Improper Interference in Pending CAO Case

The Center for International Environmental Law (CIEL) alleges that the International Finance Corporation's (IFC) Agribusiness Department improperly interfered in a Compliance Advisor Ombudsman (CAO) case concerning an IFC-financed ethanol plant and sugarcane fields in Nicaragua. CIEL claims the Department issued inaccurate public statements on January 29, 2009, which mischaracterized the CAO's findings on the link between Nicaragua Sugar Estates Limited (NSEL) and an epidemic of chronic renal insufficiency (CRI). CIEL argues these actions undermine the CAO process and jeopardize sensitive negotiations between local communities and NSEL regarding health services and epidemiological studies. The letter requests a retraction of the response, an inquiry into its preparation, and the appointment of an overseer for the Department's activities in this case.

• The IFC's Agribusiness Department is accused of improperly interfering in a CAO complaint by issuing a response on January 29, 2009, containing inaccurate statements that prioritize the reputation of the IFC and its clients over the IFC's mission to reduce poverty.
• In Nicaragua, communities have complained to the CAO about an IFC-financed ethanol plant and sugarcane fields operated by Nicaragua Sugar Estates Limited (NSEL), citing an epidemic of chronic renal insufficiency (CRI) that has caused thousands of deaths.
• CIEL asserts that the Agribusiness Department misrepresented the CAO's position on the causal link between the sugar industry and CRI, falsely claiming the CAO noted no clear connection, whereas the CAO actually stated that no studies currently prove such a link.
• The document alleges a systemic pattern within the IFC where staff discourage clients from cooperating with the CAO and prioritize winning cases over improving conditions for affected communities, contradicting 2006 assurances that community protections would not be weakened.

APA

Magraw, D. B. (2009). Improper Interference in Pending CAO Case. Center for International Environmental Law. https://www.ciel.org/wp-content/uploads/2015/05/Zoellick_IFC_9Feb09.pdf

Chicago

Magraw, Daniel Barstow. Improper Interference in Pending CAO Case. Center for International Environmental Law, 2009. https://www.ciel.org/wp-content/uploads/2015/05/Zoellick_IFC_9Feb09.pdf.

Wikipedia

{{cite press release |last1=Magraw |first1=Daniel Barstow |title=Improper Interference in Pending CAO Case |publisher=Center for International Environmental Law |date=9 February 2009 |url=https://www.ciel.org/wp-content/uploads/2015/05/Zoellick_IFC_9Feb09.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{magraw2009improper, author = {Magraw, Daniel Barstow}, title = {{Improper Interference in Pending CAO Case}}, publisher = {Center for International Environmental Law}, year = {2009}, month = feb, url = {https://www.ciel.org/wp-content/uploads/2015/05/Zoellick_IFC_9Feb09.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }