Editorial | Articles about Cambodia | Khmer

Friday, January 03, 2014

MILITARY POLICE ARE KILLING THE CAMBODIANS WHO MAKE YOUR CLOTHES

By Nathan A Thompson



Four people were killed and 21 more were injured in Cambodia this morning, when police opened fire with AK-47s into a group of protesters. The deaths come after months of tension and escalating violence between the authorities and garment workers who are demanding higher wages.

That tension began to arrive at a head on Thursday evening, when a police battalion in Phnom Penh were beaten back from an apartment block that had been seized by protesters during a day of demonstrations. By this morning, the military cops were engaged in a standoff on Veng Sreng Boulevard – one of the main roads out of the Cambodian capital – and the makeup of their opponents was a curious one. The factory workers, 90 percent of whom are women, had at some point been replaced by groups of metal pole and machete wielding young men, gathered together behind rows of Molotov cocktails.

As you might imagine, the atmosphere was tense. The military police stood in their black ranks, their weapons glinting in the sun, until they chose to respond to a barrage of rocks and bricks with gunfire. A nearby clinic that had refused to help the injured was ransacked. One of the injured was a pregnant woman who had been trying to escape the chaos.



The tragic scenes come after several months of striking by workers at the SL Factory, which supplies Western chains with clothes. The SL workers' own strike ended on the 22nd of December, just in time for them to join a nationwide strike on Christmas Day. The deaths this morning weren't the first. A protest in November saw an innocent bystander – a food vendor named Eng Sokhom – killed by a stray police bullet to the chest, with a further nine getting wounded and 37 arrested. The crackdown actually started last August, when 19 union members were fired and SL Factory shareholder, Meas Sotha, brought his private guards into the factory for "security".

Though the 19 workers were later reinstated, clearly that didn't do much in terms of quelling the rage felt by SL's employees.

The aggro isn't confined to the SL Factory. The Garment Manufacturers Association of Cambodia (GMAC) estimates that over a quarter of working days in the last two years have been lost due to strikes. I lost a working day last May when I found my road home blocked by three enormous concrete pipes that had been dragged into place by cheering, pyjama-wearing factory workers (pyjamas are acceptable daywear in Cambodia).




While men on scooters tried to circumnavigate the blockade by slipping and sliding through a drainage ditch, I stopped and talked with those involved. I found a story that would repeat itself at the gates of factories throughout Cambodia – the workers said they needed higher wages but the bosses said they could not afford to pay them. Both agreed that the onus was on Western chains to pay more for the garments they were buying.

Cambodia’s clothing industry makes up 80 percent of the country's exports and employs 400,000 people, with an estimated 300,000 more working in supporting roles. Almost all are young, female and poor. As a result, rural Cambodian villages are devoid of school-leavers as they get absorbed into the industry. It's a punitive cycle. I lived in a Cambodian village and noticed the older girls from my English class kept disappearing. “Where’s Srey Neung?” I would ask. “She’s gone to work in a factory," would come the typical reply.



Srey Neung, like many her age, now works 60 hours per week in order to send £18 home to her family. She’s lucky to be starting work in 2013. Ten years ago, the situation for workers was atrocious. Rina Roat started her working life in the factories back in 2003. She told me that her basic salary was £27 per month. She had to work up to 20 hours a day including overtime to support herself. She suffered from depression and exhaustion but was too afraid to complain in case she lost her job. She's now an entrepreneur but her hands remain thick with scar tissue from years spent tending to the machines.

Since Rina’s day, there have been small improvements. The minimum wage per month has increased from £27 to £48 between 1997 and 2013. But is this enough to cover the cost of living? Joseph Lee, Director of SL Factory, told me that the minimum one of his workers needed to survive is £35 per month – that’s if they shared a tiny room with four others, ate only super-cheap Ramen noodles and commuted in overstuffed cattle trucks.



That’s nowhere near enough, said Ath Thorn, the president of the Coalition of Cambodian Apparel Workers Democratic Union (CCAWDU). He pointed out that Cambodia’s Ministry of Labour found that garment workers needed at least £95 per month to cover the cost of living. This kind of bickering between factories and unions is typical and often results in protests and violence.

Joseph Lee says this year has been the worst he can remember. He told me that his driver was left half blind after a clash between strikers and security staff at the factory on the 1st of November. The driver was trying to escape the ruckus when a ball bearing was fired from a slingshot. It exploded his eyeball on impact. Lee also alleges that a worker who didn’t want to join the protest was hit by a brick on his way to work. “He used to be the most handsome man in the factory but not any more,” Lee explained. “I want to increase wages but how can I when the buyers keep pushing me to reduce my price?”



One buyer has taken some responsibility. H&M have chosen two factories in Bangladesh and one in Cambodia to pilot a scheme where they interview the management and staff to discover what is a living wage and supply the extra funds from their own profits. They have pledged to pay a living wage, but not until 2018. Koh Chong Ho, the general manager of SL Factory, told me that if the buyers increased their price he'd be able to pay his workers more and that this would go a long way to creating peace and stability in the industry.

Clearly Western brands need to take more responsibility but that won’t solve the problem completely; not while corruption remains uncurtailed. Cambodia is ranked as the 17th most corrupt country in the world by Transparency International. Kol Preap, executive director of Transparency International Cambodia told me that while there are no exact figures, he knows that garment factories pay massive bribes to officials. Koh declined to comment on this.

Opposition party the Cambodian National Rescue Party (CNRP) claim to have been cheated out of winning last summer’s elections and have seen their ranks swell with garment factory workers after promising them their desired wage increase to £160 per month. The pressure on Prime Minister Hun Sen is mounting. Everyone's waiting to see what will happen on Sunday, when the CNRP has called for another demonstration.

Follow Nathan on Twitter @NathanWrites and check out his website.

More bad things happening because of cheap clothes:



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Wednesday, December 04, 2013

Most corrupt in ASEAN

Wed, 4 December 2013
Stuart White
The Phnom Penh Post

Amid a flurry of post-election promises of reform by the government, an index released by Transparency International (TI) yesterday shows that Cambodia’s public sector is perceived to be the most corrupt in ASEAN, and second only to North Korea in all of East Asia.



Since being added to TI’s Corruption Perceptions Index (CPI), the Kingdom’s scores have remained largely stagnant as the country has been outstripped by its regional peers. In 2005, when it joined the survey, Indonesia and Myanmar were behind Cambodia, which was ranked 130th out of 159 nations that year.

But in this year’s index, Cambodia fell to 160th out of 177 nations, with Indonesia and Myanmar holding the 114th and 157th spots, respectively. Laos, which slipped behind Cambodia in 2007, now ranks 140th, and even Bangladesh, which tied for last place in 2005’s index, has climbed to 136th this year.

“While it is encouraging to hear the highest level of Cambodia’s government reiterate their commitment to tackle corruption, corrupt practices will continue and become even more entrenched unless rhetoric is matched by actions,” Sophoan Rath, chairman of TI Cambodia’s board, said in a statement released alongside the index yesterday.

However, that may prove a troublesome prospect if Cambodia’s performance over the past nine years is any indication. In 2005, when the CPI still used a 10-point scale, Cambodia’s score on the index was 2.3. In 2010, the year the Anti-Corruption Unit was formed, Cambodia’s score had actually fallen to 2.1. This year, on the CPI’s 100-point scale – implemented in 2012 – Cambodia scored 20, down two points from last year’s 22.

ACU spokesman Keo Remy declined to comment yesterday on the contents of the 2013 CPI, and referred questions to ACU Chairman Om Yentieng, who could not be reached after repeated attempts.

The drop between 2012 and 2013 can be accounted for by substantial declines in two of the third-party metrics used by Transparency International. The studies, performed by the World Economic Forum and Global Insight, assessed how commonly businesses face corruption in a given country and to what extent it affects their operations.

“Both the World Economic Forum and Global Insight focus on the business environment,” Preap Kol, TI Cambodia’s executive director, told reporters at yesterday’s unveiling of the CPI. “It is seen that the investment climate is not favourable in Cambodia.

“In my personal opinion, in 2013, we had the election, and businesses may have faced some challenges,” he added.

European Chamber of Commerce vice-president Dominique Catry, on the other hand, attributed the lack of progress over the last few years to a lack of motivation on the part of authorities.

“I don’t think there has been any change at all,” Catry said.

“If corruption was more controlled, that could probably attract more foreign investors from countries like the US or from Europe, but I’m not sure it is a concern [among officials] in Cambodia,” he continued.

“They don’t see the advantage in changing the way of operating, so there is no incentive for those people to change their behaviour.”

Though some businesses are able to operate above board, he concluded, those that seek government contracts are especially likely to run into graft-related problems.

