Phnom Penh Thursday, 27 May 2010
“We don’t know of a clear policy for granting concessions or licenses to those companies, and what we are facing now is the limited disclosure of related information.”A year after it pulled out of Cambodia, the Australian mining giant BHP Billiton has found itself under a US Securities and Exchange Commission investigation for allegations related to bribery in a foreign country.
Officials have not said which country the alleged corruption took place in, but the company has said it gave $2.5 million to the government here in exchange for mining exploration rights, making Cambodia among the likely countries under the scope of the investigation.
It is not uncommon for companies to pay bonuses for concessions here, but what happened to that money remains unknown, with government and company officials sending conflicting statements and no apparent accounting for the funds.
The mystery underscores worries from environmental and development advocates who say money from Cambodia’s natural resources will be lost or squandered to corruption if and when gold, oil and other minerals and resources are explored in full.
BHP came to Cambodia under a 100,000-hectare exploration license for gold in 2006. After three years of exploration in Mondolkiri province, the company withdrew from the country, claiming it had not found enough to continue its investment. The company told the UK-based watchdog Global Witness that it had paid a $1 million signature bonus and $1.5 million for a social fund in 2006.
Global Witness now says there is no sign of that money.
Prime Minister Hun Sen told a private sector conference in April the $2.5 million had been put into a social fund for a hydropower project in Pursat Province.
Contacted by VOA Khmer in April, Pursat Governor Khuy Sokha said he was unaware of any hydropower projects other than one venture paid for by a $300-million Chinese investment.
“There is only one hydropower [project] in Pursat, and it belongs to the Chinese company, and for which the construction process began in December 2009,” he said. “That is called Atay Hydropower.”
BHP did not respond to queries related to the social fund. Officials have said they are looking into the company’s practices abroad in the wake of the US investigation.
The company published information on its website indicating it provided money to a handful of non-governmental organizations here, though the website does no say how much money the company offered each group.
VOA Khmer was able to identify four institutions that received BHP money for development projects between 2007 and 2010: the Cambodian Mine Action Center, the Danish Red Cross, Health Net International and Village Focus International.
The total amount of money given to these organizations was a little more than $615,000, according to individual representatives of the organizations, nearly three times less than the company told Global Witness it had paid.
Where the other $885,000 was spent remains unclear. Likewise, there is no record of the $1 million signature bonus the company claims to have made.
The lack of accounting for such large sums of money is cause for concern for development groups and donor countries, who warn Cambodia could face a “resource curse” when millions of dollars in oil and other resources begin to flow.
George Boden, a researcher for Global Witness, said the current complications in managing revenue from the extractive industries does not bode well for future, more lucrative ventures.
So far, 33 countries have been granted exploration licenses here. Thirteen of them have begun exploration for oil and gas and minerals.
“We don’t know of a clear policy for granting concessions or licenses to those companies, and what we are facing now is the limited disclosure of related information,” Mam Sambath, president of Cambodians for Resource Revenue Transparency, told VOA Khmer. “The information regarding the [BHP] case has never been revealed in public, so our research on the issue will also be limited.”
The outcome of the SEC investigation could affect investment in Cambodia, Mam Sambath said, because potential investors may shy away from a country implicated in a corruption scandal.
And BHP is not the only company to have put money into a social fund. In 2006, Indonesia’s MedcoEnergi provided $4.5 million for a license to explore blocks of onshore and offshore oil. The company withdrew in 2010, without citing a reason.
Meanwhile, the French oil and gas company Total, which has a license to explore oil and gas in the overlapping area near Thailand, has said it paid a $20 million signature bonus and another $8 for a social development fund.
A Total official told VOA Khmer from France the company had already provided $6 million of the social fund, which is to be used for a healthcare program under the joint control of a local Total representative and the Cambodian National Petroleum Authority. The official declined to elaborate.
Michael McWalter, an adviser to the CNPA, said signature money is properly deposited into an official account to “become a part of the revenue for the government,” and social funds are carefully watched by companies.
All companies are required to pay signature bonuses based on potential investment, and some are required to provide for a social fund, based on negotiations with the government, but neither should be a concern, he said. “So what one has to do is to trust the government to do the job properly.”
13 comments:
There isn't social fund bank account in Cambodia, the monies went through to the boss of department, kept in secure location inside their home .
(Signed) Hun Sen, Sok An
Really,it is out of touch of those companies invested in cambodia's projects.It is up to the RGC to distribute funds according to the purposes intended.
Abusing power from every levels to serve individuals,distorting and cheating in number in many reports have been very obvious.
And WHO to be served?Vietnam for paying off the power installed? or greeds and ignorance that blindfold who are in power?
That is why it takes more than ten years to achieve unclear corruption laws.
Robbing lands and concession and land sale,are in the name of money laundering and definately CORRUPTION.
So many unattended school PHDs rise up in order to stay in control.
This strategies are quite obvious for continuing control.
The longer this plan continus,the misery will never get out of victimised cambodians.
