Nick Mathiason
The Observer,
Sunday November 2 2008
Not only does Lord Levene let Lloyd's insure the junta; he is also on the board of Total, which pays Rangoon $2m a day for oil. Nick Mathiason reports .....
Baron Levene of Portsoken's 45-year career has been a procession of glittering achievements. The son of an antique dealer from north-west London, Peter Levene has been adviser to one Prime Minister and a number of senior government figures. And such is his unalloyed reputation among City grandees that the 66-year-old Chelsea fan became Lord Mayor of London in 1998.
Since 2000 he has chaired Lloyd's of London - the most important job in the insurance industry. By rights, he should now be retiring after nearly completing two terms at Lloyd's, but legislation is currently going through parliament to allow him to extend his tenure.
This weekend, however, Levene's burnished reputation has been called into question by a growing coalition of senior politicians spanning the political divide. They argue that Levene is in the unfortunate position of being one of the most important Western business figures enabling the repressive Burmese military dictatorship to cling on to power.
Levene has long faced criticism at Lloyd's for failing to rebuke those of its syndicates that share the reinsurance risk on key aviation and shipping interests owned by the junta. The insurance in effect means Burma can trade with the outside world. The Foreign Office took the unusual step last month of writing to Levene reminding him of the UK government's official position of discouraging business with the country.
But Levene is also a director at Total, the French energy giant that has signed agreements with Burma to extract gas and oil there - agreements thought to benefit the Burmese generals to the tune of $2.66m each day.
Levene's two roles means he is a leading force within the two most important Western firms doing business in Burma; this despite calls from the pro-democracy movement for all foreign businesses to cease trading with the regime.
John Bercow, the Conservative MP who is chairman of the all-party parliamentary group for democracy in Burma, said: 'By its massive investment in Burma, Total props up one of the most barbaric dictatorships in the world and this is to its eternal discredit. It is therefore a great sadness that Lord Levene, a businessman of distinction who could doubtless have his pick of commercial opportunities, has sullied himself by becoming a director of this company.'
Labour MEP Glenys Kinnock called on Levene to resign from Total. She says: 'If he searches his conscience he must conclude that he should discontinue his position with the company or use his position to secure Total's withdrawal from a country currently ruled by evil. This revelation again confirms that businesses are continuing to put profit before people and proves the need for targeted EU sanctions, which we in the European parliament have consistently demanded.'
In a terse statement, Levene said he was not considering resigning from Total, where earlier this year he was reappointed for another three-year term. He stated that his directorship at Total did not 'sully' his reputation or affect his views on issuing guidance to Lloyd's managing agents and brokers dealing with Burma. And he rejected the argument that revenues from oil and gas, as well as Lloyd's reinsurance of key infrastructure owned by the Burmese junta, help it retain power. 'There is no evidence to support this,' he said. He refused to discuss whether Lloyd's had any insurance business with Total.
But, speaking to The Observer, Maung Maung, the Burmese union leader regarded as the likely Prime Minister if the south east Asian nation overthrows military rule, warned that Lloyd's could eventually be prosecuted for possible complicity in human rights abuses associated with the brutal regime. 'Lord Levene should advise Lloyd's to stop all Burma's insurance being marketed with and at Lloyd's... Lord Levene should also note and inform Lloyd's that cases on crimes against humanities are being built up to be applied at the International Criminal Court as well as some countries that practise international jurisdiction.'
Lloyd's insiders say the drive to impose sanctions against Burma, supported by detained pro-democracy leader, Aung San Suu Kyi, is not supported by all campaign groups and that some Europeans believe engagement with the country helps the people of Burma.
But Johnny Chatterton, campaign director at Burma Campaign UK, said this was a minority view argued by those with business interests there. 'This link poses yet more awkward questions for Lloyd's,' Chatterton says. 'Does Total insure its Burma operations through Lloyd's? Was Levene present when Total's board discussed Burma? The reputation of the entire Lloyd's market has been dragged through the mud by being associated with Burma's murderous dictatorship. Lloyd's must clean up their act now or they will be associated with Burma in the same way that Barclays was with apartheid South Africa.'
The Burmese people have endured a horrific year as the violent repression of an uprising led by Buddhist monks was followed by Cyclone Nargis, which is thought to have claimed well over 100,000 lives. While Levene, Total and Lloyd's continue to profit from doing business with Burma, they must hope that its people have short memories when and if democracy is restored.
