DISPUTE RESOLUTION CONCLUSION REPORT AGRI-VIE – 01/KIBOGA, OCTOBER 2018

This report summarizes the CAO Dispute Resolution process and outcomes in relation to the Agri-Vie-01/Kiboga complaint.

High on a hillside in Kiboga, a small town achieved to ensure better and sustainable just over 120 kilometers (km) west of futures for the community and the , Uganda, stands the office of the company. After reaching agreement in Kiboga Twegatte Cooperative Society 2014, the company and community have (KTCS). It is a proud symbol of what can be implemented a number of joint achieved when community representatives development projects benefitting and the private sector work together to community members, on land the KTCS secure a better future. was able to secure for its members and elsewhere where members are residing.

This report captures the conclusion of CAO’s engagement with the community and the NFC, and aims to tell the story of transformation from conflict to cooperation, and loss to development, made possible through the parties’ collaboration. This story shows what can be achieved through a CAO mediation when parties engage and stay the course.

The Complaint

KTCS Offices and banking hall in Kiboga. In December 2011, representatives of a This story begins in 2005, when the New Ugandan community, supported by Oxfam Forests Company (NFC) was granted a International, Oxfam Great Britain, and the license to plant trees and operate a Uganda Land Alliance, brought a complaint commercial forestry enterprise in the to the Compliance Advisor Ombudsman Luwunga forest area, gazetted long before (CAO) on behalf of its members. as a Central Forest Reserve (CFR) by the Government of Uganda. Uganda’s National The Complainants claimed that thousands Forestry Authority (NFA) had the of community members had been forced to responsibility of keeping the reserves clear move from their land to make way for of settlement and people. As a result of commercial forestry plantation, thereby granting this legal occupancy right, a large destroying their property and livelihoods, number of households who had been living and compromising health and education and working within the boundaries of the opportunities. The Complaint also voiced Luwunga reserve for many years, were broader concerns about the International eventually compelled to uproot and leave in Finance Corporation’s due diligence 2009. related to the project, including lack of meaningful consultation regarding the After being displaced, the community faced removals. serious challenges, lacking land to live on and cultivate. However, with their and CAO Assessment NFC’s commitment to finding mutual solutions, and their clear vision and hard A CAO team visited the site and met with work over many years, much has been the community and the NFC in February

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and March 2012, to assess the Complaint Community members felt unable to engage and explain and discuss options for effectively with NFC because they lacked addressing the complaint with the relevant experience and skills in negotiation. parties. Therefore, CAO provided extensive support over many months to improve the During this assessment process, the NFC negotiation capacity of the community strongly asserted that the Company had representatives. CAO also offered training not initiated nor was it involved in the on CAO’s dispute resolution methodology removal of Complainants from the to NFC. Luwunga CFR. According to the NFC, it was granted a license to operate and The laws of Uganda placed restrictions on unencumbered access to the CFR by the what NFC could do: they could not offer Ugandan government. The removal of compensation to individuals, nor could they people from the reserve was the make land available for resettlement. responsibility of, and conducted by, the However, through both parties’ willingness government, through the National Forestry to listen and engage as equals, with Authority (NFA). discipline and commitment, and with the help of the mediation team, they moved Both sides agreed that the impact of the towards finding mutually acceptable removals on the community, and the solutions. This steadfastness reflected the ongoing need for the NFC and the seriousness and willingness of the parties community to live and work in harmony, to find common ground. needed to be addressed. Notwithstanding their deep initial differences, the NFC and Identifying Shared Interests Complainants made the choice to engage in a dispute resolution process to find It was important to the complainants that mutually acceptable outcomes and NFC heard their stories and understood solutions to the issues raised in the their experiences. They wanted NFC to complaint. acknowledge that the lives they had built in the forest had been destroyed. The The dispute resolution process facilitated community felt that they had gone from by CAO formally started in April 2012. The being land-holders to being internally focus of this process was to provide an displaced and indigent. They believed that opportunity for the parties to resolve issues they were entitled to reparation, through consensus. It never intended to compensation, and resettlement. verify claims or issues raised in the complaint, nor pass judgement regarding NFC was frustrated by an ongoing media their merits. campaign, and what it felt were false claims and accusations made in the media. They reiterated their belief that the government DISPUTE RESOLUTION PROCESS had managed a process of voluntary movement out of the reserves, by people Building Trust who always knew they were illegally occupying government land and would Early meetings facilitated by CAO between have to leave one day. According to NFC, the complainants’ and NFC’s this process of voluntary movement was representatives were tense. It was the first done strictly in accordance with the laws time the complainants’ representatives sat and constitution of Uganda by the relevant around a table with NFC in a negotiating government agencies. NFC claimed it had context. Given the disputed history and a no involvement or responsibility for any media campaign, there was little trust forced removals. NFC’s view was that it between the parties and it was not clear was a legal licensee operating within strict what each party wished to achieve. government policy, invited by the Government of Uganda to invest in forestry, creating permanent jobs, rural

