Unlock Editor's Digest for free
FT editor Roula Khalaf has chosen her favorite stories in this weekly newsletter.
The International Finance Corporation's board of directors on Thursday amid mounting pressure to pay compensation to alleged victims of child sexual abuse in a network of Kenyan schools run by the education company it funds. is being held.
IFC, the private finance arm of the World Bank, will discuss its response to a compliance advisory ombudsman investigation that found it did not meet the terms of its own sustainability policy after investing $13.5 million in Bridge International Academy is.
The decision could set a precedent for future “relief” payments by international financial institutions, including for other IFC-backed projects where there have been allegations of human rights abuses.
This debate raises broader questions about the accountability of social impact organizations. Bridge International, now rebranded New Globe and running a broader range of educational programs, also received funding from groups associated with Pierre Omidyar, Bill Gates, Mark Zuckerberg and Bill Ackman. is being provided. These groups do not face similar demands for redress.
The Ombudsman's report relates to 21 cases of suspected child abuse over the past 10 years, and also mentions a longer list of up to 70 suspected cases of abuse recorded by Bridge and shared with IFC observers on the company's board of directors. ing. I then discarded the list of names.
Last week, civil society organizations wrote to World Bank President Ajay Banga, saying that IFC had taken “limited steps” to ensure the bridge managed the risk of child sexual abuse and that no incidents had been reported. He also claimed that he “turned a blind eye” and ultimately withdrew from the World Bank. The investment was made “without stopping at nothing to ensure that abused children receive compensation and rehabilitation assistance.”
They claim that IFC has contributed to children's suffering through “blatant and persistent non-compliance with environmental and social policies.”
A draft management action plan to be discussed by IFC's Board of Directors calls for a “collective approach to relief,” including funding for community prevention and recovery policies, but also direct It's not a typical thing.
David Pred, president of advocacy group Inclusive Development International, argued that IFC failed to discuss the proposed relief plan with the children involved. He said they were seeking compensation from IFC, support for tuition, counseling and legal costs, and for Bridge to issue a public apology, training and increased security.
Under pressure from critics such as U.S.-based funders and teachers' unions, IFC agreed to halt investments in private schools around the world in 2020, and ultimately withdrew from.
The ombudsman said it could not comment on internal matters, but its final report, filed last fall, “certainly identified IFC's non-compliance with sustainability policies and related damages related to its investment in Bridge International Academy.'' “Results of investigation'' have been identified.
“Our position is that any redress approach should be survivor-centered and enable survivors the support and rehabilitation they need to receive redress for the harm they have suffered.” added.
The World Bank said it was “deeply concerned” by the allegations and “undertook a thorough portfolio review to identify projects with a high risk of gender-based violence, including against children.”
IFC announced that it will publish a response in the coming weeks that includes a “time-limited proposed corrective action plan.” “Child sexual abuse is abhorrent and any form of abuse in World Bank Group-funded projects is unacceptable.”
New Globe did not respond to multiple requests for comment, but in response to an earlier report by The Intercept, the company's lawyers said “a few bad apples” could affect the overall efforts and success of educators and schools. He said that it should not be “sullied''. He argued that the problem of child sexual abuse was widespread beyond Kenyan schools.