Khmer Intelligence News - 8 February 2007

8 February 2007

Lessons from Australia for Hun Sen (2)

According to independent political analysts, Prime Minister Hun Sen learned at least the following lessons from his visit to Australia in December 2006:

1. There is a real dialogue between the Government and the Opposition as evidenced by the heated debate during "Question Time" that occurs on almost every sitting day at the Federal Parliament in Canberra.
2. The Opposition Leader is invited to meet with any important foreign visitor, separately from the Prime Minister . Hun Sen had to answer tough questions about the human rights situation in Cambodia from (then) Opposition Leader Simon Crean and (then) Shadow Minister of (or Opposition Spokesman for) Foreign Affairs Kevin Rudd.
3. The Prime Minister and the Opposition Leader get the same salary from the State.
4. The Opposition (currently the Labor Party) is in a position to take power and the incumbent Prime Minister (currently John Howard from the Liberal Party) must be prepared to step down following any general election, a scenario that could effectively materialise by the end of this year according to recent opinion polls.

Breakdown of gasoline price in Cambodia (1)

The current gasoline price in Cambodia of 3,700 Riels per liter is made up of the following components:

• Purchase price in Singapore: 1,500 Riels per liter
• Transport costs from Singapore to gasoline stations in Cambodia: 200 Riels per liter
• Customs duties and special taxes: 1,000 Riels per liter
• Profit for gasoline companies: 1,000 Riels per liter.

Only foreign-owned gasoline companies (Total, Caltex) pay the full amount of customs duties and taxes. Cambodian-owned companies (Sokimex, Tela), which largely resort to smuggling, pay only a small fraction of the duties and taxes. They are owned by powerful people close to the ruling CPP. Therefore their profit can reach up to 2,000 Riels per liter (US$ 1 = 4,100 Riels). Every year the State incurs a loss of revenue of some US$ 100 million because of gasoline smuggling.

How political parties finance their election campaigns (2)

• Cambodian People's Party (CPP): The ruling party is using a parallel budget derived from, and similar to, the official State budget. Resources come from smuggling (such as gasoline smuggling as detailed above), fraudulent sales of State assets often involving deforestation and land grabbing, bribes associated with opaque contracts granted to business associates and friendly companies, diversion of State revenues, overpricing of public procurements, "donations" from private companies or businessmen who benefit from discretionary/ arbitrary tax exemptions, etc.
• Funcinpec: The "royalist" party, which is allied with the CPP, can count on a number of government officials who are also wealthy businessmen. First example: Mam Bun Neang, a former deputy governor of Phnom Penh and a very big land owner. Second example: Say Hak, the current governor of Sihanoukville, a Siamo-Chinese businessman who bought his position from Prince Norodom Ranariddh and is a relative to business tycoon and Senator Ly Yong Phat (real name on his Thai passport: Phat Suphapha), who is actively involved in the gambling business (casinos) and land grabbing in Koh Kong province.
• Norodom Ranariddh Party (NRP): Prince Ranariddh, who has amassed a fortune since 1993, is selling some of his assets in Cambodia (a villa in Phnom Penh and several pieces of land in Phnom Penh, Siemreap and Sihanoukville) and abroad (a villa in Kualar Lumpur).
• Sam Rainsy Party (SRP): The parliamentary opposition party, whose political platform is based on the fight against corruption, has recently launched an appeal to its members and supporters in Cambodia and overseas to help finance its election campaign. See Appeal in Khmer by clicking here, in English by clicking here, and in French by clicking here.

[End]