Undercover sting exposes Malaysia land-grab

Allegations of corruption get louder following secret tapes showing plunder of resource-rich Sarawak province.

Mountains of Borneo Island

Long Napir, Malaysia - Plantations and logging are ravaging Malaysia's majestic Borneo region and indigenous people who have lived for centuries here say they are increasingly being uprooted from their once-pristine lands.

But as the timber and palm oil companies swarm over the rugged landscape of resplendent rivers and ancient rainforests, villagers in Long Napir in the country's biggest state Sarawak have vowed to thwart any further land-grabs.

The village is a settlement of longhouses, the traditional communal housing favoured by indigenous people in eastern Malaysia's Borneo island.

Under the Sarawak Land Law, indigenous people have rights over areas as long as they can prove they have lived in or used the lands prior to January 1, 1958.

"We have no land to farm, our rivers have become muddy, there's hardly any fish left anymore." - Tamin Sepuluh Ribu, villager

But the surrounding ancient rainforests that are so essential to their traditional way of life is under threat because of logging and plantation companies. Over the past 30 years, Sarawak - one of the richest Malaysian states - has become one of the largest exporters of tropical timber.

Despite its wealth, profits have failed to trickle down, and the people here are some of the poorest in the country.

Long Napir villagers lay the blame for their plight squarely on one man: the state's powerful chief minister, Abdul Mahmud Taib, who is in charge of all land classification and the allocation of lucrative forestry and plantation licenses.

"He lives, the rest of us suffer," Tamin Sepuluh Ribu, a former village headman, told Al Jazeera. "We have no land to farm, our rivers have become muddy, there's hardly any fish left anymore."

'Coterie of cronies'

Global Witness, a non-governmental organisation working against environmental exploitation, has investigated and exposed the situation in remote eastern Malaysia.

An undercover Global Witness investigator posing as an investor was offered several opportunities to purchase land in Sarawak by company officials linked to Chief Minister Taib. In each instance, the land in question was occupied by indigenous communities, who have valid claims to ownership rights under Malaysian law.

Global Witness said the indigenous areas were being sold by companies with close personal or political ties to the chief minister.

Taib has held the post since 1981, and has been repeatedly accused of corruption during his nearly 32-year rule.

The US Embassy in Kuala Lumpur noted in one cable released by WikiLeaks: "Chief Minister Taib Mahmud … doles out timber-cutting permits while patrolling the underdeveloped state using 14 helicopters, and his family's companies control much of the economy."

The American cable added that, "All major contracts and a significant portion of land to be converted to palm oil plantations [including on indigenous 'customary land rights' that the state government has refused to recognize] are given to these three companies."

People in Sarawak are "fed up" with Taib's administration, "seen as only enriching his family and a small coterie of cronies", it said.

A Penan girl deep in the Borneo rainforests [EPA]

Under investigation

Global Witness released a November 2012 report titled, "In the future, there will be no forests."

"Taib's powerful executive position and personal responsibility for the issuance of lucrative logging and plantation licences has enabled him to systematically extract 'unofficial payments' from the state's timber tycoons for the enrichment of himself and his family," the report said.

Taib, meanwhile, denied the corruption allegations as "wholly untrue and malicious", said the report.

In 2011, the Malaysian Anti-Corruption Commission launched an official investigation into Taib, which continues at present.

In secretly taped negotiations provided to Al Jazeera, the Global Witness investigator discussed buying land with company shareholders Fatimah Abdul Rahman and Norlia Abdul Rahman - Taib's first cousins. Fatimah admitted the parcel of land under discussion had been transferred to them by Chief Minister Taib.

"Yeah, he's the one who gave us the land. He's my cousin," Fatimah said, laughing.

In 2011, Taib gave his cousins 5,000 hectares of land for about $300,000 dollars, according to leaked land registry documents. Having secured agriculture and timber licences, they were trying to sell it a year later for more than $16mn.

Later, discussing the ease of receiving a forestry license, Fatimah told the Global Witness investigator: "The Land and Survey Department, they are the ones that issue this licence. Of course, this is from the CM's [Chief Minister's] directive, but I can speak to the CM very easily." More

 

Land Grabs Spread Throughout Developing World

Food Justice advocates have always argued that trade agreements need to respect and promote human rights, not drive a process of globalization that privileges commercial interests and tramples on public interests. In my new paper on land grabs from the Institute for Agriculture and Trade Policy, that position is affirmed.

