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Companies and the Australian immigration detention system Profiting from human rights abuse

Australiasendsasylumseekerstooffshorecampswheretheyaredetainedindefinitelyandsubjectedtowell-documentedabuses,inviolationoftheirhumanrights.

TheAustralianGovernmentoutsourcestheoperationsatthecamps,andSpanishcompanyFerrovialhasresponsibilityforthesystem’slargestoperationalcontracts,throughitswholly-ownedsubsidiary,Broadspectrum.InvestorsinFerrovial,includingtheNorwegianPensionFund,areexposedtothesignificantrisksofassociationwithhumanrightsabuse.

Briefingnote

BrynnO’BrienNovember2016


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Table of Contents Summary...............................................................................................4

Introduction...........................................................................................6History..........................................................................................................6Currentsystem............................................................................................7

Humanrightsabuses.............................................................................10

Apolicyofsecrecy.................................................................................15

Worseningsituation..............................................................................17

Corporateinvolvementinoffshoredetention.......................................20

Ferrovial...............................................................................................22

TheNorwegianPensionFund................................................................25Company(conduct-based)screen.............................................................26Sector(product-based)screen..................................................................27

Conclusionandrecommendations........................................................29


Summary

Thereisoverwhelmingevidenceofongoing,gravehumanrightsabusesoccurringinAustralia’ssystemofoffshoreimmigrationcampslocatedonthePacificIslandsofManusandNauru.Peopleseekingasylum,aswellasthosefoundtoberefugees,aredetainedarbitrarilyandindefinitelyandexposedtocruel,inhumananddegradingconditions.

Despiteagovernmentpolicyofsecrecy,theabusesinvolvedinthissystemhavedrawnrepeatedcondemnationfrominternationalhumanrightsexperts,includingnumerousUnitedNationsauthorities.InOctober2016AmnestyInternationalstatedthattheconditionsappeardeliberateandthesystem“amountstotortureunderinternationallaw.”1

Australiaoutsourcestheoperationsattheoffshoredetentioncampstocompanies.Itisnotpossibleforthesecompaniestomeetthemostbasichumanrightsstandardsintheiroperations,andinvestorsinthesecompaniesareassociatedwiththeflow-onrisksofhumanrightsabuses.

Thispapersurveysrecentdevelopmentswithinthecontractnetworkthatsupportstheoperationoftheoffshoredetentioncamps,andtheconsequencesofthosedevelopmentsforthecorporationsdirectlyinvolvedaswellastheirfinancialstakeholders.

SpanishcompanyFerrovialtookresponsibilityforthesystem’soperationalcontractsearlierthisyear,whenitacquiredAustraliancompanyBroadspectrum.Importantly,Ferrovialknewaboutthehumanrightsabusesatthecamps,andthattheoffshoredetentioncontractsmadeupasignificantproportionofBroadspectrum’sunderlyingrevenue,beforetheacquisitionwascompleted.

OneofFerrovial’sbiggestinvestorsistheNorwegianPensionFund(TheFund).TheFundisknownforitsstrongethicalinvestmentpoliciesandprocesses.AlthoughtheFunddivestedfromBroadspectrumin2015,2FerroviallateracquiredBroadspectrum.Assuch,theFundisonceagainexposedtotherisksassociatedwiththeserious,

1AmnestyInternational,“IslandofDespair:Australia’s‘Processing’ofRefugeesonNauru,”October17,2016,https://www.amnesty.org/en/documents/document/?indexNumber=asa12%2f4934%2f2016&language=en.

2CorrespondencewithNBIM,September2016.


persistentandwell-documentedhumanrightsabusesoccurringinthesedetentioncamps.

InvestinginFerrovial,orindeedanycompanyinvolvedinsuchactivity,isinconsistentwiththeFund’sEthicalGuidelines3anditsexpectationsdocumentsonHumanRights4andChildren’sRights.5

Recommendations:

Inordertoactconsistentlywithitsethicalstandardsandtoavoidfutureshareholdingsincompaniesthatoperateimmigrationdetentioncentreswherehumanrightsstandardsarenotmet:

1. TheNorwegianPensionFundshoulddivestitsshareholdinginFerrovial;2. TheNorwegianPensionFundshouldapplyaconduct-basedexclusionto

FerrovialforaslongasthecompanyisinvolvedintheoperationofAustralia’soffshoredetentioncamps;and

3. TheNorwegianMinistryofFinanceshouldconsideramendingitsethicalguidelinestoallowforascreentobeappliedtocompaniesinvolvedintheoperationofdetentionfacilities.

3“ObservationandExclusionofCompanies,”NorgesBankInvestmentManagement,accessedSeptember21,2016,https://www.nbim.no/en/responsibility/exclusion-of-companies/.

4NBIM,“HumanRightsExpectationDocument”(NorgesBankInvestmentManagement),accessedMay22,2016,https://www.nbim.no/en/transparency/news-list/2016/human-rights-expectation-document/.

5NBIM,“Children’sRightsExpectationDocument”(NorgesBankInvestmentManagement),accessedMay22,2016,https://www.nbim.no/en/responsibility/risk-management/childrens-rights/.


Introduction

HISTORY Australia’slongstandingpolicyofoffshoredetentioncurrentlyrestsontheexistenceoftwoextraterritorialdetentioncamps,locatedontheremoteislandsofNauruandManusIsland(partofPapuaNewGuinea).Atthesecamps,asylumseekersandrefugeesaredetainedindefinitely,ininadequateconditions,withoutaccesstoappropriatehealthcareandwithoutrecoursetoAustralia’slegalsystem.6

Thesystemofoffshoredetentionhasbeencondemnedbytheworld’sleadinginternationalhumanrightsauthorities,includingheUnitedNationsHighCommissionerforRefugees,theUNSpecialRapporteuronTorture,theUNHighCommissionerforHumanRights,theUNSpecialRapporteurontheHumanRightsofMigrants,AmnestyInternational,andHumanRightsWatch,aswellasAustralia’sownHumanRightsCommission.(SeesectiononHumanRightsAbuses,below,forextractsofstatementsmadebytheseauthorities).

Theoffshoredetentioncamps–knownasthePacificSolution–havebeeninexistenceforfifteenyears.7ThePacificSolutionwasestablishedin2001aftertheNorwegiancontainership,theMVTampa,rescuedasylumseekersinthewaterstoAustralia'snorth.TheshipwaspreventedfromdisembarkingtheasylumseekersinAustraliabytheHowardGovernment,apositionthatNorway’sthenForeignMinister,ThorbjørnJagland,describedas“unacceptableandinhumaneandcontraveninginternationallaw”8.Shortlythereafter,theHowardGovernmentestablishedoffshoredetentioncentresonManusIslandandNauru.

6SeeforexampleAustralianHumanRightsCommission,“PathwaystoProtection:AHumanRights-basedResponsetotheFlightofAsylumSeekersbySea,”September2016,https://www.humanrights.gov.au/sites/default/files/20160913_Pathways_to_Protection.pdf;BrynnO’Brien,“ExtraterritorialDetentionContractinginAustraliaandtheUNGuidingPrinciplesonBusinessandHumanRights,”BusinessandHumanRightsJournal,April21,2016,1–8,doi:10.1017/bhj.2016.12.

