Multi-national Companies Claim US Apartheid Cases Unfounded

A United States Federal court heard an appeal by several multi-national companies that are seeking the dismissal of cases against them over their alleged role in supporting the apartheid government in South Africa. These multi-national companies include German automaker Daimler, US automaker General Motors and IT Company IBM.

The companies are questioning the jurisdiction of US courts in matters that did not technically happen in the United States. This particular lawsuit was filed several years ago by black victims of the South African apartheid government said to be supported by the multi-nationals. The victims and their lawyers are seeking compensation worth $400 billion from the companies.

The claimants of the lawsuit say that the corporations have violated universal human rights by lobbying and assisting South Africa’s former apartheid government. They further argued that the companies had knowledge about the government’s violations but still maintained their connections because they knew the government would be using and distributing their products.

The US courts, on the other hand, said that it can try the case against a limited number of companies because it comes under the Alien Tort Claims Act, a legislation that allows foreigners to sue in US courts.

German automaker Daimler commented that the grounds with which the case is based were inadmissible and unfounded. A spokeswoman of the group said that “no American party was implicated and nothing took place on American territory.” The spokeswoman also added that the company operated with the German government’s approval at that time.

South Africa stopped opposing the case in September, shortly after its newly elected President Jacob Zuma was sworn into office. Thabo Mbeki, South Africa’s former head of state, opposed the lawsuit on the grounds that it may turn off foreign investors and put a dent on South Africa’s relations with the companies and countries involved.