Sept 19 (Askume) – An audit of Volkswagen’s joint venture plant in Xinjiang, China, failed to meet key aspects of international standards set by the German carmaker’s auditors, the Financial Times reported on Thursday .
An audit last year reported in full by the Financial Times found that interviews with staff supposed to be confidential were broadcast live to a law firm’s headquarters in Shenzhen, southern China, and that only managers were asked questions relating to forced labor.
Last year, investors demanded that the automaker conduct an independent audit of labor conditions at SAIC’s joint venture factories in the Xinjiang region, where human rights groups have documented abuses including widespread forced labor in detention camps. Beijing denies any such violations.
Volkswagen did not immediately respond to a Askume request for comment. It told the Financial Times that the SA8000 standard was only used as a “basis” by auditors, but “all points mentioned in the standard must be thoroughly examined”.
A summary of the audit report released late last year found no evidence of forced labour, but auditors said the challenges of collecting data, including interviews, were well known in China.
At the time, Volkswagen said German human rights investigation company Lönning Human Rights & Responsible Business GmbH had applied the SA8000 standard, a management system standard based on international human rights principles that aims to address the issue of child labour and assess situations involving forced labour in eight areas.
However, the Financial Times found that neither the Lu Ning Law Firm nor the Liangma Law Firm listed in the report had obtained the SA8000 audit qualification formulated by standard-setting organization Social Responsibility International.
Luoning declined to comment, while Liangma and two lawyers involved in the audit did not respond, the Financial Times said.
The automaker said in a press statement in December that although it has not received official SA8000 certification, “optional ethics and management reviews ensure standards are maintained.”
Several senior loan staffers recused themselves from the audit , and some VW investors reacted cautiously to the results and urged the automaker to investigate the plant further.
Germany’s Der Spiegel and German television Channel 2 also obtained the audit report.
