The Allegations and Total's Response




The Yadana project is a favorite target of activists who oppose the current government in Yangon and advocate a boycott of the regime. They denounce the repressive nature of the government and its human rights violations. Their criticism is often based on allegations made by exiled dissidents and is relayed by a number of NGOs and Western media. To create a wider audience for their cause in Europe and the United States, the activists' message has included attacks against the Yadana project and Total, as well as against other Western companies that operate in the country.

Criticism leveled against Total over the years can be divided into three categories:

That Total used forced labor to build the pipeline.
That security arrangements for the onshore section of the pipeline created a militarized zone in the pipeline region where human rights violations occurred.
That Total's presence in the country provides support and legitimacy to an intolerable regime.

That Total used forced labor to build the pipeline.

Although the Group did not begin fieldwork until 1994, the earliest allegations of forced labor were leveled in October 1992*. Reports published in 1998 by the International Labour Organization and the US Department of Labor also mention these allegations, while recognizing that the authors were unable to verify them since local officials regrettably refused to grant them the necessary authorization for field visits. Total has made it abundantly clear that everyone employed by Total E&P Myanmar, its affiliates and its subcontractors to build and operate the pipeline was a paid, voluntary adult with a written contract, and underwent a physical examination prior to hiring and received safety training. In addition, local subcontractor compliance with Total's Code of Conduct was monitored closely and regularly. Nonetheless, a number of articles in the media continued to talk about the "pipeline forced laborers," an allegation that is both an insult to the Group's teams and technically absurd.

That security arrangements for the onshore section of the pipeline created a militarized zone in the pipeline region where human rights violations occurred.

Total was well aware that the Army's presence in the region could have negative consequences for villages in the area and did everything possible to avoid abuses by the military. The Group took three kinds of action:

It used the Village Communication Committees, the Socio-Economic Program staff in the villages (communication officers, physicians, agriculturalists, veterinarians) and the many opportunities for direct contact with villagers to stay constantly and directly informed of the situation in the field so that it could respond very quickly if an incident occurred.
It constantly lobbied the Army, both directly and through MOGE, to attempt to prevent the use of forced labor in the pipeline region.
When cases of forced labor were brought to light, it provided assistance to the victims or their families, in the form of cash or other contributions, and made sure that the money was received by the intended beneficiary.

Ye-Tavoy railway in the pipeline region
 
Certain incidents may have escaped Total's attention in the very early phases of the project when the Group had only a small team in the field and was still developing relationships of mutual trust with villagers. But it seems more likely that the allegations leveled against it result from a not always unintentional link drawn between the pipeline region, where the Army's actions were very closely monitored by Total, and infrastructure projects carried out at the same time in other parts of the Tenasserim region. The confusion in particular involves the north-south Ye-Tavoy railway, which intersects the pipeline but is completely unrelated to the Yadana project*. A large number of witnesses have testified that this Army-managed project used forced labor extensively.

More generally speaking, the presence of the Myanmar Army, which was established in the Yadana project area long before Total arrived, has led to considerable criticism of the supposed collusion between the troops and the project's shareholders and of Total's indirect responsibility for abuses that the Army may have committed in the area. Total has always clearly stated that it has never had a contractual relationship, either direct or indirect, with the Army, and has not provided it with financial or logistical support. Neither MGTC nor its operator, Total, has ever had any authority over the Army or given it instructions. All that can be added here is that Total, since fieldwork commenced in 1994, has always monitored the Army's actions very closely to prevent forced labor.

That Total's presence in the country provides support and legitimacy to an intolerable regime.

Does Total's presence support the current regime, as claimed by activist groups that publish blacklists of Western companies operating in Myanmar, and does that make Total a passive accomplice to the regime's abuses? These allegations must be seen in the light of a number of considerations:

An oil or gas project involves a very long-term commitment. In the case of Myanmar, six years elapsed between the signature of the Memorandum of Understanding in July 1992 and the pipeline start-up in July 1998. Moreover, the investment outlays by Total and the other project participants cover the entire 30 years during which the field will be productive. It is difficult to predict how the country's political situation could have and will evolve over such a long period.
Total's decision to stay in Myanmar, unlike a number of Western companies that have withdrawn, was a deliberate choice, but it does not signal approval of any regime. Rather, it expresses the Group's deep-seated belief that economic development and human rights progress go hand in hand. Exacerbating an impoverished country's problems through an embargo will not improve its people's lives.
In line with its underlying principles, the Group has always maintained strict neutrality with regard to the government, while actively pursuing initiatives that support economic development and respect for human rights in its host regions.
An oil and gas company has nothing to gain from the absence of democracy. It would rather operate in a law-abiding country that is free of civil strife and not threatened by international sanctions.
Once the installations are in place, they continue producing for the entire field life. The owners may change but the host country's revenue stream is unaffected.
It's true that oil, gas and mining operations generate considerable revenue for host countries and that these funds are less likely to be used transparently if the political system does not support open debate and effective controls. But it is not the role of an oil company to tell a country how to best use that revenue. Only international organizations can legitimately impose conditions of this sort.

 
A Reuters reporter drew a parallel between the Yadana pipeline and the Thai-Burma Death Railway that the Japanese forced prisoners of war to build between 1942 and 1944. At the time the article was written, Yadana was only a proposal. The pipeline route had yet to be determined and work would not begin for another three years. This not credible assertion was actually made in connection with an unrelated railroad project on which the government was working at the time.
All equipment for the project was shipped to wharf facilities built by Total on the Heinze Chaung estuary.