Date: October 2023

A recent publication from the Organised Crime and Corruption Reporting Project (OCCRP), indicates that the Central American Bank for Economic Integration (CABEI), downplayed a series of red flags that led to harassment and loss of life. According to their investigation, the bank supported at least 25 hydroelectric power plant projects in Central America since 1992, some of which were deeply contentious and surrounded by misappropriation and undue influence.

In some cases, loans were diverted through a series of offshore companies. In others, individuals who opposed these dams lost their lives, and experienced intimidation, threats, and violent crackdowns while protesting. One of them is Berta Cáceres. In 2016, she was killed in her bedroom by assailants. Two of the men arrested in connection to the murder had ties with Desarrollos Energéticos SA (Desa), a construction company building the Agua Zarca dam, a project Berta had campaigned against.

Internal audits reveal that CABEI disregarded multiple warning signs, conducted minimal due diligence, and persisted in supporting the project even after a protester lost their life Co-investors withdrew, and the bank received numerous complaints from indigenous communities, ultimately selling off the loan in 2019.