7PeterMares,Borderline :Australia’sResponsetoRefugeesandAsylumSeekersintheWakeoftheTampa,2nded.(Sydney,NSW:UNSWPress,2002).

8BenDohertyandDavidMarr,“‘WeWillDecideWhoComestoThisCountry’,”TheSydneyMorningHerald,accessedOctober20,2016,http://www.smh.com.au/national/we-will-decide-who-comes-to-this-country-20110819-1j2cj.html.


ThesystemwaslargelydismantledunderthefirstRuddGovernment,butreinstatedbytheGillardGovernmentin2012.9InJuly2013,thesecondRuddGovernmentsignedaMemorandumofUnderstanding(MoU)withPapuaNewGuineaandannouncedthatpeoplewhoarrivedafter19July2013wouldnotberesettledinAustralia.SuccessivegovernmentsunderTonyAbbottandMalcolmTurnbullhavecontinuedthispolicy.

CURRENT SYSTEM Asat31July2016,therewere833mendetainedonManusIslandand411peopleondetainedonNauru,including49children.10ThesepeoplearrivedafterthesecondRuddGovernment’sannouncementoftheMoUbetweenAustraliaandPNG.11Consequently,atthetimeofwriting,somepeopleonManusIslandandNauruhavebeenindetentionforoverthreeyears.

Withinthecohortofpeoplesubjectedtooffshoredetention,ratesofacceptanceofprotectionclaimsishigh,forthosewhohavehadtheirclaimsdetermined.Asat31May2016,therateofacceptanceofpeople’sclaimstorefugeestatuswas98%onManusIsland,and77%onNauru.12

Someofthepeoplewhohavebeenfoundtoberefugeeshavebeenmovedtoaccommodationoutsidethecamps,whererestrictionsstillapplyinrespectoftheirmovementandresidence.InbothPNGandNauru,refugeesfaceveryseriouspersonalsafetyissuesinthecommunity.13Eventhesepeopleliveinlimbo,withnogenuine

9AustralianParliamentaryLibraryandElibrittKarlsen,“Australia’sOffshoreProcessingofAsylumSeekersinNauruandPNG:AQuickGuidetoStatisticsandResources,”text(Canberra:DepartmentofParliamentaryServices,ParliamentofAustralia,June30,2016),http://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/rp1516/Quick_Guides/Offshore#_Total_number_of.

10DepartmentofImmigrationandBorderProtection,“DetentionandCommunityStatisticsSummary,”July31,2016,http://www.border.gov.au/ReportsandPublications/Documents/statistics/immigration-detention-statistics-31-july-2016.pdf.

11“Approximately1,000unauthorisedmaritimearrivals(UMAs)whoenteredAustraliabetween13August2012and19July2013weretakentoaregionalprocessingcountry.On19July2013,theformerRuddGovernmentannouncedthattheseUMAswouldbereturnedtoAustraliatocreatecapacityforthetransferofUMAswhoarrivedafter19July2013.ReturnsoccurredprogressivelyandwerecompletedinOctober2015.”AsperAustralianParliamentaryLibraryandElibrittKarlsen,“Australia’sOffshoreProcessingofAsylumSeekersinNauruandPNG,”5.

12Ibid.,10.13AmnestyInternationalandHumanRightsWatch,“Australia:AppallingAbuse,NeglectofRefugeesonNauru,”August2016,https://www.hrw.org/news/2016/08/02/australia-appalling-abuse-neglect-refugees-nauru;“RefugeeAttackedonManusIsland,”NewsComAu,October17,2016,


resettlementoptionsavailabletothem.InaletteraddressedtotheUNSecretary-GeneralontheeveoftheObamaAdministration’sLeaders’SummitontheGlobalRefugeeCrisisinSeptember2016,a“DadinNauru,”whohashadhisclaimsdeterminedandnowlives“inthecommunity”,wrote:

Tothisdaywearestilllikewalkingghosts,utterlybrokenandhopeless.Wearehollowedoutanddevoidofanyenthusiasmforlife,andwearestuckinanimalisticstateofexistencebecausethatiswhatwehavebecome.14

Thepoliticaljustificationfortheexistenceoftheoffshoredetentioncampsisthattheyactasadeterrenttopeopleseekingasylumbyboatandthus“stoptheboats.”Argumentsmadeforthesecampsrangefromhumanitarian(“preventingdeathsatsea”)15toappealstonationalsovereignty(“wewilldecidewhocomestothiscountryandthecircumstancesinwhichtheycome”).16

WhiletheissueremainscontroversialinAustralia,indefinitedetentioninextraordinarilyharshconditionsisthecornerstoneofasetofpoliciesaimedatpreventingunauthorisedseaentrytoAustralia.

Therecanbenojustificationforconductthatamountstocruel,inhumananddegradingtreatment.17Thisprincipleisnon-derogableatinternationallaw,18thatis,statesarenotpermittedunderanycircumstancestosubjectpeopletosuchtreatment.

http://www.news.com.au/national/breaking-news/refugee-attacked-on-manus-island/news-story/4615752f3095f6074dc85db61eda4a82.

14“ThinkAustralia’sTreatmentofRefugeesandAsylumSeekersIsOK?ReadThis.,”accessedSeptember20,2016,http://www.smh.com.au/comment/think-australias-treatment-of-refugees-and-asylum-seekers-is-ok-read-this-20160919-grjjz2.html.

15SharonPickering,“PreventingDeathsatSea:AskingtheExpertsonAsylumSeekers,”TheConversation,accessedMay29,2016,http://theconversation.com/preventing-deaths-at-sea-asking-the-experts-on-asylum-seekers-8315.

16JohnHoward,“ElectionSpeech,DeliveredatSydney,NSW,October28th,2001,”October28,2001,http://electionspeeches.moadoph.gov.au/speeches/2001-john-howard.;Whetherharshdetentionpoliciesactuallypreventboatjourneysisdisputed.Indeed,somehavearguedthatboatturnbacksbymilitaryforcehavethegreatesteffectonthenumberofarrivals.Boatturnbackshoweverdenytheassessmentofprotectionclaimstothoseoninterceptedvessels,abreachofAustralia’sinternationalobligations.SeeegNatalieKlein,“AssessingAustralia’sPushBacktheBoatsPolicyUnderInternationalLaw:LegalityandAccountabilityforMaritimeInterceptionsofIrregularMigrants1,”MelbourneJournalofInternationalLaw15(2014),http://heinonline.org/HOL/LandingPage?handle=hein.journals/meljil15&div=17&id=&page=.

17JuanE.Mendez,“ReportoftheSpecialRapporteuronTortureandOtherCruel,InhumanorDegradingTreatmentorPunishment,”March6,2015.


Meanwhile,peoplewhoarrivebyplaneandseekasylumareaffordedalegalprocessunderAustralianlaw.DifferentialtreatmentbasedonmodeofarrivalamountstoapenaltyforasylumseekerswhoarrivebyseaandthusabreachofArticle31oftheRefugeeConvention,towhichAustraliaisasignatory.19

18Arts.4(2)and7,UnitedNationsGeneralAssembly,“InternationalCovenantonCivilandPoliticalRights”(UnitedNations,TreatySeries,vol.999,p.171,December16,1966),http://www.ohchr.org/en/professionalinterest/pages/ccpr.aspx.

