10 stories of how the rich and powerful hijacked justice
Multi-billion dollar lawsuits bleeding cash-strapped nations, corporations reversing victories by environmental defenders and dazzling financial rewards for investors who perpetrated human rights abuses. Ten investor-state lawsuits which have been filed, threatened or decided since 2015, from all over the globe (in Europe, Africa, Asia and Latin America), demonstrate that ISDS is again and again used as a corporate weapon against the public interest. In spite of the ongoing controversy about it, the red carpet courts for corporations continue to thrive, and to perpetuate injustice across the world.
GABRIEL RESOURCES vs ROMANIA
For nearly 20 years residents of Roşia Montană in Romania have fought against a multi-billion dollar gold mining project, which would have destroyed their homes and the surrounding environment. In a remarkable show of people power, they appealed to the Romanian courts, and succeeded in stopping the mine. Now the project’s majority owner, Canadian company Gabriel Resources, is suing Romania in an investment arbitration tribunal, seeking US$5.7 billion in compensation for lost profits – nearly three per cent of the size of the entire Romanian economy.
NOVARTIS vs COLOMBIA
In Colombia, the high price of a life-saving blood cancer drug became unsustainable for the public health budget. The government decided, in 2015, to declare Glivec a medicine of public interest and strip pharma giant Novartis of its production monopoly, so that competition with generics would bring down the price of the drug. But Novartis was not ready to give up the goose that lays its golden eggs, and threatened to sue Colombia in an international arbitration tribunal. While the price for Glivec was ultimately reduced, the government no longer dared to touch Novartis’ monopoly. The company’s scare tactics averted a precedent that could have encouraged other countries to do the same, and reduced Novartis’ high profits worldwide.
RAZVOJ GOLF & ELITECH vs CROATIA
For the past 13 years, the citizens of Dubrovnik have opposed the construction of a luxury resort on the hill which overlooks their beautiful city. The unpopular project was put on hold by Croatian courts, which found that the required permits had been obtained illegally. But the company behind the project did not give up – subsequently the case has landed both in international arbitration, with the company suing Croatia for US$500 million in compensation, and in national courts, with the criminalisation of civil society.
THAILAND vs KINGSGATE
In the paddy fields of Thailand, a gold mine is accused by locals of leaking toxic waste, causing serious health problems and ruining crops. The government responded by suspending the mine and later halting all gold mining in the country while a new mineral law was developed. Yet rather than impacted communities receiving compensation for harm caused, since 2017 the Australian company and owner of the mine, Kingsgate, has been suing Thailand under a Free Trade Agreement for millions.
VERMILION vs FRANCE
When Nicolas Hulot became Minister of the Environment in France in 2017, he gained not only political power but also public support. As a renowned environmentalist, French people believed he could be a much-needed climate champion, who could follow through and deliver on the promise of the Paris Climate Agreement. But this hope was quickly confronted with a huge obstacle: France is a signatory to various investment treaties, and oil and gas companies are prepared to use investor-state dispute settlement (ISDS) to challenge any action on climate change.
BORDER TIMBERS & VON PEZOLD vs ZIMBABWE
In Zimbabwe’s Eastern Highlands, thousands of indigenous families face the imminent risk of forced eviction from their ancestral lands, which they have cultivated for centuries. In blatant disregard of the rights of indigenous people under international law, three investment arbitrators have ordered Zimbabwe to ‘restitute’ their land to Austrian-Swiss-German investors operating large timber plantations in the area, which had been partly seized during Zimbabwe’s land reform programme. The tribunal disdainfully declined to even hear the communities that would be displaced yet again by its judgement.
COPPER MESA vs ECUADOR
An ill-conceived mining project in one of the most biodiverse areas in the world. A Canadian investor that engaged in intimidation and violence towards the local indigenous population. A local community that vehemently opposed mining to save their forest, water sources and livelihoods. This is the story of a mining initiative that should have never been. Yet, after an investor lawsuit, three arbitrators decided that the government rather than the company should bear the blame for the failed project. In spite of acknowledging the many wrongdoings by the company, the arbitrators compensated the investor with a US$24 million pay off.
CONOCOPHILLIPS vs VIETNAM
Effectively and fairly collecting taxes is essential for all states, and especially for developing countries who wish to sustainably develop. Tax-collection also offers a means to guarantee quality public services for all and to collectively face the challenges of climate change. However, in Vietnam and in other countries, big corporations challenge governments which try to impose taxes on their massive profits. Investor-state dispute settlement (ISDS) is one of their main avenues to try to avoid paying taxes, and to receive millions in compensation instead.
ROCKHOPPER vs ITALY
Since 2017 UK-based oil and gas company Rockhopper Exploration has been suing Italy over the state’s refusal to grant it a concession for oil drilling in the Adriatic Sea. The refusal came after the Italian Parliament banned all new oil and gas operations near the country’s coast, amidst concerns regarding the environment, earthquake risks, local fisheries, and tourism as well as strong opposition from local residents. Rockhopper is claiming up to US$350 million in damages – more than seven times the money which it allegedly spent on exploring the project.
ECO ORO vs COLOMBIA
