Cooking oil and soap manufacturer Bidco has been cleared of environment destruction claims by a High Court in Uganda.
Three lobby groups in Bugala, Uganda, had accused the Kenyan-based manufacturer of deforestation in the vegetable oil development programme in Kalangala district.
The public interest case filed by three environmental groups alleged that Bidco coerced the government through the National Forestry Authority to de-gazette forest reserves on Bugala Island for the growing of oil palm.
The court has dismissed this claim.
“The defendants have never asked the government of Uganda to de-gazette any forest reserve as claimed in the plaint, no forest reserve has been de-gazetted as a result. The land was provided on lease to Bidco by the government for the project was not a de-gazetted forest, therefore, the issue of de-gazzetement should not have arisen,” Judge J. W Kwesiga said in his ruling.
The court also rejected the claim of deforestation.
“None of the defendants (Bidco) have entered or cleared any forest reserve and claims to the contrary are false,” the judge said.
In the ruling, the court said it could not find any evidence linking the company with any environmental violations.
The matter had attracted huge public interest leading to demonstrations in Uganda and in London.
The court said the lawsuit was unnecessary and the environmental groups could have acquired the truth by simply contacting the company.
Chairman of the Kalangala Oil Palm Growers Association Martin Lugambwa welcomed the ruling.
“This is great news. Let them leave us to enjoy the fruits of Oil Palm with our families,” he said.
Bids Uganda managing director Kodey Rao lauded the ruling, adding the smallholder farmers can now progress.
Other than claims of environmental degradation, Bidco has also been accused by a separate group of activists of tax evasion in Kenya.
In a suit filed at the High Court in Nairobi in July, activist Okiya Omtatah has accused Bidco of colluding with Kenya Revenue Authority and the Attorney General to defeat the public interest in recovering Sh5.7 billion in unpaid taxes.
Omtatah cites a ruling issued by Justice David Majanja in 2012 allowing KRA to collect tax arrears and other fees amounting to Sh1.3 billion from Bidco Africa.