19“ConventionandProtocolRelatingtotheStatusofRefugees,”UNHCR,accessedAugust17,2015,http://www.unhcr.org/3b66c2aa10.html.


Human rights abuses

Australia’ssystemofoffshoredetentionhasbecomenotoriousforhumanrightsabuses,whichhavebeencondemnedbyleadinglocalandinternationalauthorities.Thissectionprovidesdetailedquotestakenfromthenumerousforcefulcriticismsoftheoffshoredetentionsystem.(Emphasisinthesequotesisaddedbytheauthor,inbold).

InMay2016,theUnitedNationsHighCommissionerforRefugeesreleasedthefollowingstatement:

Thereisnodoubtthatthecurrentpolicyofoffshoreprocessingandprolongeddetentionisimmenselyharmful.Thereareapproximately2000veryvulnerablerefugeesandasylum-seekersonManusIslandandNauru.Thesepeoplehavealreadybeenthroughagreatdeal,manyhavefledwarandpersecution,somehavealreadysufferedtrauma.DespiteeffortsbytheGovernmentsofPapuaNewGuineaandNauru,arrangementsinbothcountrieshaveprovedcompletelyuntenable.

Thesituationofthesepeoplehasdeterioratedprogressivelyovertime,asUNHCRhaswitnessedfirsthandovernumerousvisitssincetheopeningofthecentres.Theconsensusamongmedicalexpertsisthatconditionsofdetentionandoffshoreprocessingdoimmensedamagetophysicalandmentalhealth.UNHCR’sprincipalconcerntodayisthattheserefugeesandasylum-seekersareimmediatelymovedtohumaneconditionswithadequatesupportandservices.20

TheUnitedNationsHighCommissionerforHumanRightscommentedinJune2015:

Australia’sresponsetomigrantarrivalshassetapoorbenchmarkforitsregionalneighbours.Theauthoritieshavealsoengagedinturn-aroundsandpush-backsofboatsininternationalwaters.Asylum-seekersareincarceratedincentresinPapuaNewGuineaandNauru,wheretheyfaceconditionsthattheSpecialRapporteuronTorturehasreportedasamountingtocruel,inhumanordegradingtreatmentasdefinedby[theConventionAgainstTorture].TheyalsoviolatetheConventionontheRightsoftheChild,astheAustralianHuman

20UNHCR,“Statement-UNHCRCallsforImmediateMovementofRefugeesandAsylumSeekerstoHumaneConditions,”May2,2016,http://unhcr.org.au/wp-content/uploads/2015/05/UNHCR-Calls-for-Immediate-Movement-of-Refugees-and-Asylum-Seekers-to-Humane-Conditions-.pdf.


RightsCommissionhasjustifiablydeclared.EvenrecognizedrefugeesinurgentneedofprotectionarenotpermittedtoenterAustralia,whichhassetuprelocationarrangementswithcountriesthatmaybeill-preparedtoofferthemanydurablesolution.

Suchpoliciesshouldnotbeconsideredamodelbyanycountry.Giventhatmostoftoday'sAustraliansthemselvesdescendfrommigrants–andgiventhatthecountrymaintainssizeableregularprogramsformigrationandresettlement–Iambewilderedbythehostilityandcontemptforthesewomen,menandchildrenthatissowidespreadamongthecountry'spoliticians.21

Ina2015report,theUnitedNationsSpecialRapporteuronTorturestated:

theGovernmentofAustralia,byfailingtoprovideadequatedetentionconditions;endthepracticeofdetentionofchildren;andputastoptotheescalatingviolenceandtensionattheRegionalProcessingCentre[onManusIsland],hasviolatedtherightoftheasylumseekers,includingchildren,tobefreefromtortureorcruel,inhumanordegradingtreatment,asprovidedbyarticles1and16ofthe[ConventionAgainstTorture].22

IntheirjointreportonNaurupublishedinAugust2016,AmnestyInternationalandHumanRightsWatchstated:

About1,200men,women,andchildrenwhosoughtrefugeinAustraliaandwereforciblytransferredtotheremotePacificislandnationofNaurusuffersevereabuse,inhumanetreatment,andneglect,HumanRightsWatchandAmnestyInternationalsaidtoday.TheAustraliangovernment’sfailuretoaddressseriousabusesappearstobeadeliberatepolicytodeterfurtherasylumseekersfromarrivinginthecountrybyboat.

RefugeesandasylumseekersonNauru,mostofwhomhavebeenheldthereforthreeyears,routinelyfaceneglectbyhealthworkersandotherserviceproviderswhohavebeenhiredbytheAustraliangovernment,aswellasfrequentunpunishedassaultsbylocalNauruans.Theyendureunnecessarydelaysandattimesdenialofmedicalcare,evenforlife-threateningconditions.Manyhavedirementalhealthproblemsandsufferoverwhelming

21“StatementbyUNHighCommissionerforHumanRightsZeidRa’adAlHussein,”June15,2015,http://www.ohchr.org/EN/NewsEvents/Pages/DisplayNews.aspx?NewsID=16076&LangID=E.

22JuanE.Mendez,“ReportoftheSpecialRapporteuronTortureandOtherCruel,InhumanorDegradingTreatmentorPunishment,”8.


despair–self-harmandsuicideattemptsarefrequent.Allfaceprolongeduncertaintyabouttheirfuture.23

Inits2016WorldReport,HumanRightsWatchsaidthat:

the[Australian]government’sfailuretorespectinternationalstandardsforasylumseekersandrefugeescontinuestotakeaheavyhumantoll.In2015,Australia’spracticesofmandatorydetentionofasylumseekers,abusesrelatedtooffshoreprocessing,andoutsourcingofrefugeeobligationstoothercountrieswereheavilycriticizedbyUnitedNationsexperts,foreigngovernments,andevensomeAustraliangovernment-fundedinquiries.24

InaSeptember2016report,theAustralianHumanRightsCommissionstatedthat:

SincetheprocessingofasylumclaimsinNauruandPapuaNewGuinea’sManusIslandrecommencedin2012,numerousreportsandinquiriesaswellastheCommission’sownresearchhavedocumentedarangeofseriousshortcomingsinthirdcountryprocessingarrangements.Keyissuesofconcernhaveincluded:

• thediscriminatorynatureofthirdcountryprocessing(itappliesonlytopeoplewhoarrivedbyboattoseekasylumwithinaspecifictimeperiod)

• inadequatepre-transferassessmentprocesses,whichfailtoadequatelyconsiderthebestinterestsofthechildandlacksufficientsafeguardsagainstrefoulement(withparticularconcernhavingbeenraisedaboutsame-sexattractedpeoplebeingsenttocountrieswhichcriminalisesame-sexsexualactivity)

• prolonged,indefiniteandpotentiallyarbitraryimmigrationdetention(includingofchildren)

• harshlivingconditions,includinginadequateaccommodationandsanitationfacilities,limitedprivacy,extremeheatandovercrowding

• accesstoadequatehealthcareservices,includingmaternal,paediatricandmentalhealthcareservices

23AmnestyInternationalandHumanRightsWatch,“Australia:AppallingAbuse,NeglectofRefugeesonNauru,”August2,2016,https://www.hrw.org/news/2016/08/02/australia-appalling-abuse-neglect-refugees-nauru.

