Oxfam accuses ANZ, NAB, Westpac and Commonwealth of loaning to firms engaged in unethical practices

HIGH fees and poor service anger many bank customers, but a new Oxfam report suggests there are many more good reasons to hate the “big four”.

The big four ... a new Oxfam report accuses them of lending to companies engaged in uneth

THE big four banks have defended their lending standards after a report linked them to companies accused of illegal land grabs in developing countries.

Oxfam Australia has accused the big four — Commonwealth Bank, Westpac, National Australia Bank and ANZ — of backing companies that have contributed to illegal logging, forced evictions, inadequate compensation, food shortages and child labour.

“From PNG and Cambodia to Indonesia and Brazil, our banks have backed companies accused of forcing people from their land,” Oxfam Australia chief executive Helen Szoke said.

The report found NAB had lent more than $200 million to Asian palm oil giant Wilmar, which has been linked to land grabs, and was named the world’s least environmentally friendly company by Newsweek.

Oxfam Australia also accused Commonwealth of investing in an agribusiness giant whose Brazilian sugar mill is, it says, illegally sourcing sugar from indigenous lands.

ANZ was financing a Cambodian sugar plantation involved in child labour, military backed land grabs, forced evictions and food shortages, while Westpac has supported a timber company in PNG accused of logging pristine rainforest through an invalid lease arrangement, Oxfam Australia said.

Palm oil plantation ... A lone but dead tree in a palm oil plantation in Indonesia. Picture: Greenpeace/Natalie Behring.

The big four declined to comment on their links to the specific companies highlighted by Oxfam Australia, but emphasised their commitment to ethical lending practices.

Westpac welcomed the Oxfam Australia report and said it would stop lending to customers operating illegally or outside the banks own ethical standards.

“Where there is a risk of customers operating outside the law or the customer does not meet our requirements, Westpac will undertake a review, and if appropriate, exit the banking relationship,” it said.

ANZ said it took its environmental and social responsibilities seriously, and had exited relationships in the past where customers were unwilling to adhere to its standards.

“ANZ will always look to work with our customers to meet internationally accepted standards of good practice and support and encourage them to engage with local communities, governments or other interest groups such as NGOs,” it said in a statement.

A NAB spokesman said the bank assessed social and environmental risks before lending to a customer.

“This includes assessing a potential customer’s background, character, track record and country of domicile,” he said.

Comment was being sought from Commonwealth Bank.