Global Witness report calls for immediate moratorium on both sectors until basic governance structures are in place
5 February 2009
Global Witness Press Release
A corrupt elite has captured the country’s emerging oil and mineral sectors while Cambodia’s international donors turn a blind eye, a new report from anti-graft NGO Global Witness claims today.
Cambodia – one of the world’s poorest countries – could eventually earn enough from its oil, gas and minerals to become independent of foreign development aid. The report, Country for Sale, exposes for the first time how this future is being jeopardised by high-level corruption, nepotism and patronage in the allocation and management of these critical public assets.
Country for Sale details how rights to exploit oil and mineral resources have been allocated behind closed doors by a small number of powerbrokers surrounding the prime minister and other senior officials. The beneficiaries of many of these deals are members of the ruling elite or their family members. Meanwhile, the findings suggest that millions of dollars paid by oil and mining companies to secure access to these resources may be missing from the national accounts.
“The Cambodian government does not have a process for allocating resources outside of patronage,” said Global Witness Campaigns Director, Gavin Hayman. “The same political elite that pillaged the country’s timber resources has now gained control of its mineral and petroleum wealth. Unless this is changed, there is a real risk that the opportunity to lift a whole generation out of poverty will be squandered.”
In December 2008, donors pledged US$1 billion in development aid, yet failed to use this opportunity to demand new governance measures for the industries.
Private sector companies also have a role to play in improving the governance of Cambodia’s extractive industries. So far over 75 companies are working in Cambodia’s extractive sectors, including some internationally known operators such as Chevron and BHP Billiton. Country for Sale documents how many of these companies have already paid significant upfront sums to the government. Very few of them have disclosed these payments.
“Companies need to come clean on what they have paid to the government to secure access to these natural resources, or risk becoming complicit in a corrupt system,” said Hayman.
Country for Sale can be downloaded from http://www.globalwitness.org For more information and interviews, please contact Global Witness on the following numbers: In London +44 (0)20 7561 6399 or +44 (0) 7912 516 445 In Bangkok +66 (0)860 520 268
(1) Global Witness exposes the corrupt exploitation of natural resources and international trade systems to drive campaigns that end impunity, resource-linked conflict, and human rights and environmental abuses. Global Witness was co-nominated for the 2003 Nobel Peace Prize for its leading work on ‘conflict diamonds' and awarded the 2007 Commitment to Development Ideas in Action Award, sponsored jointly by Washington DC based Center for Global Development and Foreign Policy magazine.
(2) Global Witness’ last report on Cambodia, Cambodia’s Family Trees, showed how a small group of individuals surrounding the prime minister and other senior public officials have exploited the country’s forests for their personal profit. The report can be downloaded from http://www.globalwitness.org/media_library_detail.php/546/en/cambodias_family_trees
(3) Global Witness wrote to both Chevron and BHP Billiton in October 2008 to ask them to reveal any payments made to the Cambodian government or government officials. At the time of publication, Chevron had not responded. BHP Billiton however, did reply to say that BHP Billiton, Mitsubishi and the Cambodian Government have established a joint social development fund. The total contribution of BHP and Mitsubishi is to be US$2.5 million. BHP’s response stated: “BHP Billiton has never made a payment to a Cambodian Government official or representative and we reject any assertion that the payment under the minerals exploration agreement is, or the amounts contributed to the Social Development Projects Fund are, ‘tea money’.” BHP also shared how much had been paid to the Cambodian government, adding: “In accordance with the terms of a minerals exploration agreement with the Cambodian government which granted BHP Billiton and Mitsubishi the right to explore for bauxite an amount of US$1 million was formally paid to the Cambodian government in September 2006.”
(4) Cambodia’s donors are:
Australia
Belgium
Canada
China
Denmark
Finland
France
Germany
Ireland
Japan
Sweden
United Kingdom
United States
United Nations
European Commission
Asian Development Bank
International Monetary Fund
The World Bank Group
5 February 2009
Global Witness Press Release
A corrupt elite has captured the country’s emerging oil and mineral sectors while Cambodia’s international donors turn a blind eye, a new report from anti-graft NGO Global Witness claims today.
Cambodia – one of the world’s poorest countries – could eventually earn enough from its oil, gas and minerals to become independent of foreign development aid. The report, Country for Sale, exposes for the first time how this future is being jeopardised by high-level corruption, nepotism and patronage in the allocation and management of these critical public assets.
Country for Sale details how rights to exploit oil and mineral resources have been allocated behind closed doors by a small number of powerbrokers surrounding the prime minister and other senior officials. The beneficiaries of many of these deals are members of the ruling elite or their family members. Meanwhile, the findings suggest that millions of dollars paid by oil and mining companies to secure access to these resources may be missing from the national accounts.
“The Cambodian government does not have a process for allocating resources outside of patronage,” said Global Witness Campaigns Director, Gavin Hayman. “The same political elite that pillaged the country’s timber resources has now gained control of its mineral and petroleum wealth. Unless this is changed, there is a real risk that the opportunity to lift a whole generation out of poverty will be squandered.”
In December 2008, donors pledged US$1 billion in development aid, yet failed to use this opportunity to demand new governance measures for the industries.
Private sector companies also have a role to play in improving the governance of Cambodia’s extractive industries. So far over 75 companies are working in Cambodia’s extractive sectors, including some internationally known operators such as Chevron and BHP Billiton. Country for Sale documents how many of these companies have already paid significant upfront sums to the government. Very few of them have disclosed these payments.