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economic development and poverty wanted to participate and be subject to its alleviation while sustainably reforesting outcomes. forest land in partnership with local communities. A great deal of time was spent building the capacity of complainants’ representatives According to NFC, it believed that it had no to effectively engage with its constituents obligations towards these specific and NFC on a more equal footing. This communities. However, the company was capacity building entailed a formal training committed to a high level of socially program, and ongoing meetings between responsible investment and private sector the mediation team and community driven rural development for all of its representatives prior to most joint sessions neighbouring communities. NFC therefore during which negotiations took place. committed to addressing the grievances to establish and maintain good, lasting and “Me, as a woman, to be honest mutually beneficial relationships with their when we had just started the neighbors. negotiation I used to feel inferior, I feared to speak in public, but as I “As socially responsible investors, we can say now I am able to speak in found ourselves in an impossible public, ask questions to important situation clearly restricted by what we people and I get answered. Now I could do by the Government of have learnt to talk what is in my Uganda, who govern our license to mind with all confidence.” operate, on the one hand, and subject to a false, vitriolic and damaging media Tasiana Nansaba, campaign by muscular left wing NGOs Community Representative on the other hand, with devastating impact that almost forced the company Negotiations on the Issues to close and lay off 2,000 people. We hoped the CAO mediation process Several months after the initial joint could deliver a fair resolution for meetings, where issues were identified and everyone that would enable us to build ground rules established, the parties a lasting partnership with the commenced negotiations on the issues. community.” Priority issues were isolated and clarified. The issues list, even if contested, provided Alex Kyabawampi, Corporate Social a structure and focus for the negotiations, Responsibility (CSR) Manager, NFC and consisted mainly of the following: Uganda • Emotional damage; Preparing the Parties for Effective • Physical harm and injury; Engagement • Loss of homes, land, livelihoods and amenities; The complainants elected and mandated a • Reputational damage and financial small group of representatives to negotiate losses that NFC claimed were caused on their behalf, and consultative structures by the media campaign; were strengthened to ensure that the • Desire for restoration, resettlement, representatives could both confirm their and compensation; and mandates and provide feedback to • Desire for recognition of NFC’s right community members on a regular basis. It and social licence to operate, as well as proved extremely difficult to identify, verify protection of its assets and and register community members who had conservation of the forests. a legitimate claim to be a part of the affected group represented in the The parties negotiated these priority issues mediation process, and determine who through bilateral and joint meetings facilitated by the CAO team. Oxfam,

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through its Uganda office, provided support Jennifer Nakibirige, Community to the complainants throughout the Representative mediation process.

Signboard for KTCS offices.

The Cooperative is legally registered, members have adopted a constitution, and Representatives on the day of signing the it is governed according to the terms of the Agreement. Ugandan Cooperative Societies Act. Reaching Agreement The Cooperative has a Board of nine After almost two years of mediation, the members and an Executive Committee, parties signed an Agreement representing elected at each Annual General Meeting. In full and final settlement in May 2014 on all addition, it has women and youth issues raised by the parties. representatives, and Finance and Planning-, SACCO-, Projects- and In the agreement, the parties committed to Supervisory Committees. Once a joint program of sustainable established, the Cooperative alone spoke development. They agreed that the and acted on behalf of the affected complainants would create and become community. founding members of a community Cooperative Society that would act on The parties agreed to the following aspects behalf of affected community members. of the agreement being made public: The Cooperative drew its members from five sub-counties in the Mubende and • NFC undertook to provide significant Kiboga districts: Kiboga, , financial support to the Cooperative, Mubenye, Mityana, and Nakaseke, and expanding its social responsibility was named the Kiboga Twegatte investment programme to meet some Cooperative Society (Twegatte means “we of the specific needs of the community. join together” in Luganda). To gain NFC also agreed to work closely with membership, community members the Cooperative and its members to provided proof of identity, and proof that build more solid and lasting mutually they previously lived or cultivated land in beneficial relations with the community. Luwunga Central Forest Reserve.

