The World Bank’s internal watchdog on Thursday criticized the organization’s handling and oversight of its investments in a chain of Kenyan schools that were the subject of an internal investigation following allegations of student abuse.
The investigation, which began in 2020, has kept World Bank officials and shareholders on tenterhooks in recent months and led to scrutiny of its investment arm, the International Finance Corporation, which invested in the education project a decade ago.
The countries that make up the IFC board are discussing how to compensate victims of abuse. Although the scandal predated the tenure of Ajay Banga, the World Bank’s new president, it has become one of the first tests of his management.
Mr. Banga will be responsible for leading any changes related to the way the Bank invests in private sector projects. He has already been criticized for appearing to dismiss suggestions that the IFC was interfering in the investigation, and U.S. lawmakers have told him that the bank’s future funding could depend on his handling of the matter.
The monitoring report released by the World Bank’s Compliance Adviser Ombudsman concluded that IFC “did not consider the project’s potential child sexual abuse risks, nor did it consider its client’s ability to meet environmental and social requirements in relation to the risks and the consequences of child sexual abuse.”
The World Bank held a $13 million stake in Bridge International Academies from 2013 to 2022. She separated from the program after there were complaints of sexual abuse at the schools, leading to internal investigations into the incidents and a review of the way her investment department oversees such programs.
The report, which refers to Bridge International Academies, goes on to say that “IFC failed to regularly monitor or address the risks and impacts of project-related child sexual abuse and gender-based violence at its client.”
It was also recommended that victims of abuse be given financial compensation.
However, a management “action plan” agreed upon by the IFC board did not fully address these recommendations. Instead, the plan said it would “directly fund a recovery program for survivors of child sexual abuse” for a period of up to 10 years. The plan would pay an unspecified amount of money for psychological support and sexual and reproductive health services for adolescents.
The decision over whether to directly compensate victims was the subject of intense internal debate among board members, with some arguing that the bank should not take such direct financial responsibility for events under the program.
In an email to World Bank staff sent on Wednesday evening, Mr. Banga, who was not at the helm during the period of abuse, acknowledged that mistakes had been made in the handling of the program and the investigation and expressed his reluctance remorseful.
“I am sorry for the trauma these children have suffered. I am committed to supporting survivors and am determined to ensure we get better in the future,” Mr Banga wrote.
Mr Banga acknowledged concerns about the integrity of the investigation, adding that he would appoint an external investigator to ensure the previous investigation was free of interference.
“We should have responded sooner and more aggressively,” he said. “This is a difficult moment for our institution, but it must be a moment of introspection.”
Human rights groups and civil society organizations criticized the proposed action plans, arguing that they did not go far enough to compensate victims.
On Thursday they continued to complain about the lack of direct financial support in the action plan, which includes funding for counseling services and health support for victims.
“The IFC’s action plan does not do the only thing required of it: providing relief to the bridge survivors,” said David Pred, executive director of human rights group Inclusive Development International.
In recent days, U.S. lawmakers also called on the Treasury Department, which helped engineer Mr. Banga’s appointment as head of the bank, to do more and reject the action plan.
“I am concerned that the failure to provide direct and meaningful compensation will harm not only the survivors and their families, but also the reputation of the IFC, which has a critical mission worldwide, and the reputation of the United States.” its largest shareholder,” Rep. Maxine Waters, the top Democrat on the House Financial Services Committee, wrote in a letter to Treasury Secretary Janet L. Yellen on Wednesday.
The Treasury Department, which had pushed for compensation for victims, said in a statement Thursday that it accepted the report’s findings. However, it was recommended that survivors be consulted as the IFC determines how best to compensate them.
“We believe the IFC should keep all remedial measures on the table while consultations continue,” the Treasury said in a statement.
The statement added that the department was also concerned about allegations of interference in the investigation and welcomed an independent review of its conduct.
“We are deeply concerned about the broader questions of accountability that this case raises,” it said.
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2024-03-15 00:58:42
www.nytimes.com
