Malaysian logging giant dropped by Norway pension fund

Malaysian logging multinational, Samling Global, has been excluded by Norway’s Ministry of Finance from the portfolio of its Government Pension Fund Global (GPFG). The Ministry’s statement, released recently, stated that it had based its decision on the recommendation of Norway’s Council on Ethics. Aside from Samling, two Israeli companies, Africa Israel Investments Ltd and Danya Cebus Ltd, have been removed from GPFG’s investment portfolio.

Minister of Finance Sigbjorn Johnsen was reported to have said:

The decision to exclude these companies from the GPFG is based on the Council on Ethics assessment that they are contributing to or are themselves responsible for grossly unethical activity.

Samling has caused headlines over the years, specifically in relation to disputes with indigenous communities in Sarawak in East Malaysia relating to land as well as its logging operations. Furthermore, some suggested the logging giant might have been involved with the death of a Penan tribal leader known for his anti-logging activities in 2008. However, police investigations into the case found there were no criminal elements in the death of Kelesau Naan, 80.

In additon, there have been recent claims that Samling’s employees  were involved in the sexual abuse of Penan women and girls. The logging company denied any knowledge of the abuse, while the Sarawak government has claimed the allegations are baseless.

This notwithstanding, Norway’s Council on Ethics’ investigations focused on documented cases of extensive and repeated breaches of government licensing requirements, regulations and other directives governing the company’s forest operations in Sarawak, Malaysia and Guyana.

The recommendation of the Council on Ethics was based on field surveys , satellite image analysis, and evaluation of publicly available documentation. Johnsen was quoted as saying:

In its assessment, the Council on Ethics has placed particular emphasis on the extent of illegal logging and the environmental damage that occurs when laws and regulations are not being observed. The Council on Ethics has assessed Samling Global, and concluded that the company’s forest operations in the rainforests of Sarawak and Guyana contribute to illegal logging and severe environmental damage.