Recommendations from 2011, 2012 and 2013 concerning the companies Posco, Daewoo International Corporation, Oil and Natural Gas Corporation Ltd (ONGC), GAIL India, Korea Gas Corporation (Kogas)
Article | Last updated: 17/12/2013
On 2 May 2011 the Council on Ethics recommended the exclusion of the Korean companies Daewoo International Corporation and Korea Gas Corporation, as well as the Indian companies Oil and Natural Gas Corporation Ltd. (ONGC) and GAIL India Ltd. (GAIL) from the Government Pension Fund Global. The companies participated in a joint venture with the Chinese state-owned company China National Petroleum Corporation (CNPC), which was responsible for the construction and operation of an 800 km overland gas pipeline across Myanmar. The Council found that the construction of the pipeline would entail an unacceptable risk of the companies contributing to serious and systematic human rights violations.
Please find the recommendation here.
On 8 May 2012, the Ministry of Finance requested that the Council on Ethics update its recommendation of 2 May 2011 on the exclusion of Daewoo, KOGAS, GAIL and ONGC in light of the political developments that had taken place in Myanmar. The Council concluded that the grounds for exclusion were still present and had in fact been strengthened since the Council’s recommendation of 2 May 2011. The recommendation included the Korean company POSCO, as POSCO had a controlling ownership interest in Daewoo.
Please find the recommendation here.
On 13 September 2013, the Council on Ethics revoked the recommendation to exclude the companies from the Fund. The Council’s earlier recommendations concerned the actual construction of the pipeline. As construction was completed in June 2013, the Council found that the situation had changed and that the basis for the earlier recommendations was no longer present.
Please find the recommendation here.
The Council’s recommendation not to exclude the companies was submitted to the Ministry of Finance before the Ministry had made a decision on the previous recommendation to exclude them. The Ministry has taken note of the Council’s recommendation.