TIC board member Ok Serei Sopheak, speaking at the unveiling, also acknowledged the apparent lack of progress.

“We have the feeling that over the past years, it seems like there is no improvement,” he said. “We need to recognise that we are at a level that is not acceptable.

“We need to reflect and clean ourselves, and this is a mirror that allows us to see ourselves,” he added.

While progress was slow, he noted, there was a time when officials enjoyed total impunity when it came to corruption. In recent years, however, the ACU has begun arresting junior officials on corruption charges. In the future, Sopheak continued, even senior officials may find themselves facing prosecution.

“It’s like evolution,” he said.

ADDITIONAL REPORTING BY CHEANG SOKHA

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Thursday, November 28, 2013

Fund scandal not enough to deter donors

Wed, 27 November 2013
Kevin Ponniah
The Phnom Penh Post

While key foreign donors to Cambodia have said that government officials implicated in an internal Global Fund probe that exposed bribe-taking in the Ministry of Health must be investigated and brought to justice, a toughening of aid conditions does not appear to be a step any are willing to take.

In largely identical statements to the Post, the EU delegation and the Swedish, German and British embassies backed the Global Fund’s strong stance against corruption but did not respond to whether their own oversight procedures for development assistance to Cambodia had been strengthened since the report’s findings emerged.

“The amounts misused must be recovered, the individuals brought to justice, and the companies sanctioned if they are found to have breached the strict supplier code of conduct of the Global Fund,” they said.

The Anti-Corruption Unit has said it is investigating the report’s findings – which exposed a network of kickbacks and sponsorships from mosquito-net suppliers in exchange for contracts – but has yet to determine whether former officials at the National Malaria Center (CNM), the National Center for HIV/AIDS, Dermatology and STDs (NCHADS) and MEDiCAM are guilty of corruption.

US embassy spokesman John Simmons said the US government was keeping an eye on the Anti-Corruption Unit (ACU).

“The US government is monitoring the actions of the Anti-Corruption Unit, and we continue to encourage the ACU to conduct a full and transparent investigation,” he said. “The US government is ever-mindful of the potential for misuse of development assistance funds, no matter to which country provide.”

He emphasised that most US-supported programs in Cambodia were implemented by civil society and the private sector.

Germany, the Global Fund’s third-biggest bilateral donor, warned that “donor confidence and motivation depend on cooperation free of corruption and fraud”.

“The determination of the Royal Government of Cambodia in pursuing this matter will no doubt be an important signal for the donor community,” German ambassador Joachim Baron von Marschall said.

French embassy first secretary Nicolas Baudouin said that France would continue to “monitor the situation closely”.

All foreign donors that responded to the Post pledged continued support of the Global Fund, and praised its efforts to bolster financial oversight.

Since preliminary investigation findings emerged in July last year, the Fund replaced the CNM as a principal recipient for malaria grants, appointed an external fiduciary agent to control NCHADS expenditure and has required pooled procurement for all health products in Cambodia.

The Asian Development Bank, Cambodia’s current lead donor partner, expects to provide more than $500 million in loans and grants to the government between 2013 and 2015.

“ADB applies very stringent safeguards to ensure all funds administered by ADB are used for their intended purposes,” country director Eric Sidgwick said.

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Thursday, May 19, 2011

Misruling Cambodia

Corruption is rife and dissent is stifled, as "Cambodia's Curse" shows. But entrepreneurs are giving the country some hope.

By GEOFFREY CAIN - THE WALL STREET JOURNAL

If schools are a reflection of society, then they show Cambodia to be a limp and defeated nation. On the first day of class, Cambodian children learn they must bribe their teachers to get good grades, a practice that continues for the 3% of them who make it to college. Teachers, struggling on salaries of less than $100 a month, take their cuts and pass the money up to the principals. The principals then pay off local education officials, and so on to higher circles of government. In the end, those who give the largest bribes eventually win promotions—giving them access to even bigger cash flows.

Cambodia's Curse: The Modern History of a Troubled Land By Joel Brinkley Public Affairs, 416 pages, $27.99In this system, students learn few useful skills except how to survive under a corrupt regime, writes journalist Joel Brinkley. For the lucky few who pay, and sometimes even murder, their way to the top of the government, life is good. But for the ordinary farmers and laborers, kickbacks are simply an expensive roadblock to economic and social advancement.


"These demands are humiliating. It pushes a lot of smart kids out to the rice fields instead of helping our country," Sok Sopheap, a high school student who was kicked out of class because he didn't pay a bribe, told me. "This is why Cambodia stays poor."

Mr. Brinkley's depressing book is a mostly illuminating, though sometimes lopsided, chronicle of the politicians and bureaucrats who have plagued Cambodian society for the past 30 years. After the Khmer Rouge regime oversaw the deaths of 1.7 million people and was unseated in 1979, a new group of opportunists took their place. That wily clique, installed by the invading Vietnamese, includes current Prime Minister Hun Sen.

The Cambodian People's Party (CPP) solidified its hold on power in part by manipulating foreign governments and keeping the country poor. Its first big target was the United Nations, which took advantage of the end of a Cold War stalemate in 1989 to attempt a democratic transformation of the country. In 1992, U.N. peacekeepers tried to rebuild the country by launching the most expensive peacekeeping operation at the time—total cost $1.6 billion—and overseeing elections that attracted a remarkable 90% voter turnout.

Mr. Hun Sen lost those elections but refused to step down; four years later, he ended the U.N.'s dream of democracy for Cambodia when he ousted his democratically elected co-prime minister, Prince Norodom Ranarridh, in armed clashes. Since he has consolidated power, Mr. Hun Sen has repeatedly sued and pushed his critics into exile, and has attempted to stall progress of the Khmer Rouge tribunal.

Nevertheless, foreign governments funded the CPP-led government with $18 billion in aid and soft loans after U.N. peacekeepers departed. The leaders squandered much of this largesse on mansions, luxury cars, private security forces and political pandering—all to further their power. Today, the country loses $500 million a year to corruption, USAID reports.

Mr. Brinkley won the Pulitzer Prize in 1980 for covering Cambodian refugees, and he weaves the details of the nation's underbelly into a compelling argument, interviewing powerful figures and foreign officials involved in politics, courts, hospitals, land development, forests and schools. Particularly engrossing is his account of the country's infamous 2010 anticorruption law, something the West pushed Phnom Penh to pass since the early 1990s, which would force government offices to face tougher audits.

For 15 years, Mr. Hun Sen repeatedly promised donor countries and organizations that he would pass the law. But while the donors complained every year that he still hadn't, they nonetheless assented to his requests for more money, raising their annual aid pledges from $770 million in 1994 to nearly $1.1 billion by the time Mr. Hun Sen acceded to their requests in 2010.

But the new law hardly meets international standards. It does not require officials to publicly disclose their holdings, the heart of any anticorruption law, and allows them to offer gifts in exchange for favors "in accordance with custom and tradition." The saga becomes yet one more example of the ineffectiveness of foreign aid, and Mr. Brinkley rightly wonders what foreign officials are up to. When he visits the new anticorruption office, he finds that it sends complaints directly to the institutions that the complainants accuse, with their names attached—leaving them open to threats and intimidation.

Such gifted storytelling makes up for some shortcomings, including some minor errors of fact. For instance, Mr. Brinkley writes that a 1997 grenade attack on an opposition rally occurred at a park across from the National Assembly that is named after Mr. Hun Sen. While the location of the blast is correct, it is actually a separate, nearby park that is named after the premier.

More troublesome are Mr. Brinkley's historical arguments. He suggests, for example, that leaders can act with impunity because most Cambodians will not change centuries-old attitudes. Kings traditionally awarded posts to mandarins who paid kickbacks, a scheme that Mr. Brinkley asserts continues uninterrupted.

It is true that Cambodians do not have a history of popular sovereignty, which may help explain why democracy-building faltered. The Khmer language reflects the fact that most Cambodians have low expectations of their leaders: The verb translated into English as "to govern," for example, literally means "to eat the kingdom."

But that fact is a long distance from Mr. Brinkley's sweeping conclusion that Cambodians, timid and wavering by upbringing, accept tyranny because they see no alternative. "They carry no ambitions. They hold no dreams," he writes. "All they want is to be left alone." The first two statements are patronizing and disproven by the growing number of entrepreneurs. The third gives short shrift to the recognition of many Cambodians that democratic government is the surest path to domestic tranquility.

Mr. Brinkley's grim assessments on issues such as corruption and the ineffectiveness of donor aid ring true. Nevertheless, Cambodia is fast shedding its image as a lawless mafia state. The society is, despite all its problems, becoming more stable. Its economy is improving, thanks to limited regulation and taxation. Once pitied as a basket case, Cambodia may yet prove its critics wrong, despite its governance curse.

