On the night of December 2, 1984, there was a catastrophic explosion from a gas leak at a Union Carbine pesticide plant in Bhopal, India. More than 7,000 Bhopalis were killed in the explosion, and 15,000 more died later from their injuries.
The incident left behind a derelict plant site full of toxic chemicals that have never been effectively cleaned up.
Union Carbide is now a fully owned subsidiary of Dow Chemical. The company is still denying its responsibility, and refuses to reveal the toxicological information of the gas, thwarting medical efforts to deliver appropriate treatment to the more than 100,000 surviving victims.
The human rights group Amnesty International has been very busy investigating this issue. And, on Thursday, Amnesty International USA issued the following press release, which outlines some disturbing findings regarding Dow Chemical's handling of the Bhopal problem:
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Amnesty International Seeks SEC Investigation of Dow Chemical-----
In Bhopal Case, Dow's India Investing Problem and Extralegal Maneuvering Revealed in Newly Uncovered Letters
(New York) -- Amnesty International USA today called for an investigation of Dow Chemical Co. by the Securities and Exchange Commission (SEC), based on letters showing that Dow management is concerned about its ability to expand in India and is therefore secretly pressuring the Indian government to rid the company of its legal liabilities related to the Bhopal toxic chemical disaster.
In a November 8, 2006, letter to the Indian Ambassador to the United States, Ronen Sen, Dow emphasized its interest in eliminating the Bhopal impediment to investment in India. The letter said, "Our common goal is to support economic growth in India, including key foreign investments that will promote job creation, economic diversification and technology updates. Thank you for your efforts to ensure that we have the appropriate investment climate to facilitate forward-looking investment and business partnerships."
"These letters are strong evidence that Dow believes pending legal liabilities for the legacy of Bhopal present a barrier to investing in India, but the company has not disclosed this to its shareholders," said Sanford Lewis, an attorney who has represented Dow shareholders, including the New York City Pension Funds and Amnesty International USA. "Furthermore, Dow is attempting to bypass the Indian courts in this matter, by pressuring the executive branch."
Specifically the letter requested that the government "withdraw its application for a financial deposit against remediation costs [for Bhopal cleanup]. Certainly a withdrawal of application would be positive, tangible demonstration that the GOI means what it says about Dow's lack of responsibility in the matter." Liveris was referring to a Madhya Pradesh High Court case regarding cleanup of the toxic abandoned factory site in which the Indian government has filed a brief asking for a $22 million deposit toward cleanup costs.
A second letter, dated November 28, 2006, from Indian industrialist RaTan Tata to the Indian Planning Commission, supports Liveris' request and calls for government and corporate money to clean up the Bhopal site and end Dow's liability. These apparent attempts to avoid liability coincide with multiple rumors about a possible Dow buy-out? claims Dow denies.
"Looking at these letters, it seems that Dow's refusal to address the human rights of the Bhopal survivors may be having a serious, but undisclosed, financial impact," said Amy O'Meara of Amnesty International USA. "Shareholders have a right to know the facts. It is our duty to the survivors in Bhopal to help ensure that this kind of information is brought to light."
According to Amnesty International's written complaint to the SEC, the letter from the Dow CEO presents "... a candid acknowledgment that despite the settlement of prior civil litigation, the Company remains stymied in India as a result of the ongoing impact of the Bhopal disaster." It continues, "... considering the professed importance of India as a market and production base for the Company's businesses in the Asian region as a whole, we believe the impediment to investing in India owing to the unresolved liabilities in Bhopal may constitute a material matter that ought to have been previously disclosed by the management to shareholders."
Amnesty has requested that the SEC investigate Dow's failures to disclose pertinent information to shareholders, and calls on Dow investors to demand increased disclosure by supporting a shareholder resolution that requests the Company to report on any steps taken by the company to address the needs of the survivors of the Bhopal chemical disaster.
The resolution was filed by shareholders representing more than $278 million, led by the New York City Pension Funds. Said NYC Comptroller William C. Thompson, Jr, "This letter shows concretely that Dow's CEO is aware of how the remaining issues in Bhopal impede the company's investing in India. This gives new momentum and support for our shareholder resolution, calling for the company to report on new initiatives by Dow to address the problems of the survivors. The CEO's proposed solution, which would simply have the company wipe its hands of this matter, seems impractical and unlikely."
The letters were unearthed by Bhopal survivor groups through a Right to Information Request to the Indian government's Planning Commission.
Dow inherited responsibility for the Bhopal disaster from Union Carbide, which owned the Bhopal factory. Dow purchased Carbide in 2001. According to Amnesty International, more than 22,000 people have died and more than 100,000 continue to suffer as a result of the 1984 disaster.
» Read more about Amnesty International USA's work on Bhopal
RELATED LINKS
AIUSA letter to the SEC April 12, 2007
Letter from Ratan Tata to the Indian Planning Commission, November 28, 2006
Letter from Dow to Ronen Sen, Indian Ambassador to the US, November 8, 2006
TAKE ACTION NOW ONLINE
» Send an email to Dow Chemical's President and CEO, Andrew Liveris, demanding that Dow/UCC (DOW) FACE JUSTICE.
» Demand Dow Chemical (DOW) clean up the Bhopal site
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