• The complainants agreed to respect “After signing the agreement, I stopped getting worried and started NFC’s legal rights to operate within the hoping for the good days coming Luwunga Central Forest Reserve, and ahead. Signing the agreement both NFC and the complainants agreed helped us achieve what we had to act lawfully and to engage with each longed for, for a long time.” other to develop long term cooperation and good neighbourliness.

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• The parties agreed to work closely based on much wider community together on a range of programmes involvement and shared value models. and projects aimed at the long term However, NFC also claims that the sustainable development of the reputational damage done by a negative community. A joint development media campaign – and the subsequent loss forum (JDF) was created to facilitate of investor sentiment – has not been addressed and continues to undermine the the decision-making process. NFC.

Monitoring Outcomes

Over the next four years (2014-2018), CAO closely monitored the parties’ implementation of the terms of the agreement.

As part of this monitoring process, CAO appointed a Community Development Coordinator (CDC) to work with the

Community consultation. Cooperative, primarily on resettlement planning and income generation projects. Unexpected Results of the Agreement The CDC provided strategic, planning, and practical support throughout the monitoring The parties acknowledged that the period. The CAO team also conducted Agreement was the foundation for further regular field visits, consulting the parties development but was unable to address all where needed and monitoring progress. the needs of the affected community and would fall short of restoring access to land. At the end of August 2018, CAO convened Therefore, they approached the National a final closure meeting and celebration at Forestry Authority (NFA) for support. As a the Cooperative’s newly completed office result of the achievements of the parties in building in Kiboga, with over 1,000 reaching their ground-breaking agreement, cooperative members, NFC leaders, they were able to negotiate a remarkable government officials, representatives of all Memorandum of Understanding with the key stakeholders, and local dignitaries in NFA, delivering a substantial financial attendance. The parties provided feedback contribution from the Presidency towards to CAO on the process and confirmed that the acquisition of land by the Cooperative. the complaint issues had been resolved to This purchase of land allowed the their satisfaction. Cooperative to start resettling their members and rebuilding livelihoods. While Both parties agreed that goodwill had been not part of the main agreement mediated demonstrated during the implementation by the CAO, it contributed greatly to the period, and that despite many difficulties subsequent progress of the Cooperative. and challenges, all commitments in the agreement had been fully implemented. NFC say that they have benefitted from the They discussed possible ways to continue process mostly in terms of resolving what building upon the positive, mutually was a serious threat to peace and security beneficial relationship they had developed from the conflict by the involvement of through the process. credible international mediators. The mediation process was well received by NFC and NFC’s relationship with the OUTCOMES relevant communities has been considerably strengthened by the process. As a result of the agreement between the NFC substantially reviewed its own parties, and the subsequent work done by processes for voluntary land acquisition

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NFC and the Cooperative, the following settle a total of more than a thousand- has been achieved: member households.

Land for Resettlement and Small-Scale Joint Development Forum (JDF) Farming Projects