“Land grabs” are large-scale purchases or leases of agricultural or forested land on terms that violate the rights of the people who live on or near that land. The problem has commanded enormous public policy and media attention for the last few years. In our paper, IATP sets some context for the land grabs phenomenon. We focus on two forces that have contributed significantly to the problem:

Globalization, or the deregulation of trade and foreign investment laws, which has greatly eased cross-border capital flows; relaxed the limits on foreign land ownership; and, opened markets to agricultural imports.

The food price crisis of 2007-08, which highlighted how fragile food systems in many parts of the world have become, and which shattered the confidence of net-food importing countries in international markets as a source of food security.

The situation is compounded by climate change and the resulting destabilization of weather patterns, which in turn has made agricultural production less predictable. Climate change has made domestic food supplies less certain and exports, too. In 2012, The United States, still a huge source of grains for international markets, lost 40 percent of a record large number of acres planted with corn to drought.

The sense of food insecurity has driven some of the richer net-food importers—countries such as Saudi Arabia and Kuwait—to invest in growing food abroad for import to their domestic markets. That is one driver of land grabs.

The sense that our food systems are fragile and that supplies are scarce, where for decades they have been abundant, is another driver—companies such as South Korea’s Daewoo are looking to source raw materials directly, rather than buying them on the market.

It’s not that investment in agriculture is a bad thing. Indeed, it’s sorely needed. But unless we have the conversation about what kind of investment, in what kind of agriculture, and in whose interests, then the investment does more harm than good.

Land grabs, as the label implies, have been overwhelmingly negative. They are associated with weak institutional capacity (and sometimes corruption) in the recipient country governments, as well as authoritarian governments in the investors’ home countries, making it hard to bring pressure there for better practices. The communities whose land is leased or bought are not adequately protected.

IATP proposes four linked policy shifts to create a more stable and transparent international food system:

1) Reformed trade rules that ensure export restrictions in times of crisis are subject to transparency and predictability requirements and that allow all countries policy space for food security policies;

2) Publicly-managed grain reserves to dampen the effects of supply shocks;

3) Readily accessible funding for the poorest food importers, which would be triggered automatically when prices increase sharply in international markets; and

4) The development of strong national and international laws to govern investment in land, respecting the principles and guidelines set out in the Voluntary Guidelines on Land Tenure. Tanzania’s recently announced limits on how much land foreign and domestic investors can lease is a hopeful example of a national government taking the initiative to get serious about regulation. More

 

Corporations Grabbing Land and Water Overseas

As a growing population stresses the world's food and water supplies, corporations and investors in wealthy countries are buying up foreign farmland and the freshwater perks that come with it.

From Sudan to Indonesia, most of the land lies in poverty-stricken regions, so experts warn that this widespread purchasing could expand the gap between developed and developing countries.

The “water grabbing” by corporations amounts to 454 billion cubic meters per year globally, according to a new study by environmental scientists. That’s about 5 percent of the water the world uses annually.

Investors from seven countries – the United States, United Arab Emirates, India, United Kingdom, Egypt, China and Israel – accounted for 60 percent of the water acquired under these deals.

Most purchasers are agricultural, biofuel and timber investors. Some of the more active buyers in the United States, which leads the pack in number of deals, include multinational investors Nile Trading and Development, BHP Billiton, Unitech and media magnate Ted Turner, according to the study published last month.

Wendy Wolford, a professor at Cornell University who studies political and social impacts of international land deals, said while it is difficult to tease out investor motives, they “don’t grab land in places without access to water.” Some countries – including Indonesia, the Philippines and the Democratic Republic of Congo – had large amounts of water rights grabbed because they’re countries with a lot of rainfall.

Since 2000, 1,217 deals have taken place, which transferred over 205 million acres of land, according to the public database Land Matrix. About 62 percent of these deals were in Africa – totaling about 138 million acres, roughly the size of two Arizonas.

For countries reliant on farming and already suffering from poverty, the potential impacts are huge, said Paolo D’Odorico, a University of Virginia professor and co-author of the new report that estimates the water supplies at stake. About 66 percent of the total deals are in countries with high hunger rates.

“In many of these countries, the sum of the water being grabbed would be enough to eliminate malnourishment,” said D’Odorico, who collaborated with scientists from Italy’s Polytechnic University of Milan.

