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Allegations of ties to app
The controversy began when Greenpeace and the Indonesian environmental NGO Auriga Nusantara petitioned the FSC in November to revoke Paper Excellence's certification. This petition followed an investigation by CBC News and other media outlets that suggested Paper Excellence had close operational and ownership ties to APP. APP, known for its history of rainforest destruction, lost its own FSC certification in 2007.
According to the investigation, Paper Excellence had been coordinating business decisions and sharing resources with APP until at least a few years ago. These allegations were backed by both the media reports and independent research by the environmental groups.
Fsc's controversial review process
The FSC's decision to retain Paper Excellence's certification hinged on a "corporate group review" conducted by McMillan LLP, a law firm frequently employed by Paper Excellence. This choice has sparked significant controversy. Greenpeace Canada’s program director, Shawn - Patrick Stensil, expressed shock that the FSC would hire a firm with such close ties to Paper Excellence, arguing this undermines the credibility of the review.
The FSC defended its decision, stating that a conflict of interest check was conducted before hiring McMillan LLP, and no conflicts were found. McMillan's CEO, Tim Murphy, echoed this sentiment, asserting that the firm adhered to all professional conduct rules and that no conflict existed.
Criticism from environmental groups and experts
Environmental groups were not convinced by the FSC's assurances. Auriga Nusantara's chairman, Timer Manurung, criticized the FSC for not disclosing the data used in the review, suggesting the analysis lacked comprehensive data. The FSC cited confidentiality and a non - disclosure agreement with Paper Excellence as reasons for withholding this information. Greenpeace's Stensil pointed out that the evidence used in the review was limited to public and corporate records, as well as documents provided by Paper Excellence. He argued that these sources were unlikely to reveal the true extent of control exercised by APP over Paper Excellence.
Legal ethics experts also weighed in, questioning the FSC's decision to hire McMillan LLP. Christina Bellon, a philosophy professor with expertise in ethics, highlighted the financial conflict of interest inherent in hiring a firm's own lawyers for such an assessment. Allan Hutchinson, a law professor and legal ethics author, agreed, noting that the review could not be considered independent given the circumstances.
Source: CBC.CA
