Marsh accused of breaching OECD guidelines
Coleen Scott, a legal and policy associate at IDI, said: “An insurance broker’s role is often invisible to the public, which allows them to avoid accountability, but Marsh deserves to be scrutinised.
“Marsh is playing a critical role enabling the East African Crude Oil Pipeline to move forward in the face of widespread opposition and overwhelming evidence that the project will be a disaster for Ugandans and for the planet.”
It is being alleged that Marsh, by providing its services, is contributing to the serious harm that the project has already or is expected to cause.
“The EACOP cannot be constructed without insurance,” reads a summary of the complaint. “It is a legal requirement under Ugandan law that the EACOP must be insured, and large-scale construction projects such as the EACOP are unlikely to be financially viable without insurance. Through its engagement as insurance broker for the EACOP, Marsh is enabling the construction of the pipeline and is therefore contributing to the… adverse impacts.
“The complainants have contacted Marsh numerous times to attempt to engage in a dialogue in relation to the EACOP and to inform Marsh of potential risks that should be reflected in its due diligence process. Marsh did not respond to any of this correspondence. Accordingly, the complainants have turned to the US National Contact Point to resolve this dispute.”
In the complainants’ view, the OECD Guidelines have been breached by Marsh in the areas of adverse impacts, due diligence, disclosure, and sustainable development. Further details can be accessed here.
Meanwhile it was noted that the Ugandan and Tanzanian organisations, due to security risks, are choosing to remain anonymous.
Insurance Business has reached out to Marsh for comment and will update this story if any reaction is received.
