Compliance Advisor Ombudsman

Complaint

The Wilmar Group is a large agribusiness conglomerate specializing in the production and trade of palm oil, operating in Asia, eastern Europe, and Africa. Since 2003, IFC has undertaken four investments in the Wilmar Group. In December 2008, a second complaint was lodged with the CAO by various community groups and international NGOs. This complaint raises similar issues to the original complaint from July 2007, regarding adverse environmental and social impacts of Wilmar Group operations:

1. Land clearance without appropriate community approval or completion of Environmental Impact Analysis (EIA) processes;

2. Violation of national regulations and laws as well as the certification protocols of the Roundtable on Sustainable Palm Oil;

3. Inadequate compliance with IFC operating procedures and due diligence requirements. The complainants are concerned about environmental and social impacts being experienced by local communities caused by wholly owned subsidiaries (other palm oil plantations) of the Wilmar Group.

CAO Action

Two community groups have agreed to a facilitated mediation process - described in detail in the CAO's Assessment report.  The role of the CAO in these cases is to provide guidance, mentoring and support as an observer to the processes. CAO is not the facilitator of the disputes but is supporting local mediation entities that are selected by the parties.

Status

The Ombudsman dispute resolution process is ongoing.