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 complaint alleged that they were pressured to sell their land outside of the legal foreclosure process at a lower market rate, resulting in the loss of their income-generating activity. Finally, the complainants raised that they faced threats and reprisals. 

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.

Between March and July 2025, three joint sessions were held as part of the dispute resolution process. In July 2025, during the third session, the parties reached a full and final agreement. Implementation began on July 16, 2025. The details of the agreement remain confidential. CAO will monitor its implementation for 35 months, through June 2028, with the possibility of an extension.