drillers_in_the_mist

Drillers in the mist | September 201423parks authority – according to the head of theauthority himself - and that a powerful regional MPwas also receiving money on a monthly basis fromSoco to lobby on its behalf, the questions becomemore pressing still.Through its choice of local collaborators Socohas created an atmosphere of fear around itsbase in Nyakakoma, making it harder for anyoneto speak out. Given that Soco is headquarteredin London, is headed by Americans and owns itsCongolese business through a company registeredin the Cayman Islands, the response should beinternational. US and UK authorities should launchinvestigations and the company should pullout definitively from Virunga. Soco should alsocommission its own independent inquiry into itsCongolese operations.Soco’s anti-bribery code says that “The Board isaware that Soco operates in an industry sectorand in certain countries which are considered tobe high risk by the standards expected by the UKBribery Act.” Clearly, the evidence shows that thecompany’s systems and procedures were inadequate.The shooting of de Merode, who was lucky toescape with his life, was a wake-up call. Anotherof Virunga’s top wardens, Rodrigue Katembo, hadhis life threatened and was beaten severely afterdaring to stand in Soco’s way. Any investigationcommissioned by Soco should look into arrests andintimidation of people who opposed oil explorationin Virunga, in each case considering any evidence oflinks to the company or its allies.Soco carried out six weeks of seismic testinginside the park from April 2014. 141 The deal withWWF allowed Soco to complete the tests and givethe Congolese government data on Virunga’s oilpotential. Roger Cagle told the Times that the deal“forces DRC [Democratic Republic of Congo] andUnesco to come to some kind of accommodation, ashas been demonstrated in many other places wherethey have accommodated things in world heritagesites by redrawing boundaries and by agreeing tocertain activities being conducted in certain ways”. 142Although Guy Mbayma has been dismissed by theICCN, Major Feruzi was still in Nyakakoma guardingSoco’s base in August 2014, according to twosources familiar with the matter.Back in London, Soco’s Executive Directors –including Ed Story and Roger Cagle – were awardedthe maximum annual bonus of 100% of salary forthe third year in a row for “exceptional companyand individual performance”. Story and Cagle’spay in 2013 was $3.4m and $2.6m respectively,a rise of over 550% for both men over the pastdecade. 143 Cagle was during this time responsiblefor managing the company’s risks, including briberyand reputational risks. 144Soco’s investors – including Aviva, Legal & Generaland the Church of England - should push thecompany to rule out all oil activity within thecurrent boundaries of Virunga and to launch a fullindependent investigation of corruption, intimidationand payments to rebels linked to the project.If investors are not satisfied with the answers theyget from the company, they should follow theexample of Norway’s pension fund, which soldits $33m stake in Soco in 2013, partly becauseof concerns about the company’s operations inVirunga. 145The outcome of the clash over Virunga will setthe tone for how Congo’s fledgling oil industrydevelops, determining whether it can help liftCongo out of dire poverty without trashing itsnatural riches and sparking yet more conflict.If Virunga is drilled, Congo’s lesser known parkssuch as Salonga National Park, which covers an arealarger than Belgium, could be next. Huge areas offorest in Congo’s central basin have already beensubdivided into oil blocks. Soco is eyeing thesepotential riches and says it has applied for a “largeinterior block” in Congo. 146 “The whole central basinis virgin territory,” Soco’s Africa head Serge Lescauthas said, 147 “We must explore it.”Drilling is still a threat inside Virunga if Congoattempts to declassify the park or change itsborders, or if Soco sells on its rights to anothercompany.