24HumanRightsWatch,“WorldReport2016:Australia,”January8,2016,https://www.hrw.org/world-report/2016/country-chapters/australia.


• physicalsafety,particularlyinrelationtoreportsofphysicalandsexualassaultofpeopleindetentionandtheNauruancommunity(withwomenandchildrenatparticularrisk)andaviolentincidentattheManusIslanddetentionfacilityin2014whichleftonepersondeadanddozensinjured

• delaysintheprocessingandfinalisationofasylumclaims

• limitedaccesstosustainabledurablesolutions,withthevastmajorityofpeoplewhohavebeenfoundtoberefugeesstillwaitingforasolutionandseveraloftherefugeesresettledinCambodiahavingsubsequentlyreturnedtotheircountriesoforigin

• thecumulativenegativeimpactsoftheseconditionsonthedevelopmentofchildrenandonthephysicalandmentalhealthofallpeoplesubjecttothirdcountryprocessing(whichmayalsoimpactontheirabilitytopresenttheirasylumclaims)

• lackofindependentandtransparentmonitoringofthirdcountryprocessingfacilitiesandarrangements.

TheseissuesengagenumeroushumanrightsobligationsunderinternationaltreatiestowhichAustraliaisapartyaswellasundertheConventionRelatingtotheStatusofRefugees(RefugeeConvention).25

Initsreportreleasedon17October2016,AmnestyInternationalstated:

TheconditionsonNauru—refugees'severementalanguish,theintentionalnatureofthesystem,andthefactthatthegoalofoffshoreprocessingistointimidateorcoercepeopletoachieveaspecificoutcome—amountstotortureunderinternationallaw.

AtraumatologistwithexperiencecounsellingthoseaffectedbyterrorismandnaturaldisasterscalledAustralia’ssystemofoffshoredetention“anatrocity.”Hesaiditwastheworstsituationoftraumahe’deverseen,overa43yearcareer.26

25AustralianHumanRightsCommission,“PathwaystoProtection:AHumanRights-basedResponsetotheFlightofAsylumSeekersbySea,”31.

26BenDohertyandDavidMarr,“TheWorstI’veSeen–TraumaExpertLiftsLidon‘Atrocity’ofAustralia’sDetentionRegime,”TheGuardian,June19,2016,http://www.theguardian.com/australia-news/2016/jun/20/the-worst-ive-seen-trauma-expert-lifts-lid-on-atrocity-of-australias-detention-regime.


AjointSavetheChildrenAustraliaandUNICEFAustraliareport,publishedinSeptember2016,detailedtheharmstochildrensubjectedtoAustralia’spolicies:

ChildrenandtheirfamilieswhohavesoughtAustralia’sprotection…havebeenexposedtothefollowingpotentialdangersandharms:

• theanxietyanddespairofalife-in-limbo

• prolongedexposuretodetentionanddetention-likeconditions

• deteriorationinmentalhealthleadingtodespairandself-harm

• impairedchildhooddevelopment

• exposuretoviolence,abuseandexploitation

• indefinitefamilyseparation

• impairedaccesstoappropriateeducationandhealthcare

• incapacitationofparentsandfamilybreak-down

• socialisolation,negativestereotypinganddiscrimination

• inthecaseoffamiliestransferredtoNauru,increasedinstancesofbabiesbornstateless

• inthecaseoffamiliestransferredtoNauru,impairedenjoymentofculturalrightsandidentity…27

AleakedreportbytheUNHCRintoconditionsonNauru,detailsofwhichwerepublishedinTheSaturdayPaper,stated:

ItappearsthatPTSDanddepressionhavereachedepidemicproportions...UNHCRanticipatesthatmentalillness,distressandsuicidewillcontinuetoescalateintheimmediateandforeseeablefuture.28

27SavetheChildrenAustraliaandUNICEFAustralia,“AtWhatCost?,”September2016,3,https://www.savethechildren.org.au/about-us/media-and-publications/latest-news/years/save-the-children-and-unicefs-investigation-into-australias-harsh-asylum-seeker-policies.

28MartinMcKenzie-Murray,“LeakedUNHCRReport:ManusIslandWorld’sWorst,”TheSaturdayPaper,October8,2016,https://www.thesaturdaypaper.com.au/news/immigration/2016/10/08/leaked-unhcr-report-manus-island-worlds-worst/14758452003831.


A policy of secrecy

ThehumanrightsabusesdetailedaboveareboththecauseandeffectofsecrecyatAustralia’soffshoredetentioncamps.Accesstothecampsandthepeopledetainedthereisextremelylimited.Thishasmadeitdifficulttomonitortheconditionsinthecamps.

TheAustralianBorderForceAct2015establishesacriminaloffence,punishablebytwoyears’imprisonment,fortheunauthoriseddisclosureofinformationaboutthecampsbycertainpeople,includingcontractors,whoworkinthem.29

Thegovernmentsinvolvedhaveissuedblanketrefusalsofaccesstothecentresforjournalists30(oreven,inthecaseofNauru,denialofvisastomedia).31Danishparliamentarianswhohadplannedavisittothecentrehadtheirapplicationsforvisasdenied.32

WhileonavisittoNauru,AustralianSenatorSarahHanson-Young,along-timecriticofthecentres,wasspiedonbyprivatesecuritycontractorWilsonSecurity.WilsonrepresentativesthenprovidedfalseinformationtoanAustralianSenateinquiryaboutthecompany’sactivities.33

In2015,theUnitedNationsSpecialRapporteurontheHumanRightsofMigrantswasforcedtocancelaplannedvisittoAustraliaduetotheAustraliangovernments’failure

29(Cth),AustralianBorderForceAct2015,ActNo.40of2015,2015;BrynnO’Brien,“Australia’sAnti-whistleblowerLawsfortheImmigrationSector:ConcernsforInvestorsandFinanciersofImmigrationDetentionContractors”(UNForumonBusinessandHumanRights,Geneva,November18,2015),https://www.scribd.com/doc/291142600/Australia-s-anti-whistleblower-laws-for-the-immigration-sector-concerns-for-investors-and-financiers-of-immigration-detention-contractors.

30BenPynt,“WeNeedtoSeeManusIsland,”TheSydneyMorningHerald,February24,2014,http://www.smh.com.au/comment/we-need-to-see-manus-island-20140224-33bk1.html.

31“NauruGovernmentBansAllMediaVisitsfromCountry,”accessedSeptember20,2016,http://www.aljazeera.com/news/2015/10/nauru-government-refuses-media-visa-applications-151009043225083.html.

32NicoleHasham,“NauruBansUnsympatheticDanishMPsfromDetentionCentreVisit,”TheSydneyMorningHerald,August31,2016,http://www.smh.com.au/federal-politics/political-news/nauru-bans-unsympathetic-danish-mps-from-detention-centre-visit-20160830-gr4y8g.html.