“Companies need to come clean on what they have paid to the government to secure access to these natural resources, or risk becoming complicit in a corrupt system,” said Hayman.
Country for Sale can be downloaded from http://www.globalwitness.org For more information and interviews, please contact Global Witness on the following numbers: In London +44 (0)20 7561 6399 or +44 (0) 7912 516 445 In Bangkok +66 (0)860 520 268
(1) Global Witness exposes the corrupt exploitation of natural resources and international trade systems to drive campaigns that end impunity, resource-linked conflict, and human rights and environmental abuses. Global Witness was co-nominated for the 2003 Nobel Peace Prize for its leading work on ‘conflict diamonds' and awarded the 2007 Commitment to Development Ideas in Action Award, sponsored jointly by Washington DC based Center for Global Development and Foreign Policy magazine.
(2) Global Witness’ last report on Cambodia, Cambodia’s Family Trees, showed how a small group of individuals surrounding the prime minister and other senior public officials have exploited the country’s forests for their personal profit. The report can be downloaded from http://www.globalwitness.org/media_library_detail.php/546/en/cambodias_family_trees
(3) Global Witness wrote to both Chevron and BHP Billiton in October 2008 to ask them to reveal any payments made to the Cambodian government or government officials. At the time of publication, Chevron had not responded. BHP Billiton however, did reply to say that BHP Billiton, Mitsubishi and the Cambodian Government have established a joint social development fund. The total contribution of BHP and Mitsubishi is to be US$2.5 million. BHP’s response stated: “BHP Billiton has never made a payment to a Cambodian Government official or representative and we reject any assertion that the payment under the minerals exploration agreement is, or the amounts contributed to the Social Development Projects Fund are, ‘tea money’.” BHP also shared how much had been paid to the Cambodian government, adding: “In accordance with the terms of a minerals exploration agreement with the Cambodian government which granted BHP Billiton and Mitsubishi the right to explore for bauxite an amount of US$1 million was formally paid to the Cambodian government in September 2006.”
(4) Cambodia’s donors are:
Australia
Belgium
Canada
China
Denmark
Finland
France
Germany
Ireland
Japan
Sweden
United Kingdom
United States
United Nations
European Commission
Asian Development Bank
International Monetary Fund
The World Bank Group
10 comments:
Very credible report indeed, coming from the people that get paid to do dramatize a situation. We should all ask this global witness group. How do they get paid? Do they get paid when they have a story to report on? And how do you make a story interesting so your story sells and you make money?
Let me tell your something about journalism. It's not as factual as you might believe. I study media and film criticism and I know a thing or two about how this medium works.
Journalists get paid if they have a story to report and not just any story, something that is interesting. So, the trick is to make even a not so interesting stories "interesting." You catch my riff? You don't tell lies but you over dramatize certain things to make your story stand out. They learn this in school, people.
So, don't be fooled by this so-called amazing story about illegal business in Cambodia done by a group of people whose living depends on having a story. Not telling the truth but having a story. You get the difference?
Because ah Scam Rainsy internal government had provided this false reported to the NGO. No body destroy the reputation cambodia, but, cambodian itselt.
Well, 1:37PM - if you are such a smart journalist by yourself, why couldn't you figure out, where the money for Global Witness is coming from? Just check the website. It's only a little work of research. Shouldn't be too hard for you. But maybe your interest is blaming them, first of all? A little bit of negative propaganda... But why? Who pays you?
No 1:37 I don't get your "riff"
The election will be free and fair:
If Opposition uses the Intenet, we'll used the TV.
If Opposition defame us, we'll used the law.
.
.
.
If Opposition us Global Witness, we'll used Yuon.
Global witness has its field teamwork and proper analysis to filter the accurate information. Global Witness is not affiliated with any political parties, but the CPP as usual with blame Global Witness as voicing for opposition party.
CPP doesn't care about the corruption and nepotism, but will accuse other or make them to be their victim...this method has been taught by communist...
Thank you GV for your effort to bring justice for Cambodian people.
go do something you asshole. and when was the last time khmers ever read your report/analysis about cambodia?
i appreciate work of global witness and urge them to work in cooperation for the kmer interest!
and like they say if the current government has done their duties efficiently, cambodia doesn't need to beg for money from donor countries every year. and if there is no rampant corruption, culture of impunity as the result of one-man gripping power, cambodia authorities will implement laws consciously and forcefully!
but...........go figure out!and don't try to fool people around here. need to get your work done professionally and take full responsibility for your career or some damn writers asshole here just write to get bones from the current governement!
I think Hun Sen should lock the door and no body can get in and no body can get out.Used Pol Pot style.So the information can't leak out.Desrtoy reputetion=destroy corruption.Kheiv use different tactic by try to buy GW for $1M or $2M to shut their up,you will fell better and sleep well and make more corruption.1 or 2M is not hard to find among of you guy.
Well I hope you won't make a career in journalism, looking a your poor judgment...
Sad to see nothing is changing in Cambodia in spite of the numerous effort made.
This country is being stolen and suck clean by its dictatorship and rather than doing something about it, world leaders close their eyes...
More dramatically the willingness of major corporation to do business with this junta.
the population ends up hostage in a situation where they are the only one suffering while receiving a thousands of the money extracted from the use of natural resources. They did it for the trees and will start all over again with the oil : they have the experience.....
Global Witness report calls for what?
Hahahaha, LMAO, ...
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