACapitalLimitedandKallpaSecuritiesSociedadAgentedeBolsaS.A.(2014,
November26).AdmissionDocument:UnitedCacaoLimitedSEZC.p.40-41.
29
EnvironmentalInvestigationAgency.(2016,May4).DisclosingSelectiveandIncorrectInformation,London
StockExchangeFinancingforIllegalDeforestationinPeruviaAIM-listedUnitedCacaoLtd.SEZC.Washington,
DC.
30
StrandHansonLimited,VSACapitalLimitedandKallpaSecuritiesSociedadAgentedeBolsaS.A.(2014,
November26).AdmissionDocument:UnitedCacaoLimitedSEZC.p.25,28,29,40.
31
OficinadeAsesoriaJuridica,MinisteriodeAgriculturayRiego.(2014,September10).Informe1066-2014MINAGRI-OGAJ.Lima,Peru.
32
USGSLandsat7,8INPE.SidneyNovoa&NickCuba.AsinEnvironmentalInvestigationAgency.(2015).
DeforestationbyDefinition:ThePeruviangovernmentfailstodefineforestsasforests,whilepalmoilexpansion
andtheMalaysianinfluencethreatentheAmazon.Washington,DC.
3
•
•
•
•
•
•
FailingtodisclosethetruenatureofthelegalbasisofactionsbeingbroughtagainstCacao
delPeruNorte,33,34,35,36,37andfailingtodiscloseinformationaboutlegalactionsagainst
UnitedCacao’sCEO,DennisMelka,bythePeruviangovernment.38
Claimingtohavefollowedallenvironmentalapprovalprocedureswhenofficialdocuments
demonstratethatthisisnotthecase.39
MisrepresentingtheoutcomeofaPeruvianSupremeCourtrulingbyimplyingafinal
decisionhadbeenrenderedbythecourtwhichgrantedauthorizationforUnitedCacao’s
subsidiary’stooperate,40despitethecasebeingunresolvedtodateandtheenvironmental
approvalsstillnothavingbeenobtained.41
CitingreportsfromthePeruviangovernmentinitsAdmissionDocument,withoutnoting
thatasofthetimeoffiling,thecitedreportshadbeencorrectedbythePeruvian
government.42
IndicatingthatthePeruviangovernmentmightchangeitsinterpretationaboutthe
requirementforCacaodelPeruNortetoobtainabestlanduseclassificationandachangeof
landuseauthorizationbeforeinitiatingdeforestingactivities,43whentheinterpretationhad
alreadybeenchangedandtheopinioncitedintheAdmissionDocumenthadbeenissuedby
theimproperlegalauthority,removinganybasisforthisassertionasapurportedriskatthe
timeofUnitedCacao’ssubmissiontoAIM.44
FailingtoconsiderordiscloserisksthatthePeruviangovernmentmightenforceandhonor
itsglobalcommitmentstocombatclimatechangeandsupportbiodiversitybyreducingor
eliminatingdeforestationinthecountry.45
Thespecificcasesthatareoutlinedintheattachedbriefingreferencepublicinformationand
documentsinPeruwhichprovideconclusiveevidencethatUnitedCacaocausedviasubsidiaries,or
33
StrandHansonLimited,VSACapitalLimitedandKallpaSecuritiesSociedadAgentedeBolsaS.A.(2014,
November26).AdmissionDocument:UnitedCacaoLimitedSEZC.p.40-41.
34
UnitedCacaoLimitedSEZC.(2016,February15).Litigation&SettlementResults.London.
35
UnitedCacaoLimitedSEZC.(2015,September29).HalfYearlyReport.London.
36
EnvironmentalInvestigationAgency.(2016,May4).TheProblemswithInforme1376,LondonStock
ExchangeFinancingforIllegalDeforestationinPeruviaAIM-listedUnitedCacaoLtd.SEZC.Washington,DC.
37
UnitedCacaoLimitedSEZC.(2015,June).BuildingCommunitiesGrowingCacao:AnnualReport2014.p.16.
