Westpac Has Ties with Illegal Logging

An investigation of the Herald revealed that Westpac appears to have ties with illegal logging operations. The findings came as a surprise since the bank has been positioning itself to be one of the world’s most ethical and greenest companies.

The Australian bank has been awarded with numerous citations relating to ethical business practices. These also include recognition for being involved in environmentally responsible investing.

The report, however, shows that Westpac has given loans to organizations in the Solomon Islands that are linked to illegal logging activities, which include alleged hiring of illegal workers, felling of the rare cloud forest, trespassing, among others.

These operations have been identified by the Solomon Islands Finance Ministry to be so destructive that it warned of exhaustion by the year 2015.

According to a United Nations report on emission reduction program, Solomon Islands also has the highest loss of forest in the Pacific area.

Westpac said about nine percent of its loans directed to the Solomon Islands relate to the logging sector. Its spokesman said this has already been dramatically reduced from 35 percent in 2009.

The spokesman added that the reduction is a move to reduce exposure.

Based on the investigative report, Westpac maintains business relationships and manages direct loans for at least five major logging interests. Success Company Limited has also confirmed that the company received a loan from Westpac this year.

According to John Parsad, the loan was for earth moving. It, however, would involve logging because earth-moving machines would have to cut logging roads in the forest.