investment

The Mirror, Vol. 13, No. 598

“Global Witness released a report for 2008 with big titles on the book cover ‘Country for Sale – How Cambodia’s elite has captured the country’s extractive industries.’ This book describes mysteries, corruption, and irregularities related to the provision of concessions to foreign oil, gas, and minerals exploring companies in Cambodia – but some high-ranking officials of the Cambodian government denied all Global Witness allegations.

“Global Witness, based in London/England, an organization monitoring the exploitation of global natural resources [‘Global Witness works to increase transparency in the granting of mineral concessions, in the flow of revenues from oil and gas companies to governments and in the trading of resources’], released a [72 pages] report on 5 February 2009 with the title, Country for Sale, in which it revealed many things about top officials of the government of Cambodia, allegedly involved in and colluding with corruption, jeopardizing forests and other natural resources.

“The report of Global Witness said that during the last 15 years, 45% of the land in Cambodia has been contracted out by concessions to foreign entities, and millions of dollars were received by the government from private companies to secure their concessions – but it is known that this money was lost and did not go to the books of the Ministry of Economics and Finance. Global Witness reports that its investigations discovered that oil, gas, and mineral exploring licenses were provided secretly to ruling officials and their relatives, and especially, that they are controlled by the military of Cambodia. Those top military officials are General Ouk Koasa, the Royal Cambodian Armed Forces – RCAF – commander in charge of military development regions; Minister of Commerce Cham Prasidh’s brother, Mr. Cham Borei; Prime Minister Hun Sen’s younger cousin, Okhna Dy Chouch or Hun Chouch; army commander, General Meas Sophea; a senator, Oknha Ly Yong Phat; a special advisor to Prime Minister Hun Sen and the chairperson of the Commission on Human Rights of the government, Mr. Om Yentieng; a senator and director of the Pheapimex Company, Mr. Lao Meng Khin; the RCAF commander-in-chief, General Pol Saroeun, and Oknha Try Heng.

“The report of Global Witness found that RCAF forces were deployed to guard areas rich in mineral resources such as in Preah Vihear, Stung Treng, and Pursat, and citizens’ land in those areas was grabbed through threats and violence. The report spoke also about the institution in charge of the oil and gas industry, called the Cambodian National Petroleum Authority, an institution under direct control of the government – administered by Deputy Prime Minister Sok An

“Global Witness added that all ministries, departments, institutions, or authorities do not have any power over that institution, adding that the same politicians and powerful people involved in illegal logging now take control over the oil, gas, and mineral resources, and a handful of powerful people ruling the country have awarded expensive land concessions to private companies without transparency. Global Witness stated that mineral resources and the forest in Cambodia exist only once, and when those valuable natural resources are exhausted, they will disappear forever. All persons mentioned in the allegations by Global Witness regarding corruption, like some generals, oknhas, high-ranking officials of the government, such as General Ouk Koasa, Mr. Cham Borei, Mr. Dy Chouch or Hun Chouch, General Meas Sophea, Senator Ly Yong Phat, Senator Lao Meng Khin, and Oknha Try Heng could not be reached for comment. However, some government officials who provided interviews to Global Witness, claimed that the Global Witness report exaggerates the facts and is not true.

“Global Witness found that a special advisor to Prime Minister Hun Sen and the president of the Human Rights Commission of the Royal Government of Om Yentieng, has received a mineral exploration license quietly; he said that Global Witness has distorted information about the Cambodian government for many years, adding, ‘I think that if that organization Global Witness knows what is right and wrong, and has trust towards the respect of the truth, one could call it to swear an oath with me. If I am wrong, I would die, and if I am not wrong, it [Global Witness] would die. This would be a quick and trustworthy method for the listeners to judge. But I believe that if they [Global Witness] want to lie, they do not lack continuing lying stories. Therefore I think that this is not strange and surprising, because they have lied for many years already. They have distorted information about Cambodia for many years.’

“A Deputy Prime Minister and Minister of Interior, Mr. Tea Banh, reacted strongly to the Global Witness report, saying that he cannot accept allegations by this organization without any evidence. Mr. Tea Banh added that those having mineral exploration licenses have them all legally.

“The RCAF commander-in-chief, General Pol Saroeun, about whom Global Witness has written in the report, accusing him of having received a mineral exploration license quietly, denied that he is involved as a businessman, he said that he is just a military person. Mr. Pol Saroeun added, ‘No, I never had a company. I never do business. I am a soldier. Why is Global Witness accusing people like silly? They seem to look down on people too much.’

“A secretary of state of the Ministry of Industry, Mines, and Energy, Mr. Ith Prang, said that the oil resources ow being explored to be exploited in future, have not yet produced even one percent of what is expected. The Cambodian government is not stupid in managing all natural resources.

“He continued to say, ‘So far, no oil has yet been produced, we just known that there is oil. Therefore, we have not planned how to use it, because no oil has been extracted yet. But the government is not stupid in distributing revenues of its resources.’ A secretary of state of the Ministry of Environment, Mr. Prach Son, said that many oil and mineral exploration companies in Cambodia are from foreign countries, from China or from Australia. All those companies get exploration licenses in Cambodia, but they are not allowed to take raw materials to their countries.

“Global Witness has tried to ask for explanations from government officials, oknhas, generals, companies mentioned in its report, but has, so far, not received sufficient explanations. It has not even obtained a response from Prime Minister Samdech Hun Sen reacting to the report since it was released officially. There is only the Li Phoeung [?] company of China that provided an explanation, but Global Witness does not show the details [original unclear – actually, only the Swedish company Lundin Petroleum responded to the inquiries of Global witness – but for information referring to their website].