38
EnvironmentalInvestigationAgency.(2016,May4).Figure1,LondonStockExchangeFinancingforIllegal
DeforestationinPeruviaAIM-listedUnitedCacaoLtd.SEZC.Washington,DC.
39
EnvironmentalInvestigationAgency.(2016,May4).TheProblemswithInforme1376,LondonStock
ExchangeFinancingforIllegalDeforestationinPeruviaAIM-listedUnitedCacaoLtd.SEZC.Washington,DC.
40
UnitedCacaoLimitedSEZC.(2016,February15).Litigation&SettlementResults.London.
41
EnvironmentalInvestigationAgency.(2016,May4).SupremeCourtRuling,LondonStockExchangeFinancing
forIllegalDeforestationinPeruviaAIM-listedUnitedCacaoLtd.SEZC.Washington,DC.
42
EnvironmentalInvestigationAgency.(2016,May4).TheProblemswithInforme1376,LondonStock
ExchangeFinancingforIllegalDeforestationinPeruviaAIM-listedUnitedCacaoLtd.SEZC.Washington,DC.
43
StrandHansonLimited,VSACapitalLimitedandKallpaSecuritiesSociedadAgentedeBolsaS.A.(2014,
November26).AdmissionDocument:UnitedCacaoLimitedSEZC.p.40-41
44
EnvironmentalInvestigationAgency.(2016,May4).TheProblemswithInforme1376,LondonStock
ExchangeFinancingforIllegalDeforestationinPeruviaAIM-listedUnitedCacaoLtd.SEZC.Washington,DC.
45
EnvironmentalInvestigationAgency.(2016,May4).Section2:Failuretoconsiderrisks:Peruvian
CommitmentstoForestConservationandClimateChangeMitigation,LondonStockExchangeFinancingfor
IllegalDeforestationinPeruviaAIM-listedUnitedCacaoLtd.SEZC.,Washington,DC.
4
financedviarelatedcompanies,theillegaldeforestationofatleast11,118hectares46,47,48ofmostly
primarytropicalrainforest.49,50WithongoingAIMfinancing,UnitedCacao,itssubsidiaries,and
relatedcompaniescontrolledbyUnitedCacao’sCEO,DennisMelka,haveacquiredorareattempting
toacquiresubstantiallymorelandacrossthePeruvianAmazonforlarge-scaleplantation
agriculture.51,52However,onlyasmallpercentageoflandintheAmazonregionswherethese
propertiesarelocatedissuitableforagriculturalpurposes.53,54Giventhepastmisrepresentations
containedinUnitedCacao’sfilingswithAIM,thenatureofthemisrepresentationsandrelated
violationsofAIM’srulesandpolicies,AIMmusttakedisciplinaryactionpursuanttoRule42and
preventUnitedCacaofromraisinganyfurtherfundsforillegaldeforestationthroughthestructures
andfacilitiesofAIM.
UnitedCacao’sfinancingforillegaldeforestationalsothreatensindigenouspeoples’rights.Local
communitiesnearthecompanies’operationsinUcayalihavelodgedcomplaintswiththe
governmentaboutthecompanyforhavingviolatedtheirrightstotheirtraditionalterritoryandfor
notcompletingenvironmentalimpactassessmentsbeforebeginningoperations.55OnApril25,2016,
theRoundtableforResponsiblePalmOil(RSPO)respondedtoallegationsmadebylocalindigenous
communities,andissuedapreliminarydecisionconfirmingevidenceofviolationofitsprinciplesand
criteriaonindigenousrights,deforestationofhighconservationvalueforest,environmentalpermits,
newplantingprocedure,andintimidationbyUnitedCacao’srelatedcompany,Plantacionesde
Pucallpa.56Indigenouscommunityleadershaveexplainedthattheirtraditionalforestland,whichwas
pendingformallandtitling,hasbeencompletelydestroyed,reportingdamagenotonlytoforests,
butwildlifedeathsanddiversionofriversand/orstreams.57TheseandothercommunitiesinPeru
46
DirecciónGeneraldeAsuntosAmbientalesAgrarios,MinisteriodeAgriculturayRiego.(2014,December9).
