Both ENDS

Letter / 14 July 2026

Statement on CAO Cambodia Microfinance Case

The independent complaints mechanism of the International Finance Corporation (IFC) and the World Bank Group found that the IFC violated its own Environmental and Social Sustainability Framework by investing in six banks providing microfinance in Cambodia.

This statement is a response to the unprecedented move by the World Bank Board of Directors to overrule its own accountability mechanism and, despite presenting no supporting evidence, to publish a statement on June 24 claiming that “there has been no policy noncompliance under IFC’s Policy on Environmental and Social Sustainability.” Following this decision, Compliance Advisor Ombudsman (CAO) Director Janine Ferretti resigned. The statement explains why this decision poses a grave risk to accountability and the independence of accountability mechanisms, and it has been signed by civil society organisations (CSOs) and experts from across the world.

Both ENDS signed the statement because this attack on accountability sets an extremely dangerous precedent, not only for those affected by the World Bank's investments, but also for global standards of institutional accountability more broadly.

Both ENDS has been working with communities across the globe that are harmed by development finance. Complaints mechanisms are often one of the very few avenues available to seek recourse when harm is done. While these systems still need significant improvement, the Board’s interference deals a severe blow to the limited protections that currently exist.

Read the full statement here.

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Statement on CAO Cambodia Microfinance Case

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