Malaysian palm giant IOI to assist with U.S. probe over forced labour claims

Mei Mei Chu
Updated ·2 min read
FILE PHOTO: A palm oil seed is seen at a plantation in Pulau Carey

By Mei Mei Chu

KUALA LUMPUR (Reuters) - Malaysian palm oil company IOI Corporation on Friday said it would assist with any investigation after the U.S. Customs and Border Protection (CBP) said it was probing the company over allegations of forced labour.

Migrant rights activist Andy Hall told Reuters he had petitioned the CBP over concerns of forced labour indications in IOI's operations, as alleged by the workers.

The concerns relate to payment of deposits by workers, reimbursement of workers' recruitment fees, and a need for an ethical, low-cost recruitment process for foreign workers, he said.

Hall confirmed that the CBP responded in May with a letter saying they have reviewed his petition and found it sufficient to open an investigation.

Reuters has seen the letter from CBP to Hall. The CBP did not immediately respond to an emailed request for comment from Reuters.

IOI in a statement said it had been made aware of the letter but had not been notified directly by the CBP.

"Nevertheless, IOI will take the proactive step in contacting CBP to confirm the existence of an investigation and offer our cooperation in providing explanation and documents to assist," IOI said on its website.

IOI is the third palm oil giant in Malaysia to face U.S. scrutiny over its treatment of migrant workers, as the industry seeks to defend its image after mounting allegations of human rights abuses.

The CBP last year banned imports from FGV Holdings and Sime Darby Plantations over forced labour allegations, which had prompted some global buyers to drop them from supply chains.

Both companies have appointed independent auditors to evaluate their labour practices and said they would engage with the CBP to address the concerns raised.

Malaysia, the world's second-largest palm oil producer and exporter, is heavily reliant on migrants from Indonesia, India and Bangladesh to produce the edible oil found in everything from food to cosmetics to biodiesel.

(Reporting by Mei Mei Chu; Editing by Ed Davies, Martin Petty)

  • Up next
  • Up next
  • Up next
  • Up next

Latest Stories

  • What we know about the St George's Day marches which turned violent

    The Met Police said six people were arrested after disorder broke out at St George’s Day marches in London.

  • Wall Street’s top bosses tested by shareholder proposals to strip them of power

    Some of Wall Street’s most powerful bosses are facing new shareholder proposals this spring that would strip them of power by separating their CEO and chairman seats.

  • Maersk could offer limited Baltimore barge service

    Denmark's Maersk may resume some shipping services at the U.S. Port of Baltimore when a temporary channel is opened to give access for commercially essential vessels that remain blocked by a collapsed bridge, the company said on Wednesday. "This channel, with a controlling depth of 20 feet, could potentially allow Maersk and other carriers to operate limited barge services into and out of the Port of Baltimore," Maersk said in a statement. The group last Wednesday said the port's alternate shipping channels were not deep enough to accommodate the oceangoing container vessels that Maersk and other carriers use.

  • Inside Inter Miami: The Messi Experience opens, team wins again, yerba mate, and more

    Lionel Messi continued his torrid scoring since returning from injury as team looks for more valuable points in MLS standings this weekend at New England.

  • 'I'm not a millionaire anymore': Charlotte Church's fortune has gone

    She was worth £25 million by the time she was 11 years old but Charlotte Church has revealed her fortune has gone.

  • Daniel Radcliffe and Jonathan Groff play big roles in castmate's wedding

    Actors Daniel Radcliffe and Jonathan Groff were heavily involved in their co-star's nuptials this week.

  • LGBTQ+ rallies to be held across Canada, billed as largest since marriage equality

    Organizations across the country are gearing up for what they describe as the largest LGBTQ+ mobilization since the push for marriage equality. Fae Johnstone, president of the Society of Queer Momentum, says there will be rallies across Canada in May. The group, in partnership with other organizations, is pushing for all levels of government to respond to a series of calls to action that include funding for LGBTQ+ social supports and programs. The group has dubbed the campaign the Rainbow Week o

  • Nico Tortorella and wife expecting second child

    Nico Tortorella and wife Bethany C. Meyers are expecting their second child, a year after welcoming daughter Kilmer into the world.