ResolucióndeDirecciónGeneralN°462-2014-MINAGRI-DVDIAR-DGAAA.Lima,Peru.
47
DirecciónGeneraldeAsuntosAmbientalesAgrarios,MinisteriodeAgriculturayRiego.(2014,December9).
ResolucióndeDirecciónGeneralN°463-2014-MINAGRI-DVDIAR-DGAAA.Lima,Peru.
48
DirecciónGeneraldeAsuntosAmbientalesAgrarios,MinisteriodeAgriculturayRiego.(2015,September2).
ResolucióndeDirecciónGeneralN°270-2015-MINAGRI-DVDIAR-DGAAA.Lima,Peru.
49
USGSLandsat7,8INPE.SidneyNovoa&NickCuba.AsinEnvironmentalInvestigationAgency.(2015).
DeforestationbyDefinition:ThePeruviangovernmentfailstodefineforestsasforests,whilepalmoilexpansion
andtheMalaysianinfluencethreatentheAmazon.Washington,DC.
50
AsreferencedinCannon,JohnC.(2015,January20).Companychopsdownrainforesttoproduce
‘sustainable’chocolate.Mongabay.<http://news.mongabay.com/2015/01/company-chops-down-rainforestto-produce-sustainable-chocolate/>
51
EnvironmentalInvestigationAgency.(2015).DeforestationbyDefinition:ThePeruviangovernmentfailsto
defineforestsasforests,whilepalmoilexpansionandtheMalaysianinfluencethreatentheAmazon.
Washington,DC.p.20-22.
52
DirecciónRegionalAgrariadeLoreto.(2013).OfficialresponsetoanEnvironmentalInvestigationAgency’s
accesstoinformationrequest.
53
Only1.53%ofLoreto’slandispotentiallysuitableforagricultureaccordingtoDirecciónGeneraldeAsuntos
AmbientalesAgrarios,MinisteriodeAgriculturayRiego.(2014,December9).ResolucióndeDirecciónGeneral
N°462-2014-MINAGRI-DVDIAR-DGAAA.Lima,Peru.
54
Only8.2%ofUcayali’slandissuitableforagricultureaccordingtoDirecciónGeneraldeAsuntosAmbientales
Agrarios,MinisteriodeAgriculturayRiego.(2014,December9).ResolucióndeDirecciónGeneralN°463-2014MINAGRI-DVDIAR-DGAAA.Lima,Peru.
55
DirecciónGeneraldeAsuntosAmbientalesAgrarios,MinisteriodeAgriculturayRiego.(2015,September2).
ResolucióndeDirecciónGeneralN°270-2015-MINAGRI-DVDIAR-DGAAA.Lima,Peru.
56
RoundtableonSustainablePalmOil.(2016,April,25).“PreliminaryDecision-ForestPeopleProgramme
ComplaintagainstPlantacionesdePucallpa,Peru.”KualaLumpur,Malaysia.
57
Souter,Robert.“PalmoilexpansioninPeruiskillingourpeople,saysindigenousleader.”(2015,November
05).DialogoChino.http://dialogochino.net/palm-oil-expansion-in-peru-is-killing-our-people-says-indigenousleader/.