33MartinMcKenzie-Murray,“WilsonSecurity’sappallingrecordonNauru,”TheSaturdayPaper,April9,2016,https://www.thesaturdaypaper.com.au/news/politics/2016/04/09/wilson-securitys-appalling-record-nauru/14601240003105.


tocooperate“regardingprotectionconcernsandaccesstodetentioncentres[includingoffshorecentres].”34Hestated:

Inpreparingformyvisit,itcametomyattentionthatthe2015BorderForceAct,whichsanctionsdetentioncentreservice-providerswhodisclose‘protectedinformation’withatwo-yearcourtsentence,wouldhaveanimpactonmyvisitasitservestodiscouragepeoplefromfullydisclosinginformationrelevanttomymandate…Thisthreatofreprisalswithpersonswhowouldwanttocooperatewithmeontheoccasionofthisofficialvisitisunacceptable,…SinceMarch2015,IhaverepeatedlyrequestedthattheAustralianGovernmentfacilitatemyaccesstoitsoff-shoreprocessingcentres…IwasalsoextremelydisappointedthatIwasunabletosecurethecooperationneededtovisitanyoff-shorecentre,giventheinternationalhumanrightsandhumanitarianlawconcernsregardingthem,plustheAustralianSenateInquiriesontheoff-shoredetentioncentresinNauruandPapuaNewGuinea,whichraisedconcernsandrecommendationsconcerningthesecentres.35

AjointSeptember2016reportbySavetheChildrenAustraliaandUNICEFAustraliacriticisedthese“policiesofoperationalsecrecy”asmeanstohinderpublicdebateinAustralianandtoimpairAustralians’ability“toassesswhetherthesepoliciesarenecessaryorappropriate,nortounderstandthetruequantumofthehuman,economicandstrategiccoststheyentail.”36

34OfficeoftheHighCommissionforHumanRights(UN),“Migrants/HumanRights:OfficialVisittoAustraliaPostponedDuetoProtectionConcerns,”September25,2015,http://www.ohchr.org/EN/NewsEvents/Pages/DisplayNews.aspx?NewsID=16503&LangID=E.

35Ibid.36SavetheChildrenAustraliaandUNICEFAustralia,“AtWhatCost?”.


Worsening situation

Conditionsinthecampshavedeterioratedanditisinevitablethat,overtime,thesituationwillworsen.Ratesofself-harminAustralia’sdetentioncampsarealreadyat“epidemic”levels.37MedicalresearchindicatesthatthementalandphysicalhealthofpeopleheldinAustralia’simmigrationdetentioncentresdeterioratesthelongertheyaredetained,38afactacknowledgedbytheAustralianDepartmentofImmigrationandBorderProtectionaswellasIHMS,thegovernment’shealthcontractoronManusIslandandNauru.39(Emphasisinthesequotesisaddedbytheauthor,inbold.)

InMay2016,UNHCRstated:

Thesituationofthesepeople[subjectedtooffshoredetentionbyAustralia]hasdeterioratedprogressivelyovertime,asUNHCRhaswitnessedfirsthandovernumerousvisitssincetheopeningofthecentres.Theconsensusamongmedicalexpertsisthatconditionsofdetentionandoffshoreprocessingdoimmensedamagetophysicalandmentalhealth.UNHCR’sprincipalconcerntodayisthattheserefugeesandasylum-seekersareimmediatelymovedtohumaneconditionswithadequatesupportandservices.40

ThisstatementwasreleasedfollowingaUNHCRvisittoNauruduringwhichUNHCRrepresentativeswitnessedtheself-immolationofa23-year-oldIranianmanwholater

37NicoleHashamandMichaelKoziol,“Self-harminDetentionCentresatEpidemicLevels,InternalDocumentsShow,”TheSydneyMorningHerald,January15,2016,http://www.smh.com.au/federal-politics/political-news/selfharm-in-detention-centres-at-epidemic-levels-internal-documents-show-20160115-gm74q3.html.

38JanetteP.GreenandKathyEagar,“TheHealthofPeopleinAustralianImmigrationDetentionCentres,”MedicalJournalofAustralia192,no.2(2010),https://www.mja.com.au/journal/2010/192/2/health-people-australian-immigration-detention-centres.

39JaneLee,“AsylumSeekers’MentalHealthLinkedtoLengthofDetention,”TheSydneyMorningHerald,July2,2014,http://www.smh.com.au/federal-politics/political-news/asylum-seekers-mental-health-linked-to-length-of-detention-20140702-zstsy.html.

40UNHCR,“Statement-UNHCRCallsforImmediateMovementofRefugeesandAsylumSeekerstoHumaneConditions.”


diedfromhisinjuries.41AyoungSomaliwomansetherselfalightonlydayslater,sufferingburnsto70%ofherbody.42

Theenvironmentofoffshoredetentionisprofoundlyharmfultochildren.13-yearoldrefugeeMisbahsaidinaninterviewbroadcaston17October2016by4Corners:

Wefeelverysad.Mostofthepeopleeventhinktheywillsuicideandthat'sbetterforthem,thanhavinglikethismuchstress.43

Atthetimeofbroadcast,MisbahhadbeenonNaurufor1179days.

Anotherchildrefugee,17-yearoldShamim,whohadspent1090daysonNauruatthetimeofbroadcast,spokeaboutself-harming:

Iwasn'tfeelingok,anditwasso,sobad,andIwanttofeelthepainwhichI'mhavinginmylikeheartandit'ssobad,soI'mjusttakingitout.ButstillwhenIdidit,didit,itwasn'tpainful.ButIstilldidit,Iwasn'tokandIjustdidsomestupidthings.MaybejustforawhileIforgotthefeelingpain,butsobad,butafterthepainfrommyhandgone,itstartedbackagain.44

TwoteacherswhohadworkedonNaurudescribedtheenvironmentto4Corners:

GABBYSUTHERLAND:Wellit'sdeathbyslowtorture.It's,it'sjusthowto,theplaceissetuptomakepeoplegomadorjustmakepeople,justmakepeopledieinside.

JUDITHREEN:Youknowwhat,becausetheharmispermanent.It'sthedamageisdoneforthesechildren.Itisdone.Threeyearsoftheirliveshasbeen-havebeenspent,sorry,inthecamp-sorry[crying]Ijustwanttomakesureitdoesn'thappentoanothergeneration.45

BothwomenriskedprosecutionundertheBorderForceActandasentenceof2years’imprisonmentfordisclosinginformationtotheprogram.Theyspokeoutanyway.46

41BenDohertyandHelenDavidson,“Self-immolation:DesperateProtestsAgainstAustralia’sDetentionRegime,”TheGuardian,May3,2016,sec.Australianews,https://www.theguardian.com/australia-news/2016/may/03/asylum-seekers-set-themselves-alight-nauru.

42Ibid.,-.43“TheForgottenChildren,”4Corners(AustralianBroadcastingCorporation,October17,2016),http://www.abc.net.au/4corners/stories/2016/10/17/4556062.htm#transcript.

44Ibid.45Ibid.46Ibid.


IntheUNHCRreportleakedtoTheSaturdayPaper,detailsofwhichwerepublishedinOctober2016,theescalatingtollofprolongeddetentionisclear:

UNHCRanticipatesthatmentalillness,distressandsuicidewillcontinuetoescalateintheimmediateandforeseeablefuture.47

47McKenzie-Murray,“LeakedUNHCRReport:ManusIslandWorld’sWorst.”


