RIGHTS FOR WHOM? - Somo

THEPOWERFULAND THEPOWERLESSUnión Fenosa’s electricitymonopoly In ColombiaCase study information researched andprovided by the José Alvear RestrepoLawyers Collective in Colombia (CCAJAR)Colombia has had an armed conflict with legally andillegally armed protagonists for nearly 50 years. Thishas generated such grave consequences as forceddisplacement, forced disappearances and alongstanding humanitarian crisis in which more than 45per cent of the population lives in poverty. 22 In additionto these socio-political problems, the population ofclose to 10 million people in the seven departmentsalong Colombia’s Caribbean coast have had theirproblems exacerbated by the presence of a powerfulcorporate monopoly that provides this region’selectricity supplies - Spain’s commercial energy giant,Unión Fenosa. 23In this case study, CCAJAR reports the claims madeby civil society organisations, trade unions, workersand affected communities in the region that thisEuropean MNE has either committed, or is otherwiseimplicated in, violations to internationally recognisedhuman rights. Yet, as this case study reveals, thefailure of the country’s legal system to properlyinvestigate the company’s activities has left seriousquestions unanswered and many people withoutaccess to justice.MNEs, Paramilitarism and Trade UnionsThe process of privatising the Colombian electricitysector, including the entrance of Unión Fenosa into themarket, took place amid strong opposition by tradeunions to the sale of this vital public service. Thisresistance was brutally silenced however, including22 2008 Annual Report of the United Nations High Commissioner forRefugees (16 June, 2009) and Report by the United Nations HumanRights Commissioner on the situation in Colombia, Bogota, 2007,p.37.23 In 2009, Gas Natural purchased 95% of Unión Fenosa creating oneof the 10 largest utilities in Europe: “Unión Fenosa Aprueba su Fusióncon Gas Natural, que Canjeará Tres de sus Acciones por Cinco de laEléctrica”. Cotizalia Magazine, Madrid, 23 April, 2009. Gas Natural andthe majority of its shareholders are also European companies: AnnualReport by the Gas Natural Corporate Government, 2008, p.4.Photo provided by CCAJARthrough the systematic murders of eight unionmembers who worked at Unión Fenosa subsidiarycompanies, Electrocosta and Electricaribe. CCAJARreports claims by trade unions and others inColombian civil society that members of illegalparamilitary groups were behind the murders, and thata document written by Unión Fenosa companies mayhave played a role in these murders that should befully investigated in a court. 24MNEs operating in Colombia have previously beenimplicated in paramilitary activities with some seniorparamilitary leaders claiming a number of MNEsfinance paramilitary operations in the country. 25 Thecriminal investigations carried out by Colombian publicauthorities in relation to the involvement of companiesin such activities have made little progress, despiteone US company, Chiquita Brands, pleading guilty in aUS court and being fined US$25 million for financingparamilitary activities, and other companies, forexample the Dole Food company, facing an ongoingcivil lawsuit in California. 26 This weakened rule of law24 Documentation by the Central Workers Union (CUT) and theElectricity Workers Trade Union (SINTRAELECOL). See also theRuling for the Permanent Peoples’ Tribunal hearing on public services,Bogota, 8-10 March, 2008.25 For example, “Mancuso Dice que Directivos de Postobón y BavariaTenían Conocimiento de los Pagos de estas Empresas a losParamilitares.” Semana magazine, Bogota, 17 May, 2008. See also:“Nos Quieren Extraditar Cuando Empezamos a Hablar de Políticos,Militares y Empresarios.” Verdadabierta.com, Bogota, 11 May, 2009.26 US vs. Chiquita Brands, US District Court of the District ofColumbia, No. Criminal 07-055, 19.03.07. In 2009, family members ofother victims filed a lawsuit in California (USA) against the Dole FoodCo. for having made million dollar payments to paramilitary groups inColombia, though a ruling has yet to be issued in this case: “Demanda11