The
Association of Critical Shareholders (DKA), which represents
small investors on environmental, social and governance issues,
asked Volkswagen in an open letter how it would ensure results
were independent given China's anti-espionage laws.
It highlighted restrictions imposed by the Chinese government on
international auditors, including the raid of U.S. corporate
auditor Mintz Group's offices in Beijing and reports China
instructed state-owned enterprises to stop using PwC, EY, KPMG
and Deloitte.
"We therefore see a very high risk that the Chinese government
will misuse the audit for its international disinformation
campaign to conceal the actual conditions at the plant," the DKA
wrote.
Volkswagen could not immediately be reached for comment and
Chinese venture partner SAIC declined to comment.
The United Nations and rights groups estimate that more than a
million people, mainly Uyghurs and other Muslim minorities, have
been detained in recent years in a system of camps in Xinjiang
and used for low-paid and coercive labour.
China denies any human rights abuses in the western region.
Volkswagen said at its capital markets day in June it would
carry out an independent audit of the site it jointly owns with
Chinese state-owned enterprise SAIC in Urumqi, after investors
called on the company to do so.
(Reporting by Victoria Waldersee, Jan Schwartz; Editing by
Rachel More and Barbara Lewis)
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