“The Global Witness director, Mr. Gavin Hayman, said that what the Cambodian government should do is not to provide new concessions too quickly to private companies. The Cambodian government should rather verify and conduct audits on the concessions already provided to those private companies. He went on to say that all donor countries should put pressure on the Cambodian government not to provide new concessions too quickly to private oil, gas, or mineral exploration companies, and to verify them again. The report has found that 70 companies have already received concession contracts and are exploring minerals. Those concessions have been provided without transparency, because there is no clear system in place for providing concessions, besides delivering them to high-ranking officials of the government. Also, he voiced concern about the loss of mineral resources for which concessions have been provided to foreign companies involved in serious human rights abuses in Cambodia, and the government should work effectively to control them.

“Global Witness showed in its report that some oil exploration companies in Cambodia had paid money to the Cambodian National Petroleum Authority, and that money was probably not put into the National Treasury. The report added that oil, gas, and mineral exploration companies are required to pay kickbacks for signing up to bids for concessions with the Cambodian National Petroleum Authority. Like a company from Indonesia, PT Medco Energi Internasional, which has spent US$7.5 million to the Cambodian National Petroleum Authority. Moreover, each company having stakes in mineral exploration according to contracts, is also required to pay taxes annually. In the first year, a tax with the amount of US$800,000 was required to be paid for each concession.

“Global Witness added that in 2006 and 2007, money was not seen to have been put into the Ministry of Economy and Finance. The report said also that an oil exploration company has been exploring oil along the Tonle Sap Lake, the biggest freshwater lake in Southeast Asia, which produces between 40% and 70% of fish for the Cambodian people. The Tonle Sap basin is part of a UNESCO Biosphere Reserve. Global Witness criticized donor countries for not using their influences through development funds to improve good governance, while the annual international aid for Cambodia is equal to half of the national budget.” Khmer Aphivaot Sethakech, Vol. 7, #336, 6.2.2009

Newspapers Appearing on the Newsstand:
Friday, 6 February 2009

Cheat Khmer, Vol.1, #13, 6-8.2.2009

• The Sam Rainsy Party Appointed Ms. Ke Sovannarath Secretary-General [before she was acting secretary-general]

Khmer Aphivaot Sethakech, Vol. 7, #336, 6.2.2009

• Global Witness Encourages Donor Countries to Use Their Influence on the Government to Check how Oil, Gas, and Minerals Exploration Licenses Were Given
• [One faction of] The Norodom Ranariddh Party Asks the Presidents of the National Assembly and of the National Election Committee to Remove [NRP secretary general] Mr. You Hockry and Mr. Sao Rany [from the other faction of the NRP] as Members of Parliament

Kampuchea Thmey, Vol.8, #1866, 6.2.2009

• Cambodia Holds the Third Economic Forum [United Nations Development Program, Asian Development Bank, World Bank, and other development partners joined the event [Note: the member of the National Assembly Ms. Mu Sochua, was denied access by bodyguards; this surprised the German ambassador so much that he skipped to participate in this event]

Khmer Sthapana, Vol.2, #198, 6.2.2009

• Military Police Surround the Mobitel Company and the Station of the Cambodian Television Network – CTN [of Oknha Kith Meng, for several hours] – Reason not Known
• A Meeting of the Cambodian and Thai Ministers of Defense Will Be Held Today in Phnom Penh [to discuss border problems]

Koh Santepheap, Vol.42, #6571, 6.2.2009

• Tragedy of a Farmer Family Who Rode a Cart Loaded with Firewood and Hit an Anti-Tank Mine, Triggering an Explosion, Killing Three People and Injuring Two More [a man and his two small sons died, his 6-year old daughter suffered serious wound, and his wife was lightly injured – Battambang]
• A Car Coming Out from a House Pushed a [female] Student against a Wall, Killing Her [police are investigating, to ask for an arrest warrant for the car driver, also a woman]

Moneaksekar Khmer, Vol.16, #3680, 6.2.2009

• Real Estate Property of Ke Kim Yan Is Expropriated as Property of the Cambodian People’s Party [according to a high ranking official close to Prime Minister Hun Sen]
• [Around 20] Military Personnel of the First Region Used Violence to Evict Citizens from Their Land [and threatened to shoot those who dared to protest – Recheanukoul village, Stung Treng commune and district, Stung Treng]

Rasmei Kampuchea, Vol.17, #4814, 6.2.2009

• The Philippines Reduce Taxes for Goods from Cambodia
• The Ministry of Foreign Affairs Promises to Update Information on Its Website [after there was criticism from the public; however, confidential documents will not be published]
• Japanese Investors Are Satisfied with Plan to Invest along Cambodian Beaches [in Koh Kong]
• The National Bank of Cambodia Signs an Agreement with Citi Bank for Training about the Bond Market [officials of the National Bank of Cambodia will be sent to receive training in New York]
• An Official of National Television [TVK] in Pursat Was Murdered in a Guesthouse [a woman rented a room to sleep with the murdered man, and two other men who had rented a room next door are also suspected in this robbery and murder]

Samleng Yuvachun Khmer, Vol.16, #3481, 6.2.2009

• The Tokyo Government Blocks the Entry of [Thai ousted prime minister] Thaksin into Japan

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