  • Dear Richard: My boyfriend has made snide comments on how I dress – should I be worried?

    I’m a keen climber, on an indoor climbing wall when it rains and out in the hills near us when it’s fine. I have recently begun a relationship with a man who’s lovely, but not particularly sporty, and while he pursues his own interests at the weekend, the pressure is on us to make the most of our time together.

  • Pioneering giraffe expert Anne Innis Dagg always fought for what was right: daughter

    For decades, Anne Innis Dagg was the world’s leading expert on giraffes and a staunch advocate for gender equality in the face of sexist attitudes that derailed her academic career. But even as she compiled “binders and binders” of her research and advocacy work, the Waterloo, Ont., zoologist and feminist was never motivated by accolades, her daughter said. "She was slogging away doing all of these things for no other reason than she thought it was the right thing to do,” Mary Dagg said in an in

  • Artist who uses worship bells and Irn-Bru in works up for Turner Prize

    The artists are competing for £25,000, while those shortlisted will be awarded £10,000.

  • The Premiership’s uncomfortable truth: There are too many tries

    The message from around the Premiership has sounded loud and clear: leave our league alone. After Rob Baxter pleaded with the game’s governing body, World Rugby, to stop meddling with the laws of the game, other English head honchos backed up the Exeter director of rugby’s cry. Crucially, no one has publicly disagreed with Baxter’s remarks.

  • 'There's a cruelty about it' - Hinphey on son's illness

    Former Derry dual player Liam Hinphey had his life turned upside down when his baby son began suffering seizures. It was the start of a difficult journey for his young family with the five-month-old boy, also called Liam, who was later diagnosed with the life-limiting Dravet Syndrome. The rare genetic condition is a severe form of epilepsy and includes mobility issues and learning disabilities.

  • Man Arrested After Driving Wrong Way Down Highway At Three Times Legal Alcohol Limit

    A man in his 30s has been arrested after highway cameras captured him driving the wrong way down the motorway before officers stopped him and his breathalyser test showed more than three times the legal limit, South Yorkshire Police said.Footage released by the force shows the incident on March 9 near Junction 35A on the M1.Police said they received multiple calls about a wrong-way driver on the busy highway at around 2:45 am.Officers were deployed to stop the car and the driver, a man in his 30s, was breathalysed.The test result was 135, more than three times the legal limit of 35.The man was arrested on suspicion of driving while over the prescribed limit of alcohol and dangerous driving and remains on police bail. Credit: South Yorkshire Police via Storyful

  • Former Labour minister and crossbench peer Frank Field dies aged 81

    Lord Field of Birkenhead died in a London care home on Tuesday night following a period of illness.

  • Pensioners' fears over paying income tax

    Charities report heightened concern among pensioners who fear being dragged into paying income tax.

  • Hay fever symptoms, causes, treatments and cures

    Most of us are delighted when spring finally arrives, but for millions of hay fever sufferers, the warmer temperatures and longer days signal the start of their annual battle with symptoms. While for some people these can be relatively mild, for others they are completely debilitating.

  • Income tax grab on London and South-East hits record £100billion as changes bite

    EXCLUSIVE: Londoners paid £59.3billion to the Treasury annually and South-East residents £41.4 billion, according to HMRC figures

  • HMS Agamemnon is well named. The nuclear industry that built her is a bulwark for the free world

    The decision to name the Royal Navy’s newest nuclear submarine HMS Agamemnon is a good one. It’s a proper warship name which celebrates several ancient traditions.

  • Dow Jones Futures Rise; Tesla Soars As Elon Musk Touts 'Affordable' EV, Robotaxi

    The rally attempt is gaining steam. Tesla soared as Elon Musk said "affordable" EVs will come in 2025 and touted robotaxis.