Mr. Cain is a writer in Vietnam.

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Wednesday, April 28, 2010

Cambodia tells diplomats it is no 'banana republic'

AFP

Impovrished children play in the Boeng Kak slum community, Phnom Penh where poverty affects many people

PHNOM PENH — The Cambodian government has told all foreign diplomatic envoys to avoid criticising the country, insisting it is not a "banana republic", in a letter seen by AFP Wednesday.


The foreign ministry letter sent to all diplomatic missions in Cambodia asked them to "avoid interfering in the internal affairs" of the country, regardless of the power of their home nations.

"There have been many occasions, in which some heads of diplomatic missions behaved like a 'proconsul' of his/her country to the Kingdom of Cambodia. They indulged themselves to criticise or to give lessons to the Royal Government of Cambodia," the letter said.

"Such behaviours are not acceptable for Cambodia as a sovereign country and a member of the United Nations. Cambodia is not a BANANA REPUBLIC," it added.

Asked about the letter dated April 26, foreign ministry spokesman Koy Kuong told AFP it was issued to remind all diplomats not to "exceed the limit of their mandate".

Cambodia last month threatened to expel a United Nations envoy if UN agencies continued "unacceptable interference" in the country.

The move came after UN agencies in Cambodia urged "a transparent and participatory" process as parliament debated an anti-corruption law that was criticised by the opposition and rights groups.

Ranked one of the world's most corrupt countries, Cambodia passed the anti-graft law in parliament on March 11, more than 15 years after legislation was first proposed, but only days after the draft was shared publicly.

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Cambodian leader says cash was for social fund



THE Cambodian Prime Minister has denied that BHP Billiton paid a large bribe for an exploration contract in his country.

It was reported last week that the US Securities and Exchange Commission was probing BHP over a $US2.5 million ($A2.7 million) payment related to a project in Cambodia.


But Cambodian leader Hun Sen said the money was for a ''social fund'' established in an agreement between Australia and Cambodia, and was used to build a hydroelectric dam, schools and hospitals.

''These days, they have been saying BHP paid illegal money to Cambodia,'' Mr Hun Sen said.

''Let's see the contract - it was a social fund. It is written in the contract. It is not secret.''

BHP last week said it had evidence of possible corruption involving ''interaction'' with government officials, related to a minerals exploration project terminated last year.

It declined to reveal the location of the project, but said it was not in China, where four staff of rival miner Rio Tinto were jailed for bribery and commercial espionage last month.

BHP has said it paid $US2.5 million to a community in Cambodia's east and $US1 million to the government for bauxite exploration rights, according to reports.

BHP said it handed evidence to the US SEC and was conducting an internal investigation.

AFP

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Friday, April 23, 2010

BHP chief plays down Cambodia fallout

Sydney Morning Herald
BARRY FITZGERALD



BHP Billiton chief executive Marius Kloppers has effectively pre-empted the findings of two investigations into its Cambodian bribery scandal by saying he expects only modest fallout for the company.

Rather than wait for the findings of an investigation by the US Securities and Exchange Commission and an internal report being conducted with the help of a US law company, Mr Kloppers jumped the gun in an interview this week with the Financial Times, said by BHP to have been planned months ago.


BHP Billiton chief executive Marius Kloppers has effectively pre-empted the findings of two investigations into its Cambodian bribery scandal by saying he expects only modest fallout for the company.

Rather than wait for the findings of an investigation by the US Securities and Exchange Commission and an internal report being conducted with the help of a US law company, Mr Kloppers jumped the gun in an interview this week with the Financial Times, said by BHP to have been planned months ago.

"We think the potential issue we've got in the total scale of the company is very modest," Mr Kloppers is reported to have said.

The report quoted the chief executive as saying the potential wrongdoing needed to be put in context, which he said was why BHP limited its disclosure of the SEC probe and its own investigations to the bottom of its March-quarter exploration report, released on Wednesday.

"If there was any view that this was something that would have had a material impact on the company - and I'm not talking about financial-only terms, I am talking about overall reputational damage, all of the things that we weigh when we look at a disclosable event - you can clearly see we thought of this in one way," he said.

But Mr Kloppers also seemed to want an each-way bet.

"I don't want to detract from the seriousness of these issues at all because there is absolutely nothing more important in life than our reputation, as events at Toyota and Citibank show. So even if there was 50¢ that had changed hands to a government official, it would have been an unbelievably big deal."

BHP has so far refused to disclose where the bribery scandal took place, but nor has it bothered to deny widespread reports that it involved a $US1 million payment by the company to the Cambodian government in 2006 to secure bauxite leases.

There has also been speculation that there could be lingering issues for BHP from an aborted nickel project in the Philippines, with a Catholic Church aid agency saying in 2008 that the company needed to be more careful in picking its local joint-venture partners.

The Catholic Agency for Overseas Development alleged that BHP's Filipino partner in a nickel joint venture had offered bribes to community leaders to buy support for the project and silence opposition to the mining.

CAFOD said that while there was no evidence that BHP was involved, the company had a responsibility to ensure that partners and contractors it had chosen to work with did not partake in bribery or corruption.

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BHP Billiton declined to comment on reports

Daily Postcast
Edited by: Shannon De Ryhove



BHP Billiton declined to comment on reports that an anti-corruption probe it is facing from the US Securities and Exchange Commission involves a former bauxite exploration project in Cambodia.


BHP has revealed that it's the subject of an SEC investigation over potential violations of anti-graft laws tied to old mining exploration projects. BHP said only that the matter didn't involve China.

The case follows the jailing in China last month of staff from rival Rio Tinto for bribery and comes as the two mining giants seek regulatory approval for their controversial 116-billion-dollar Australian joint venture.

Australian newspapers, relying on a 2009 report by Global Witness, a non-governmental organisation seeking to expose corruption in the resources sectors, speculated the probe involved a joint venture to explore for bauxite in Cambodia.


West Australian mining representative bodies have welcomed Premier Colin Barnett's decision to maintain gold royalties at their current levels.

This comes as Barnett announced in Parliament that he wouldn't increase gold royalties in this year's budget.

Barnett's proposal to raise royalties for all commodities in next month's budget attracted widespread criticism from the industry, especially the gold sector, which argued that the state would jeopardise future investments.

Western Australia reportedly considered a doubling of gold royalties to 5%.

Also making headlines:

Brazil-based Vale's Goro nickel mine is still delayed.
JSE-listed Kumba Iron Ore lifts its first quarter output to 11,5-million-tons.
ThyssenKrupp attacks iron-ore miners for the price hike.
And, West-Africa focused African Aura raises 11-million-pounds for its Liberia and Cameroon projects.

That's a round up of news making headlines today.

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BHP corruption probe widens

The Australian
April 23, 2010
Matt Chambers and Matthew Stevens



THE investigation into BHP Billiton's potentially corrupt behaviour in Cambodia yesterday widened to include British regulators as BHP revealed it had handed over correspondence between its managers and government officials in negotiations involving bauxite deposits there.



It is understood BHP has uncovered internal emails between managers in Cambodia, and possibly other countries, and government officials.

The emails, which relate to several tenements BHP has now left, are understood to have been considered to have potentially breached BHP's code of conduct and, therefore, needed to be handed to the US authorities that had previously queried BHP. It is not known at what level of government the correspondence was with.

BHP stunned markets on Wednesday, when it revealed the US Securities & Exchange Commission had queried its behaviour over certain mineral exploration ground, spurring a BHP internal investigation that uncovered possible corruption in dealing with government officials.

It is understood the investigations relate to up to $US3.5 million ($3.8m) of payments made in Cambodia from 2006 that a government official there had publicly referred to as "tea money", a local term for unofficial payments to government officials.

BHP has said the payments included $US2.5m for community projects near the bauxite project in the northeastern Cambodian province of Mondulkiri.

Britain's Serious Fraud Office confirmed yesterday that it had also been contacted by BHP on the matter and had opened its own preliminary assessment.

In an internal email to staff yesterday, BHP chief executive Marius Kloppers said the announcement of the investigation in a quarterly report was consistent with the company's approach of open and transparent behaviour when such issues arose.

"The investigation is at a relatively early stage," he said. "You should be assured that we will thoroughly and fairly investigate these matters, as we would any other possible breach of law or the code (of conduct) and take whatever action is appropriate."

The investigation comes at a bad time for BHP, just weeks after its potential iron ore partner, Rio Tinto, sacked four workers, including Australian Stern Hu, after they were convicted of bribery and stealing commercial secrets related to deals in China.

