IFC Board Accepts Review Findings on CAO Investigation of Bridge International Academies

Following a thorough investigation, which included extensive document reviews and witness interviews, Freshfields concluded that IFC did not intentionally obstruct or frustrate the CAO’s inquiry.

In July 2024, the Board of Executive Directors of the International Finance Corporation (IFC) appointed global law firm Freshfields to conduct an independent review of the Compliance Advisor Ombudsman’s (CAO) investigation into IFC’s investment in Bridge International Academies. The CAO, an independent accountability mechanism reporting directly to the IFC Board, had previously determined that IFC received reports of child sexual abuse at Bridge International Academies while invested in the company and did not act as promptly or aggressively as it could have.

Following a thorough investigation, which included extensive document reviews and witness interviews, Freshfields concluded that IFC did not intentionally obstruct or frustrate the CAO’s inquiry. However, the review found that IFC could have cooperated with the CAO in a more timely, efficient, and rigorous manner. Despite these shortcomings, Freshfields determined that IFC’s cooperation did not ultimately impact the CAO’s final conclusions.

Key Findings and Recommendations

The independent review provided several recommendations to enhance future CAO investigations and strengthen the IFC-CAO working relationship:

• Confidentiality Standards: The Board should establish clear guidelines regarding the treatment of client information in future CAO investigations and reports.
• Client Participation: IFC should reinforce the obligation of its clients to fully engage in CAO investigations.
• CAO Independence: The Board should define the scope of CAO’s independence more explicitly to ensure clarity for all parties.
• Remediation Guidelines: IFC should clarify the types of harm it will remediate and instruct CAO to focus its efforts on those specific areas.
• Training Programs: The Board should consider implementing training programs for both IFC and CAO personnel to enhance their understanding of their respective roles and responsibilities.

IFC Board Response

The IFC Board has accepted Freshfields' findings and recommendations and has committed to taking prompt action to implement the proposed changes. These measures aim to improve the efficiency and effectiveness of IFC’s engagement with CAO investigations, reinforcing accountability, transparency, and IFC’s commitment to responsible investment practices.

This review marks a significant step toward strengthening IFC’s accountability framework and ensuring that its investments align with the highest ethical and social responsibility standards.