Why IFC resists directly compensating people harmed by its projects

After the Bridge sexual abuse scandal, advocates clamored for the International Finance Corporation to compensate victims. But some experts say it’s not that simple.

The International Finance Corporation — the private sector arm of the World Bank Group — has been in the news a lot lately after being implicated in a child sexual abuse scandal in Kenya.

But while the bank’s President Ajay Banga has admitted failings, apologized for the “trauma” experienced by the abused children, and called for an independent investigation into what went on, the institution has attracted controversy over its refusal to offer direct financial compensation to the alleged victims.

Advocacy groups, some U.S. lawmakers, and even IFC’s own internal watchdog say IFC should pay for its mistakes, but the financier is refusing to budge. Why?

“By refusing to plainly and simply list compensation as a potential remedy for survivors of sexual abuse, the IFC is signaling that this is not exceptional enough to convince them to contribute financially. If not this, what is?” said Margaux Day, executive director at Accountability Counsel, a group that advocates for people harmed by internationally financed projects.

Read the full article from Devex here.