[Intl-tobacco] BAT at large in Africa - cigarette smuggling is business as usual

[Robert Weissman]

More devastating documents from our friends at ASH UK.

BAT at large in Africa - cigarette smuggling is business as usual

Source: ASH London, Monday, 7/31/00

New British American Tobacco internal documents uncovered by ASH and The
Guardian newspaper reveal BAT facilitating and controlling widespread
cigarette
 smuggling operations in Africa. This builds on earlier revelations of the
company's activities in Asia and Latin America and follows the European
Commission's decision last week to take legal action against (as yet
unnamed)  tobacco companies to recover tax losses due to smuggling. Click
here to see the African documents.

The documents show that BAT acts through intermediaries to ensure that its
cigarettes are sold in the illegal markets;

"Our objective now is to preserve the "fa=E7ade" that SOREPEX represents
between us and the sensitive markets of Togo, Benin, Niger (Unit I) and
Equatorial Africa (Unit II), but at the same time, enable the BAT field
force to take over the management of this important business."

Letter from BAT to SOREPEX, 1989. [6] DOWNLOAD PDF

=85that it invests in illegal markets as normal business channels and finds
a way to advertise them in illegal markets

BHSF [Benson & Hedges Special Filter] has 80% share of imports which it
has dominated for several years and enjoys country-wide distribution. =85Th=
e
Unit II [Equatorial Africa] market produced a valuable contribution and it
is intended to continue investment in order to protect it from further
erosion.  As there are no legal imports [=85] no local media is used. =20
However, a major campaign on the Africa No 1 Radio programmes transmitted
from Gabon is funded from Unit II resources.  (emphasis added)

BAT (UK and Export) limited, 1990. DOWNLOAD PDF

=85that it condones concealment of contraband cigarettes;

"Niger: Discussion was held concerning direct imports to Nigeria through
Mr.  Adji =85 [who] would disguise the cigarette importations by calling th=
e
shipment something else, e.g. matches.

Meeting of BAT and SOREPEX, 1987. DOWNLOAD PDF

"For the first time, Bogno will buy 300 cartons:  this is the capacity of
his truck, taking into account the other merchandise which will 'hide' the
cigarettes. (translated from French) SOREPEX to BAT DOWNLOAD PDF

=85that it operates through 'umbrella' agreements' - using a small legal
market to justify advertising to build up illegal sales

When the issue of Unit II [Equatorial Africa] was discussed where BATUKE
wish to appoint a domestic importer enabling us the provide cover for
advertising and GT business, Sir Patrick [Sheehy] felt that it was
perfectly acceptable for BAT Cameroon to recommend a domestic importer for
BHS.

=09BAT internal memo, 1991 DOWNLOAD PDF

In this case GT (General Trade) is euphemistically referring to smuggled
cigarettes, which is why =91cover=92 of a legitimate legal market is needed=
=2E

These documents follow the pattern of hundreds released earlier in year
and presented to the Health Select Committee inquiry into the tobacco
industry. On the strength of this evidence, the Select Committee
recommended that the DTI should investigate BAT [see relevant 1]. In a
further development last week, the European Commission announced it was to
take legal action against American tobacco companies - see ASH press
release [2]. BAT=92s Deputy Chairman, Rt Hon Kenneth Clarke QC MP, has
refused to answer any specific allegations put by ASH [3] despite issuing
blanket denials.

Stephen Byers, Secretary of State for Trade and Industry, is currently
considering whether to act on the recommendation of the Health Select
Committee that he should launch a Companies Act investigation into BAT. =20
In his speech to the WTO in Seattle last year Stephen Byers said:

"If it were true that globalisation was about the unregulated power of
cynical multinational corporations coercing Governments and playing off
one country against another - then I would be the first to call a halt."
[4]

ASH has called on Byers to act on these words [5]. Clive Bates, Director
of ASH said:

"Every week that goes by, the evidence is piling up higher.  Stephen Byers
has to decide if he wants his government to have a supine and sycophantic
approach to rogue businesses, however big and bad, or whether he means it
when he says he wants to tackle the unregulated power of cynical
multinational corporations."

ASH believes that an international convention, the WHO Framework
Convention on Tobacco Control [6] should be used to control tobacco
smuggling. Negotiations start in Geneva in October this year. Emma Must,
International Campaigner at ASH said:

"Cigarette smuggling is a massive global problem, undermining the efforts
of many governments to control the disease and addiction that could kill
500 million people alive today. The cynical and completely unacceptable
behaviour of the tobacco companies makes the World Health Organisation
tobacco treaty essential and urgent. When multi-nationals act like this,
we need a multi-lateral response to contain them.

Yussuf Saloojee of the National Council Against Smoking, based in South
Africa said

"We are pressing African governments to launch criminal investigations
into BAT and its involvement in cigarette smuggling.  The days when they
can march in with their colonial arrogance and treat Africa like some
lawless frontier are over.  Africa has enough problems without
multinational corporations undermining the stability of our governments
and national policies.

[1] See
http://www.parliament.the-stationery-office.co.uk/pa/cm199900/cmselect/cmhe=
alth/
27/2717.htm#a21

[2] ASH press release on EU action on smuggling

[3] Letter to Clarke making the case against BAT

[4] Byers=92 speech http://www.dti.gov.uk/worldtrade/openspeech.htm

[5] Letter to Byers making case for DTI investigation

[6] Details of the FTCT

Contact:

Clive Bates, ASH Director, 020 7739 5902(w) 077 8679 1237(m)  020 8800
1336(h)

Emma Must, ASH international Campaigner +44 20 7739 5902 (w) +44 20 7738
6506

Yussuf Saloojee, South Africa +27 11 643 2958 (w) +27 11 726 1555 (h)