THE AMAZON DEFENSE COALITION has accused Chevron of "deceiving shareholders and financial markets."
According to the organisation, Chevron filed "misleading" information with the Securities and Exchange Commission (SEC) to downplay a "$27 billion potential liability" in an ongoing Ecuadorian environmental lawsuit.
"We believe Chevron is distorting information in its public filings and thumbing its nose at SEC regulators. The company's information is dishonest and misleading," stated lead lawyer Pablo Fajardo.
Texaco reportedly admitted to dumping more than 18 billion gallons of toxic waste into Ecuador's Amazon waterways when it was the exclusive operator of an oil consortium from 1964 to 1990. The waste apparently included carcinogens such as benzene, and five indigenous groups allege that their traditional lifestyles have been "decimated" by the contamination. Chevron bought Texaco in 2001 and is expected to bear any liability in the case.
Chevron disputes the above-mentioned claims, noting that it continues to maintain a "fully transparent position" regarding the litigation.
"The SEC is aware of the litigation," James Craig, a Chevron spokesman for Latin America told The News. "In May 2006, Chevron was contacted by staff at the SEC to provide additional information on several of aspects of Chevron's 2005 10-K filing, including the ongoing litigation in Ecuador."
Craig also explained that the Ecuadorian government had granted Texaco a "full and complete release from any and all environmental liability arising from its participation in the consortium," and accused the Lago Agrio court of "systematically" transforming the trial into a "judicial farce" by ignoring scientific evidence, along with its own law and orders.
"The matter has been pursued by plaintiffs in one form or another here and in Ecuador for more than a decade, with notable lack of success. The company believes that plaintiffs and their sympathisers are therefore seeking to obtain, through misinformation and pressure tactics, what they cannot hope to obtain through legitimate court processes. All their non-court related actions, including press releases, staged demonstrations and proposals at the company's annual meetings and pleas for government investigation and possible action against the company, serve this purpose and should be viewed in that light," added Craig.
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