Honduras: Financial Intermediary-01/Aguan Valley

Date Filed
25 Jul 2014
Status
Closed
Phase
Dispute Resolution (DR)
Country
Honduras

Case Tracker

Eligibility
Eligibility
Assessment
Closed
Assessment
Dispute Resolution
Compliance
CURRENT Status
Assessment
Closed

Complaint Overview

Complainant
Movimiento Autentico Reivindicador Campesino del Aguán (MARCA)
Concerns

Land conflict, security concerns, environmental pollution

Cross-Cutting Issues
Resource Efficiency Land Resettlement Land Violence / Abuse

Project Information

Region
Latin America & the Caribbean
Institution
IFC
Name & Number
Banco Financiera Comercial Hondurena 26394, 29257
Company
Banco Financiera Comercial Hondurena
Sector
Financial Markets
Department
Finance and Markets
Category
FI
Commitment

$20m, $70.1m

Synopsis

Complaint

In July 2014, the Movimiento Autentico Reivindicador Campesino del Aguán (MARCA), a collective of four campesino cooperatives in the Aguán region of Honduras filed a complaint with CAO raising concerns about members of two of its cooperatives being negatively affected by the palm oil activities of Aceite de Palma Africana-OLEOPALMA and companies from the Jaremar Group.

CAO Action

After accessing information indicating that some of these companies had been financed at some point by Banco Financiera Comercial Hondureña S.A. (the “Bank”), an IFC financial intermediary client, CAO determined that the complaint met its three eligibility criteria in October 2014, and initiated an assessment of the complaint.

Based on the information received and reviewed, and discussions with IFC, the Bank, and the complainants during the assessment, CAO did not find any indication that IFC has any current exposure to investments in Jaremar Group companies with palm oil plantations in the Aguán Valley. CAO’s assessment found that the issues raised in the complaint are specifically related to the operations of Aceite de Palma Africana-OLEOPALMA, and CAO did not find any indication that IFC had any exposure to investments in said company either.

Based on these verifications, and absent relevant links between the companies named in the complaint and IFC, CAO concluded that this complaint falls outside its mandate and closed the case at assessment.

Status

CAO closed the case on March 19, 2015.

Note: A CAO assessment does not entail a judgment on the merits of complaints.  Rather, the aim is to listen to people's concerns, understand the different perspectives, and gauge whether it is possible to address the concerns in a collaborative process.

Status as of March 19, 2015

Case Documents

  • Dispute Resolution

    Assessment Report(s)
    CAO Assessment Report Regarding
    Mar 01, 2015
    English
    CAO Assessment Report Regarding
    Informe de Evaluacion de la CAO Sobre
    Mar 01, 2015
    Spanish
    Informe de Evaluacion de la CAO Sobre