5
dependonforestresources,aswellasecosystemservicesprovidedbyforests,fortheirfood,water,
housing,andlivelihoods.58
Therighttolandandterritoryisafundamentalrequirementininternationallawswhichenshrinethe
rightsofindigenouspeoples.59ThelegalframeworkapplicableinPerualsoincludesthebinding
jurisprudenceoftheInterAmericanCourtofHumanRights(IACHR),whichhasestablishedon
multipleoccasionsthatthepropertyrightsofindigenouspeoplesarenotrestrictedtothoselands
thathavebeenissuedwithofficiallegaltitlebutextendtoallthoselandsoccupied,owned,or
otherwiseusedaccordingtocustom. 6061InvariouscasestheIACHRhasestablishedthat“traditional
possessionoftheirlandsbyindigenouspeoplehasequivalenteffectstothoseofastate-grantedfull
propertytitle"andsuchpossession"entitlesindigenouspeopletodemandofficialrecognitionand
registrationofpropertytitle."6263
TheInternationalLabourOrganizationConvention169(ILO169),ratifiedbyPeruin1993and
enactedasbindinginthecountryin1994,64clarifiesthatindigenouspeoplesareentitledtorights
overlandwhichtheyoccupyandwhichsustainsnaturalresourceswhichtheydependuponfor
subsistenceactivities.65InadditiontoILO169,theUNDeclarationontheRightsofIndigenous
Peoples(UNDRIP)furtheraffirmsindigenouspeoples’righttofreepriorandinformedconsentover
projectsthataffectthem,includingthosewhichoccuronoraffecttheirtraditionalterritories.66
InPeru,whichisasignatorytoboth,ILO169andUNDRIP,indigenousorganizationsestimatethatin
additiontocurrentlytitledlands,atleast20millionhectaresinPeru’sAmazonregionaretraditional
indigenousterritorieswhichhavenotyetreceivedformallandtitlefromthegovernment.67While
formalizationoflandrightsintheseregionsremainspending,thePeruviangovernmenthasclear
obligationsunderinternationallawtorefrainfromapprovingprojectsonindigenouslands,68and
thus,companiesmustwaituntiltheindigenousclaimstolandtenureareresolvedbeforemoving
forwardanddeforestingtheselands.TheRoundtableonSustainablePalmOil’spreliminarydecision
58
MichaelValqui,ConradFeatherandRobertoEspinosaLlanos.(2015)“RevealingtheHidden:Indigenous
PerspectivesondeforestationinthePeruvianAmazon;thecausesandthesolutions.”AIDESEPandForest
PeoplesProgramme.MoretoninMarsh,UK.
59
Articles8,10,25-30,32.UnitedNationsDeclarationontheRightsofIndigenousPeoples.(2007).
60
PoliticalConstitutionofPeru(1993),Art.55.
61
Peru’sConstitutionalcourthasestablishedthat:“InternationalhumanrightstreatiestowhichthePeruvian
stateisapartymakeupthelegalframework.Theyarenotjustpartofthelegalframework,however,buthold
constitutionalstatus”.STCNº00025-2005-PI/TCyNº00026-2005-PI/TCacumulados,f.j.25.(2006,April25).
(Authorstranslation).
62
I/ACourtH.R.,CaseoftheSawhoyamaxaIndigenousCommunityv.Paraguay.Merits,ReparationsandCosts.
JudgmentofMarch29,2006.SeriesCNo.146,par.128("Sawhoyamaxa")];
63
IACourtH.R.,CaseoftheMayagna(Sumo)AwasTingniCommunityv.Nicaragua.Merits,Reparationsand
Costs.JudgmentofJanuary31,2001.SeriesCNo.79,par.151("AwasTingni")("Asaresultofcustomary
practices,possessionofthelandshouldsufficeforindigenouscommunitieslackingrealtitletopropertyofthe
landtoobtainofficialrecognitionofthatproperty,andforconsequentregistration")
64
ResoluciónLegislativaNº26253.(1993)
65
Article7,PartII,C169IndigenousandTribalPeoplesConvention.InternationalLabourOrganization.(1989).
66
Article19.UnitedNationsDeclarationontheRightsofIndigenousPeoples.(2007).
67
AsociaciónInterétnicadeDesarollodelaSelvaPeruana.(2015).ExperienciasdeTitulacióndeTerritorios
IndígenasenlaAmazoníaPeruana[PowerPointslides].Retrievedfrom
https://www.dropbox.com/s/2o7fea5vzlg7rez/EXPERIENCIA%20DE%20TITULACI%C3%93N%20DE%20TIAP.co
mpressed.pdf?dl=0
68
Inter-AmericanCourtofHumanRights.ComunidadMayagna(Sumo)AwasTingniv.Nicaragua,2001.
