Liberia: 22 Indigenous Communities in Margibi Write World Bank's President David Malpass Seeking Reforms, Compensation & Reparations Over SRC's Alleged Actions

Monrovia — Twenty-two indigenous communities in Margibi County have petitioned the World Bank through its President David Malpass to institute reforms that will lead to compensation and reparations for damages done to indigenous communities as the result of a World Banks' loan.

These communities have been in conflict with the Salala Rubber Corporation (SRC) based in Margibi County. They accused SRC of gross human rights violations including land grab, forced eviction, lack of consultation, economic displacement, and loss of livelihood and environmental hazards.

They blamed the company's action as the result of the loan acquired from the World Bank through the International Finance Corporation (IFC). The IFC is the largest global development institution focused on the private sector in developing countries. IFC, a member of the World Bank Group, advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries.

In the communication, the communities expressed its 'gravest' concerns over what it called the standards and procedure by which the World Bank designates indigeneity in Africa, more specifically, its decision in the approval of a loan to the SRC for operations in Liberia.

Background

On July 21, 2008, the IFC provided US$ 10 million long-term financing to SRC, one of Liberia's leading rubber companies, to help rehabilitate and expand its plantations, optimize processing capacity, and increase employment.

Since then, the SRC has cleared vast land and increase cultivation and production of rubber, much to the communities' detriment. They have protested and, with the help of human rights organizations, channeled their grievances to the government and the World Bank.

In their latest communication dated April 28, 2023, the communities reminded Mr. Malpass that in early 2019, they filed complaint submitted to Compliance Advisory Ombudsman (CAO) related to the company's action that was exacerbated by the loan.

They stated that Even though the CAO found the complaint eligible for further assessment in June 2019 and conducted a field visit to Liberia in October 2019 to discuss options for addressing the complaint with the relevant parties, the company refused to engage in a dispute resolution process facilitated by CAO.

Again, in September 2020, they recalled that CAO completed a compliance appraisal of the case, noting that the alleged environmental and social impacts were serious in nature, and while IFC's documentation indicated that many of these issues were identified, it is not clear whether they were effectively addressed or resolved by IFC's standards during IFC's pre-investment due diligence and supervision. It therefore decided that an investigation was warranted in relation to the issues raised in the complaint.

The communities stated that it is almost five years since they submitted a formal complaint of these abuses to the CAO and more than fifty Years, (almost half a century) since these abuses

continued to be perpetrated against them. They stated that before awarding SRC the loan in the first place, the IFC should have followed and adhered to several performance standards (PS).

One of these standards is the IFC's own PS7, which seeks to ensure that business activities minimize negative impacts, foster respect for human rights, dignity and culture of indigenous populations, and promote development benefits in culturally appropriate ways. Informed consultation and participation with IPs throughout the project process, is a core requirement and may include Free, Prior and Informed Consent under certain circumstances.

But the community said this was not done. They claimed that the World Bank said it did not classify them as indigenous people on grounds that the original populations in the area are now part of the now dominant society and culture.

The communities disagreed. "Mr. President, the manner through and by which the World bank has made this decision is unclear, haphazard, arbitrary, unscientific, indiscriminate, capricious and seemingly flawed. There happens to be a lack of transparency in how this decision came about as well as lack of qualified professional and empirical determination in the field to assess the rational basis of the situation and circumstances of the indigenous communities to even make the decision and thus, are calling for change in this process," they said in the letter addressed to the World Bank President.

The recommendations

Presenting the communication to the World Bank through its Liberia County Office in Monrovia, Emmanuel Kpaingbah, said they no longer have a place to farm or break firewood; adding that the company's actions have worsened their living conditions.

"We are the ones that SRC took our land, spoiled our water, and denied us because we are not traditional people and don't have access to the land. So, because of that, we, the affected communities' people, decided to write this petition to you because you gave the company the money to take our land from us," he said in the petition.

He maintained that the petition to the IFC was therefore intended to inform them officially that the loan to SRC has marginalized and maltreated them in their communities, calling on the bank to look into the case again or provide them with some level of economic support.

In a set of recommendations, the communities called on the World Bank to reassess its decision to not apply performances standard 7 concerning indigenous communities.

They called for the appointment of an Indigenous People's specialist who will be responsible to, among other things, consult widely and engage different stakeholders including the affected Communities to determine their indigeneity, conduct a comprehensive assessment on the status of indigeneity of the tribal communities, provide recommendations on policy reforms within the bank to change IFC policy categorizing most African tribes as non-indigenous without any evidentiary basis, as well as compensation and reparations.

They called for standard by which all claims can be decided, a standard provided by an expert so that future classifications are more accurately and prudently surmised.

In addition, the communities want the Indigenous People's specialist, when appointed, to propose or make recommendations for compensation, reparations or other benefits to repair and ensure accountability and justice to remedy the injuries, violations and other wrongs committed.

The communities were accompanied by some of the supporting organizations. Windor Smith, head of secretariat of the Alliance for Rural Democracy (ARD), reiterated that the rights of the people have been grossly violated by the operation SRC.

"It [the company's action] has caused serious harm to the affected people. We, as CSOs representing those communities, have been helping them with their case but with no result. So, the communities themselves taught it wise to come and present this petition to the World Bank," Smith said.

Receiving the position statement, IFC Operation Officer Bobby Musah commended the affected communities for the peaceful assembly and said the World Bank will response to their petition.

He, however, told the locals that the loan agreement expired since 2020 after the company paid back the loan, but noted that IFC was committed to complying with best practices in institutions and environmental protection and will always work with clients to do the same.

Francis K. Colee, speaking on behalf of Green Advocates, called on the IFC and SRC to see reasons and provide some forms of reparations and compensation to the affected communities.

Other organizations that accompanied the communities were the Natural Resource Women Platform (NRWP), and the Yeagbamah National Congress for Human Rights (YNCHR). Together, they have rendered supported the locals in standing up for their rights.

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