World Bank attacked over gold mine (Guatemala) [View All]

[struggle4progress]

By Christopher Swann in Washington
Published: August 21 2005 21:07 | Last updated: August 21 2005 21:07

<snip> The confidential draft report, obtained by the FT, charges that the bank failed adequately to consult the local community or properly evaluate the environmental and humanitarian impact of the mine.

The Compliance Adviser Ombudsman argues that the International Finance Corporation (IFC) the private finance arm of the bank was lax in following its own procedures.

Although only in draft form, the report is likely to be an embarrassment to the bank, which only recently completed a review of its involvement in extractive industries. Last year it rejected the recommendation of an independent report it commissioned by Emil Salim, Indonesia's former environment minister, that it withdraw from extractive industries.

Glamis Gold, the Canadian company constructing the mine, has said the venture has broad support from the indigenous Mayan Indians. But the project has been plagued by controversy. In January a 40-day protest by locals ended in bloodshed when security forces clashed with protesters, resulting in one death. On March 13 a villager was shot dead by an off-duty employee of Grupo Golan, a company providing security for Glamis. And in June a referendum in a nearby municipality showed 98 per cent opposed moving forward with the project. <snip>

http://news.ft.com/cms/s/94300a50-127a-11da-8cc3-00000e2511c8.html