At the time CAO received the complaint, IFC had an active project in Haiti with Grupo M and its fully owned subsidiary CODEVI – one of the largest garment manufacturing operations in the Central America and Caribbean region. The project supported CODEVI in an expansion program that included the construction of a new facility for the assembly of woven garments and the acquisition of specialized machinery for dry garment assembly and processing operations. The project was to be undertaken in two new buildings to be constructed on land already owned by Grupo M at CODEVI.

In March 2020, a complaint was submitted to CAO in relation to the project by a local individual on behalf of 174 farmers’ households residing in and near Ouanaminthe, Haiti. The complaint raised concerns regarding the economic displacement of the complainants due to CODEVI’s construction of their facilities in 2002. According to the complaint, despite commitments made in a ‘social compensation plan’, they had yet to receive the replacement land committed to them and had not obtained adequate compensation for their losses. The complaint also alleged improper waste disposal by CODEVI, leading to pollution.

In April 2020, CAO found the complaint eligible and conducted an assessment. During the assessment, the complainants and the company agreed to engage in a voluntary dialogue process to try to resolve the dispute.

Throughout 2021, CAO engaged the parties in several online activities, including technical training for the complainants, capacity-building sessions to clarify questions related to the dispute resolution process, and the use of technology in the process. The parties initiated a discussion about the ground rules to guide their engagement, which were first discussed separately and online in early 2022.

Once COVID-19 travel restrictions and security measures were lifted, CAO met with the parties in person in May 2022 and facilitated bilateral and joint meetings. During these meetings, the parties continued their conversations regarding the content of the ground rules document but were unable to reach agreement on that matter. From June 2022 to April 2023, CAO continued to work with the parties virtually to discuss the areas of disagreement.

Despite the parties' efforts to resolve the issues raised in the complaint, the parties could not reach an agreement. At the request of the complainants, and in accordance with the CAO Policy, in October 2023 the case was transferred to CAO’s Compliance function for appraisal. The Dispute Resolution Conclusion Report is available in English and Creole.

In April 2024, CAO completed its compliance appraisal. The appraisal report is available in English and Creole.