A US Senate Committee found that the World Bank and US government institutions financed “questionable payments” by Enron for a Guatemalan power project. In 1993 Enron built an electricity generating plant near Puerto Quetzal and sold the power to a government-sponsored utility. The project was partially financed by an IFC loan of $71 million. In an effort to conceal taxable income from Guatemalan authorities, payments were disguised as “add-on fuel charges” and re-routed to a bank account in Miami. Researchers for the Institute of Policy Studies have uncovered numerous allegations of fraud and corruption around Bank-financed Enron projects in Bolivia and Nigeria.
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This factsheet explains how the International Finance Corporation (IFC) operates, how development impact is measured, and the latest trends in investments by sector, region and instrument.
New analysis reveals the IMF’s increasing use of controversial conditions attached to loans.
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