Bhopal Survivors Press U.S. Company for Disclosure Mon May 17, 2004 11:46 AM ET Reuters By David Brinkerhoff
NEW YORK (Reuters) - On the night of Dec. 3, 1984, Bhopal housewife Champa Devi Shukla woke to a frantic pounding at the door. When she opened it, her lungs seemed to catch on fire.
Foul fumes swept into her home. A quarter-mile (half a kilometer) away, tons of lethal gas had escaped from an Indian pesticide plant owned by Union Carbide, now a subsidiary of Dow Chemical Co.
"I started coughing violently. My eyes were watering. Water flowed from my nose. I knew something was horribly wrong," Shukla, 52, told Reuters through an interpreter. "It was like when you burn red chili pepper."
The toxic gas killed about 3,800 and injured thousands more, according to figures from the Indian government. An investigation found that the accident occurred while unskilled workers were cleaning a tank.
Global environmental preservation group Greenpeace says that, since then, over 20,000 people have died from exposure-related illnesses, and of the approximately 520,000 people exposed to the poisonous gases, an estimated 120,000 remain chronically ill.
Now, 20 years later, Shukla, and other Bhopal survivors are still looking for answers. A small group of them were present at Dow's annual shareholders meeting in Midland, Michigan, last week to support a resolution seeking full disclosure on the world's worst chemical disaster.
The resolution asks Dow to publish a report on any new initiatives planned to help Bhopal and to spell out any risks the disaster fallout may pose to Dow's finances or reputation.
The resolution failed to pass, with only 6 percent of the total votes. However, because the number of votes exceeded 3 percent, shareholders can try to resubmit it next year, according to SEC rules. That gives some traction to the Bhopal campaign.
The resolution -- filed on behalf of Brethren Benefit Trust Inc., the holder of about 5,000 Dow shares -- says Dow is shirking its responsibility to survivors. Backers of the plan say Dow became implicated in the case after acquiring Union Carbide in 2001.
Dow maintains that all liabilities were resolved in 1989 when Union Carbide paid $470 million to residents. Before its acquisition of Union Carbide, Dow said it examined the case and found no outstanding liability. It says two of its Web sites already disclose enough information about Bhopal.
"Another report would add no new data and would expend resources with little added value," Dow said in a recent regulatory filing.
Still, parts of the case linger in Indian and U.S. courts. Warren Anderson, the chief executive of Union Carbide at the time of the Bhopal tragedy, remains a fugitive from justice in India, even while the government has sought to reduce charges of culpable homicide.
A U.S. appeals court left open a suit allowing a Bhopal resident to seek damages for property contamination.
Shukla and fellow Bhopal activist, Rashida Bee, 48 -- recipients this year of the Goldman Environmental prize -- say their cause is fueled by the health concerns of their neighbors in India.
Bhopal residents died after methyl isocyanate (MIC) gas drifted into the city of nearly 1 million inhabitants. Union Carbide had blamed the leak on employee sabotage.
Shukla, who says she still suffers from shortness of breath and a burning sensation in her chest and stomach, received 20,800 rupees, under the settlement. The amount -- about $462 at current exchange rates -- lasted her about a year and a half and was spent on medicine, she said.
But should Dow issue a report and open itself up to more legal action?
Institutional Shareholder Service, an influential U.S. shareholder advisory group, advised voting against the resolution, saying it would be inappropriate for the company to report on speculative legal risks.
But Innovest Strategic Value Advisors, a New York-based research firm that analyzes companies based on environmental and social performance, says that Bhopal remains a "black mark" on the company's record. The case, along with several others -- including Dow product Agent Orange used in the Vietnam War -- is a growing liability burden, they say.
"There is over $2.18 trillion under socially responsible investment management," wrote Mark Brammer, an Innovest analyst. "The issue is gaining a higher profile as a result of continuing inaction by Union Carbide and Dow and will likely affect investment decisions among this group of investors."
Shukla and Bee, meanwhile, plan to keep fighting for their Bhopal neighbors.
"We are blindingly angry when we hear little kids ask how long they have to live," Shukla said.
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