Research shows that the World Bank has failed to monitor abuse in Kenyan schools

The World Bank’s internal watchdog on Thursday criticized the organization’s handling and oversight of its investments in a chain of Kenyan schools that were subject to an internal investigation following allegations that students had been abused.

The investigation, which began in 2020, has consumed World Bank officials and shareholders in recent months and led to investigations into its investment arm, the International Finance Corporation, which invested in the education project a decade ago.

Countries on the IFC’s board have debated how to compensate victims of the abuse. Although the scandal predates the tenure of Ajay Banga, the new World Bank president, it has emerged as one of the first tests of his management.

Mr Banga will be responsible for driving any changes to how the bank invests in private sector projects. He has already faced criticism for appearing dismissive of suggestions that the IFC was interfering in the investigation US lawmakers told him so that the bank’s future financing could depend on its handling of the matter.

The watchdog reportpublished by the The World Bank Compliance Advisor Ombudsmanconcluded that the IFC “did not take into account the potential risks of child sexual abuse posed by the project, nor did it take into account the client’s ability to meet environmental and social requirements relating to the risks and consequences of sexual abuse of children.”

The World Bank had a $13 million stake in Bridge International Academies from 2013 to 2022. She quit the program after complaints of sexual abuse at the schools, which led to an internal investigation into the events and a review of how her investment department oversees such programs. .

The report, citing Bridge International Academies, added that the “IFC failed to regularly monitor or substantively address with its client the project-related risks and consequences of child sexual abuse and gender-based violence.”

It was then recommended that the victims of the abuse receive financial compensation.

However, a management action plan agreed by the IFC Board of Directors did not fully take these recommendations into account. Instead, the plan said it would “directly fund a recovery program for survivors of child sexual abuse” for up to 10 years. The plan would pay an unspecified amount for psychological support and sexual and reproductive health care for adolescents.

The decision on whether to directly compensate victims was the subject of intense internal debate among board members, with some arguing that the bank should not take such direct financial responsibility for what happened during the program.

In an email to World Bank staff sent on Wednesday evening, Mr Banga, who was not at the helm during the period of abuse, acknowledged that mistakes had been made in the handling of the program and the investigation and was remorseful. .

“I am sorry for the trauma these children have experienced, I am committed to supporting the survivors and determined to ensure we do better in the future,” Mr Banga wrote.

Mr Banga acknowledged allegations that IFC officials tried to cover up allegations of misconduct, adding that he would appoint an external investigator to ensure the previous investigation was free of interference.

“We should have responded earlier and more aggressively,” he said. “This is a difficult moment for our institution, but it must be a moment of introspection.”

Human rights groups and civil society organizations have been critical of the proposed action plans, arguing that they do not go far enough to compensate victims.

On Thursday they continued to lament the lack of direct financial support in the action plan, which proposes to pay for it counseling services and healthcare for the victims.

“IFC’s action plan fails to do what it is required to do: provide a solution for Bridge survivors,” the spokesperson said. David Predthe executive director of the human rights group Inclusive Development International.

In recent days, US lawmakers have also urged the Treasury Department, which helped nominate Mr Banga to lead the bank, to push for more to be done and reject the action plan.

“I am concerned that failure to provide immediate and meaningful compensation will harm not only the survivors and their families, but also the reputation of the IFC, which has a vital mission around the world, and that of the United States as its largest shareholder,” Rep. Maxine Waters, the top Democrat on the House Financial Services Committee, wrote in a letter to Treasury Secretary Janet L. Yellen on Wednesday.

The Treasury Department, which had pushed for compensation for the victims, said in a statement Thursday that it accepted the report’s findings. However, it suggested that survivors should be consulted as the IFC determines how best to compensate them.

“We believe that the IFC should keep all resolution options on the table as consultations continue,” The Ministry of Finance reported this in a statement.

The statement added that the department was also concerned about allegations of interference in the investigation and welcomed an independent review of how this was handled.

“We are deeply concerned by the broader liability issues this case raises,” the report said.