Buyers beware of trash and run: Melka group plans to sell off controversial oil palm plantations operations in the Peruvian Amazon

Buyers beware of trash and run: Melka group plans to sell off controversial oil palm plantations operations in the Peruvian Amazon

On 23 June, and no doubt in response to the growing challenges to their operations in Ucayali from the Peruvian government, Peruvian civil society and affected communities,  the Melka group decided to put their properties up for sale in a public auction.

FPP has written a letter to the editor of the Jakarta Post where the auctions were advertised.The proposed sale of these properties in Peru reflects a trend in the palm oil sector whereby companies professing to uphold sustainability and business ‘best practice’, in line with RSPO and IFC standards, choose to sell off their properties when they are caught violating the standards or the law.

This illustrates the urgent need for additional government regulations, in both host and home countries, to hold transnational companies to account for their legal, human rights and environmental violations. In the meantime, prospective buyers should beware.