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Serious setbacks in IFC’s handling of complaints about its support for Wilmar CAO admission of validity of NGO complaint regarding Wilmar ignored by IFC

UpdateFPP and 18 other NGOs, including local organisations in Indonesia, have been involved in a long-running process to get redress for the IFC’s persistent violations of its social and environmental policies in the palm oil sector in Indonesia. For over five years IFC has been providing financial support to the company Wilmar Trading / Wilmar International, one of the world’s largest palm oil dealers, directly and through various subsidiaries. In August 2007, FPP with other concerned NGOs and local organisations in Indonesia filed a complaint with the IFC Compliance Advisory Ombudsman (CAO) about this financing, alleging serious social and environmental problems in Wilmar’s operations, as well as violations of IFC’s own standards and procedures in making these credits and loans.

IFC to be audited for policy violations over palm oil projects; NGO complaint regarding Wilmar taken up by CAO

Update

In July 2007, Forest Peoples Programme with 18 other NGOs including local groups in Indonesia filed a complaint with the International Finance Corporation's (IFC) Compliance Advisory Ombudsman (CAO) about the IFC's funding of the palm oil producing and trading company, Wilmar. The complaint raised concerns about the impacts of Wilmar's operations on local communities, company violations of Indonesian laws and environmental policies, and IFC staff's violations of IFC policies and procedures. We also complained that the IFC, as a member of the Roundtable on Sustainable Palm Oil (RSPO), was contravening RSPO rules by asserting on the IFC website that Wilmar's operations were compliant with the RSPO's standard.