Corporate involvement in offshore detention

CorporationsplayacentralroleinAustralia’soffshoredetentionsystem.48Becausethedetentioncampsarelocatedinothercountrieswithlimitedresources,theAustraliangovernmentneedstheactiveparticipationofcompaniesinordertooperatethecentresuponwhichitsdeterrencepolicyrelies.AustraliaoutsourcestheoperationofthesecentrestocompaniesthroughcontractsvaluedatoverAU$1billionperannum.49

Putsimply:withoutcompanieswillingtodotheworkofoperating,maintainingandprovidingservicestothecentres,Australia’soffshoredetentionsystemwouldceasetoexist.

Thecompaniesinvolvedintheoffshoredetentionsystemsince2012include:

• G4S,50• Broadspectrum,51formerlyknownasTransfieldServices,52

48SeeBrynnO’Brien,“ExtraterritorialDetentionContractinginAustraliaandtheUNGuidingPrinciplesonBusinessandHumanRights,”BusinessandHumanRightsJournal,April21,2016,doi:10.1017/bhj.2016.12.

49KateHobbs,“OffshoreProcessingCentresinNauruandPapuaNewGuinea:ProcurementofGarrisonSupportandWelfareServices,”Text,(February9,2016),https://www.anao.gov.au/work/performance-audit/offshore-processing-centres-nauru-and-papua-new-guinea-procurement.

50“G4SWebsite,”accessedSeptember6,2016,http://www.au.g4s.com/;G4SandAustralianGovernment,DepartmentofImmigrationandCitizenship,“G4SManusIslandDetentionFacilityContract,”February2013,http://www.scribd.com/doc/155097545/Manus-Island-detention-facility-contract;Laughland,OliverandPaulFarrell,“G4SandSercoFailtoReportonAustralia’sAsylumCentreConditions,”GuardianAustralia,n.d.,http://www.theguardian.com/world/2013/sep/16/g4s-serco-australia-asylum-centre;MelissaDavey,“ManusSecurityFirm,G4S,ResponsibleforFebruaryViolence,SaysLawCentre,”TheGuardian,September23,2014,sec.Worldnews,https://www.theguardian.com/world/2014/sep/23/manus-security-firm-g4s-responsible-for-february-violence-says-law-centre;HumanRightsLawCentre,“ComplaintConcerningG4SAustraliaPtyLtd :SubmittedtotheAustralianandUnitedKingdomNationalContactPointsfortheOECDGuidelinesforMultinationalCompanies,”September2014,http://hrlc.org.au/wp-content/uploads/2014/09/HRLC_RAID_Complaints_OECD_Guidelines_specific_instance_G4S_Sep2014.pdf.

51Broadspectrum,“Broadspectrum(formerlyKnownasTransfieldServices)Website,”accessedSeptember6,2016,http://www.transfieldservices.com/.

52BenDoherty,“DetentionCentreOperatorTransfieldServicestoBeRenamed‘Broadspectrum’,”TheGuardian,September25,2015,sec.Australianews,http://www.theguardian.com/australia-


• IHMS,53and• WilsonSecurity.54

AreportreleasedinNovember2015byhumanrightscampaigngroupNoBusinessinAbusedocumentedthecontributionofAustralianlistedcompanyTransfieldServicesLimited(nowknownasBroadspectrum)tothehumanrightsviolationsatthecamps.55Thisreportfoundthattheabusesinthecamps(centrallytheabusesofarbitrarydetentionandcruel,inhumananddegradingtreatment)areinherentintheoperationofthesystem.

Inthiscontext,thereisnowaythatcorporations(orotherorganisations)canprofitfromsuchoperationsaswellasmeettheirresponsibilitiesundertheUNGuidingPrinciplesonBusinessandHumanRights56andotherrelevantstandards.Thereisalsonowaythatcontractingcompaniescanmitigatetheriskofhumanrightsabusesinoffshoredetention,giventhesystemicnatureoftheabuses.

Nocompanyactsinavacuumintoday’sglobaleconomy.ThecompaniescontractingtoAustralia’sdetentionsystemrelyonmaterialsupportfromothercompanies–especiallyintheformoffinanceandinvestment–inordertoconducttheirbusinessactivities.

Involvementinthesystemicabusesattheoffshorecampsisnotonlytheresponsibilityofcompaniesthatoperatethem,butisalsoofconcerntotheirinvestorsandfinanciers.Businessrisksofassociationwithabusewillflowontothefinancialbackersofcontractingcompanies,shouldtheyfailtotakeappropriateaction.57

news/2015/sep/25/detention-centre-operator-transfield-services-to-be-renamed-broadspectrum?CMP=soc_568.

53“IHMSContractforProvisionofHealthServiceforPeopleinDetention,”n.d.54TransfieldandWilson,“WilsonSubcontractwithTransfield,”2013.55NoBusinessinAbuse,“BusinessinAbuse:Transfield’sComplicityinGrossHumanRightsAbusesWithinAustralia’sOffshoreDetentionRegime,”November2015,https://d68ej2dhhub09.cloudfront.net/1321-NBIA_Report-20Nov2015b.pdf.

56JohnRuggie,“UNGuidingPrinciplesonBusinessandHumanRights:ImplementingtheUnitedNations‘Protect,RespectandRemedy’Framework,”2011.

57NoBusinessinAbuse,HumanRightsLawCentre,andGetUp!,“AssociationwithAbuse:TheFinancialSector’sAssociationwithGrossHumanRightsAbusesofPeopleSeekingAsyluminAustralia,”July2016,http://cdn.getup.org.au/1851-Association_with_Abuse.pdf.


Ferrovial

SpanishinfrastructurecompanyFerrovialS.A.iscurrentlyresponsibleforthelargestcontractstooperatetheoffshoredetentionsystem.

FerrovialhadnoassociationwiththecampsuntilitboughtBroadspectruminMay2016.58Atthistime,Broadspectrumwasoperatingthecamps.IntakingoverBroadspectrum,FerrovialacquiredresponsibilityforthedetentioncontractswiththeAustraliangovernment.59

Ferrovialmadethisacquisitionsubsequenttobeingprovidedwithdetailedinformationabouttheabusesinthecamps.60WhenacquiringBroadspectrum,Ferrovialfellshortofconductingadequateduediligenceonthisacquisition,orfailedtorespondappropriatelytohumanrightsconcerns.61ThisfailureisoutlinedinareportreleasedinJuly2016,AssociationwithAbuse.62

ThisgovernancefailureshouldhavebeenaredflagtoFerrovial’sfinancialbackers.

WhenthetakeoverofBroadspectrumproceeded,Ferrovialreleasedastatementindicatingthatdetentioncentrework“willnotformpartofitsservicesofferinginthefuture”.63

Thiswaswidelyinterpretedtomeanthatthecompanywouldnotbidforanewcontractafterthecurrentcontractexpires,andthatitsworkattheoffshorecentreswouldceaseinFebruary2017withtheexpirationofthatcontract.InAugust2016,however,FerrovialannouncedthattheAustralianGovernmenthadextendedthe

58“ASXandMediaRelease:FerrovialCompletesCompulsoryAcquisitionofBroadspectrumShares,”June27,2016,http://tse.live.irmau.com/irm/showdownloaddoc.aspx?SiteId=254&AnnounceGuid=2e8f3fe9-513c-45b7-a2f2-cda59be92e7f.

