January 22, 2014. Source: FIAN International
The World Bank has been forced to backtrack on a controversial investment in Corporación Dinant, a palm oil company implicated in serious human rights abuses in Honduras.
Following the January 10th release of one of the most damning investigations ever issued by the Bank’s internal watchdog, the Office of the Compliance Advisor/Ombudsman (CAO), the Bank’s private-sector lending arm the International Finance Corporation (IFC) issued an ‘action plan’ that failed to address most of the investigation’s findings .
Following widespread negative press coverage, an outcry from civil society organizations, and criticism from the Bank’s Board, the IFC today admitted errors and promised to ‘refine’ its action plan and ‘reflect on’ internal problems that led to mistakes.
Civil society groups today welcomed the IFC’s admission of its mistakes and credited the Bank’s Board for stepping in when the Bank’s management had failed to respond appropriately. However they said the IFC’s new response still falls seriously short of laying out a plan to ensure that communities’ human rights are respected in future. Continue reading