[Kiri Post]: The International Finance Corp (IFC) board on Wednesday found “no policy non-compliance” of their environmental and social sustainability policy in their investments in six financial institutions in Cambodia— a decision slammed by Cambodian rights-based NGOs Licadho and Equitable Cambodia (EC), and which separately led to the resignation of Janine Ferretti, Director-General of the Office of the Compliance Advisor Ombudsman (CAO).

The IFC board, however, approved a management report that includes the setting up of a “special management action plan” to address the harms faced by 18 complainants in Cambodia who suffered harms linked to their loans from Acleda Bank Plc, KB Prasac Bank Plc, Hattha Bank Plc, Sathapana Bank Plc, LOLC (Cambodia) Plc, and Amret MFI Plc.

These six institutions are either direct or indirect investment beneficiaries of IFC, which CAO found had failed to comply with the environmental and social sustainability (E&S) policy obligations during pre-investment due diligence and supervision of their clients in dispensing microfinance loans.

IFC’s plan, which would be monitored by CAO, involves hiring a local facilitator to help the complainants, including through loan restructuring, deferred repayments, or interest adjustments.

It would also help them access existing resources, such as the Financial Consumer Protection Center, the National Bank of Cambodia complaints and inquiry hotline, and mediation services under the National Authority for Alternative Dispute Resolution, IFC said.