Shehri-Citizens for a Better Environments complaint against Dutch SHV Holdings NV alleges the company was involved in the illegal transfer and conversion of land and has committed human rights abuses and caused environmental degradation in Pakistan.
Dutch SHV Holdings NV and Pakistani House of Habib jointly owned Makro Habib Pakistan Ltd., which operates a chain of department outlet stores in Pakistan.
Relevant OECD Guidelines
- Version 2000 Chapter II
- Version 2000 Chapter II Paragraph II.1
- Version 2000 Chapter II Paragraph II.2
- Version 2000 Chapter II Paragraph II.6
- Version 2000 Chapter V
- Version 2000 Chapter V Paragraph V.3
The Dutch NCP accepted the case in November 2008 and forwarded it to SHV for comment. In a February 2009 meeting with the NCP, SHV denied the allegations and informed the NCP it had divested from the Makro Habib joint venture in December 2008.
After the NCP learned that a lower court in Pakistan had dismissed a similar complaint concerning the land-related issues, the complainant argued that the case was dismissed unlawfully and an appeal had been filed. In December 2009, the Supreme Court ruled in the complainant’s favour and ordered Makro-Habib to relocate.
When the NCP learned that the environmental issues had been resolved prior to the filing of the complaint, the complainant acknowledged that the issues had been remedied, but requested that the NCP determine whether the OECD Guidelines had been violated.
Once the company presented documented proof that it had fully divested from Makro Habib Pakistan Ltd. in December 2008, the NCP concluded it could no longer pursue future-oriented mediation. The NCP also decided the “investment nexus” had ceased to exist and it therefore had no basis to continue the process.