In May, the Compliance Advisor/Ombudsman (CAO), the accountability mechanism of the International Finance Corporation (IFC, the Bank’s private sector arm), closed the Maple Energy case (see Update 79) as it “does not merit an audit of IFC”, despite a new oil spill by the company being reported in April. The CAO case was initiated after two indigenous communities from nearby the IFC-funded company’s oil producing site in Peru filed a complaint in 2010 that oil spills from the Maple Energy operations had caused numerous social, environmental and health issues. According to the US-based NGO Accountability Counsel, “Maple Energy, under IFC’s guidance, has not improved its social and environmental practices.” It reported that “community members were not informed or alerted to the [April] spill”, which represents “a continuing violation of the IFC’s performance standards”.
7 February 2012
World Bank & IMF in the news
The sovereign debt crises threatening states in the Global South are less about fiscal mismanagement and more about monetary power in the global currency hierarchy.