IFC, in collaboration with the German development bank Kreditanstalt für Wiederaufbau (KfW) and the Development Bank of Austria (OeEB), created a global Microfinance Enhancement Facility (MEF) in 2009 to support microfinance institutions worldwide that may face funding shortfalls during periods of unprecedented financial stress. At the time of investment, IFC aimed to support over 100 microfinance institutions operating in more than 30 countries, including over 20 IDA countries.

In July 2024, CAO received a complaint concerning KB PRASAC PLC (PRASAC), a client of MEF. The complainant, a borrower with PRASAC, raised concerns about the harmful effects of the lending and collection practices on their livelihood and social well-being. The complainant alleged that they faced threats and intimidation from project employees, including pressure to sell their last plot of land, which they currently use to grow vegetables for family consumption. The complainant also alleged that these actions led to a decline in their daily living conditions and contributed to potential food insecurity.

In October 2024, CAO found the complaint eligible and initiated an assessment. During this process, the complainant and the company agreed to engage in a voluntary CAO-facilitated dispute resolution process to address the issues raised in the complaint. In March 2025, CAO released its Assessment Report available in English and Khmer.

As a result of the voluntary dispute resolution process, the complainant and the company reached and signed an agreement in March 2025 which addressed the issues raised in the complaint. CAO monitored the implementation of the agreement until August 2025.

At the end of the monitoring phase, both parties expressed satisfaction with the progress of the agreement implementation.  In August 2025, the parties confirmed that all issues had been resolved to their satisfaction and. CAO closed the case. The Dispute Resolution Conclusion Report was finalized in December 2025 and is available in English and Khmer.