Investigative firm Pogo (Project on Government Oversight) has revealed that an analyst from a little-known US agency raised concerns about a project potentially displacing nearly 10,000 people from villages in the Democratic Republic of Congo (DRC). This displacement would violate the Development Finance Corporation’s (DFC) policy, which prohibits funding projects that displace 5,000 or more people. After refusing to approve the project, the analyst was reportedly fired, according to Pogo, a non-profit organization that exposes waste, fraud, abuse, and conflicts of interest in the US federal government.
Last December, Congress expressed concerns to the DFC regarding reports of retaliation against whistleblowers and union organizing activities. “I can’t believe someone can be fired in a country like the US for defending human rights,” said Emmanuel Umpula, executive director of African Resources Watch, a Congo-based monitoring group. Umpula emphasized the need for better infrastructure in the DRC, including roads, but stressed that development should minimize adverse impacts on local communities and the environment.
A letter dated December 12, 2023, addressed to Scott Nathan, DFC’s Chief Executive, stated, “It is critical that DFC management respects employees’ organizing and whistleblower rights, and we urge you to investigate and address these concerning allegations as soon as possible.”
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The letter also highlighted reports of retaliation against employees, including union officers, for engaging in legally protected labor organizing activities. Such actions would be illegal and contrary to the Biden Administration’s pro-labor stance.
DFC is the US development bank that partners with the private sector to finance solutions to critical challenges in the developing world while adhering to high standards of environmental, human rights, and worker rights. It invests across various sectors, including energy, healthcare, infrastructure, and technology, and provides financing for small businesses and women entrepreneurs to create jobs in emerging markets.
At DFC, internal tensions are growing due to the rush to finalize deals abroad, which threatens to undermine protections for the overseas communities the agency aims to support. The US funds were intended to finance a Congolese project as part of a strategy to counter China’s influence in Africa and secure access to electric vehicle supply chains. DFC, with its mission of stimulating private investment in the developing world, is viewed by Congress as a key tool in responding to China.
A DFC official declined to discuss personnel matters but told Pogo that “DFC strictly prohibits retaliation and has strong measures in place to prevent it.” He also noted that the agency thoroughly assesses the risks associated with each investment.
The DRC’s southern Copper Belt, which supplies 70 percent of the world’s cobalt for rechargeable lithium-ion batteries, is at the center of this controversy. The 184-kilometer, $850 million Kasomeno–Mwenda toll road project aims to improve access to these mines. Despite the concerns, the project is proceeding without DFC’s involvement.
SOURCE: reuters