59NoBusinessinAbuse,HumanRightsLawCentre,andGetUp!,“AssociationwithAbuse:TheFinancialSector’sAssociationwithGrossHumanRightsAbusesofPeopleSeekingAsyluminAustralia,”4.

60NoBusinessinAbuse,HumanRightsLawCentre,andGetUp!,“AssociationwithAbuse:TheFinancialSector’sAssociationwithGrossHumanRightsAbusesofPeopleSeekingAsyluminAustralia.”

61Ibid.62Ibid.63JennyWiggins,“Ferrovialto‘Fulfil’ExistingBroadspectrumDetentionContractsafterTakeover,”TheSydneyMorningHerald,May2,2016,http://www.smh.com.au/business/ferrovial-to-fulfil-existing-broadspectrum-detention-contracts-after-takeover-20160502-gojr7f.html;FerrovialS.A.,“PressRelease-FerrovialReaches59%ofBroadspectrum,”accessedJune2,2016,http://www.ferrovial.com/en/press-room/press_releases/59-per-cent-offer-broadspectrum/.


contractforafurthereightmonthsto27October2017(underanextensionclauseinthecontract),despiteFerrovial’s“eagernesstowithdraw”fromoperationsatthecamps.64

Further,ithasbeenreportedthat,despitetheannouncementofwithdrawalfromoperationsatthecamps,“[Ferrovialsubsidiary]BroadspectrumhassoughttoexpanditsoperationsonNauru…,apparentlytakingovertherole[ofprovidingrefugeewelfareservicestorefugees]recentlyabandonedbyConnectSettlementServices.”65Connect’scontractexpiresinearlyDecember,makinganannouncementonwhowilltakeupthisroleimminent.66ShouldFerrovialexpanditsroleonNauru,itwillexpandthesetofriskstowhichitisexposed.

Insummary:Ferrovialwillnowbeanactiveparticipantintheabusiveoffshoredetentionsystemforatotalof18months,orover500days–fromthetimeitassumedresponsibilityforthecampsinMay2016totheendofitsfinalcontractextensionon27October2017.

Ferrovial’scontinuedparticipationinthesystemofoffshoredetentionfallsfoulofitsresponsibilitytorespecthumanrights,arequirementwhich“existsoverandabovecompliancewithnationallaws,”67includingcontractualobligations.

DuringthetimeinwhichFerrovialhasresponsibilityforthedetentioncontractsitwillbeexposedtotheseriousbusinessrisks(operational,legal,financialandreputational)posedbyassociationwithgrosshumanrightsabuses.68

Ferrovial’scontinuedinvolvementinthesystemofoffshoredetention–especiallyinthecontextofanexplicitUNHCRrecommendationthatthecampsbeimmediately

64JennyWiggins,“FerrovialForcedtoRunNauru,ManusDetentionCentresUntilLate2017,”AustralianFinancialReview,August7,2016,http://www.afr.com/business/ferrovial-forced-fo-run-nauru-manus-detention-centres-until-late-2017-20160805-gqlr2i.

65HelenDavidson,“BroadspectrumReportedtoBeTakingoverRefugeeWelfareServicesonNauru,”TheGuardian,October26,2016,sec.Worldnews,https://www.theguardian.com/world/2016/oct/26/broadspectrum-reported-to-be-taking-over-refugee-welfare-services-on-nauru.

66AdamMorton,“RefugeeWelfareServiceProviderConnectAbandonsNauru,”TheSydneyMorningHerald,September19,2016,http://www.smh.com.au/federal-politics/political-news/refugee-welfare-service-provider-connect-abandons-nauru-20160919-grjoae.html.

67Ruggie,“UNGuidingPrinciplesonBusinessandHumanRights”GuidingPrinciple11,Commentary.68NoBusinessinAbuse,HumanRightsLawCentre,andGetUp!,“AssociationwithAbuse:TheFinancialSector’sAssociationwithGrossHumanRightsAbusesofPeopleSeekingAsyluminAustralia.”


emptied69–posesanunacceptablemoralandgovernancerisktoanycompanywithwhichFerrovialhasbusinessrelationships,includingFerrovial’sinvestors.

69UNHCR,“Statement-UNHCRCallsforImmediateMovementofRefugeesandAsylumSeekerstoHumaneConditions.”


The Norwegian Pension Fund

OneofthebiggestinvestorsinFerrovialhasbeenNorgesBankInvestmentManagement(NBIM)–theinvestmentarmoftheNorwegianPensionFundGlobal.

Onthemostrecentavailablemarket,NBIMholdsapproximately1.71%(valuedatUS$283million)ofFerrovial,makingNBIMoneofFerrovial’stoptenshareholders.70WhencontactedbyTheAustraliaInstitutetoconfirmcurrentholdings,NBIMdeclinedtocomment,asperthefund’s“standardpolicy”notto“commentonindividualholdings.”71

NBIMhasstrictexpectations,inrespectofhumanrights72andchildren’srights,73ofthecompaniesinwhichitinvests.

NBIMpreviouslydivestedfromBroadspectrum.74Atthistime,Broadspectrumwasresponsibleforoffshoredetentioncontracts.WithFerrovial’sacquisitionofBroadspectrum,theFundisonceagainexposedtothehumanrightsabusesoccurringatthecamps.

NBIM’sHumanRightsExpectationsdocumentexpresslyreferstotheUNGuidingPrinciplesonBusinessandhumanrightsastherelevantnormativestandardforcompaniesinwhichtheyinvest.Inparticular,itprovidesthat:

Companiesshouldcarryoutrelevantimpactandriskassessmentspriortoforexamplemakingsignificantinvestmentsinnewbusinessactivities,agreeingmergersandacquisitions,enteringintonewcountries,regionsorlocationsandestablishingnewbusinessrelationships.75

Ferrovialfellshortofitsresponsibilitiesinthisregard,orfailedtoappropriatelyrespondtothefindingsofsuchassessments.76

70NorgesBankInvestmentManagement,“AboutUs-NBIM,”NorgesBankInvestmentManagement,accessedSeptember21,2016,https://www.nbim.no/en/organisation/about-us/.

71CorrespondencewithNBIM,October2016.72NBIM,“HumanRightsExpectationDocument.”73NBIM,“Children’sRightsExpectationDocument.”74CorrespondencewithNBIM,September2016.75NBIM,“HumanRightsExpectationDocument.”76NoBusinessinAbuse,HumanRightsLawCentre,andGetUp!,“AssociationwithAbuse:TheFinancialSector’sAssociationwithGrossHumanRightsAbusesofPeopleSeekingAsyluminAustralia.”


Inaddition,undertheUNGuidingPrinciplesonBusinessandHumanRights,NBIMhasitsownresponsibilitytorespecthumanrights,whichrequiresitto“seektopreventormitigateadversehumanrightsimpactsthataredirectlylinkedto[its]operations,productsorservicesby[its]businessrelationships,evenif[NBIMhas]notcontributedtothoseimpacts”.77

ContinuedinvestmentinFerrovial,whileFerrovialremainsresponsibleforoperatingdetentioncampswherewell-documentedhumanrightsabusesareoccurring,isinconsistentwiththeseethicalandgovernancestandards.

