Wednesday, July 12, 2017

BAT on the spot again over 'unjustified' business practices in Kenya, Uganda

Some of BAT products in Kenya. The company has been accused of using unjustified practices to dilute plans to limit sales of its products in Kenya. FILE PHOTO | NMG Some of BAT products in Kenya. The company has been accused of using unjustified practices to dilute plans to limit sales of its products in Kenya. FILE PHOTO | NMG 
British American Tobacco (BAT) has again been accused of using unjustified practices to dilute plans to limit sales of its products in Kenya.
For the second time in two years an expose in the British newspaper the Guardian says BAT, along with other multinational tobacco firms, “have threatened governments in at least eight countries in Africa demanding they axe or dilute the kind of protections that have saved millions of lives in the West.”
According to the report, BAT, one of the world’s leading cigarette manufacturers, is using the courts “to try to block the Kenyan and Ugandan governments’ attempts to bring in regulations to limit the harm caused by smoking.”
With sales in Europe and the US plummeting, the tobacco companies are looking to Africa which has a fast-growing young and increasingly prosperous population to boost sales.
The Guardian claims that in one of the undisclosed court document in Kenya, which it has seen, BAT’s lawyers are demanding that the High Court “quash in its entirety” a package of anti-smoking regulations and what it calls a “capricious” tax plan.
The case is now before the Supreme Court after BAT Kenya lost in the High Court and the appeals court.
Targeting children
In neighbouring Uganda, BAT has claimed that Kampala’s Tobacco Control Act is “inconsistent with and in contravention of the constitution”.
The report also claims that the company is targeting children in its attempts to gain new sales, a claim BAT strongly deny.
The Guardian report follows a BBC investigation in November 2015 which claimed that BAT illegally paid politicians and civil servants in countries in East Africa in order to boost sales.
The payments were revealed when a whistle-blower shared hundreds of secret documents.
At the time, BAT told the BBC: "The truth is that we do not and will not tolerate corruption, no matter where it takes place."
BAT Kenya operates with approximately 450 full-time employees in Kenya.
On its website it says that its operations have “always been guided by the highest standards of excellence.
It adds that “we are committed to operating a sustainable and environmentally friendly business whilst maintaining our position as Kenya’s leading tobacco company.
“We know tobacco products pose real and serious health risks and the only way to avoid these risks is not to use them. But many adults choose to smoke, so our top priority continues to be working towards reducing these risks and making available a range of less risky tobacco and nicotine-based alternatives.”
Delaying regulations
BAT also denies it is opposed to all tobacco regulation, but says it reserves the right to ask the courts to intervene where it believes regulations may not comply with the law
The Guardian says in Kenya, BAT has succeeded in delaying regulations to restrict the promotion and sale of cigarettes for 15 years.
Professor Peter Odhiambo, a former heart surgeon who is head of the government’s Tobacco Control Board in Kenya, told the Guardian: “BAT has done as much as they can to block us.”
Health experts say that smoking still kills more than 7 million people globally every year world-wide and there are an estimated 77 million smokers in Africa
The Guardian report pointed out that later this month, BAT is expected to become the world’s biggest listed tobacco firm.
This is after completing its acquisition of the large US tobacco company Reynolds in a $49bn deal, “and there are fears over the extent to which big tobacco can financially outmuscle health ministries in poorer nations.”
BAT is market leader in over 55 countries and in 2016 the Group generated reported revenue of £14.75 billion and adjusted profit of £5.48 billion.
At its annual meeting in March, chairman Richard Burrows was asked about the legal action in East Africa.
He said tobacco was an industry that “should be regulated ... but we want to see that regulation is serving the correct interests of the health mission and human mission which should lie behind it”.
BAT says it is “simply not true that we oppose all tobacco regulation, particularly in developing countries”.
Different interpretations
Tobacco should be appropriately regulated as a product that has risks to health, it said, but “where there are different interpretations of whether regulations comply with the law, we think it is entirely reasonable to ask the courts to assist in resolving it”.
It was opposed to only a handful of the issues in Kenya’s regulations, not the entirety, it said in a statement.
The Guardian says although most countries in Africa have signed the World Health Organisation (WHO) treaty on tobacco control, none has yet fully implemented the smoking restrictions it endorses.
Cloe Franko, Senior International Organiser at Corporate Accountability International, said: “In Kenya, as in other parts of the world, the industry has resorted to frivolous litigation, aggressive interference ... to thwart, block, and delay lifesaving policies.
"BAT’s actions are emblematic of a desperate industry grasping to maintain its hold over countries and continue to peddle its deadly product.”

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