Bangladesh, July 19 -- The International Finance Corporation (IFC), the private-sector investment arm of the World Bank Group, is facing mounting scrutiny after an unprecedented dispute over an investigation into Cambodias microfinance sector triggered a leadership resignation and raised fresh concerns about the future of independent oversight within the institution.

The controversy centers on the Compliance Advisor Ombudsman (CAO), the IFCs independent accountability mechanism, whose findings on alleged failures in the banks oversight of Cambodian microfinance lenders were rejected by the IFCs board. The decision has prompted criticism from civil society organizations, development finance experts, and governance specialists, who warn th...