Wolford said there is danger that local people – especially in places like sub-Saharan Africa – are not aware of land purchases and how it could affect their way of life.

“That’s probably the biggest problem – people could have gathered timber from the woods or lived downstream of the land grabbed,” Wolford said. “These things could be taken away without them knowing what happened.”

Food crisis, biofuels spur “grabbing”

Such land deals are often derisively dubbed “land grabbing,” which D’Odorico defines as a deal for about 500 acres or more that converts an environmentally important area currently used by local people to commercial production. More

 

 

Land Is Life, and It’s Slipping Away

PHNOM PENH, Feb 14 2013 (IPS) - Nean Narin, a humble man and father of three children, says his family is going hungry. Narin lives in the village of Boeung Kak, situated on the edge of Cambodia’s capital, Phnom Penh. For years, he and other villagers relied on the Boeung Kak Lake for fish and plants, which they would eat and sell.

Displaced families in this relocation site outside Phnom Penh

But in mid-2008, construction workers began pumping sand into the lake “in preparation for the development of a 133-hectare commercial and housing project” sponsored by Shukaku, Inc. — a Cambodian firm owned by a Senator of the ruling Cambodian People’s Party – and leased to the Chinese-owned Erdos Hong Jun Investment Co., Ltd.

Over the next four years, the project would displace over 3,000 families.

Narin and his neighbour Tep Vanny, along with a many others, refused to leave and now live a hand-to-mouth existence, stripped of a steady livelihood.

Vanny’s parents left Boeung Kak and moved to the rural Kampong Speu province, located about 48 kilometres from Phnom Penh.

But a sugar plantation tycoon has since claimed that land, and the family now faces eviction for the second time, she told IPS. All the fruit trees Vanny’s parents relied on for food have been cut down, and no compensation offered.

What was once a modest life has now become a daily struggle for survival as a result of a land buying spree in this Southeast Asian country of 14 million people, which experts say began during the 2007-2008 financial and food crisis.

"Land is life; land is dignity and without land farmers become workers for life, working as slaves for plantation owners.”

In Cambodia, land is equivalent to life: according to Germany’s federal ministry for economic cooperation and development (GTZ) over 80 percent of the population are subsistence farmers.

One of the world’s least developed countries, Cambodia seems to have no place left to go but up: over 68 percent of its people live on less than two dollars a day and 26 percent suffer from hunger on a daily basis. But the wave of land acquisitions, experienced first-hand by thousands of people like Niren and Vanny, suggests that the situation could soon get much worse.

FDI feeds landlessness

For the last two decades a wave of foreign direct investment (FDI) has had lopsided results here.

The market-driven economy – launched in 1989 and opened to foreign investors in 1993 – fuelled a rapid increase in FDI, from practically nothing in 1990 to 800 million dollars in 2008, according to the Food and Agriculture Organisation of the United Nations.

Asian countries were the largest investors from 2000 to 2010: China topped the list with 47.6 percent of FDI, making South Korea — with 18.8 percent — the second-largest investor.

While investments initially went straight into sectors like tourism (53 percent), infrastructure (21 percent) and the garments industry (20 percent), the past half-decade has seen a steady rise in land investments.

Various local and international experts attribute this spike to the global food and financial crisis of 2007 to 2008 when farmland became a valuable asset to wealthier countries outsourcing agricultural production to increase their food security, and financial speculators cashing in on land investments.

But this pattern could have catastrophic implications for millions of peasants here – already land tenure has been shrinking and 20 percent of agricultural families in Cambodia are landless. More

 

Curbing Tanzania’s “Land Grabbing Race”

DAR ES SALAAM, Dec 19 2012 (IPS) – From January 2013, Tanzania will start restricting the size of land that single large-scale foreign and local investors can “lease” for agricultural use. The decision follows both local and international criticism that major investors are grabbing large chunks of land here, often displacing small-scale farmers and local communities.

The Permanent Secretary in the Prime Minister’s Office Peniel Lyimo confirmed that the government would limit the amount of land leased to investors in this East African nation. Previously, there were no limits.

“For a large-scale investor who wants to invest in sugar, the ceiling has been put at 10,000 hectares. (The limit for) rice is 5,000 hectares. The ceiling for sugar is significantly higher due to the fact that it may also produce electric power,” Lyimo told IPS. Sugarcane fibre is used in the generation of electricity.

