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NEW: Apple is considered an industry leader in avoiding conflict minerals.
But an investigation by Tech Transparency Project found that, despite its reputation, #Apple has relied for years on suppliers linked to the global trade in “dirty gold.”
THREADhttps://www.techtransparencyproject.org/articles/apples-dirty-gold-problem …
This dirty gold is mined in conflict zones and sold to middlemen who slip it into the global supply chain. TTP found many of Apple’s gold suppliers source gold from refineries with widely reported connections to violent conflicts and criminal groups.pic.twitter.com/uxyADumABv
Dirty gold often comes from conflict zones.
In parts of Africa, the gold trade is run by paramilitary groups that profit from child labor and use the proceeds to fund civil wars.
See @HRW groundbreaking 2005 report The Curse of Gold: https://www.hrw.org/news/2005/06/01/dr-congo-gold-fuels-massive-human-rights-atrocities …pic.twitter.com/snnIl3kHWy
In Latin America, drug cartels often use gold to launder illicit proceeds.
@InSightCrimehttps://www.insightcrime.org/news/brief/perus-gold-king-held-accountable/ …
TTP found 7 current and 1 former #Apple gold suppliers with ties to the Kaloti Group, a Dubai-based refinery allegedly involved in smuggling gold and money laundering.
https://www.techtransparencyproject.org/articles/apples-dirty-gold-problem …pic.twitter.com/ySykazTaUl
An E&Y audit found Kaloti imported gold from Sudan and Iran, both subject to US and EU sanctions at the time, and the Democratic Republic of the Congo, where child labor is used to mine gold.
See @global_witness 2014 report:https://www.globalwitness.org/en/archive/revealed-why-dubais-first-conflict-gold-audit-never-saw-light-day/ …
Rather than report the Kaloti problems, E&Y allegedly covered them up and forced out their auditor, @AmjadOmarRihan.
He sued, and a UK court recently awarded him a $10 million judgement.
E&Y is appealing.
https://www.judiciary.uk/wp-content/uploads/2020/04/Rihan-v.-EY-Global-Ltd-and-others-Approved-Judgment-17-April-2020.pdf …pic.twitter.com/oLieWi80KJ
Apple doesn’t do business directly with Kaloti, but TTP found 3 of Apple’s gold suppliers have bought gold from Kaloti and 5 others were implicated with Kaloti in the seizure of gold tied to an alleged drug cartel money launderer. https://elcomercio.pe/peru/madre-de-dios/mitad-exportadoras-oro-mira-mineria-ilegal-292713-noticia/ …pic.twitter.com/DU7wQhdjag
In 2015, #Apple said it launched an investigation of its “potential links” to Kaloti.
The results of that investigation were never released, and Apple continues using suppliers that source from Kaloti.
From Apple’s 2015 SEC filing: https://www.sec.gov/Archives/edgar/data/320193/000119312516523320/d168894dex101.htm …pic.twitter.com/NIFN11S139
Apple’s problems with dirty gold go well beyond Kaloti.
Last year, @NYTimes @caseysjournal @docubrent investigated Apple’s ties to Colombian miners that “help finance armed groups"
Apple continues to use the supplier, according to its latest disclosures.https://www.nytimes.com/2019/08/30/the-weekly/gold-apple-iphone-colombia.html …
TTP found Apple rarely removes gold suppliers, even in the face of public accusations of criminal behavior.
#Apple only removed Elemetal as a supplier after its executives were criminally convicted with money laundering after years of accusations.
https://www.justice.gov/usao-sdfl/pr/us-gold-refinery-pleads-guilty-charge-failure-maintain-adequate-anti-money-laundering …pic.twitter.com/WOhtssjciD
Gold is not #Apple’s only supply chain problem.
In August, TTP found Apple sourced employee t-shirts from a company recently sanctioned by the U.S. government for using forced Uyghur labor in Chinahttps://www.techtransparencyproject.org/articles/apples-employee-uniforms-tied-forced-labor-xinjiang …
Apple's tech supply chain has similar forced labor problems, and last year #Apple and its partner Foxconn reportedly violated Chinese labor laws, as @washingtonpost @ReedAlbergotti reported last yearhttps://www.washingtonpost.com/technology/2019/09/09/apple-accused-worker-violations-chinese-factories-by-labor-rights-group/ …
For #Apple to truly be an industry leader, it should release its 2015 audit of Kaloti & sever ties to the global trade in dirty gold.
Until it does, Apple will remain complicit in fueling civil wars, human rights abuses & money laundering.pic.twitter.com/HeczM31J72
Next time you use your iPhone or iPad, it’s worth considering the human cost that goes into it.https://www.techtransparencyproject.org/articles/apples-dirty-gold-problem …
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