Friday, August 10, 2007

Cambodian authorities arrest two in anti-corruption sting

Fri, 10 Aug 2007
DPA

Phnom Penh - Cambodian authorities arrested an Interior Ministry official and a private businessman on suspicion of extorting money from a mining company, the head of the government's anti-corruption authority, Om Yentieng, announced Friday. Speaking at a press conference in the capital, Yentieng said Yim Neang, 37, a deputy chief of the Interior Ministry's international relations office, and Srey Muy Hieng, 25, a director of a company which conducted environmental impact studies, remained in custody.

He said the pair had been arrested late last week in a top secret operation after anti-corruption officials received information that the pair were demanding 380,000 dollars in bribes from an unnamed mining company operating in the country's far north-west.

"This foreign company was very scared. They did not cooperate with the authorities because they heard Yim Neang use the name of (Prime Minister) Hun Sen's son," Yentieng said.

He did not say how the authorities became aware of the complicated scam, in which police allege the men falsely claimed they were demanding money on behalf of several high ranking officials, including Environment Minister Mok Mareth and Interior Minister Sar Kheng.

He said they further demanded 100,000 dollars as part of the total which they claimed was for Hun Sen's election campaign. Cambodia is scheduled to hold national elections in 2008.

Warrants obtained from Phnom Penh Municipal Court allowed authorities to access the mens' email and text messaging accounts, where they allege they found hard evidence of the plot as well as documents falsely claiming one of Hun Sen's five children was behind them.

Yentieng said no government officials named by the pair knew anything about the scam and the pair's claims they were working with high ranking officials were entirely false.

He said the pair face charges of fraud, bribery and possibly intent to kidnap, all of which authorities said carry potential penalties of five to 10 years in prison.

"I appeal to all foreign businesses working here or planning to do business here to please deal directly with relevant authorities and avoid brokers," he said.

Despite double digit growth, Cambodia is still struggling to attract foreign direct investment, in part due to its image as a country rife with endemic corruption.

A long awaited anti-corruption law is yet to be passed by the National Assembly, and the government set up the anti-corruption body under the Council of Ministers about one year ago as a stop gap measure in the face of mounting criticism from donors that it was doing too little to combat corruption.

Last Sunday World Bank president Robert Zoellick again warned during a press conference that corruption remained a key concern for that body, which has suspended projects in the past over allegations of corruption.

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