{"id":305242,"date":"2020-07-28T13:34:28","date_gmt":"2020-07-28T09:34:28","guid":{"rendered":"https:\/\/epress.am\/?p=305242"},"modified":"2020-07-28T13:36:49","modified_gmt":"2020-07-28T09:36:49","slug":"after-environmental-destruction-in-armenia-the-fight-for-transparency-continues-in-denmark","status":"publish","type":"post","link":"https:\/\/epress.am\/en\/2020\/07\/28\/after-environmental-destruction-in-armenia-the-fight-for-transparency-continues-in-denmark.html","title":{"rendered":"After environmental destruction in Armenia, the fight for transparency continues – in Denmark"},"content":{"rendered":"

After a Danish-funded mine caused serious environmental damage in Armenia, the Danish state has been less than forthcoming on failed due diligence, transparency and compensation.<\/em><\/p>\n

author: Jens Malling,<\/strong> Danish freelance journalist
\nsource: opendemocracy.net<\/strong><\/span><\/a><\/p>\n

\"\"
Teghut copper mine, Armenia | (c) Jens Malling. All rights reserved<\/figcaption><\/figure>\n

Apparently, there should be more confidentiality over Danish export guarantees. This is the position reached by Denmark\u2019s Ministry for Industry, Business and Financial Affairs seven years after the country\u2019s export credit agency guaranteed financing for a copper mining project in Armenia that caused human rights violations and environmental destruction .<\/p>\n

In 2013, the Danish state pension fund agreed to finance an Armenian copper mining project, Teghut, in the north of the country. The investment, a DKK 350 million ($62m) loan for equipment and services to the mine, was guaranteed by Denmark\u2019s Export Credit Agency (EKF).<\/p>\n

As a result of the Danish-funded mine construction, the Teghut mine\u00a0caused<\/a><\/span>\u00a0the pollution of local rivers, with damage so severe that local farmers and fruit growers lost their livelihoods. A dam containing liquid waste from the mine still\u00a0threatens<\/a><\/span>\u00a0to collapse and bury a nearby village, and a large area of pristine forest in the scenic and mountainous region \u2013 home to a range of endangered species \u2013 was cut down. In 2019, the European Court of Human Rights\u00a0ruled<\/a>\u00a0<\/span>that land owned by local villagers had been expropriated in violation of their human rights, and ordered the Armenian state to pay compensation.<\/p>\n

With the backing of an EKF guarantee, PensionDanmark had agreed to finance the Teghut project on the condition that the Armenian mining company, Vallex group, used the loan to purchase equipment from Danish engineering conglomerate FLSmidth. Under the loan agree\u00adment, Vallex\u2019s bank, VTB, was to repay PensionDanmark after 10 years.<\/p>\n

Now, some seven years after the original loan was approved, Denmark\u2019s business ministry has quietly introduced an extensive duty of confidentiality for EKF employees as part of amending the law governing the export agency. Workers at EKF, which helps Danish businesses secure financing for projects around the world, can now be severely punished – including up to two years in prison – if they break this confidentiality.<\/p>\n

In 2017, EKF\u00a0withdrew<\/a>\u00a0<\/span>its export guarantee for the project, citing environmental standards, but a 2016 freedom of information request to the Danish Ministry of Foreign Affairs showed that EKF was aware in August 2013 of the risks the Teghut copper mine expansion would pose to the environment, as well as \u201cdemocratic deficiencies in the Armenian decision-making and approval process\u201d of the mine.<\/p>\n

\"\"
Teghut copper mine, Armenia | (c) Jens Malling. All rights reserved<\/figcaption><\/figure>\n

An internal memorandum from Denmark\u2019s business ministry, dated March 2020, sheds light on the justification for recent changes to the law governing EKF. The amendments are supposed to overrule Denmark\u2019s environmental information legislation, in order to benefit EKF\u2019s business activities.<\/p>\n

\u201cIt is clear the amendment is intended to limit access to documents under the Environmental Information Act,\u201d said Oluf J\u00f8rgensen, an expert in freedom of information and head of research emeritus at The Danish School of Media and Journalism.<\/p>\n

\u201cIt is evident that changing the law is motivated by revelations that earlier requests for access to information have given about a project which has led to extensive environmental destruction in Armenia,\u201d J\u00f8rgensen said.<\/p>\n

The March 2020 memorandum, which the Danish political party Enhedslisten shared with the author, says that – due to the Teghut mining case – confusion arose as to how Denmark\u2019s environmental information law should be interpreted. On that basis, the Danish business ministry made a \u201cclarification\u201d to the law governing EKF to ensure the agency\u2019s alleged need for confidentiality was made explicit.<\/p>\n