6
onApril25,2016affirmsthisinterpretationofindigenouspeoplesrightsinPeruvianand
internationallawasapplicableinPeru.69
ThemodelrepresentedbyUnitedCacao,itssubsidiaries,anditsrelatedcompanies–market
financingforillegaldeforestationwhichthreatensindigenouspeoples’rightsaffirmedinPeruvian
nationallawandinternationallaw--mustbestoppedifPeru’sforestpeoplesandtheforeststhey
dependonaretosurvive.Indeed,thepotentialprecedentssetbyAIM’sactiononthiscasewillhave
globalrelevanceforstockexchanges,marketactors,theglobalclimate,andourplanet’spopulation
–includingindigenouspeoplesandforestcommunitiesmostdirectlyaffectedbylandandnatural
resourcegovernance.70
LocalPeruvianorganizationsarespeakingoutaboutthelackofrespectforindigenouspeoples’
rights,violationsofthelaw,andmassivedeforestationrelatedtocacaoandpalmoil.7172Multiple
newsoutletsinPeru,fromtheregional73tothenational74,75,76,77,78,79andtheinternational80,81,82
levelhavedescribedtheconflictandcontroversysurroundingtheexpansionofcompanies
connectedtoUnitedCacao’sCEO,DennisMelka,acrossthecountry’sforests,includingUnited
69
RoundtableonSustainablePalmOil.(2016,April,25).“PreliminaryDecision-ForestPeopleProgramme
ComplaintagainstPlantacionesdePucallpa,Peru.”KualaLumpur,Malaysia.
70
MichaelValqui,ConradFeatherandRobertoEspinosaLlanos.(2015)“RevealingtheHidden:Indigenous
PerspectivesondeforestationinthePeruvianAmazon;thecausesandthesolutions.”AIDESEPandForest
PeoplesProgramme.MoretoninMarsh,UK.
71
MultipleAuthors.(2016,March29).OrganizacionesindígenasyOngsalertanamenazadedeforestaciónpor
palmaaceitera[PressStatement].<http://www.aidesep.org.pe/organizaciones-indigenas-y-ongs-alertanamenaza-de-deforestacion-por-palma-aceitera/>
72
SegundoConsejodeCoordinaciónAmpliado,AsociaciónIndígenaparaelDesarrollodelaSelvaAmazonica
Peruana.(2015,September4).Resolución1,“Lospueblosindígenasdeclaranen“emergencianormativa”la
palmaaceiteraenelPerú.”<http://www.aidesep.org.pe/los-pueblos-indigenas-declaran-en-emergencianormativa-la-palma-aceitera-en-el-peru/>
73
“‘Ennuestrasoficinasnoobranexpedientesnitampocosolicitudesdecambiodeusoydesbosque.’”(2015,
September15).DiarioLaRegion.Iquitos,Loreto,Peru.<http://diariolaregion.com/web/en-nuestras-oficinasno-obran-expedientes-ni-tampoco-solicitudes-de-cambio-de-uso-y-desbosque/>
74
“Ellaberintodelapalma:laselvaenriesgoporvacíoslegales.”(2015,4desetiembre).ElComercio.Lima,
Perú.
<http://elcomercio.pe/peru/pais/laberinto-palma-selva-riesgo-vacios-legales-noticia-1838248>
75
“Ucayali:crimenecológicoenlaselvaperuana.”(2015,30deagosto).Panorama.
<https://www.youtube.com/watch?v=pg3luPV57fw&feature=youtu.be>
76
Prado,Elizabeth.(2015,6desetiembre).“PlantacionesdepalmaaceiteraenfrentanenUcayaliaindígenasy
agricultores.”LaRepública.Lima,Perú.<http://larepublica.pe/impresa/politica/701445-plantaciones-depalma-aceitera-enfrentan-en-ucayali-indigenas-y-agricultores>
77
Rivadeneyra,DánaeandRiestra,EstebanValle.“Loscomebosques.”(2013,setiembre).IDLReporteros.
