IFC funding decried as 'shrouded in darkness and riddled with abuse'

NGOs launch collective call for revamp of World Bank's private sector arm amid accusations it has 'lost control of the way money is spent'

The World Bank must "completely overhaul" a funding model built on heavy investment in financial companies that leaves the organisation with little control over where its money ends up, a group of NGOs has warned.

The bank's private sector arm, the International Finance Corporation (IFC), invested $36bn (24.5bn) in financial companies including hedge funds, private equity firms and commercial banks between 2009 and 2013, according to a report released on Thursday. The study, prepared by NGOs including Oxfam, Global Witness and the Bretton Woods Project, said these funds would be better used to pursue development targets in areas such as education and public health.