An FOI request to the Danish business ministry showed that EKF was involved in changing the law that exempted the export agency from Denmark\u2019s environmental information law. A list of documents held by the ministry on the matter contained titles such as \u201cRegarding meeting with EKF tomorrow\u201d, \u201cTemplate for proposed amendment\u201d and \u201cStatus of EKF amendment\u201d. Although EKF is state-owned, the agency is exempt from Danish freedom of information law. Representatives of civil society, journalists and other interested parties cannot use the legislation to access documents held by EKF.<\/p>\n

The change to the EKF law coincided with the processing of a freedom of information request by the author regarding the agency\u2019s involvement in the Teghut copper mine – specifically, EKF email correspondence with PensionDanmark and FLSmidth over environmental issues at Teghut. Earlier this year, EKF referenced these legislative amendments in a letter to the Danish Environment and Food Board of Appeal regarding the request for correspondence.<\/p>\n

When the Enhedslisten party asked Danish business minister Simon Kollerup about the new legislation in February 2020, he explained that EKF has to operate confidentially because \u201cDanish companies and their partners must be able to provide EKF with their financial and business information \u2013 for example, loan and credit information \u2013 in a secure and confidential manner\u201d.<\/p>\n

\u201cIf any doubt about the confidentiality arises,\u201d Kollerup continued, \u201cEKF will not be able to carry out the task for which it is set: to secure and finance Danish companies\u2019 exports and internationalization […] In practice, this could mean that Danish exporters, including, for example, green exporters, may lose orders.\u201d<\/p>\n

Oluf J\u00f8rgensen finds it \u201castonishing\u201d that \u201cthe Danish government and parliament want to avoid publicity about environmental damage\u201d in Armenia. He points out that \u201cit is unusual to amend a law with the purpose of affecting a specific case that is pending.\u201d<\/p>\n

\"\"
(c) Jens Malling. All rights reserved<\/figcaption><\/figure>\n

Given the efforts of EKF and the Danish business ministry to retain information about the Teghut mine financing, issues of redress and compensation to affected communities near the mine have so far taken a back seat. PensionDenmark has previously\u00a0refused<\/a>\u00a0<\/span>to allow its share of the profits from the mine to benefit the local population.<\/p>\n

\u201cEKF and other companies have an obligation under the\u00a0UN Guiding Principles on Business and Human Rights<\/a><\/span>\u00a0to avoid harm against people and the environment and, if damage occurs, ensure compensation to those affected,\u201d says Lars Koch, policy director of ActionAid Denmark, an organisation dedicated to human rights-based development<\/p>\n

\u201cKeeping EKF\u2019s large profits in mind,\u201d Koch said, \u201cit should not be a problem to provide compensation to the Armenians who have had their livelihoods destroyed as a result of the project.\u201d<\/p>\n

In July 2020, the Danish board of appeal decided that EKF could not use the new law retroactively to withhold information. Still, the board ruled that a substantial part of EKF\u2019s correspondence with FLSmidth and PensionDanmark regarding the Teghut mine should remain confidential. EKF can also use the new legislation when dealing with Denmark\u2019s environmental information act in the future.<\/p>\n

\u201cEKF must believe that the new duty of confidentiality gives [them] the right to keep all information secret from now on,\u201d said Oluf J\u00f8rgensen. \u201cThis is not sustainable.\u201d<\/p>\n

Research for this article is supported by Journalismfund.eu<\/span><\/a>.<\/em><\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Oluf J\u00f8rgensen finds it \u201castonishing\u201d that \u201cthe Danish government and parliament want to avoid publicity about environmental damage\u201d in Armenia…<\/p>\n","protected":false},"author":2,"featured_media":305237,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"tstyn_error":""},"categories":[65991,66047,66041,65979],"tags":[79566,79567,79568,39937,79569],"_links":{"self":[{"href":"https:\/\/epress.am\/en\/wp-json\/wp\/v2\/posts\/305242"}],"collection":[{"href":"https:\/\/epress.am\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/epress.am\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/epress.am\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/epress.am\/en\/wp-json\/wp\/v2\/comments?post=305242"}],"version-history":[{"count":0,"href":"https:\/\/epress.am\/en\/wp-json\/wp\/v2\/posts\/305242\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/epress.am\/en\/wp-json\/wp\/v2\/media\/305237"}],"wp:attachment":[{"href":"https:\/\/epress.am\/en\/wp-json\/wp\/v2\/media?parent=305242"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/epress.am\/en\/wp-json\/wp\/v2\/categories?post=305242"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/epress.am\/en\/wp-json\/wp\/v2\/tags?post=305242"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}