Trafigura: “This is as cheap as anyone can imagine…”
Posted by Cian O'Donovan on the 14th of October, 2009 at 6:48 pm under environment, media, research and sustainability. This post has no comments.I’m using the Trafigura / Ivory Coast / press gagging travesty of human decency as a case story tomorrow. It’s shocking how little attention this is getting in the main stream media. Here are my notes, I’ll add some opinion tomorrow.
The Guardian broke this in the UK so lots of links are from there.
Video
First off check out this video featuring Real Victims ® http://www.guardian.co.uk/world/video/2009/sep/18/trafigura-ivory-coast-probo-koala
Ok, now for some background.
The Guardian publish this background on September 16th. Some highlights:
Trafigura trader James McNicol wrote from the firm’s Oxford Street office block: “This is as cheap as anyone can imagine and should make serious dollars … Each cargo should make 7m!!”
The plan was to buy a tanker load of dirty fuel, clean it on board, sell the good stuff and then Get rid of the slops.
Trafigura’s London head of gasoline trading, Leon Christophilopoulos, suggested a desperate remedy: a floating refinery: “I don’t know how we dispose of the slops and I don’t imply we would dump them, but for sure, there must be some way to pay someone to take them.”
The Probo Koala, was anchored off Gibraltar. Between April and June, it took three cargoes, each of 28,000 tonnes of contaminated gasoline [and cleaned them]. The Probo Koala’s spare tanks soon filled up with waste containing freshly created sulphur compounds.
The waste was shipped to Amsterdam where nobody would take it. So it set sail for the Ivory Coast. (Note: the Basel Ban, as well as the Bamako Convention, contains strict rules against the export of waste from developed to developing countries and according to Greenpeace clearly applies to this case.)
What followed was an environmental and human catastrophe.
The waste ended up being tipped all around Abidjan. It would have contained such unstable substances as mercaptans, mercaptides, sodium sulphide and dialkyl disulphides. Those living and working nearby risked burns, nausea, diarrhoea, loss of consciousness and death from contact with such compounds.
Thousands fell ill, the story broke locally and ultimately a case was taken against Trafigura:
As 31,000 Africans, many desperately poor, joined in an unprecedented group action for compensation organised by London lawyer Martyn Day, Trafigura tried repeatedly to give the impression that its ship had only pumped out ordinary slops from tank-cleaning: a completely different type of activity.
Trafigura settled with a £30m deal. That’s just under £1,000 per person involved.
The Guardian carry some details of the settlement here:
The settlement will cost Trafigura slightly more than 10% of its reported $440m (£270m) profits last year, and comes on top of the £100m the company had already previously paid the Ivorian government for a clean-up, also without conceding legal liability.
Hey, it’s like, 2009!
One of the big questions here is why is this only getting decent media coverage in the last month. The answer of course is lawyers.
This from the Financial Times:
The case cast an unaccustomed and uncomfortable light on a company that had until then enjoyed a low-profile existence as one of the world’s leading traders in commodities, including oil.
Trafigura has made heavy use of libel lawyers – including two defamation lawsuits and at least one court injunction – to combat coverage of the case, in which it continues to deny liability.
The company and Leigh Day & Co, lawyers for the Ivorians, reached their financial deal to settle allegations that the waste dumping had caused flu-like symptoms in people who were close to the site.
CSR: Letter to the Editor
This from the Guardian on 18th September.
The UN special rapporteur’s report on the conduct of Trafigura (Report, 17 September) raises serious issues about corporate conduct and accountability. Affected victims in Ivory Coast have waited long for an effective remedy. While acknowledging the nuances in a case like this, the company’s reported attempts to stifle the freedom of expression of civil society and the media have done a disservice to human rights and to all in business and beyond who have striven to improve standards.
John Morrison
Institute for Human Rights and Business
Is this kind of City-media-lawyer-we’ve-got-bigger-dicks-than-you shit even legal? We’re going to find out, Conservative Peter Bottomley thinks not.
According to (who else but) the Guardian, he told MPs he was reporting Carter-Ruck, to the Law Society, saying that no lawyers should be able to inhibit the reporting of parliament.
“I will be seeking their advice on whether it is proper for any lawyer to purport or intend to inhibit the reporting of parliament,” Bottomley told the Guardian.
“It is the job of the press to make aware to all what is known by a few. Any court action which inhibits that should be approved at a very high level, with full justifications, and in normal circumstances, should not be made in secret.”
And just to reassure us all, GB has called the case “unfortunate”. Yeah thanks Gordon. Just like how it’s going to be “unfortunate” you’ll be an ex-prime minister next June.
In terms of media discourse, the breaking of the court ordered gag is interesting. I’m not sure it’s altogether Earth shattering though. Here’s what Guardian supremo Alan Rusbridger has to say. Go read it yourself. I’ve got other things to worry about.
So the media were bound by the laws of the land and those that would abuse them. What about NGOs. As far back as September 2006 Greenpeace were all over this.. Here’s an interesting para from that press release:
One question is whether the wastes were entirely generated via on board operations. In a statement to the press the charterer Trafigura states that the caustic nature of the waste was from use of caustic soda as a detergent for tank washings. However given the rarity of using caustic soda to wash tanks that carry refined petroleum products, it is not unreasonable to consider that the waste could come from land based sources.
After the Ivory Coast government and Trafigura reached a deal on cleanup costs, but importantly not on compensation for victims or even an admittance of culpability, Greenpeace came back with more.
“One cannot do justice without knowing the facts in their entirety. At this stage, it would have been more appropriate to secure a provisional settlement with an advance payment, rather than one that closes the books definitively, especially when the full extent of liabilities have not yet been determined,” said Jasper Teulings, Senior Legal Counsel, Greenpeace International.
Although this settlement has no bearing on the legal rights of the victims of this disaster, it is feared that the victims will now receive little, if any, support from their government in pursuing justice.
“This Faustian deal may provide the Cote D’Ivoire the much-needed funds to deal with the clean-up, but it is by no means fair. Trade in hazardous waste is a serious crime under international law (2), and by agreeing to this deal, the President has signed away his country’s right to bring a criminal corporation to justice,” said Helen Perivier, Toxics Campaigner, Greenpeace International, “The ease with which international environmental laws are broken and questionable deals exchanged for real justice, painfully highlights yet again, that the international community creates laws but simply lacks the political will to implement and enforce them.”
And Greenpeace is continuing the fight to convict Trafigura of a crime. Something that has not happened anywhere yet. This from Reuters.
Trafigura for their part have a series of related press releases on their site. Headlines such as
“High Court confirms that Probo Koala ‘slops’ cannot have caused deaths, miscarriages, or other serious or long-term injuries”
and
“SETTLEMENT VINDICATES TRAFIGURA”
aim to tell their side of the story. No doubt Carter-Ruck will have signed those release off after careful inspection.

The ship














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