ANZ subsidiary linked to Cambodian army

The ANZ subsidiary has denied any involvement. (ABC News: Michael Janda, file photo)

Wednesday, March 03, 2010
By Liam Cochrane for Radio Australia
ABC News (Australia)

ANZ Royal, a subsidiary of one of Australia's largest banks, has denied it is involved in a scheme that creates partnerships between private businesses and Cambodian military units.

Cambodian prime minister Hun Sen announced the initiative last week and said more than 40 partnerships had been established to provide food, medicine, tools, buildings and transport for troops and their families.

One of the businesses named as a sponsor of the Cambodian army was Metfone, a subsidiary of a mobile phone company owned by the Vietnamese military.

Another on the list was ANZ Royal, a joint partnership between Australia's ANZ Bank and one of Cambodia's biggest business conglomerates, The Royal Group.

Cambodian council of ministers spokesman Phay Siphan says the scheme reflects Cambodian culture.

"Some Cambodians on management [at ANZ Royal], they have the chance to mobilise their charity to support some [soldiers]," he said.

"The charity hasn't just been supported today, it's been years already. It's just that they have been assigned it so that the people understand who they help."

ANZ Royal has declined to comment to ABC's Radio Australia, but chief executive Stephen Higgins has been quoted in local media saying that he is unsure how his company's name appeared on the list of military sponsors, saying it might be "some type of printing error".

A statement from ANZ in Australia said "it is not appropriate for ANZ to provide support or sponsorships to individual military units in any country in which we operate".

"ANZ Royal Bank, as a subsidiary of ANZ, has not and will not be providing such support," the statement said.

Seeking answers

The initiative to formally link businesses with the military has raised concerns among human rights groups that work in Cambodia.

Naly Pilorge, a spokeswoman for the rights group LICADHO, says "it is especially concerning because some of these ministries [involved] have absolutely no link to the military, such as those that are supposed to focus on youth or women or health".

"That's the question we are trying to find the answers to, because right now it is very unclear.

"It is alarming because some of these ministries have nothing to do with the military, and for good reason."

Ms Pilorge says a similar scheme would not be tolerated in other countries.

"In most countries, developed countries and developing countries, it would be illegal for business in the private sector to openly and directly fund the milliary," she said.

"But by dealing so openly there is an assumption that the military is open to any group or any company that wishes to use the military to protect its interests and its private interests.

"We have see this over the country over the years in terms of land grabbing. We have seen the military used, especially in the rural areas... to evict people to protect the interests of economic concessions.

"This is really disturbing because legislation says the miliary is to protect citizens equally and not be used for the private interests of companies.