<https://idl-reporteros.pe/los-comebosques/>
78
PighiBel,Pierina.“ElfinancistanorteamericanoacusadodedeforestaciónenelPerú.”(2015,abril).Ojo
Público.<http://ojo-publico.com/44/el-financista-norteamericano-acusado-de-deforestacion-en-el-peru>
79
“AmazoníaArrasada.”(2016,marzo).Convoca.<http://convoca.pe/especiales/AMAZONIA/>
80
Fraser,Barbara.“TheAfricanpalmoilfrontierexpandsdeeperintothePeruvianAmazon,impacting
indigenouscommunities’.”(2016,marzo).Mongabay.<https://news.mongabay.com/2016/03/the-africanpalm-oil-frontier-expands-deeper-into-the-peruvian-amazon-impacting-indigenous-communities-territories/>
81
Hill,David.“CanPerustop“ethicalchocolate”fromdestroyingtheAmazon?”(2015,abril).TheGuardian.
<http://www.theguardian.com/environment/andes-to-the-amazon/2015/apr/17/can-peru-stop-ethicalchocolate-destroying-amazon>
82
Lang,Chris.“DennisMelka:exportingdeforestationfromSarawaktoPeru”(2015,setiembre).REDD
Monitor.<http://www.redd-monitor.org/2015/09/26/dennis-melka-exporting-deforestation-from-sarawak-toperu/>
7
Cacao’sdirectsubsidiary,CacaodelPeruNorte.InternationaloutletsliketheGuardianhavealso
coveredtheroleofAIMfinancing,viaUnitedCacao,intheongoingillegaldeforestationinPeru.83
Fundsraisedoninternationalstockexchangesshouldnotbeavailableforcompaniesoperatingin
violationofthelaw,threateningtherightsandresourcesofindigenouspeoples,andcausing
seriousenvironmentaldamage.
WecalluponAIMandUKmarketregulatorstoimmediatelyundertakearobustandtransparent
investigationintoUnitedCacao,itssubsidiaries,andrelatedcompaniesthathavereceivedfinancing
fromUnitedCacaoforviolationsofcurrentAIMRulesandAIM’sUKenablinglaw(s),andsanction
themforanyviolationsfound.Thisinvestigationmustincludeanexaminationandpublicationofthe
beneficialownershipstructureofUnitedCacao,itssubsidiaries,andrelatedcompanies,aswellas
informationaboutanylinkstootherplantation,agro-commoditytrading,orretailcompanies.
Giventheegregiousandon-goingnon-compliancewithAIMrules,webelieveUnitedCacaoandits
CEOshouldbesuspendedandbarredfromtradingontheexchange.Informationaboutthe
investigationandanysubsequentsanctionsmustbepublishedinatimelymanner,inorderforthese
actionstohavecredibilitywiththepublic.Additionally,AIMshouldexamineandamenditsrulesto
explicitlypreventcompaniesoperatinginviolationofthelawincountriesofoperationtoraisefunds
ontheexchange.Finally,giventhatmuchoftheinformationaboutUnitedCacao’ssubsidiary’s
actionsinPeruhasbeenpublicforatleasttwoyears,AIMandtheLondonStockExchangemust
exertmoreactiveoversightoftradedcompaniestoensurethatfundsbeingraisedarenotusedto
financeactorsviolatingAIMRulesornationalorinternationallaws.
