IFI governance

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No IFC audit despite new Peru oil spill

3 July 2012

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”.