CAO Cases

Arne Hoel, The World Bank

Sub-Saharan Africa

Guinea / Nedbank-01/Kintinian

Complainant
Local community members
Date Filed
April 27, 2017
Concerns
Forced displacement from land, compensation, livelihood concerns
Case Status
Open - Ombudsman
 

Synopsis

Project Overview

At the time the complaint was filed IFC had an active project with Nedbank, which consists of a subordinated Tier II qualifying loan or instrument. IFC indicates that the project aims to facilitate Nedbank's longer-tenor lending programs for: 1) black Economic Empowerment financing that will result in significant ownership transfer to previously-disadvantaged individuals and communities; 2) development and mortgage financing for the currently under-served affordable housing segment; and, 3) cross-border corporate lending across Africa, including capital intensive projects that support sustainable economic growth.


According to IFC, Nedbank is one of the leading South African banking groups. AngloGold Ashanti has received funding from Nedbank.


In April 2017, local community members neighboring the expansion of the Siguiri’s gold mine in Guinea filed a complaint with the CAO with the support of Centre de Commerce International pour le Developpement (“CECIDE”), Les Memes Droits Pour Tous (“MDT”), and Inclusive Development International (IDI). The complaint raises concerns with regards to the resettlement process conducted by a Guinean subsidiary of AngloGold Ashanti, la Société AngloGold Ashanti de Guinée S.A. (SAG), when a decision was taken to expand Siguiri’s gold mine in Guinea to the area where the complainants used to live (Area One). The complainants further allege that SAG has failed to properly compensate them after resettlement, and to take adequate measures to restore their livelihoods. 

 

CAO Action

CAO found the complaint eligible for assessment in June 2017, and conducted a field visit to Guinea to discuss options for addressing the complaint with the relevant parties in October 2017. During the assessment process, the complainants and the IFC sub-client expressed their desire to meet to exchange information about the issues raised in the complaint and to discuss next steps. The assessment report is available at the below links in English and French. The complainants and the IFC sub-client met in April 2018 to exchange information about the issues raised in the complaint. The parties have agreed to commence a dispute resolution process, which they have decided will be a confidential process. A joint statement to that effect is available at the below link in English and French.

 

Status

The parties have agreed in April 2018 to commence a dispute resolution process.

Status as of May 14, 2018.

 

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.

Project information

Institution
IFC
Project Name & Number
Nedbank 26014
Department
Global Financial Markets
Company
Nedbank Group Ltd
Sector
Banking
Region
Sub-Saharan Africa
Country
Guinea
Environmental Category
FI
Commitment
Debt up to ZAR1billion ($139 million equivalent)

Case Tracker

Ombudsman

  • Eligible: Completed
  • Assessment Period: Completed
  • Facilitating Settlement: In Process

Compliance