In 2008, IFC approved a US$10 million loan to Salala Rubber Corporation (SRC) in Liberia to support the rehabilitation and expansion of a rubber plantation, creating jobs and boosting the local economy in a post-conflict setting. The loan was fully paid and on schedule by SRC in March 2020. SRC was sold by its parent company, Socfin, in August 2024.

In May 2019, a complaint was submitted to CAO by four Liberian NGOs, including Green Advocates International, on behalf of 22 communities from the Margibi and Bong counties in Liberia, who requested that their identities be kept confidential. The complaint raised concerns related to land grabs and forced evictions; lack of consultation; economic displacement and loss of livelihood; employment conditions and labor rights violations; water pollution; gender-based violence and harassment (GBVH); and threats of reprisals and intimidation.

In June 2019, CAO found the complaint eligible and initiated an assessment. CAO conducted a field visit to Liberia in October 2019 to discuss options for addressing the complaint with the relevant parties. During the assessment, the complainants indicated their willingness to engage in a dispute resolution process facilitated by CAO; however, the company raised concerns about the CAO process and the perceived partiality of CAO’s team. Given these concerns, the company expressed a willingness to engage with the impacted community but not in a CAO-led dispute resolution process. 
In accordance with CAO’s Operational Guidelines, which were applicable at the time the complaint was filed, the complaint was referred to CAO’s Compliance function.

In September 2020, following a compliance appraisal, CAO initiated an investigation into IFC’s environmental and social (E&S) performance concerning the issues raised in the complaint. CAO’s investigation reviewed IFC’s investment in SRC, particularly in relation to the assessment and monitoring of E&S risks and impacts, and compliance with IFC’s 2006 Performance Standards.

In December 2023, CAO finalized its Investigation Report and submitted it to the IFC Board. The investigation found that IFC’s pre-investment review and supervision were non-compliant with applicable IFC’s 2006 Sustainability Policy requirements. CAO identified material failures in IFC’s pre-investment review, including the lack of an E&S impact assessment, inadequate risk categorization, failure to ensure broad community support, and insufficient assessment of Indigenous Peoples and country context. IFC’s supervision was also non-compliant, including proceeding with disbursements to the client without compliant E&S assessments, failure to exercise remedies, and inadequate monitoring. CAO found harm and indications of harm to the affected communities in relation to compensation, consultation, gender-based violence and harassment (GBVH), security, land acquisition, Indigenous Peoples, cultural heritage, water quality, and labor practices.

In March, May, and July 2024, respectively, IFC requested, and received Board approval, for three extensions to prepare its Management Action Plan (MAP) in response to CAO’s investigation. 

On March 13, 2025, the IFC Board approved IFC’s MAP. The MAP commits IFC to implement a Community Development Program to support livelihood restoration, GBVH prevention, and support to survivors. Further, IFC committed to support SRC to strengthen their policies and practices in handling various E&S topics, and provide recommendations and training, subject to the interest of the new owner. 

IFC management will supervise implementation of the MAP and provide an update on progress to the Board within three months. IFC and CAO issued a joint press release on March 20, 2025.