Oxfam report reveals human rights abuses linked with Intl. Finance Corporation lending

This report documents the human rights impacts of private sector projects financed by the International Finance Corporation, with case studies from Cambodia, Guatemala, India, Honduras and Laos.

Business & Human Rights Resource Centre invited the following companies to respond:

  • Dragon Capital Group & Vietnamese Enterprise Investments (Vietnam) responded
  • Masan Group (Vietnam) has not responded
  • Medco Power Indonesia (Indonesia) has not responded
  • EDL Generation (Laos) has not responded
  • Hidro Santa Cruz (Guatemala) responded
  • GMR Varalakshmi Foundation (India) has not yet responded

Previous responses included from the following companies:

  • Dinant Corporation (Honduras)
  • Grupo Pellas (Nicaragua)
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All components of this story

Article
29 April 2015

Full report

Author: Oxfam

"The Suffering of Others: The human cost of the International Finance Corporation’s lending through financial intermediaries", Apr 2015

Increasingly, development money is being channelled through third parties such as banks or private equity funds. The world’s leading proponent of this financing model, the International Finance Corporation, spent $36bn this way in just the four years leading up to June 2013. But what does this ‘hands-off’ form of development financing mean for people? Are the risks to communities and their livelihoods just too high given the weaker social and environmental protections entailed? This report tells the human story behind the high finance and statistics, and asks whether reforms to this model of lending have gone far enough to protect communities.

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Company response
28 April 2015

Dragon Capital Group & Vietnamese Enterprise Investments response

The allegations concerning IFC’s interest in Dragon Capital relate to investments formerly made by Dragon-managed funds in Hoang Anh Gia Lai (HAGL), a publicly-listed Vietnamese company with investments in Cambodia and Laos. We note that the funds in question did not hold any investments in HAGL as at the date of the report, and do not hold any investments in HAGL at the present time. We also note that Oxfam did not contact Dragon Capital prior to release of the report and so did not seek to verify the statements as to alleged current investments in HAGL.

The position is the same for Vietnamese Enterprise Investments (VEIL).

Company non-response
28 April 2015

EDL Generation did not respond

Company non-response
28 April 2015

Masan Group did not respond

Company non-response
28 April 2015

Medco Power did not respond

Company response
+ Español - Hide

…En el artículo…se silencia la auténtica realidad del Municipio, la voluntad de sus habitantes…[y] el anhelo de las Comunidades indígenas...De acuerdo con ello…[está] la posición de la Municipalidad de Santa Cruz Barillas...En estos documentos, por unanimidad, los representantes…[se] expresan respecto al proyecto hidroeléctrico…[T]res documentos, en los cuales…los representantes de todas las Comunidades de Santa Cruz Barillas se manifiestan y expresan respecto del proyecto hidroeléctrico y respecto de los actos de violencia que realizan y cometen quienes se oponen al mismo. [L]a información relativa a la famosa consulta comunitaria de buena fe…como verá ya claramente por su título, lo que se consultó fue la aceptación o no de proyectos mineros… [L]a comunicación dirigida...a la Conferencia Episcopal...en la que solicitan su implicación el proceso de mediación para alcanzar un acuerdo que permita la construcción del proyecto…

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Company response
29 May 2014

[PDF] Response from Dinant

Author: Dinant

…I strongly object to the assumption…that the World Bank undertook a thorough audit and concluded that Dinant was responsible or linked to killings related to the land conflict in the Bajo Aguán. Dinant strongly takes issue with many of the unfounded assertions made in the the CAO report…referred to in your article as the Bank´s own findings…[Regarding] Dinant´s provision of accommodation facilities for the Xatruch Joint Military Task Force…I can assure you this was done with the best intentions…We are in the process of signing all necessary documents in order to ensure full transparency of the process…I invite you to visit out African Palm plantations in the Bajo Aguán region to see…the extensive resources that Dinant is investing in community engagement, and environmental and social management.

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Company response
18 January 2013

Response by Grupo Pellas/NSEL: Video report on thousands of workers’ deaths allegedly caused by pesticides & excessive exposure to heat at sugar mill owned by Grupo Pellas.

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