AfrOil: NGOs file complaint against US insurer over role in EACOP project

A group of non-governmental organisations (NGOs) has alleged that New York-based Marsh, a member of the Marsh McLennan Group, is violating international guidelines for responsible business conduct by brokering insurance underwriting services for the East Africa Crude Oil Pipeline (EACOP) project.

The group, which pairs Inclusive Development International (IDI) of the US with 10 Ugandan and Tanzanian NGOs focused on environmental and human rights issues, has filed a complaint against Marsh with the National Contact Point (NCP), a division of the US Department of State. IDI explained in a statement dated February 7 that the complaint outlined instances of Marsh’s failure to comply with the Guidelines for Multinational Enterprises, a set of standards drawn up by the Organisation for Economic Co-operation and Development (OECD).

The New York-based insurance company is meeting a key need for the consortium, which must secure insurance to meet Ugandan legal requirements. But the NGOs said in their complaint that Marsh’s involvement with EACOP Ltd violated the OECD guidelines because of the pipeline project’s own shortcomings with respect to human rights and the environment.