Mauritius: Africa Investco-01

Date Filed
28 Mar 2012
Status
Closed
Phase
Dispute Resolution (DR)
Country
Mauritius

Case Tracker

Eligibility
Eligibility
Assessment
Closed
Assessment
Dispute Resolution
Compliance
CURRENT Status
Assessment
Closed

Complaint Overview

Complainant

Confidential

Concerns

Compensation, fair treatment, management systems

Cross-Cutting Issues
Labor

Project Information

Region
Sub-Saharan Africa
Institution
IFC
Name & Number
Africa Investco 27819
Company
Baobab Investments Limited
Sector
Infrastructure
Department
Infrastructure
Category
C
Commitment

$3 million equity

Synopsis

Complaint

The investment involves IFC’s acquisition of up to a 15 percent equity interest in a newly formed Africa-focused transport infrastructure development company (Baobab Investments Ltd), alongside three other global companies. Baobab Investments Ltd (the “Company”) was expected to become a premier infrastructure developer in Africa and was pursuing a select number of high-impact, large scale transport infrastructure projects in three to four African countries. The Company is based in Mauritius with a U.K. subsidiary in London. IFC extended up to $3 million equity investment to enable the financing of the Company’s activities and to provide equity for the Company’s projects, as required. 

In March 2012, CAO received a complaint raising labor issues regarding unpaid salaries and expenses owed to employees of Baobab Investments. The complaint cites a specific case in which an employee’s salary and expenses have been unpaid since September 2010 and May 2011 respectively. The complainant alleges that other ex-employees are in a similar situation. In addition, the complainant expressed concerns with regard to lack of information from management and shareholders to the work force, and specifically as it relates to liquidation of the U.K. subsidiary. The complainant requested confidentiality.

CAO Action

When CAO commenced its assessment in April 2012, the complainant and IFC informed CAO that efforts to resolve the complaint issues were already underway. All relevant parties conveyed their preference for those efforts to continue with the hope of reaching a successful conclusion without CAO's assistance. CAO maintained regular communication with the complainant and IFC throughout the assessment period and, in July 2012, the complainant and IFC informed CAO that the matter was resolved. CAO independently confirmed the complainant’s satisfaction with the outcome.

Status

CAO's combined Assessment-Conclusion report is available at the links below. CAO closed the case in September 2012.

Case Documents

  • Dispute Resolution

    Assessment Report(s)
    OMBUDSMAN ASSESSMENT
    Sep 01, 2012
    English
    OMBUDSMAN ASSESSMENT
    OMBUDSMAN ASSESSMENT
    Sep 28, 2012
    English
    OMBUDSMAN ASSESSMENT