Malaysian palm giant IOI says aware of US customs letter on alleged forced labour

KUALA LUMPUR: Malaysian palm oil company IOI Corporation said on Friday it had been made aware of a letter from the U.S. Customs and Border Protection (CBP) about opening an investigation into allegations of labour abuses at the company.

According to IOI, CBP in the letter to a labour activist acknowledged the receipt of a petition providing information on alleged forced labour conditions at the company and found it sufficient to open an investigation.

IOI said while it had been made aware of the letter, it had not been notified directly by the CBP.

"Nevertheless, IOI will take the proactive step in contacting CBP to confirm the existence of an investigation and offer our co-operation in providing explanation and documents to assist," IOI said in a statement on its website.

The CBP did not immediately respond to an emailed request for comment by Reuters.

IOI is the third palm oil giant in Malaysia to face U.S. scrutiny over its treatment of migrant workers, as the industry seeks to defend its image after mounting allegations of human rights abuses.

The CBP last year banned imports from FGV Holdings and Sime Darby Plantations over forced labour allegations.

Malaysia, the world's second-largest palm oil producer and exporter, is heavily reliant on migrants from Indonesia, India and Bangladesh to produce the edible oil found in everything from food to cosmetics to biodiesel.