It is also comes as European and Asian steelmakers lobby the European Commission to block the planned $US116 billion merger of BHP and Rio's West Australian iron ore mines, ports and railways.

The Australian Securities & Investment Commission would not say if it was investigating BHP under recently beefed-up penalties under the Criminal Code Act.

Regulators in the US, Britain and Australia have recently tightened penalties for bribery (but there is no suggestion the BHP investigation involves bribery).

"We are in an era where these things have never been more serious," said Ian Ramsay, director of the Centre for Corporate Law at Melbourne University. "The penalties for bribery (of foreign officials by an Australian company) skyrocketed in Australia in February and the UK has just passed a new bribery act that in some respects is broader than the US Foreign Corrupt Practices Act." In February, Australia boosted maximum penalties for bribery of foreign public officials from $330,000 to as much as 10 per cent of a company's annual turnover.

In BHP's case, this could be $US5bn.

BHP shares trade in Australia, Britain and the US, so its behaviour is subject to investigations by regulators in all three countries.

In its latest code of business conduct, BHP warned staff about harsher penalties under British law for "facilitation payments", which it described as "small sums to low-level government officials to obtain routine services to which BHP is otherwise entitled".

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Thursday, February 18, 2010

The Stink of Corruption in Phnom Penh

A lake development project is fueling thousands of forced evictions in the Cambodian capital.

A Phnom Penh family, finishes fishing and chores on the banks of the polluted Boeung Kak lake, currently under development. The mass of sand behind them used to line the Mekong River. (photo: Anne Elizabeth Moore)

Phnom Penh, Cambodia - There are plenty of guns in Cambodia, but I cannot get used to them being pointed at me, even in jest. After all, I'm just picking at my lunch, staring lazily at Phnom Penh's biggest lake, Boeung Kak, and the massive sandy beach across the water. Two years ago, the area was thriving with fishermen. Now, the beach is moving closer to the spot where I sit, minute by minute. Most of the fishermen are gone.

The man with the gun stands, gesturing for me to follow him. He jerks his chin upwards as he strides down the open deck of the bar and restaurant of a one-time popular guest house in the seedy backpacker area of the city. His ruddy face projects menace, but only in an act of self-protection. "Is not real," he asides of the rifle when we get to the edge of the water.

I look at the gun. It is carved from a solid piece of wood. It could kill someone, sure, but it cannot protect him from what is being stolen from him, even as we stand watching.

The capital city's largest remaining natural lake is being filled in with sand to make way for a residential and shopping district. It's sparked a wave of forced evictions known more commonly around the country as "landgrabbing," kicked off by the city's February 2007 agreement with Shukaku Inc., in which the company paid $79 million for a 99-year lease on the land.

That is, the land invisible under the water. To make it useful for the development project, of course, Shukaku Inc. had to devise a way ofgetting to that land. So in late August 2008, a massive drainage pipe began pumping sand into the water at a rate of around 25 square meters per hour. Residents fled. Many had not been notified in advance.

I asked the restaurant manager if tourism would soon be affected, and my armed companion scoffs. "Is already," he says in his rolling Khmer accent, waving the gun toward the sandy beach. As many Cambodians do, he declines to give his name to reporters out of fear of government retaliation.

The back door of artist Leang Seckon's studio overlooks Boeung Kak. Many lakeside residents are unsure when flooding, pollution, or landslides will force them to abandon their homes. (photo: Anne Elizabeth Moore)

This isn't an idle fear, either: According to the local human rights group Adhoc, the number of arrests of human rights activists in Cambodia rose by about 70% in 2009. Most arrests were of people speaking out about housing and land rights.

"Before, this was a beautiful lake and people came from the city to watch the sunset. Maybe a part of this is also the amount of tourists coming to Cambodia, I don't know. But now ..."

He turns back and looks at the paltry number of customers lunching at the establishment. Two men argue over coffee, a young woman shoots pool in the corner. This is high tourist season in Cambodia. Other proprietors I've spoken to, in other tourist areas of town, have seen business pick up again after the previous year's drop.

Part of the problem here could be the smell. Pollution was noticeable, but not overwhelming, when the lake was at its peak. Now, rising levels of rotting garbage, fish carcasses and raw sewage are plainly visible - and malodorous.

"... What to do?" The guest house manager finishes his thought.

In early February, 100 affected residents gathered at City Hall to protest the city's handling of drainage at the construction site. Wastewater was backing up, they complained. One woman's kitchen was entirely submerged, she told the Phnom Penh Post, and it was still the dry season. The city has so far failed to create an adequate drainage system for the construction sites.

In Cambodia, fetid water is not only unseemly. It's also a health risk in a country plagued by malaria and Dengue fever.

Of course, the development project also violates several federal laws. A 2009 report from the Centre on Housing Rights and Evictions (COHRE), an international human rights organization, finds multiple causes for concern. Among them, that leases for state public property cannot change the function of land nor last for longer than 15 years. And, land over which people already hold titles, which have not been bought out in advance of the agreement, cannot be leased by third parties. Additionally, the report charges, evictions are only legally allowable under certain circumstances that do not include private development projects. (Resultant evictions are also found in the report to be in violation of international human rights law obligations.)

Secondary affects of the development project also concern local organizations. In May of 2009, Prime Minister Hun Sen halted all dredging of sand from the Mekong for export purposes due to environmental concerns, yet dredging for domestic purposes continues. A site directly across the water from Phnom Penh's Royal Palace pipes sand into Boeung Kak. The Cambodia Daily reports that some dredging companies pull as much as 2,000 tons of sand from the riverbed daily, but no official records are maintained.

In residential areas near dredge sites, homeowners report riverbank landslides coinciding with sand pulls. Many have been forced to move from their traditional stilted homes, concerned their families will one day tumble into the water. (These figures are not counted in displacement statistics.)

The Ministry of Environment claims that the amount of removed sand is recovered annually. The landslides, it charges, are caused by natural erosion.

It's this kind of official response that has my friend with the wooden rifle frustrated. He's been to meeting after meeting, and signed petition upon petition. All to no satisfaction. "I wish I could go to the government," he says and he looks over at the encroaching sand.

Across from us, three of the last remaining handful of fisherman that work the lake shuffle something small from the water in their bamboo baskets, even as more land piles up behind them. Figures on how many people made their living selling fish from this lake are unavailable, as are the number of people who sustained themselves almost exclusively by eating their catch, or picking the vegetables that grow along the lakeside.

In 2007, city authorities claimed that only 600 people would be affected by the development project; that number has been surpassed. NGOs place the number of persons displaced at between 4,250 and 30,000 people. The city has offered some families three choices: move to the northeast corner of the city, into government-approved housing projects still under construction; take an $8000 lump payment in compensation, far lower than the market value of their property; or wait until alternative housing is built in the neighborhood.

Other families have simply seen their houses crumble, with no advance warning from construction crews or government officials.

Artist Leang Seckon hopes this doesn't happen to him. His studio opens onto the lake thousands of Cambodians have called home ever since the Khmer Rouge regime ended and people started moving back into the city 30 years ago. Born in the provinces, Seckon spent the first ten years of his life in the rice fields. His work often touches on the environmental issues that are close to his heart.

"I need nature, I need water, I need"-here he breathes deeply- "fresh air." He's excited that the government has made recent moves to cease illegal logging and halt some sand-dredging from the Mekong. But he's received no notice about when he's expected to vacate the space he's worked in for 18 years.

His studio sits north of the backpacker district, so he probably has a little more time. He just doesn't know how much. "Now the company buy the lake, and destroy the lake. Soon-I don't know when but soon-they build a city."

Land prices in Phnom Penh have increased tenfold in recent years. Prices are expected to rise even more as high-profile projects like the country's first-ever skyscraper, Gold Tower 42, are completed as soon as 2012. The country may be under development, and it's clear that some are seeing benefits from the boom. But others wonder who is paying the real price.

More upset at the loss of the city's natural resource than the loss of his studio, Seckon considers the matter. "I not feel happy at all," he declares.

Little is known about the company behind the development project, Shukaku Inc. Some press reports have linked it to Cambodian People's Party Senator Lau Meng Khin, also a close friend of Hun Sen. Chinese investment has been linked to the controversial project, but South Korea has denied any involvement. South Korean interests are behind many development projects in the city, including Gold Tower 42.

"It's got to be developed," my weaponed associate proclaims of the city from the deck of the guest house. He then outlines a plan where the lake is cleaned of pollution instead of filled, and the ramshackle guest houses in the rundown backpacker district are funded to make improvements. "It's good for tourism," he offers.

This should count for something. Alongside the construction/real estate sector, tourism is one of the fastest-growing industries in the country. It's the justification for a handful of new public works projects in the city, such as Watermusic, a light show and fountain timed to blaring pop songs that draws local-and tourist-crowds every weekend night.

