CAO Cases

Arne Hoel, The World Bank

East Asia & the Pacific

Cambodia / Cambodia: VEIL II-01/Ratanakiri Province

Complainant
Households living in Ratanakiri Province (names confidential)
Date Filed
February 10, 2014
Concerns
Loss of land, water concerns, child labor, information disclosure, community consultation and due diligence
Case Status
Open - Ombudsman
 

Synopsis

Complaint

Vietnam Enterprise Investments Limited (VEIL or the Fund) is a closed-end investment fund which has been in operation since 1995.  The Fund has a capital base of just over US$500 million  and is managed by Dragon Capital Management Ltd., a subsidiary of Dragon Capital Group (DCG).  IFC has invested US$16.4 million in the Fund. The Fund aims to invest in publicly or privately issued securities of Vietnamese companies, with the stated aim to provide incentives for the development of Vietnamese capital markets by increasing liquidity of Vietnamese securities. One of the companies DCG invests in through the Fund is Hoang Anh Gia Lai (HAGL).  

 

In February 2014, local members of 17 villages in Ratanakiri Province in Cambodia lodged a complaint with CAO with the support and assistance of five Cambodian NGOs. The complaint raises a range of environmental and social concerns about HAGL’s Cambodia operations, including impacts on water sources and fish resources, loss of land, lack of compensation, lack of information disclosure and engagement with the people, threat to spiritual, cultural and indigenous practices, as well as use of child labor.  The complaint alleges non-compliance with IFC policies and procedures and with Cambodian laws. The complainants requested that CAO keep their identities confidential. 

 

CAO Action

The CAO found the complaint eligible for further assessment in February 2014 and concluded the assessment of the complaint in April 2014. Based on stakeholder discussions conducted as part of CAO's assessment of the complaint, the Complainant and Company have agreed to engage in a voluntary dispute resolution process. 

 

Status

CAO is working with the parties on establishing ground rules to guide the process. The dispute resolution process is ongoing. 

 

Note: An assessment does not entail a judgment on the merits of the complaint.  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 August 12, 2014

 

 



Project information

Institution
IFC
Project Name & Number
VEIL II 20926
Department
Financial Markets
Company
Dragon Capital Group
Sector
Agribusiness
Region
East Asia & the Pacific
Country
Cambodia
Environmental Category
FI
Commitment
Quasi-equity US$16.4 million

Case Tracker

Ombudsman

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

Compliance