WESTERN SAHARA: French Company ENGIE’s Due Diligence Process Under Fire
Background
ENGIE, a French multinational electric utility firm, has announced plans to conduct a due diligence process on its desalination plant project in occupied Western Sahara. The company has retained consultancy firm Global Diligence to carry out the process, but has refused to provide information on its methodology and timeline.
Criticisms of ENGIE’s Due Diligence Process
According to Western Sahara Resource Watch (WSRW), ENGIE’s decision to engage Global Diligence is part of an effort to “whitewash” its operations with the occupying power in Western Sahara. WSRW claims that the company is failing to comply with basic legal principles, including the right of the people of Western Sahara to self-determination and consent.
About Global Diligence
Global Diligence, a London-based firm, has a reputation for working on complex legal issues in unstable regions. However, its approach to the Western Sahara project has been criticized by WSRW. The group points out that Global Diligence has a history of working on cases involving separatist conflicts and indigenous rights in recognized states, but seems to be ignoring the right to self-determination of colonized people.
Controversy Surrounds ENGIE’s Contract with Moroccan Government
ENGIE signed a contract with the Moroccan government in December 2018, partnering with Nareva, a Moroccan energy company wholly owned by the king of Morocco. The desalination plant is expected to mainly benefit the agri-industry near Dakhla, which includes huge plantations owned by French-Moroccan conglomerates or the King of Morocco himself.
WSRW’s Concerns and Demands
WSRW has accused ENGIE and Global Diligence of failing to provide transparency on their due diligence process. The group is demanding that they:
- Provide information on the purpose of the consultation
- Share terms of reference and timeline for the project
- Explain methodology for selecting stakeholders
- Assess the legal status of Morocco in Western Sahara
Implications and Concerns
The controversy has raised concerns about ENGIE’s commitment to ethical business practices and its willingness to engage with local communities affected by its operations. WSRW is calling on ENGIE and Global Diligence to provide more information on their due diligence process and to respect the rights of the people of Western Sahara.
Conclusion
As the debate continues, it remains to be seen whether ENGIE and Global Diligence will take steps to address the concerns raised by WSRW or continue to operate in a manner that has been criticized as unethical. The outcome of this controversy could have significant implications for the company’s reputation and its relationships with local communities in Western Sahara.