COMPANY (CONDUCT-BASED) SCREEN NBIMexcludescompaniesbasedthefailureoftheirconducttomeetcertainstandards.Thisisgovernedbythefund’sEthicalGuidelines.78TheGuidelinesprovidethatcompaniesmaybe:

putunderobservationorbeexcludedifthereisanunacceptableriskthatthecompanycontributestoorisresponsiblefor…seriousorsystematichumanrightsviolations,suchasmurder,torture…anddeprivationofliberty.

AccordingtoareportintheGuardian:“[NBIM]hasacknowledgedthepotentialforanethicalproblem[withitsinvestmentinFerrovial],andhasreferredtheissuetoNorway’sCouncilonEthicsforanindependentjudgment”.79

Conduct-basedexclusionsrelyontheavailabilityofcredibleevidenceofacompany’sinvolvementinhumanrightsabuses.Thehumanrightsabusesintheoffshoredetentioncampsarewell-documentedbytheworld’sleadinghumanrightsauthorities.NBIMandtheEthicsCouncilwereprovidedwithdetailedinformationaboutcorporateinvolvementinhumanrightsabusesatthecamps,aswellasthehighlikelihoodofsuccessofFerrovial’stakeoverofBroadspectrum,byNoBusinessinAbuseoverAprilandMayof2016.

77GuidingPrinciple13(b),UnitedNations,“GuidingPrinciplesonBusinessandHumanRights:ImplementingtheUnitedNations‘Protect,RespectandRemedy’Framework,”2011,http://www.ohchr.org/Documents/Publications/GuidingPrinciplesBusinessHR_EN.pdf.

78EthicsCouncilfortheNorwegianPensionFundGlobal,“GuidelinesforObservationandExclusionfromtheGovernmentPensionFundGlobal”(EthicsCouncilfortheNorwegianPensionFundGlobal),accessedMay22,2016,http://etikkradet.no/en/guidelines/.

79“RefugeecampcompanyinAustralia'liableforcrimesagainsthumanity',”accessedSeptember20,2016,https://www.theguardian.com/australia-news/2016/jul/25/ferrovial-staff-risk-prosecution-for-managing-australian-detention-camps.


FailingtoactdecisivelyonthisinformationnowwouldbeinconsistentwiththeNorwegianPensionFund’sinternalandexternalhumanrightsgovernanceframeworks.

SECTOR (PRODUCT-BASED) SCREEN Inadditiontoobservationandexclusionofparticularcompaniesbasedonevidenceoftheirconduct,NBIM’sEthicalGuidelinesprovidefortheapplicationofanegativescreentocertainsectorsoroperatingenvironmentsinwhichtheriskofacompany’sactivitiesresultinginhumanorenvironmentalharmisveryhigh.

Presently,thesesectorsincludetheproductionofcontroversialweaponsandtobacco,aswellas,wherecertainconditionsaretriggered,coalmining.80

TheNorwegianPensionFund’sguidelinesdonotcurrentlyincludeanegativescreenofcompaniesinvolvedintheoperationofdetentionfacilities.Howevertheoperationofdetentionfacilitiesbycompaniesisabusinessactivitythatcarriesasignificantriskofcorporateinvolvementinharmtohumanbeings.

Specifically,theAustralianoffshoredetentionsystemisanoperatingenvironmentinwhichcompaniescontractingtoitcannotmitigatetheriskofinvolvementinseriousandsystematicviolationsofinternationalhumanrightsstandards,81includingthosecontainedinNBIM’sexpectationdocumentsonhumanrightsandchildren’srightsanditsEthicalGuidelines.

AnycompanythatcontractstothissystemfacestheinescapablepropositionthattheportionsofAustralia’spresentpolicyframeworkwhichitiscontractedtoimplementnotonlypermitbutrequireviolationsofbasictenetsofinternationalhumanrightslaw.Thispositionis,asoutlinedabove,confirmedbynumerousinternationalauthorities.

Byimplementingasectororproduct-basedscreen,NBIMcouldavoidarepeatofthissituationinfuture.TheneedforsuchascreenisshowninNBIM’spreviousdivestmentfromBroadspectrum,onlytofinditselfholdingsharesinBroadspectrum’snewparentcompanyFerrovial.Recognitionoftherisksinherentintheprivatiseddetentionsectormayhaveprotectedthefundagainstthefinancial,moralandreputationalrisktowhichitisnowexposed.

Privatiseddetentionisanexpandingindustry.GiventhelikelihoodofincreasinginvolvementofcompanieswithintheFund’sinvestmentuniverseindetention

80“ObservationandExclusionofCompanies.”81BrynnO’Brien,“ExtraterritorialDetentionContractinginAustraliaandtheUNGuidingPrinciplesonBusinessandHumanRights.”


activities,theNorwegianMinistryofFinancemaywishtoconsideradoptingascreentoidentifycompaniesinvolvedinsuchoperations.

Ascreencouldbedesignedinanumberofways.Itcouldtaketheformofapresumptionagainstinvestmentincompanieswithdetentionoperations,whichisrebuttableincaseswhereitcanbedemonstratedthatacompanyhastakenmeasurestopreventtheirinvolvementinhumanrightsabuse,andhasappropriatesafeguardsinplace.Alternatively,itcouldconsistofanautomatic,blanketscreenoninvestingincompaniesconductingcertainkindsofdetentionoperationsknowntoposehighrisksofinvolvementinhumanrightsabuses.


Conclusion and recommendations

ThecampsthatconstituteAustralia’soffshoredetentionsystemare,asAmnestyInternationalhasstated,placesofintentionalcruelty.82Australiacanonlymaintainitsabusivepolicieswiththeparticipationofthecompaniesthatoperatethecamps,andthewilfulinactionofthosecompanies’financialbackers.

Withoutcompanies’participationintheoffshoredetentionsystem,theabuseswouldstop.

Ferrovial’sshareholdershavearesponsibilitytoendtheirlinkagetothehumanrightsabusesatthecamps.ByholdingsharesinFerrovial,theNorwegianPensionFundisdirectlylinkedto–andholdingafinancialstakein–thehumanrightsabuses.

AllowingafinanciallybeneficialrelationshiptocontinueinthefaceofsuchoverwhelmingevidenceofabuseisinconsistentwithNBIM’sownstandards.

Recommendations:

Inordertoactconsistentlywithitsethicalstandardsandtoavoidfutureshareholdingsincompaniesthatoperateimmigrationdetentioncentreswherehumanrightsstandardsarenotmet:

1. TheNorwegianPensionFundshoulddivestitsshareholdinginFerrovial;2. TheNorwegianPensionFundshouldapplyaconduct-basedexclusionto

FerrovialforaslongasthecompanyisinvolvedintheoperationofAustralia’soffshoredetentioncamps;and

3. TheNorwegianMinistryofFinanceshouldconsideramendingitsethicalguidelinestoallowforascreentobeappliedtocompaniesinvolvedintheoperationofdetentionfacilities.

82AmnestyInternational,“AustraliaHasTurnedNauruintoanOpen-airPrison,”October17,2016,https://www.amnesty.org/en/latest/news/2016/10/australia-has-turned-nauru-into-an-open-air-prison/.

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