The Cooperative was able to purchase four Through the JDF, the NFC implemented a parcels of land with the aim of resettling range of projects aimed at benefitting their members and restoring their members of the Cooperative. Over the four livelihoods. Unfortunately, due to the vast years, as verified by the Cooperative Board complexities of land tenure and transfer in and the JDF, these projects included: Uganda, only one of these has been successfully settled to date. Some 383 • Boreholes at Kyakatebe – the NFC had households (approximately 1568 to make two attempts to finally individuals at the time) have settled on 900 establish a successful borehole to acres of productive land in the Kyakatebe serve the settlement (383 families). parish (Mubende District). These This borehole was fitted with a hand- households were carefully selected by the operated pump; KTCS’s Resettlement Committee, in consultation with members and the • Motorised wells at Kiziga, Ntwetwe and Cooperative Board. Nakayaga, serving at least 150 households each; Priority was given to households most in need as the Cooperative was not able to • Roads were graded at Kyakatebe to purchase enough land to resettle every grant people easy access to their land member. Some members declined and homes; assistance as they had already settled elsewhere. Others remain on a waiting list • A double classroom school block was and will be offered resettlement once the constructed at Kayindiyindi Primary Cooperative is able to secure the other School; parcels of land. The Cooperative continues to explore ways to generate revenue, • The JDF received ongoing logistical, acquire additional land, and support all its secretarial and financial support to members. enable it to meet regularly and operate functionally; Each household at Kyakatebe received a small plot on which to build a home, as well as two acres for agricultural activity. Each household was encouraged by the Cooperative to grow subsistence crops and as soon as possible to start generating surplus for the market. Since 2014, the land has been transformed into a highly productive area for small-scale farming.

The Cooperative continues to work at securing full title, transfer and access to the other parcels of land they purchased and legally own. These comprise of: Gomba, 984 acres; Rwensololo, 200 acres; and Clinic and Primary Health Care Centre. Kansera, 20 acres. • A multi-purpise Community Hall was built at Kyakatebe, also housing a Once these other lands have been primary school; secured, the Cooperative should be able to

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• A double classroom block was built at generating assets, and harvest food Kamirampango where many each season for their own Cooperative members live; consumption, with a surplus to sell.

• Clinic Buildings at Kikwatambogo were • Childcare groups have formed to care renovated and upgraded, it serves as a for infants while their mothers and day clinic and dispensary manned by a fathers work. The primary schools at local medical practitioner; Kyakatebe and Kamirampango are in full operation and continue to graduate • A large pond was constructed at groups of young pupils. Kampindu and seeded with tilapia fingerlings for a fish-farming project co- • The Cooperative continues to managed by a sister cooperative on represent the interests of the behalf of the KTCS; community. It engages with its members on a wide range of issues, • A large Office Block and Banking Hall planning and supporting them to build was constructed on Cooperative- livelihoods, resolve disputes, and owned land in Kiboga, to serve as develop new initiatives to the benefit of Cooperative Offices, and to house the the whole community. KTCS Savings and Credit Cooperative. (SACCO). • After some initial difficulties, local authorities are now providing • The NFC provided the finances and government services as they would to initial expertise to establish a any other community in the district. Cooperative-run Agrovet, an agricultural inputs store, also providing • The Cooperative office and banking extension services, training and hall mentioned earlier provides a capacity building to small farmers. number of commercial and enterprise opportunities for the Cooperative and its members. The Cooperative will Livelihood Restoration and Improved establish SACCO operating from this Living Conditions central location, it may rent out rooms, it can house small businesses, it can Through the partnership between NFC and offer training and capacity building, and the Cooperative, significant progress has many other income-generating been made in the restoration of livelihoods activities. and improvement of living conditions for the complainants: INSIGHTS FROM THE PROCESS • Some 383 complainant households have settled onto land legally owned by A Flexible Process the Cooperative at Kyakatebe and a rapidly growing, integrated and The CAO team and the parties had to adopt cohesive village has emerged. For the a highly flexible approach to the dispute first time these members have security resolution process given the level of of tenure for as long as the Cooperative mistrust between the parties, fear about the owns the land on their behalf. Starting potential consequences of entering with rudimentary tent-like structures negotiations, and imbalance in the parties’ constructed out of local timber and negotiation capacity. After an initial plastic tarpaulin, Cooperative members engagement where the ground rules and have built permanent brick-and-clay structure for the mediation process were homes, shops and amenities. They agreed, separate meetings were utilised to have tilled the soil, planted numerous move the process forward. When the crops, invested in long-term income parties were brought together for the first