The guest house proprietor's revitalization plan, he says, has been incorporated into various official proposals for years. Still, it's gotten nowhere. Rather, as my armed companion explains, the powers that be just don't like it.

"I'm sure the government don't think the same," he says, using the Khmer phrase more properly translated as, "agree with us."

But there is more than a difference of opinion at stake. He rests his prop gun against a table and refuses to comment on the friends and neighbors who have already been forced to move. Where they are, how they're adjusting, what businesses they've gone into: he doesn't want to say, for fear he'll be labeled a political agitator.

Or maybe his fear is more personal. Soon, he'll have to close down the guest house and join them, he says.

"We'll see," he says, when asked what he'll do next. "We'll see."

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Monday, February 23, 2009

One big happy family in Cambodia

One big happy family in Cambodia

By Bertil Lintner (Asia Times)

PHNOM PENH - Cambodia's rough-and-tumble politics have long been bloody, marred by frequent political assassinations and violence. But never before have they been quite so blood-linked.

The English-language fortnightly Phnom Penh Post published without comment in late February a family tree it had compiled, revealing how the top leaders of the ruling Cambodia People's Party (CPP) have become more intimate through an old-fashioned Cambodian custom: arranged marriage. And the growing family ties run all the way to the top of Cambodia's political pyramid, Prime Minister Hun Sen, Southeast Asia's longest-serving leader.

For instance, there is Hun Sen's brother, Hun Neng, currently serving as governor of Kompong Cham, whose daughter, Hun Kimleng, is married to the deputy commissioner of Cambodia's National Police, Neth Savoeun. Meanwhile, Hun Neng's son, Hun Seang Heng, is married to Sok Sopheak, the daughter of Sok Phal, another deputy commissioner of the National Police. Hun Sen's 25-year-old son, Hun Manith, is married to Hok Chendavy, the daughter of Hok Lundy, the National Police commissioner.

Another of the premier's sons, Hun Many, 24, is married to Yim Chay Lin, the daughter of Yim Chay Li, secretary of state for rural development. One of Hun Sen's daughters, Hun Mali, 23, meanwhile, is married to Sok Puthyvuth, the son of Sok An, Hun Sen's right-hand man and minister of the Council of Ministers. The friendship between Hun Sen and Sok An dates back to the early 1980s, when Hun Sen was foreign minister and Sok An director of the office of the Ministry of Foreign Affairs. Now those personal ties run blood deep as in-laws.

And that's just a sampling of the connections at the highest echelons. Heng Samrin, who was Cambodia's head of state from the Vietnamese invasion in January 1979 to the United Nations intervention in 1991, and now serves as president of the National Assembly and honorary CPP president, has a daughter named Heng Sam An, who is married to Pen Kosal, an adviser to Sar Kheng, deputy prime minister and minister of the interior - as well as brother-in-law of Senate and CPP president Chea Sim.

Heng Samrin's adviser, Cham Nimol, is the daughter of Cham Prasidh, minister of commerce. Another of Cham Pradish's daughters, Cham Krasna, is engaged to Sok Sokann, another of minister Sok An's sons. Sar Kheng's son, Sar Sokha, meanwhile, is married to Ke Sunsophy, daughter of Ke Kim Yan, commander-in-chief of the Royal Cambodian Armed Forces. And Hun Sen's wife, Bun Ramy, currently serves as president of the Cambodian Red Cross, while its second vice president, Theng Ay Anny, aka Sok An Anny, is Sok An's wife.

Family traditions
There has been no official reaction to the Phnom Penh Post's revealing study. Intermarriage among members of the ruling political and business elites is not uncommon in Asia.

In neighboring Thailand, Field Marshal Phin Choonhavan's son, Chatichai Choonhavan, became prime minister of Thailand, while his daughter, Khun Ying Udomlak married Phao Sriyanond, director general of the Thai police. Another high-ranking Thai army officer, Thanom Kittikachorn, was the brother-in-law of fellow military dictator Praphas Charusathien, while his son, Narong Kittikachorn, also became a military strongman, while his sister Songsuda married Suvit Yodmani, who has served with several Thai governments.

Sino-Thai tycoons are known to have arranged their children's marriages to members of other top business families to progress their commercial interests. But in Cambodia's case, where many of the political elite were wiped out during Khmer Rouge-led purges between 1975 and 1979, the number of political marriages is extraordinary. And these new family ties between the children of ministers and top officials potentially set the stage for the CPP's grip on power to continue for generations.

Significantly, the CPP's family connection is emerging simultaneously with a waning of the royal family's influence over national politics. Ever since Hun Sen and his inner circle of friends and advisers ousted former prime minister Prince Norodom Ranariddh in a 1997 coup, the royalist Funcinpec party's political fortunes have waned.

Ranariddh was forced into exile after the bloody putsch that killed many of his party members, but later returned to Cambodia to become president of the National Assembly after inconclusive general elections in 2003, when the CPP was unable to garner enough votes to form a one-party government and after much squabbling joined with Funcinpec in a wobbly coalition.

One of the sons of former king Norodom Sihanouk and half-brother of the present monarch, Sihamoni, Ranariddh resigned that post last March and subsequently left the country again. While he was away, he was dismissed as co-chairman of the Council for the Development of Cambodia as well as the National Olympic Committee. He later returned to Cambodia - and was ousted as president of Funcinpec, the main opposition party, amid an internal power struggle in October that many political analysts believe Hun Sen had a hand in.

Not surprisingly, perhaps, several of Funcinpec's original leaders were also related. Ranariddh's uncle and former king Norodom Sihanouk's younger half-brother, Norodom Sirivudh, served as foreign minister in a Funcinpec-led government in 1993. Ranariddh's half-brother, Norodom Chakrapong, meanwhile, helped found Funcinpec but later defected to the CPP. Their half-sister and Sihanouk's eldest child, Norodom Bopha Devi, has served as minister of information and culture, while her latest consort, Khek Vandy, was elected to the National Assembly on a Funcinpec list in 1998.

But Funcinpec's family pride has waned considerably since it emerged as the biggest party in the UN-supervised elections in May 1993, when it captured 45% of the popular vote and outpaced the CPP, which came in a close second with 38%. Many political observers think Ranariddh's recent ouster from Funcinpec may represent his last political gasp.

His former Funcinpec colleagues recently sued him on allegations that he embezzled US$3.6 million from the sale of the party's headquarters last August. The Phnom Penh Municipal Court found the prince guilty and sentenced him - in absentia - to 18 years in prison. Ranariddh had recently set up a new party, aptly named the Norodom Ranariddh Party (NRP).

Funcinpec, the NRP and the opposition Sam Rainsy Party will be among 10 different political parties standing against the CPP juggernaut in upcoming commune council elections, which are scheduled for April 1 and widely viewed as a bellwether indicator for next year's general elections.

It may well be an April Fool's election, with the opposition fractured and vulnerable and the CPP allegedly pursuing a campaign of violence and intimidation against opposition candidates and their supporters in rural areas. Khieu Kanharith, CPP minister of information, predicted on February 22 that his party would win about 97% or 98% of the positions in the commune councils, and 95% of the vote in the general elections next year. That may well be the case, as Cambodia is fast morphing into a one-party state dominated by the CPP.

The Phnom Penh Post in its February 9 edition quoted a foreign diplomat as saying: "The CPP controls the government, the National Assembly, the Senate, 99% of the village chiefs, the provincial governments. Their influence goes through the judiciary, through the police ... Practically everything is controlled by one party."

That assessment would appear to jibe with 55-year-old Hun Sen's January 9 pronouncement that he does not intend to stand down from the premiership until he is at least 90 years old. By then, a third generation of CPP family-tied politicians and officials, if everything goes according to the apparent plan, will just be coming of political age.

Bertil Lintner is a former correspondent with the Far Eastern Economic Review, where he reported frequently on Cambodian politics and economics. He is currently a writer with Asia-Pacific Media Services.

(Copyright 2007 Asia Times Online Ltd. All rights reserved. Please contact us about sales, syndication and republishing.)

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Saturday, February 07, 2009

Chevron Silent on Bribery Allegations

CAMBODIA: Chevron Silent on Bribery Allegations

By Marwaan Macan-Markar (IPS)

BANGKOK, Feb 6 (IPS) - U.S. energy giant Chevron is under fire for failing to disclose the amount of money it allegedly paid to secure rights to drill for offshore oil in corruption-ridden Cambodia.

‘’It is yet to respond to our detailed questions in a letter written to the company in October 2008,’’ says Gavin Hayman, campaigns director for Global Witness (GW), a London-based anti-corruption watchdog. ‘’It is not in favour of supplying information about what it pays foreign governments to secure rights for oil exploration.’’

