Chapter 1 – Report of the Policy, Law and Complaints Group
(iv) MFCB informed the Commission that up until then, they had invested USD15 million for
a nine-year study to research the environmental and ecological impacts of the project.
The Commission was briefed on several issues, including the displacement of people
from their homes and livelihood, trapped sediment, compromised water quality, and
alteration of river flow patterns.
A report of the meeting was extended to Earth Rights International on 23 February, and in a
response dated 24 March 2015, Earth Rights International raised, among others, concerns
regarding several issues that were not addressed during the meeting with MFCB. In particular,
there were concerns regarding the lack of baseline information and transboundary impact
assessment studies including on regional fisheries, data showing the adequacy of proposed
mitigation measures, and information and consultation with affected communities by the
project developer. Subsequent to that, a second meeting with MFCB was held on 4 August
to put forward a proposition for MFCB to meet with the complainants. During the meeting,
MFCB indicated its disagreement to the proposition on the basis that there had been many
consultations and public fora including at regional and state levels organised by the MRC,
the Government of Laos, and CSOs in the preceding years, where, according to MFCB, the
complainants could have had the opportunity to raise their concerns or bring up issues
pertaining to the project.
Based on the above development and given that there is no National Human Rights Institution
in Laos, the Commission finds it difficult to proceed further with the inquiry into the complaint.
Therefore, guided by its mandate to provide recommendations on issues involving human
rights, the Commission wrote to MFCB on 8 December, and recommended MFCB to ensure
that its business operations and activities are conducted in a manner which respects the
human rights of the people living in the affected areas, besides generating profit out of the
project. In the letter, the Commission also emphasised that the obligation is on MFCB to
embrace human rights principles in the conduct of its business, and urged MFCB to hold
firmly to the principles enunciated in the United Nations Guiding Principles on Business and
Human Rights (UNGP), particularly Principles 11-29.
In addition, the Commission will continue to raise this matter with the Government of Malaysia
through its Business and Human Rights Agenda, with emphasis on the recommendation that
the Government formulate policies or guidelines to monitor Malaysian companies operating
outside of Malaysia in order to ensure compliance with applicable human rights principles
and standards as provided under Principle 3 of the UNGP, and that the Government adhere
to the Economic Co-operation and Development Guidelines for Multinational Enterprises
(OECD) and establish a National Contact Point to address complaints regarding corporate
misconduct including acts/omissions outside the home country.
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