International Finance Corporation Faces Pressure Over Alleged Child Abuse Compensation

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The board of the International Finance Corporation (IFC), a private finance arm of the World Bank, is under scrutiny to address allegations of child sexual abuse in schools funded by the organization. The controversy centers on investments totaling $13.5 million in NewGlobe Schools, the parent company of Bridge International Academies in Kenya.

An investigation by the IFC’s Compliance Advisor Ombudsman found that the IFC failed to adhere to its sustainability policies regarding the allegations of child abuse. The report identified 21 cases of alleged abuse, with a larger list potentially totaling up to 70 cases. Criticism has been directed at the IFC for purportedly overlooking reports of abuse and failing to take adequate measures to address the issue during its investment in NewGlobe Schools.

Civil society groups have called on the IFC to compensate the victims of abuse and provide support for rehabilitation and legal assistance. They allege that the IFC’s actions contributed to the suffering of the children by disregarding environmental and social policies.

The proposed management action plan by the IFC board calls for community prevention and rehabilitation efforts but does not include direct compensation for affected individuals. Advocacy groups argue that the approach lacks a survivor-centric focus and fails to address the specific needs of the victims.

Pressure from various stakeholders, including the US government and teachers’ unions, has prompted the IFC to halt investments in private sector schools globally and exit its investment in NewGlobe. However, concerns persist regarding the accountability of social impact organizations and the handling of allegations of human rights abuses.

The IFC has launched an internal portfolio review to identify projects with elevated risks of gender-based violence, including against children. It has committed to publishing proposed remedial actions in response to the allegations.

The World Bank expressed deep concern over the allegations and emphasized its commitment to addressing gender-based violence in its financed projects. However, NewGlobe did not respond to requests for comment, and external lawyers for Bridge International Academies defended the organization, stating that isolated incidents should not overshadow the overall work and success of its schools.