Chevron’s attitude towards disclosure ‘’will be telling,’’ he explained in an interview, since such revelations will help measure the scale of ‘’under the table payments’’ involved in a country where a small and powerful elite has ‘’captured the country’s emerging oil and mineral sectors’’ for personal gain.

But disclosure about money paid to access the resource is only one part of the transparency and accountability equation. GW activist insists that the oil companies should also disclose what they would pay Cambodia once the revenue starts flowing.

Hayman made the comments following a launch here this week of a report by GW which warns of a corruption disaster as the South-east Asian country ‘’appears to be on the verge of an oil, gas and minerals windfall.’’

‘’Cambodia today is a country for sale,’’ reveals the 68-page report. ‘’Having made their fortune from logging much of the country’s forests resources, Cambodia’s elite have diversified their commercial interests to encompass other forms of state assets.’’

‘’Financial bonuses paid to secure concessions [for oil and mining] - totalling millions of dollars - do not show up, as far as GW can see, in the 2006 and 2007 revenue reports from the ministry of economy and finance,’’ notes the report, ‘Country for Sale’. ‘’Oil company contracts and information on concession allocations are a closely guarded secret within the CNPA [Cambodian National Petroleum Authority].’’

Yet what is better known is the presence of Chevron among the companies from Australia, China, Indonesia, South Korea and the United States that have been competing to secure rights to explore oil in the six blocks off Cambodia’s western coast.

‘’With the exception of Chevron, the government of Cambodia has not publicly announced the names of those companies to whom it has awarded oil and gas exploration rights,’’ states the report. ‘’Block A was awarded to U.S. oil company Chevron in 2002. Chevron’s activities in Block A are the most advanced of all oil companies currently operating in Cambodia.’’

GW estimates that oil will start flowing in 2011 and peak in 2021. Proceeds range from 174 million US dollars in the first year to 1.7 billion dollars when extraction peaks.

But GW doubts that such income from Cambodia’s natural resources will flow to those who need it most - the country’s millions still mired in poverty following nearly two decades of a bloody conflict and a brutal rule by the genocidal Khmer Rouge regime.

Currently, over 35 percent of Cambodia’s 13.3 million people live in dire conditions, on less than one dollar a day. And U.N. reports have revealed that life expectancy is 58 years, while nearly a third of children under five years are malnourished.

Yet for a small cabal of political, military and economic elite, the period since the 1991 peace accords has been a journey on the road to immense - and ill-gotten - wealth. In 2007, for instance, GW revealed in a report that illegal logging in Cambodia by the elite raked in over 13 million dollars.

Such greed by the elite has not only raised the alarm that Cambodia is on the verge of becoming a kleptocracy, but it has been rated as among the most corrupt countries. In 2007, the global anti-graft watchdog Transparency International ranked Cambodia 162nd among 179 countries surveyed for corruption, making it the most corrupt country in Asia after Burma.

The ease with which the powerful few have filled their personal coffers stems from a lack of independent bodies backed by strong laws and resources to curb corruption. ‘’Any state that has weak anti-corruption institutions is not going to have proper level of oversight,’’ says Donald Bowser, head of the Cambodia office of the Mainstreaming Anti-corruption for Equity Project, funded by the development arm of the U.S. government.

‘’There are local concerns about the misuse of the country’s extractive industry for personal gain,’’ Bowser said during a telephone interview from Phnom Penh. ‘’A civil society coalition has been formed to campaign against this form of corruption.’’

But such campaigns face a daunting challenge. The Cambodian government under the grip of an increasingly authoritarian Prime Minster Hun Sen has yet to implement strong anti-corruption measures that have been called for by the country’s foreign donors, who fund nearly half the national budget.

Activists like Hayman of GW also point fingers at international financial institutions like the World Bank for being complicit in the corrupt culture of Cambodia’s rising kleptocrats. ‘’The World Bank is particularly bad,’’ he charges. ‘’They have a bad track record of forgetting civil society to monitor all steps of programmes in Cambodia to ensure accountability.’’

However, the Bank thinks otherwise. ‘’The World Bank shares many of the concerns NGOs (non-governmental organisations) have raised about the government’s management of extractive industry in Cambodia,’’ it said in a statement released to IPS from its Phnom Penh office.

‘’Although the Bank has not been directly involved in extractive industries in Cambodia, our dialogue with the government includes discussion of policy reforms that will help to ensure that any revenue generated through extractive industries benefit the people of Cambodia,’’ it added.

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Corrupt elite threaten Cambodia's development

Corrupt elite threaten Cambodia's development


Gavin Hayman, director of Global Witness
February 6, 2009
ABC Radio Australia

The anti-corruption ngo Global Witness says "a corrupt elite" in Cambodia is taking over the nation's emerging oil and mineral sectors, while international donors turn a blind eye.

In a report titled 'Country for Sale', Global Witness says Cambodia's future is being jeopardised by high-level corruption, nepotism and patronage in the management of public assets. This, it says, threatens Cambodia's potential to wean itself of foreign development aid.

Presenter: Sen Lam
Speaker: Gavin Hayman, director of Global Witness

Listen to the audio program in English

HAYMAN: We've been working in Cambodia for the last 15 years looking at how illegal logging was being operating in the country and were able to show that it directly benefitted the ruling military and political elite. And our new report has showed that the self same people whose names are in our previous report as being involved in illegal logging have now effectively taken over the mining and also have oversight over the emerging oil industry in the country. And that's disastrous news for Cambodia because the money from oil and mining, which could actually really help Cambodia's development and lift Cambodia's citizens out of poverty, appears to instead be in severe danger of being wasted.

LAM: But you also say that international donors are turning a blind eye. What would you like donor countries to do?

HAYMAN: Well donor countries need to really get the Cambodian government to behave itself. They need to effectively declare a moratorium until there's basic governance and transparency framework in place to actually have oversight over what's going on. At the moment we've discovered that effectively the government doesn't have any way of giving out concessions, apart from patronage. So a particular kind of senators for example in the ruling party appear to have a beneficial possession of the mines, and they also needs to do a proper audit as to exactly how all those concessions be given out and whether they're equal and whether in fact the money is in the national budget. And there's about 60 or 70 different companies operating now, and we've written to all of them, also to ask about their behaviour, and we haven't had many responses back. What we did get was from BHP Billiton, the huge Australian mining company, and they actually told us they paid about a million dollar signature bonus to the government to explore for bauxite near the Vietnamese border. Now we congratulate BHP on being transparent about that. We're worried about the 79 companies that haven't been transparent, but also disturbingly we can't find information about that million dollars in the Cambodian budget. And that's very worrying, so where is this money in Cambodia's financial system? That's very concerning.

LAM: Indeed, it must be quite hard though, to extricate the ruling elite from these lucrative contracts. So what do you think can be done to change this culture, this culture of corruption?

HAYMAN: Well I think at the moment Cambodia's depends on foreign aid for about half its budget, and the donors have a very limited window of opportunity to use that influence on the Cambodian government to get a moratorium in place and a proper audit and future management provisions in place. To actually assure transparency, and that the money actually flows into the national budget and is properly spent. So they've got to use their leverage now and effectively really they shouldn't be lending into corruption and actually compensating a corrupt government that's stealing money that should be spent on development by actually putting taxpayer's money into development projects. So effectively they've got to play hard ball with the Cambodian government and get it to actually be fully transparent.

LAM: And just very briefly, can the Cambodian government itself do more or is the government itself the problem?

HAYMAN: The government itself as currently constituted by the ruling elite is the problem. So, as I said the military and political figures in Cambodia are direct beneficiaries and owners of some of these mines. And they may not actually own it on paper but if you turn up at the gate, which is one of the things we've done, the people guarding the mine they all know who's in power and they'll tell you who's actually in charge and who's the owner. Effectively, the donors have been very soft, some might even say spineless about addressing corruption in Cambodia for the last sort of 14 or 15 years. And to give you an example, Cambodia still hasn't passed an anti-corruption law despite the donors pushing for that for the last 14, 15 years.

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Saturday, January 31, 2009

Cambodia farm land sold to wealthy nations

Cambodia farm land sold to wealthy nations

Last Modified: 29 Jan 2009
By: Nick Paton Walsh (Channel4 News)

Countries who are unable to produce enough food for themselves are scouring the world for cheap farmland to grow food and export it home, reports Nick Paton Walsh.

Never mind the food miles: when prices are soaring around the world some countries have found a way of keeping their own consumers happy - farming out their farms overseas.

China, South Korea and many Arab nations can't produce enough food for themselves, but they do have cash and plenty of it.

