Smurfit Kappa's Colombia trouble | Australian port bottlenecks | South African banks' role in gold smuggling

Welcome to Portfolio Intelligence Daily, where each morning we spotlight global investment risks bubbling under the surface.?

Today:?

1. Paper packaging company Smurfit Kappa faces allegations in Colombia
2. Australian port congestion persists, creating supply chain disruptions
3. South African banks face allegations of money laundering

Theme summaries are curated by Auquan’s analyst team using our Portfolio Intelligence Engine to automate investment research and insights at scale.

Smurfit Kappa faces growing allegations over Colombia operations

Leading corrugated packaging paper-based packaging company Smurfit Kappa’s subsidiary in Columbia, Cartón de Colombia, has come under increasing fire over environmental and social damages

• Indigenous people of the Misak people of Cauca region of Colombia began demanding the departure of Smurfit Kappa subsidiary Cartón de Colombia in 2021, seeking reclamation of the land
• The company is being accused of grabbing more than 121 hectares than officially registered, leading to water contamination and food production/security issues impacting locals
• The Front Line Defenders organisation says protests against Smurfit Kappa’s operations have been violently repressed, resulting in one death
• An OMAL (Observatory of Multinationals in Latin America) report highlights the socio-ecological impacts, human rights violations, and negative environmental impacts of Cartón de Colombia operations on soil, water and biodiversity
• Smurfit Kappa CEO has named the Colombia operation as one of the company’s most important, employing 1,200 people and generating $1.83B in exports in 2021

Select timeline

• February 27, 2023 | Los impactos detrás de la producción de una caja de cartón en Colombia (RTVC Noticias)
• December 15, 2022 | El lado oscuro del cartón en Colombia (Cuestión Pública)
• October 4, 2019 | "Vamos a seguir invirtiendo en el Valle del Cauca": Tony Smurfit, CEO de Smurfit Kappa (El País)

Tags: #smurfitkappa #esg #colombia #environmentalmonitoring

Australian port congestion leads to supply chain disruptions

Continuing shipping and port congestion within Australia is leading to delayed shipments, increased costs, and supply chain disruptions. These challenges are likely to continue affecting businesses regardless of industry.

• Re-balancing of world shipping markets, changing the shipping patterns and operations of the ports
• Foreign pests and snails have been discovered in new cars imported to Australian ports, slowing processing
• Impacted companies: Businesses dealing with import and exports, especially companies dealing with automobile imports. These include Maersk, Tesla, Ford, General Motors, BMW, and Honda.

Select timeline

• March 31, 2023 | Map reveals huge problem with new cars in Australia (news.com.au)
• March 3, 2023 |? Australian port congestion continues into 2023 (Freightplus)
• December 18, 2022 | Supply Chain Disruptions Continue to Plague Australian Container Ports (The Maritime Executive)

“In accordance with Australia’s strict biosecurity rules, this unprecedented number of contaminated vehicles have to be thoroughly cleaned of biosecurity hazards on arrival and this has caused unavoidable issues across the supply chain, from the port to importers and ultimately consumers.” — A spokesman for Qube, a stevedoring, freight and logistics operator (source)

Tags: #supplychain #australia #shipping

South African banks involvement in gold smuggling, money laundering alleged

Criminal organisations are using South African banks to launder money from illegal gold smuggling.?

• Investigations reveal that high-level bank officials are bribed to facilitate the process
• Investigations are ongoing and may result in major fines and reputational damage for banks
• Organised crime groups may face increased scrutiny and prosecution
• The price of gold may be affected by increased regulatory pressure
• Impacted companies: Standard Bank, FNB, Absa, Nedbank, Sasfin Bank

Select timeline

• March 31, 2023 | Al Jazeera fingers SA banks in laundering money for 'gold mafia' (Business Day)?
• March 30, 2023 | Gold smugglers use South African banks, bribes to launder money (Al Jazeera)?
• March 23, 2023 | Gold mafia looting Southern Africa (Al Jazeera)

Tags: #smuggling #gold #southafrica #banking #moneylaundering

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