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joint meeting, and throughout the respect and was made possible by the mediation, it was a smaller number of company’s commitment to social representatives who met. These responsibility. The Cooperative and NFC representatives created feedback loops both recognize that they will be neighbors with their constituency to ensure ongoing for many years to come, and will both mandates and sharing of information. benefit from ongoing cooperation on development initiatives and in protecting The dispute resolution process would not NFC’s forests. have been as successful, and may have floundered early on, without the flexibility of The Cooperative leadership have taken adapting and adjusting to the needs of the these lessons further, building parties, as well as the parties’ willingness relationships with local authorities, to adapt to each other’s needs. government offices and institutions where these were previously lacking. Role of Local and International NGOs CAO Reflections Regarding Potential Oxfam and the Uganda Land Alliance for Early and Preventive Measures played a primary role in assisting the community bring attention to their plight, In CAO’s discussions with the parties and to lodge a complaint with CAO. They during and after settlement, they expressed helped the complainant community a common sentiment that more could, and prepare for engagement, become well should, have been done early on to prevent organised, and create structures for the escalation of the dispute around the mandating their representatives at the project. This could take a number of forms: negotiating table. The emotional and financial support of the NGOs helped the • Affected communities and IFC clients community representatives to sustain their could enter discussions at the project involvement over the long dispute design phase about potential social and resolution process. environmental impacts, and strategies to deal with them. Environmental and However, the CAO process started in a Social Impact Assessments should tense context. International and local alert clients to potential conflicts, and NGOs were running media campaigns could recommend early intervention blaming NFC for the complainants’ during the pre-funding, loan approval, circumstances. The campaign generated or planning phases. deep mistrust and it was only when it was suspended by agreement with the NGOs • In some instances, it is as important for that NFC was prepared to engage with the IFC clients to deal with perceptions community to seek solutions. regarding their responsibility for environmental and social project Ultimately, it was the sustained impacts as it is dealing with the reality commitment, trust, and goodwill of NFC of the situation. Despite the application and community representatives in the of the IFC Performance Standards, dispute resolution process – in a difficult there may be instances where clients and testing environment – that contributed are willing to go beyond what is to its eventual success. required or may need to address disputes of fact in the application of Value of Building Relationships those standards.

According to the complainants, their • IFC is in the process of developing a biggest lesson from the process was the new Resettlement Handbook which will realization that they needed to, and could, be released in 2019 to reflect the build a strong relationship with NFC. This various CAO cases and IFC’s was based on recognition of the company’s experience since the roll-out of the right to operate, their mutual interests, and

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2012 Performance Standards. contribute to a thriving and vibrant According to IFC, the handbook will be Cooperative and communities. a detailed practitioner guide and includes guidance on government-led An NGO working in the field of water clean resettlement challenges. water and sanitation, Drink Local Drink Tap, has already made a significant contribution by constructing a borehole, CONCLUSION pump and toilet block at the Kyakatebe settlement. Hopefully they will continue to CAO concluded its involvement in this case work with the Cooperative on developing after confirming that all aspects of the appropriate local technologies. agreement between NFC and the Cooperative have been implemented. The NFC and the community have created a Cooperative leadership group, assisted by mutually beneficial partnership that can the Commercial Officer and serve as a model for other companies and local authorities, in a workshop facilitated communities, demonstrating the value that by CAO, was able to review and assess can be created and shared by working each JDF project, and confirmed that they together toward a common goal. CAO is had been properly implemented in terms of proud of the outcomes achieved through the agreement. this process and notes the goodwill and commitment demonstrated by the The affected community is restoring communities and NFC throughout the livelihoods and maximizing the benefits of process, without which these outcomes owning land, cooperating through would not have been possible. established community structures, and maintaining a good working relationship with NFC and the government. There remain many challenges, particularly with regard to securing unencumbered ownership and access to the land purchased by the Cooperative. Other challenges remain as well: access to sustainable supplies of potable water at settlement sites; decent and safe sanitation; school and clinic supplies; teaching and health services staff; and access to primary health care.

The Cooperative and its members continue to face great livelihood and sustainability challenges as do many other rural communities in Uganda. Opportunities in agriculture (small scale and commercial), trade and enterprise, and employment need to be aggressively pursued and developed.

CAO has informed members of the donor community about these challenges in the hope that they may be able to provide support to the Cooperative Society and its members. The NFC and the Cooperative are committed to an ongoing engagement and finding more opportunities to partner on aligned interests. This will ultimately

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