Embattled Ugandan farmers fighting environmental threats and land grabbing by Bidco, have praised a draft report by U.N. investigators that queries the company’s business practices, stating that “Bidco’s activities may be considered too risky”.

According to a press statement signed by the Media Contact of Bidco Truth Coalition, Mr James Kisangani and made available to CEOAfrica, the U.N. embarked on an investigation, following a complaint issued by the Bugala Farmers Association to the United Nation’s Social and Environmental Compliance Unit (SECU) about the activities of Kenyan-based Bidco and the threats the company pose on the farmers’ association.

The farmers stated in the complaint, that the United Nations had not performed sufficient due diligence on Bidco before inviting it to join Business Call to Action, which is part of the United Nations Development Programme (UNDP).

The farmers provided evidence that Bidco has engaged in human rights, labour and environmental violations in the Kalangala District of Bugala Island, Lake Victoria, Uganda, where Bidco has grabbed land from smallholder farmers and cut down over 18,000 acres of rainforest to make way for a large-scale palm oil business.

According to the press statement, the report of the investigation acknowledges that a partnership with Bidco “could adversely damage UNDP’s reputation and the communities it seeks to help,” adding that Bidco’s activities “may be considered risky.”

The statement also noted that Bidco has tried to deny the allegations of land grabbing and environmental destruction in Uganda, but the UNDP investigators found there is a clear link between the company’s corporate structure, overseen by CEO Vimal Shah, and operations in Uganda.

The investigators therefore determined that the corporation’s claim of not being involved in land acquisition in Uganda is not accurate. The report says “Bidco Uganda knew of, relied on, and encouraged the purchase (of land) by the government. Bidco also was engaged in decisions and discussions related to the purchase.”

A representative of the Bugala Farmers Association, John Muyisa, commended the work of the U.N. investigators, who visited remote Kalangala District as part of their research. He said “We are very pleased that the United Nations has performed an objective evaluation of its internal processes and determined that it is risky to partner with Bidco. The United Nations is a globally admired organisation, and it is absolutely correct that, as the report says, ‘Communities should be empowered’ and not be trodden upon by predator corporations like Bidco.”

In light of the investigation's findings and the issued report, the Bugala Farmers Association has called on the United Nations to terminate its partnership with Bidco.