You are currently viewing the printable version of this article, to return to the normal page, please click here.

Camisea problems don’t fit IDB claims

I must respond to the misleading Nov. 15 letter from the Inter-American Development Bank (IDB), "Clearing up Camisea misconceptions," written to conceal the financial mismanagement and environmental damage caused by the Camisea project, which were exposed in Kelly Hearn's Nov. 9 article "U.S. questions development bank after troubled gas project in Peru."

When ProPublica published accounts of the IDB's enormous investment losses in February 2009, the bank denied them. ProPublica responded with a letter from Sen. Richard Lugar, Indiana Republican, to the IDB president, which read:

"The reported scale of the IDB's investment portfolio losses of $1.9 billion - 10 to 100 times higher than the losses of the other development banks - is of grave concern."

The IDB's own internal review stated that those losses were caused by inadequate risk analysis that allowed heavy investment in U.S. mortgage-backed securities.

Although the U.S. Treasury approved the IDB's capital request, the bank should be aware that in the United States, financial appropriations are made by Congress. Congress may not approve Treasury's requested increase for the IDB because of the bank's poor management, even if other development banks receive increased funding.

With respect to the public consultations on the pipeline the IDB cites, the coalition of indigenous-peoples organizations routinely protests the stage-managed quality of these meetings. Last year, the coalition wrote that the agenda had not been agreed to by stakeholders, diverse participation was not guaranteed, relevant information was not distributed, and the time frame was too short for meaningful dialogue.

Finally, the IDB claims that no further ruptures have occurred, but with the consultations staged and the documentation unexamined, who can believe that?



© Copyright 2014 The Washington Times, LLC. Click here for reprint permission.

blog comments powered by Disqus
TWT Video Picks
You Might Also Like
  • Maureen McDonnell looks on as her husband, former Virginia Gov. Bob McDonnell, made a statement on Tuesday after the couple was indicted on corruption charges. (associated press)

    PRUDEN: Where have the big-time grifters gone?

  • This photo taken Jan. 9, 2014,  shows New Jersey Gov. Chris Christie gesturing as he answers a question during a news conference  at the Statehouse in Trenton.  Christie will propose extending the public school calendar and lengthening the school day in a speech he hopes will help him rebound from an apparent political payback scheme orchestrated by key aides. The early front-runner for the 2016 Republican presidential nomination will make a case Tuesday Jan. 14, 2014, that children who spend more time in school graduate better prepared academically, according to excerpts of his State of the State address obtained by The Associated Press. (AP Photo/Mel Evans)

    BRUCE: Bombastic arrogance or humble determination? Chris Christie’s choice

  • ** FILE ** Secretary of State Hillary Rodham testifies on Capitol Hill in Washington, Wednesday, Jan. 23, 2013, before the Senate Foreign Relations Committee hearing on the deadly September attack on the U.S. diplomatic mission in Benghazi, Libya, that killed Ambassador J. Chris Stevens and three other Americans. (AP Photo/Pablo Martinez Monsivais, File)

    PRUDEN: The question to haunt the West

  • Get Breaking Alerts