GVL withdraws from the RSPO “GVL formally joined the RSPO as an ordinary member with membership number 1-0102-11-000-00.”

On August 29, 2011, GVL formally joined the RSPO as an ordinary member with membership number 1-0102-11-000-00. As a member of the RSPO, GVL committed itself to the sustainable development of palm oil in Liberia. Consequently, it is obliged to protect the environment and work in local communities for the sustainable management of their land. This also means GVL’s engagement with local communities is grounded on the principle of Free, Prior and Informed Consent (FPIC) by communities in relation to any expansion on their (communities) land. Membership to the RSPO also implies demonstrating a commitment to respecting the sovereignty, culture and traditions of host communities, preserving their sacred heritage and ensuring that palm oil production brings concrete benefits to them while at the same time protecting their rights to the land. GVL is owned by Golden Agri-Resources (GAR), a Singapore-registered palm oil company, through a Cayman Islands private equity firm. The firm’s ultimate owner is Indonesia’s billionaire Widjaja family. The largest financiers of Golden Veroleum’s parent Company include U.S. financial firms Vanguard, Blackrock, Kopernik Global Investors, Dimensional Fund Advisors, Northern Trust and Citi Group; Dutch firms Robeco and Rabobank etc.

What led to the GVL’s withdrawal?

The RSPO is a voluntary global certification body for the oil palm industry. It has several operational principles and standards to guide the operations of members within the sector. Two of the principles are of relevance to this analysis.

Principle 2 focuses on the compliance with applicable laws and regulations by members. This principle has two criteria that are of importance to GVL’s actions.

What does voluntary withdrawal mean?

Voluntary withdrawal from RSPO is a contravention of Article 16 of the concession agreement: The concession agreement between the GoL and GVL contains all the elements of a legal contractual agreement and all provisions are binding on the parties and enforceable by law. The voluntary withdrawal of GVL from the RSPO contravenes provisions contain in Article 16 of the concession agreement and is a demonstration of bad faith. Bad faith in contract law is an intentional and dishonest act to not fulfill a contractual obligation and misleading the other party to agree without the intent to fulfill it.