Controversy over a $6 million claim against the Ethiopian government by food giant Nestlé continues. The World Bank, which is mediating on behalf of the Ethiopian government, has called Nestlé’s charges “laughable when you consider who the debtor is”. However, a Nestlé spokesperson said that the claim was only taken up as a result of the Bank’s requirement that the government pay all outstanding claims against it. “According to WB‘s internal regulation, a country, which had not cleared existing claims against it would not have access to loans and other facilities provided by the Bank.”
World Bank & IMF in the news
EarthRights International examines how the Jam v. IFC case has helped to shift the landscape of accountability for international financial institutions by successfully challenging their claim to “absolute” immunity in US courts, potentially opening IFC up to further legal challenges in future.