Now they are scouring the world for cheap farmland to grow their own food and export it home. It's a global trend which has already got the United Nations worried.

Huge plots of land in Africa have been secured and now many rich nations are looking elsewhere for farmland.

One of Asia's poorest countries, Cambodia, is at the top of their wish list.

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Friday, January 30, 2009

UN Special rapporteur on adequate housing denounces forced evictions in Cambodia

UN Special rapporteur on adequate housing denounces forced evictions in Cambodia

30 January 09 (Human Rights Tribune)

UN, Geneva - The following statement on the latest in a series of forced evictions in Cambodia was issued today by the UN Special Rapporteur on adequate housing, Raquel Rolnik:

“More than 130 families were forcibly evicted during the night of 23 and 24 January 2009 from Dey Krahorm, in central Phnom Penh to make way for a private company to redevelop the site.

The forced eviction was carried out in the middle of the night, without prior notice and the shelters belonging to this poor community were torn down and destroyed. This situation has grave consequences for all the victims, but particularly the women and children. Reports also state that prior to the eviction, the community suffered intimidation and community representatives and members were also subjected to criminal charges.

It is regrettable that the ongoing negotiations with the residents were abandoned, casting aside a valuable opportunity to reach a just and lawful solution to this longstanding dispute. It is now of utmost importance that the rights of the residents to fair compensation for their lost homes and property and the provision of adequate alternative housing are fully respected.

Unfortunately this is by no means an isolated case, and the increase in forced evictions throughout Cambodia is very alarming. Reports indicate that tens of thousands of poor people have been forcibly evicted and displaced, pushing them into homelessness and further destitution.

In Cambodia, a consistent pattern of violation of rights has been observed in connection with forced evictions: systematic lack of due process and procedural protections; inadequate compensation; lack of effective remedies for communities facing eviction; excessive use of force; and harassment, intimidation and criminalization of NGOs and lawyers working on this issue.

Forced evictions constitute a grave breach of human rights. They can be carried out only in exceptional circumstances and with the full respect of international standards. Given the disastrous humanitarian situation faced by the victims of forced evictions, I urge the Cambodian authorities to establish a national moratorium on evictions until their policies and actions in this regard have been brought into full conformity with international human rights obligations.”

The former Special Rapporteur on adequate housing conducted a mission to Cambodia in 2005 and presented a mission report on his findings and recommendations (E/CN.4/2006/41/Add.3). Concerns on forced evictions in Cambodia have been shared through a large number of communications by the Special Rapporteur with the authorities. These communications remain unanswered to date.

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Monday, November 17, 2008

General Hok Lundy Was Widely Feared

General Hok Lundy, Cambodia's Notorious and Brutal Police Chief, He Was Widely Feared


By Tom Fawthrop
The Guardian, Wednesday November 12 2008

General Hok Lundy, Cambodia's notorious police chief and close ally of prime minister Hun Sen, has died at the age of 58 in a helicopter crash. He was travelling from the capital, Phnom Penh, to the south-eastern province of Svay Rieng. None of the helicopter's other occupants - General Sok Saem, deputy commander of the Cambodian infantry, the pilot and co-pilot - survived the crash.

A four-star general and member of the politburo of the ruling CPP (Cambodian People's party), Hok Lundy was a man who inspired fear not only in opposition ranks, but also in members of his own party. Born in Svay Rieng, he first rose to prominence as the governor of Phnom Penh in 1990. Four years later, Hun Sen appointed him national police chief, reporting directly to the prime minister. He never took orders from Sar Kheng, his nominal boss as minister for the interior.

In the aftermath of a bloody power struggle in 1997 between partners in the coalition government, many royalist generals were captured and killed in cold blood. Hok Lundy played a key part in these mopping-up operations and extrajudicial executions. A Funcinpec (royalist) party minister, Ho Sok, was detained at the interior ministry and shot dead by a police unit there. It is known that Sar Kheng had ordered the police to ensure Ho Sok's safety, but Hok Lundy chose to handle things his own way, according to high-ranking sources close to the minister.

This was later confirmed by Heng Pov, the former Phnom Penh police chief, after he fell out with Hok Lundy. While he was on the run from criminal charges stacked against him, Heng Pov accused Cambodia's police supremo and security chief not only of murdering Ho Sok, but also the union leader Chea Vichea and film star Piseth Pilika, in revelations to the French magazine L'Express.

Diplomats in Phnom Penh routinely referred to Hok Lundy as a "thug". This reputation was further enhanced by his role in the burning of the Thai embassy in January 2003. The police chief, who was normally no fan of demonstrators, had permitted anti-Thai protestors to run riot, attacking Thai-owned properties all over Phnom Penh. In the aftermath of this violence he persuaded the prime minister to sack the capital's popular governor, his arch-rival Chea Sophara, as a scapegoat.

That Hun Sen sided with his police chief was no surprise, as Hok Lundy had already married his daughter off to one of Hun Sen's sons, thus consolidating close family ties among Cambodia's clannish ruling elite.

Lundy was also implicated in drug trafficking, the return of refugees to countries where they faced persecution and human trafficking. Two US Drug Enforcement Agency officials and a former unnamed US ambassador to Cambodia confirmed to Human Rights Watch that the US government was aware of Hok Lundy's involvement in drug trafficking. In February 2006, the US State Department's human trafficking office specifically cited Hok Lundy's alleged involvement in human trafficking as grounds for denying him a visa. That decision was linked to a brothel raid in December 2004, after which Hok Lundy reportedly ordered the release within hours of several traffickers, before an investigation could be conducted.

However, after 9/11 the Cambodian government had become cooperative in the war on terrorism. In March 2006, the month after the refusal of a visa, the FBI nonetheless awarded Hok Lundy a medal for his support for the US global war on terrorism, and the US ambassador to Cambodia, Joseph Mussomeli, praised Lundy's cooperation with the US in drug trafficking and human smuggling. State Department officials confirmed at the time that Hok Lundy had been invited to visit the FBI specifically because of his purported cooperation in counterterrorism. When, in April 2007, the FBI invited him to Washington for such discussions, Brad Adams, Human Rights Watch's Asia director, commented: "Hok Lundy's alleged involvement in political violence and organised crime in Cambodia means that the FBI should be investigating him, not hosting him."

The sudden death of a man who had made many enemies has sparked much speculation in Cambodia that the helicopter crash may not have been an accident, despite reports of bad weather. The helicopter caught fire, and the government has promised an investigation. Many people would have cause to celebrate the death of Cambodia's Mr Untouchable.

A French online agency, K-Set, has reported that Chea Mony, the brother
of the slain trade unionist and presidentof the Free Trade Union of Workers in the Kingdom of Cambodia, has said that the death of the top policeman means that the number of murders of politicians, entertainers and Cambodian reporters will undoubtedly be reduced, but regrets that he was never brought to justice.

Hok Lundy, soldier and police chief, born 1950; died November 9 2008

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Sunday, July 27, 2008

In Cambodia, Learning the Lessons of Graft

In Cambodia, Learning the Lessons of Graft

A proposed anti-corruption law gathered support in the run-up to Sunday's election here, but bribery is still pervasive -- starting with schoolchildren, who must pay their teachers for good grades.
By Don Lee, Los Angeles Times Staff Writer
July 27, 2008
PHNOM PENH, CAMBODIA -- Before leaving for Chompovon Primary School on the outskirts of the capital, students say, their parents give them 10 to 15 cents of pocket money. That's enough to buy some breakfast cakes and rice -- and pay their teachers a few cents before they walk into class.

The fee, a widespread practice in Cambodia's public schools, is a kind of informal toll that students must pay. If they don't, parents say, they risk receiving a lower grade or even being demoted.

Here, schoolchildren are taught at an early age what it takes to get ahead. And it only gets worse as they grow up. At every turn, Cambodians pay under the table: for a birth certificate, a travel visa, a fair ruling from a judge.

Transparency International, a corruption-fighting organization based in Berlin, says the majority of Cambodia's public servants earn their living by collecting bribes.

In recent years, many things have improved in Cambodia, particularly its economy, which has grown by more than 10% annually. Analysts say those gains will probably give Prime Minister Hun Sen's party a commanding victory in today's parliamentary elections.

But when it comes to corruption, there has been virtually no improvement, say businesspeople, Western diplomats, foreign relief workers and Cambodian citizens. The country has consistently been ranked as among the most graft-ridden in the world, and some say that the situation may have gotten worse with the economic resurgence.

"When things start to boom, people start to get a little more greedy," said John Brinsden, vice chairman of Acleda Bank, a locally owned lender with branches throughout Cambodia.