According to official documents, seen by IPS, from the Tanzania Investment Centre, a government agency set up to promote and facilitate investment: “Even within a seven-year period, an investor would not be able to use more than 10,000 hectares…”

The move will come as a relief to land rights organisations that have continually called for the government to curb the land grabs here. [related_articles]

In 2008 the Tanzanian government launched the Kilimo Kwanza (Agriculture First) initiative in order to increase private sector investments in agriculture.

And when the World Economic Forum took place in Dar es Salaam in 2010, the Southern Agricultural Growth Corridor of Tanzania (SAGCOT), a multi-stakeholder partnership to rapidly develop the country’s agricultural potential, was formed and the government began to invite foreign companies to invest in crops like sugarcane, maize, rice and cassava.

However, civil society organisations like the Tanzanian NGO Land Rights Research and Resources Institute (LARRRI) and the Oakland Institute, an independent policy think tank in the United States, called on the government to review its investment policy to limit the amount of land given to foreign investors.

“Giving tens of thousands of hectares to large-scale investors was hurting small-scale farmers,” said LARRRI executive director Yefred Myenzi.

To date, he told IPS, the government has given 80,000 hectares of land to large-scale investors.

“Land conflicts pitting poor villagers against powerful investors now number more than 1,000 reported incidents. On average, there are five land disputes daily in the country and three of these involve powerful investors,” said Myenzi.

In Tanzania’s northern Loliondo district, which is known for its wildlife, much of the land has been leased out to international hunting concessions, which has resulted in the large-scale eviction of the local population – although the government refutes this. A major U.S. energy company, AgriSol Energy, has also been accused of engaging in land grabs in Tanzania that would displace more than 160,000 Burundian refugees, according to a report by the Oakland Institute. The report states that AgriSol is benefiting from the forcible eviction of the refugees, many of whom are subsistence farmers, and leasing the land — as much as 800,000 acres — from the Tanzanian government for 25 cents per acre.

Myenzi said that of the 1,825 general land disputes reported in 2011, 1,095 involved powerful investors. More

 

Land deals in Africa have led to a wild west – bring on the sheriff, says FAO

Food and Agriculture Organisation chief José Graziano da Silva demands high noon on land grabs that jeopardise food security.

José Graziano da Silva

Amid warnings that land deals are undermining food security, the head of the UN's Food and Agriculture Organisation (FAO) has compared "land grabs" in Africa to the "wild west", saying a "sheriff" is needed to restore the rule of law.

José Graziano da Silva, the FAO's director general, conceded it was not possible to stop large investors buying land, but said deals in poor countries needed to be brought under control.

"I don't see that it's possible to stop it. They are private investors," said Graziano da Silva in a telephone interview. "We do not have the tools and instruments to stop big companies buying land. Land acquisitions are a reality. We can't wish them away, but we have to find a proper way of limiting them. It appears to be like the wild west and we need a sheriff and law in place."

Large land deals have accelerated since the surge in food prices in 2007-08, prompting companies and sovereign wealth funds to take steps to guarantee food supplies. But, four to five years on, in Africa only 10-15% of land is actually being developed, claimed Graziano da Silva. Some of these investments have involved the loss of jobs, as labour intensive farming is replaced by mechanised farming or some degree of loss of tenure rights.

Oxfam said the global land rush is out of control and urged the World Bank to freeze its investments in large-scale land acquisitions to send a strong signal to global investors to stop.

Graziano da Silva, who was in charge of Brazil's widely praised "zerohunger" programme, expressed his frustration at the slow pace of creating a global governance structure to deal with land grabs, food security and similar problems. In 2008, the UN secretary general, Ban Ki-moon,created a high-level task force on food security on which Graziano Da Silva serves as vice-chairman.

In May, the committee on world food security (CFS), a UN-led group that includes governments, business and civil society, laid the groundwork for a governance structure for food by endorsing voluntary guidelines on the responsible governance of tenure of land, fisheries and forests.

Tenure has important implications for development, as it is difficult for poor and vulnerable people to overcome hunger and poverty when they have limited and insecure rights to land and other natural resources. But the guidelines took years to negotiate and lack an effective enforcement mechanism because they are voluntary. The CFS is an unwieldy group but has the virtue of inclusivity.

"It took two years to discuss the voluntary guidelines and now we face another two years of negotiations on the principles for responsible agricultural investments," said Graziano da Silva. "We need to speed up the decison-making process without losing the inclusivity model." More