Liberia: Salala Rubber Corporarion (SRC)-01/Margibi & Bong Counties

Date Filed
27 May 2019
Status
Open
Phase
Compliance
Country
Liberia

Case Tracker

Eligibility
Eligibility
Assessment
Assessment
Dispute Resolution
Compliance
Appraisal
Investigation
CURRENT Status
Investi3gation (COMPLIANCE)

Complaint Overview

Complainant

Community members from twenty-two communities located in the Margibi and Bong counties in Liberia (Confidential)

Concerns

Land grab and forced eviction, lack of consultation, economic displacement and loss of livelihood, employment conditions and labor rights violations, water pollution, gender-based violence and threats of reprisals and intimidation

Cross-Cutting Issues
Risk Management Labor Resource Efficiency Community Health and Safety Land Resettlement Indigenous Peoples Cultural Heritage Land Water Children Women Coercion Violence / Abuse GBVH Loss of Livelihoods Private / Personal Property Damage Public Infrastructure Damage Unfulfilled Commitments Access to Information Policy

Project Information

Region
Sub-Saharan Africa
Institution
IFC
Name & Number
Salala Rubber Corporation 26510
Company
Salala Rubber Corporation
Sector
Infrastructure
Category
B
Commitment

$10 million A Loan

Synopsis

Project Overview

IFC has an active project with Salala Rubber Corporation (SRC) which is Liberia’s fourth largest rubber producing and processing company. IFC provided a $10 million A Loan to SRC, to finance SRC’s plans to rehabilitate, expand, and optimize its plantations, which had been neglected during several years of civil war in Liberia.

Complaint

On May 27, 2019, a complaint was submitted to CAO by four NGOs representing twenty-two communities from the Margibi and Bong counties in Liberia, who have requested their identities be kept confidential. The complaint raises concerns related to land grab and forced eviction, lack of consultation, economic displacement and loss of livelihood, employment conditions and labor rights violations, water pollution, gender-based violence and threats of reprisals and intimidation.  

CAO Action

CAO found the complaint eligible for further assessment in June 2019 and conducted a field visit to Liberia in October 2019 to discuss options for addressing the complaint with the relevant parties. During CAO’s 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 partiality of CAO’s team.  Given these concerns, the Company indicated a willingness to engage with the impacted community, but not in a CAO led dispute resolution process. In keeping with CAO’s Operational Guidelines, the complaint was referred to CAO’s Compliance function.  

In September 2020, CAO completed a compliance appraisal of the case and decided that an investigation was warranted in relation to the issues raised in the complaint. In reaching this decision, CAO noted that the alleged environmental and social impacts are serious in nature and, while IFC’s documentation indicates many of these issues were identified, it is not clear whether they were effectively addressed or resolved in accordance with IFC’s standards during IFC’s pre-investment due diligence and supervision. 

Status

CAO will conduct a compliance investigation in response to this complaint. The Terms of Reference defining the scope of the investigation in accordance with CAO’s Operational Guidelines and other case related reports can be found via the "View Documents" tab. 

The compliance investigation is underway.
 

Status as of November 25 2020

Case Documents

  • Dispute Resolution

    Complaint
    CAO Complaint - Liberia - Salala Rubber Corporation 01
    Apr 15, 2019
    English
    CAO Complaint - Liberia - Salala Rubber Corporation 01
    Assessment Report(s)
    CAO Assessment Report - Liberia - Salala Rubber Corporation 01
    Mar 01, 2020
    English
    CAO Assessment Report - Liberia - Salala Rubber Corporation 01
    IFC Response to CAO Assessment Report - Liberia - Salala Rubber Corporation 01
    Mar 19, 2020
    English
    IFC Response to CAO Assessment Report - Liberia - Salala Rubber Corporation 01
    Case Communique - Liberia - Salala Rubber Corporation 01
    Jun 29, 2020
    English
    Case Communique - Liberia - Salala Rubber Corporation 01
  • Appraisal Report(s)
    CAO Appraisal Report - SRC Liberia
    Sep 30, 2020
    English
    CAO Appraisal Report - SRC Liberia
    Audit Report(s)
    Terms of Reference for CAO Compliance Investigation
    Nov 25, 2020
    English
    Terms of Reference for CAO Compliance Investigation