Sincerely,
PeruvianOrganizations
AsociaciónAgrariadeFernandoLores,Loreto
AsociaciónCivilElPuentedelaAmistad–ACELPA,Loreto
AsociacióndeGanaderosdeFernandoLores,Loreto
AsociaciónInterétnicadeDesarrollodelaSelvaPeruana-AIDESEP
AsociaciónNacionaldeCentrosdeInvestigaciónyPromociónSocialy
Desarrollo-ANC
AsociaciónPazyEsperanza,SanMartín
AsociaciónProDerechosHumanos-APRODEH
AsociaciónProductoresAgropecuarios,EcológicosyPiscicultoresde
PadreAbad-ASHPAZETA
AsociaciónProPurus
CentrodeConservación,InvestigaciónyManejodeÁreasNaturales-
CordilleraAzul(CIMA-CordilleraAzul)
CentrodeEstudiosenSolidaridadconAméricaLatina
CentrodeInvestigaciónSocialyEducaciónPopular–ALTERNATIVA
CentrodelaMujerPeruanaFloraTristán
CentrodePolíticasPúblicasyDerechosHumanos-PerúEQUIDAD
Centroparaeldesarrollodelindígenaamazónico-CEDIA
ComitécontraIncendiosdeBajoRayalNuevaRequena-Ucayali
83
Collyns,Dan.(2015,April7).“HeadofLondon-listedcompanylinkedtoillegalclearingofPerurainforest.”
TheGuardian.London.<http://www.theguardian.com/environment/2015/apr/07/head-of-london-listedcompany-linked-to-illegal-clearing-of-peru-rainforest>
8
ComitédeDefensadelAguadeIquitos
ComunidadCampesinaKichwaSanJoséObrero
ConsejoÉtnicodelosPueblosKichwadelaAmazonía-CEPKA
CoordinadoradeDesarrolloyDefensaPueblosIndígenasdelaregión
SanMartín-CODEPISAM
CoordinadoraRegionaldePueblosIndígenasAIDESEPAtalaya-CORPIAA
DerechoAmbienteyRecursosNaturales-DAR
ECOREDD
FederacióndeComunidadesNativasdelUcayali-FECONAU
FederacióndeComunidadesNativasYineYane,RíoUrubamba-
FECONAYY
FederaciónRegionalIndígenaShawideSanMartín(FERISHAM)
FomentodelaVida–FOVIDA
ForoEcológicodelPerú
ForumSolidaridadPerú
ILLACentrodeEducaciónyComunicación
InstitutoChaikuni
InstitutodeDefensaLegal–IDL
InstitutoPeruanodeRecursosNaturales
Kené,InstitutodeEstudiosForestalesyAmbientales
OrganizaciónRegionalAIDESEPUcayali-ORAU
OXFAM,Perú
PastoraldelaTierradelVicariatoApostólicodeYurimaguas
Proética-PeruvianChapter,TransparencyInternational
RedAmbientalLoretana-RAL
RedNacionaldePromocióndelaMujerlograndolaequidad,igualdad
degéneroentrehombreymujer(UcayaliChapter)
RedPeruanaporunaGlobalizaciónconEquidad-RedGE
ServiciosEcosistémicosPerú-sePeru
TierrActivaPerú
EuropeanOrganizations
AsociaciónProDerechosHumanosdeEspaña-APDHE
BroederlijkDelen,Belgium
CATAPA,Belgium
CommissionJusticeetPaix,Belgium
CORECoalition
EnvironmentalInvestigationAgency-UK
FERN
FlemishAssociationforNorth-SouthCooperation-11.11.11
ForestPeoplesProgramme-FPP
GlobalWitness
PeruKommitténförMänskligaRättigheter,Sweden
PlataformaPerú(Catalunya)
9
UnitedStatesOrganizations
AmazonWatch
CenterforInternationalEnvironmentalLaw
EnvironmentalInvestigationAgency-US
ForestHeroes
FriendsoftheEarth-US
RainforestActionNetwork
Individuals
AlbertoChirif
MarcJ.Dourojeanni
CésarA.IpenzaPeralta
ElianaJacoboMendoza
RodrigoJavierLazoLandivar
CarlosA.LlerenaPinto
EdgarMaravi
MayraPatriciaQuicañoRengifo
ErnestoF.RáezLuna
10