The Dutch and Argentine governments jointly admitted a complaint (called a Specific Instance) presented against Shell Argentina and Shell International for alleged violations of the OECD Guidelines for Multinational Enterprises at their largest Latin American refinery facilities located in Buenos Aires.

Shell’s Argentine refinery was ordered “closed” back in September of 2007, due to a long list of violations of environmental safety codes, permits, as well as infraganti petrol contamination observed during routine inspections over a 13 day period, by the Argentine Environment and Sustainable Development Secretariat, the SAYDS.[1]

Local communities welcomed the action of the SAYDS against Shell complaining for decades over the environmental catastrophe faced by residents in the neighborhood adjacent to the refinery and other industry. Local environmental groups, including Inpade and Friends of the Earth Argentina capitalized on the government closure of the refinery and in May of this year,[2] took the Shell case to the OECD for violations of social and environmental norms established to promote greater corporate accountability amongst multinational enterprises.

The Dutch and Argentine National Contact Points (the government offices), charged with ensuring that States promote corporate compliance of the OECD Guidelines, yesterday met with complainants and signed a formal response in which they jointly state,

    “the complaint presented by Inpade and Friend of the Earth against the
    multinational Shell, complies with the necessary formal requirements
    for the presentation of complaints over possible violations of the OECD
    Guidelines for Multinational Enterprises, and is pertinent to both National
    Contact Points, considering that the arguments presented are largely
    grounded on the precautionary measures already taken by the National
    Environmental Authority against [Shell’s] contamination and its effects.”

Inpade and FOE-Argentina requested that the Argentine and Dutch NCPs employ their good offices to determine whether Shell had in fact violated the Guidelines in relations to the recent audit and Shell closure carried out by the national environmental authority. But they also call on the Dutch Government and Shell International to address the systemic violations Shell is perpetrating throughout the world, including in Nigeria, Ireland, the US, Brazil, Russia, the Netherlands, the UK and the Philippines.

During the closure Shell denied violations cited by the SAYDS, but the company finally capitulated, and promised to invest US$80 million in environmental improvements and cleanup. Local communities doubt the company is complying with its promises and want pressure on Shell to abide by the government resolution and their commitment to repair the environment, as well as address the social impacts the refining industry has had on residents.

The Argentine and Dutch NCPs, who have shown a unique willingness at the international level to improve the effectiveness of the OECD system to address corporate irresponsibility, state that they will take up the case jointly, however, because the complaint is against Shell Capsa (the Argentine Subsidiary) the formal process of the complaint will be taken up by the Argentine NCP.

Footnotes: