WASHINGTON, March 7, 2025 - As announced in July 2024, the Board of Executive Directors of the International Finance Corporation (IFC) retained the global law firm Freshfields to conduct an independent review of the Compliance Advisor Ombudsman’s (CAO) investigation of IFC’s investment in Bridge International Academies. The CAO is IFC’s independent accountability mechanism and reports directly to the IFC Board.
World Bank Group President Ajay Banga called for the review after a CAO investigation found that IFC had received reports of child sexual abuse while invested in Bridge International Academies and that the allegations were not acted on as early or aggressively as they could have been.
The review considered whether IFC, intentionally or otherwise, impeded, restricted, constrained, burdened, or interfered with the CAO investigation, and whether such action or inaction limited the effectiveness of the CAO investigation.
Freshfields concluded, after a robust review which included interviews with relevant witnesses and the examination of thousands of documents, that IFC did not act with the intent to obstruct or frustrate the CAO investigation. Freshfields also found that IFC could have cooperated with the CAO investigation in a more timely, efficient, and rigorous manner. Nonetheless, Freshfields concluded that IFC’s approach to cooperation with the CAO investigation did not impact the CAO’s ultimate conclusions.
Freshfields also made recommendations regarding the conduct of future CAO investigations aimed at improving the working relationship between the IFC and CAO.
· The Board should set clear expectations with IFC and CAO regarding the confidential treatment to be afforded to client information in future CAO investigations and reports.
· The Board should instruct IFC to reinforce clients’ obligations to participate in CAO investigations.
· The Board should more clearly define the parameters of CAO’s independence.
· The Board should clarify its views on the types of harm IFC will remediate and instruct CAO to focus its efforts on those harms.
· The Board should consider trainings for IFC and CAO personnel to increase understanding of their respective mandates and responsibilities.
The Board has accepted these findings and will take prompt action related to the recommendations.
CONTACT:
In Washington: David Theis, (202) 203-0601, dtheis@worldbank.org