The nation's key industries are garment manufacturing and tourism, but investments from China, South Korea and other countries have increased dramatically, leading to a burst of development in Phnom Penh, around the Angkor temple complex and along tourist coastlines. Property prices have skyrocketed.

Brinsden says he sees a growing middle class, but a third of the population still lives under the poverty line, and the global rise in food and fuel prices threatens to reverse some of the recent gains.

Poverty is a key factor in widespread corruption in this country, which is still recovering from the genocide under Pol Pot and the Khmer Rouge from 1975 to 1979, when an estimated 1.7 million people died from executions as well as starvation, overwork and other abuses.

Cambodians and foreigners alike here charge that Hun Sen, a former Khmer Rouge fighter, and his Cambodian People's Party have perpetuated corruption with their patronage system, culture of backroom dealing and lack of transparency.

During the election campaign, Hun Sen and candidates with 11 opposition parties pledged support for an anti-corruption law, something that Western relief groups and foreign governments have urged. But it isn't clear when such a law may be enacted or whether it would meet international standards, including requirements that government officials and military leaders disclose their assets.

Cambodians have become accustomed to corrupt behavior at all levels. But many abhor it, especially the way it has permeated schools. Besides paying petty bribes, schoolchildren learn to lie because they are ashamed or are told by teachers not to talk about such practices.

During recess on a hot July afternoon, several fifth-graders at Chompovon sat under a tapang, or umbrella tree. A sign posted on the trunk read: "We have to help grow the trees." None of the students were willing to say how much they were paying their teachers -- and some said there was no such practice.

Jip Sovon, a deputy director of the school, acknowledged that children gave their teachers 100 riel, the equivalent of 2 or 3 cents, every day. But he insisted that the fees weren't mandatory.

"The teachers still allow them to go into class and treat them fairly," he said.

But parents in the neighborhood told a different story.

Until two years ago, Em Sophan had two children attending Chompovon. He said his children paid 200 riel a day each. "Any students who pay are given good scores; those who don't pay get lower scores," he said.

Em said his children quit school after sixth grade because they were told to come up with $100 for a test to move on to secondary school.

"That's a lot of money. My children decided to stop because I can't afford it," Em said, squatting outside his one-room house, built in traditional Cambodian style on 6-foot stilts.

Em sells vinyl caps for a living, making a little more than $2 a day. On a weekday afternoon, his two children were on the streets, one peddling bottled water and the other decals for motorbikes. Down the street, a billboard said: "Every child must be in school, not at work."

Jip, the school's deputy director, said he too hated the system. But he said Cambodian public schools don't pay a living wage. At his school, teachers make on average $25 to $30 a month, and that's after a 15% increase in the last year. Jip said that he has been at the school since it reopened in 1979 and that he earns about $37 monthly.

"We have seen students look down on teachers," he said, "because students think that if they don't pay, the teachers cannot teach."

don.lee@latimes.com

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Tuesday, July 22, 2008

Cambodia's Premier in Strong Position Ahead of Vote

Cambodia's Premier in Strong Position Ahead of Vote

Hun Sen Has Steered
Economic Miniboom,
But Graft Abounds
By PATRICK BARTA
July 22, 2008; Page A13

PHNOM PENH, Cambodia (WSJ) -- Prime Minister Hun Sen, whose party is expected to win re-election here Sunday, is credited by many Cambodians with guiding their country to become one of Asia's newest investment hot spots.

But keeping the economic recovery on track in Cambodia -- a nation best-known for its genocidal 1970s Khmer Rouge regime -- is getting more difficult in the face of a global slowdown, regional competition and entrenched corruption.

Mr. Hun Sen opened Cambodia's doors to foreign investors and has overseen notable improvements in living standards. Economic growth has surged 10% or more annually in recent years, driven by an influx of investment funds, property speculators and a few big multinationals, including Chevron Corp. and BHP Billiton.

Phnom Penh, the capital, recently got a new fleet of metered taxis, and it soon will have its first skyscrapers, including a 42-story luxury condominium tower rising up next to an office for a national antileprosy campaign. In brochures, the project's South Korean developers compare the building -- which boasts a grass-covered "sky park" on its 10th floor -- to Manhattan's Time Warner Center.

But attracting a lot more investment will depend on Cambodia overcoming its reputation as one of the world's most corrupt countries. It ranks among the worst on Transparency International's annual list of graft-ridden nations, with 72% of its residents reporting they paid at least one bribe in the past year -- roughly on par with Cameroon and Albania. Opposition leaders and others say a more pervasive rule of law is needed to sustain the boom by making Cambodia attractive to blue-chip foreign investors who currently prefer countries such as Thailand or Vietnam.

Many economists believe Cambodia's miniboom is already fading. Growth has been fueled by just a few sectors -- notably tourism, construction and garment manufacturing. Inflation is soaring, pushed by higher fuel and food prices, and the new garment factories around Phnom Penh are facing new competition as China expands its textile output and global demand slows.

The International Monetary Fund predicts growth of Cambodia's economy will slow to about 7% this year, in part because of slowing garment exports.

Mr. Hun Sen has "delivered political stability, and that has translated into economic growth," says Arjun Goswami, country director for the Asian Development Bank in Phnom Penh. But, he adds, "the story is going to get more difficult for Cambodia."

Economic issues have played an important part in the election campaign. "The kind of growth we are having now is not sustainable or equitable," contends Sam Rainsy, a French-educated former finance minister who leads a prominent opposition party. Much of Cambodia's economic activity, he notes, involves illegal businesses or black-market operations: illicit logging, land speculation, gambling and prostitution. Such businesses thrive, he says, because of a political system permeated with graft.

Ruling-party leaders have dismissed some allegations of graft as exaggerated, and promised to pass legislation to rein in corruption in the future.

Though small, Cambodia could become a major investment site. It has significant deposits of bauxite, gold and other minerals, and energy companies have recently found sizable oil deposits off its coast. The country also has large areas of arable land that could be developed for rice and other crops to help meet Asia's growing demand.

Much of that potential was squandered as Cambodia suffered through wars and atrocities in recent decades. Cambodia became independent from French colonial rule in the 1950s, but was bombed heavily by U.S. forces during the Vietnam War. It later fell to the Khmer Rouge, a home-grown Maoist rebel group whose leaders, including the notorious Pol Pot, outlawed money and private property in a disastrous bid to create a nation of agricultural collectives. Some 1.7 million people -- about a fifth of the population at the time -- died of illness or starvation or were killed.

Invading Vietnamese forces eventually ousted the Khmer Rouge and installed Khmer Rouge defectors, including Hun Sen, in a new government. He became prime minister in 1985. A battle-hardened soldier-turned-politician -- he lost an eye in combat -- Mr. Hun Sen survived Cambodia's transition to nominally democratic rule in 1993 and has since fended off all challengers to his rule, including a violent coup in 1997 against a rival with whom he shared power.

Despite his government's reputation for corruption and its strong authoritarian streak, Cambodians re-elected Mr. Hun Sen's party in 1998 and 2003, and he has remained popular among many Cambodians who believe the country is better off than it was a decade ago.

A party victory in Sunday's national parliamentary elections would give him another five years in power. Now in his late 50s, he has said he plans to stay in power until he is 90 years old. In a speech earlier this year, he said, "I wish to state it very clearly this way: No one can defeat Hun Sen. Only Hun Sen alone can defeat Hun Sen."

To sustain popular support, the government has rebuilt schools and repaired roads, in part with money provided by foreign donors. It has also made it easier for foreigners to visit and invest in the country, stoking a surge in tourist arrivals and hotel and office construction.

Mr. Hun Sen's party "has done a lot to improve the country," says Sokna Tea, a 20-year-old finance student who was hanging out one recent afternoon near a new $1 billion property development expected to include a 52-story tower and convention center. Many Cambodians simply believe Mr. Hun Sen's victory is inevitable or fear that a vote against his government could lead to political unrest.

Despite some reports of campaign-related violence, independent election observers say they expect the vote to be fair, and campaigning for the dozen or so parties contesting the vote has been vigorous. Mr. Hun Sen's political organization, the Cambodian People's Party, is backed by many of the country's wealthiest tycoons and has deep pockets, allowing it to vastly outspend the smaller opposition groups.

Some economic analysts say controlling Cambodia will become harder for Mr. Hun Sen, especially if rising food and energy prices undermine the recent gains in poverty reduction. More than half of Cambodia's population of 14 million is under 21 years old, and many youths are better educated than their parents, meaning they will likely demand more from their government in the future.

"I want something more than stability," says Theary Seng, a social activist in her 30s who has lived in the U.S. and now is the executive director of a Phnom Penh watchdog group known as the Center for Social Development. After all, she says, "North Korea has stability."

Write to Patrick Barta at patrick.barta@wsj.com

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