Sime Darby Plantation takes legal action against head of NGO Liberty Shared, seeks info on complaint

PETALING JAYA: Sime Darby Plantation Bhd (SDP) commenced legal proceedings against Duncan Jepson in the Eastern District, of Virginia, United States of America, on March 9, to obtain important information pertaining to a complaint filed by Jepson with the Securities Commission of Malaysia (SC), in which he alleged wrongful disclosures in SDP’s Sustainability Report 2019.

According to a statement from SDP, Jepson is and was at all material times, the managing director of Liberty Shared, a non-governmental organisation (NGO).

The group said the SC had commenced investigations into Jepson’s complaint and had accordingly sought additional information from SDP, and as such, it is important that SDP is able to obtain limited but critical information from the complaint filed by Jepson.

The group said it had made several direct and indirect engagements with Jepson, and claimed he continued to withhold vital information.

“Subsequently, PwC Singapore appointed yet another individual who works closely with Jepson and Liberty Shared, again on Jepson’s request.

Neither PwC Singapore nor the individual have been able to share the material information needed to address any issues that may exist in our plantations,” it said.

SDP remarked that this is the first time in its 200-year history that it has taken legal action against an NGO.

“SDP engages with non-governmental and civil society organisations across the world, supportive and respectful of the important role they play in society. It is this relationship of mutual respect that has allowed SDP to become an industry leader, trusted by our peers, customers, and important stakeholders… like highly reputable NGOs,” it added.

To recap, on April 20, 2020 Liberty Shared had filed a complaint with the US Customs and Border Protection alleging the use of forced labour in the production of palm oil in SDP’s Malaysian estates.

SDP was made aware of this complaint on July 7, 2020, when Liberty Shared issued a summary of the complaint on its website, however, the summary did not contain sufficient information to allow SDP to close any alleged gaps in its operations.

Meanwhile, Jepson has expressed his view that the appointment of NGOs to assist SDP would not be ideal as, in his opinion, “social compliance specialists will not be able to offer an honest assessment of corporate governance and internal controls.”

“He also continues to withhold information despite repeated assurances that our main concern is the wellbeing of our workforce and that at SDP, whistleblowers are protected as a matter of course,” SDP added.