Neang SA
Track down those who signed all the projects, the revealation will come out.!!!
In my opinion please don't teach Cambodian to be racist or hate the Vietnamese. But we need to tell all Cambodian in the country to stand up and remove a HUN SEN regime from power. I believe in the power of the peoples. That's the only way to teach Cambodian leadership from dictatorship. We can not afford many more years to have HUN SEN run the corruption government. Please rise up all Khmers.
Trust the Cambodian government and wait for misery to befall upon the ordinary people. Corruption, the social ills that will never go away.
I agreed with you 8:32, we must continue to put pressure on the government. To trust the government to take care for your future is another huge mistake of the many times before. We must play a role to shape our future. Leaving the government alone is to live in misery again, not just for ourselves but also for our future generations. Now is the best opportunity to take part in our future as we only have one chance to extract natural resources.
Michael McWalter, said. “So what one has to do is to trust the government to do the job properly.”
.. and the truth is WE never TRUST this shit government.
When an employee found to have fraud the government that employee will be jailed but when the Priminister found to have fraud, cheated the country what are we going to do?
That why i said the DONOR have to be responsible they get all money from a round the world to give this shit goverment again and again what is the DONOR they thinking right now ? OR the DONOR playing game with HUN SEN goverment ? so is the donor keeping give the fuond the the bad goverment we will tell all the people a round the world fight with thier own goverment ( the donor is the one kill poor people we need to investigation
9:54AM! ever heard any one go to jail because of corruption in Cambodia under ah Hun Xen?????
If the corruptersgot caught they only got promoted to higher level!
If I lie may lightning strike me If not may ah Hun xen and those corruptors hit by lightning soon!!!!!
I'm one of French Parliament member, when I got to Cambodia all those top CPP members introduced me to a beautiful lady (prostitute) and bribing me to side with their government. They bribed me with chunk of money and nice lady. I can't turn that away. I've got to take that offer.
Paris,
France
12:17am! SORRY YOU ARE FRECH BARAING!!!!
'..Hun Xen said: “It turns out that I am a thief, they look at me like a thief, it’s time to stop the accusation and the finger pointing, because with one finger pointing at me, you are pointing the other 4 at yourself.”.."
Yeeeee! ah Nish pleu men!!!
Motherfucker is real stupid!!!!
Democratic Kampuchea Pol Pot Khmer Rouge Regime
Members:
Pol Pot
Nuon Chea
Ieng Sary
Ta Mok
Khieu Samphan
Son Sen
Ieng Thearith
Kaing Kek Iev
Hun Sen
Chea Sim
Heng Samrin
Hor Namhong
Keat Chhon
Ouk Bunchhoeun
Sim Ka...
Committed:
Tortures
Brutality
Executions
Massacres
Mass Murder
Genocide
Atrocities
Crimes Against Humanity
Starvations
Slavery
Force Labour
Overwork to Death
Human Abuses
Persecution
Unlawful Detention
Cambodian People's Party Hun Sen Khmer Rouge Regime
Members:
Hun Sen
Chea Sim
Heng Samrin
Hor Namhong
Keat Chhon
Ouk Bunchhoeun
Sim Ka...
Committed:
Attempted Murders
Attempted Murder on Chea Vichea
Attempted Assassinations
Attempted Assassination on Sam Rainsy
Assassinations
Assassinated Journalists
Assassinated Political Opponents
Assassinated Leaders of the Free Trade Union
Assassinated over 80 members of Sam Rainsy Party.
"But as of today, over eighty members of my party have been assassinated. Countless others have been injured, arrested, jailed, or forced to go into hiding or into exile."
Sam Rainsy LIC 31 October 2009 - Cairo, Egypt
Executions
Executed over 100 members of FUNCINPEC Party
Murders
Murdered 3 Leaders of the Free Trade Union
Murdered Chea Vichea
Murdered Ros Sovannareth
Murdered Hy Vuthy
Murdered Journalists
Murdered Khim Sambo
Murdered Khim Sambo's son
Murdered members of Sam Rainsy Party.
Murdered activists of Sam Rainsy Party
Murdered Innocent Men
Murdered Innocent Women
Murdered Innocent Children
Killed Innocent Khmer Peoples.
Extrajudicial Execution
Grenade Attack
Terrorism
Drive by Shooting
Brutalities
Police Brutality Against Monks
Police Brutality Against Evictees
Tortures
Intimidations
Death Threats
Threatening
Human Abductions
Human Abuses
Human Rights Abuses
Human Trafficking
Drugs Trafficking
Under Age Child Sex
Corruptions
Bribery
Embezzlement
Treason
Border Encroachment, allow Vietnam to encroaching into Cambodia.
Signed away our territories to Vietnam; Koh Tral, almost half of our ocean territory oil field and others.
Illegal Arrest
Illegal Mass Evictions
Illegal Land Grabbing
Illegal Firearms
Illegal Logging
Illegal Deforestation
Illegally use of remote detonation bomb on Sokha Helicopter, while Hok Lundy and other military officials were on board.
Lightning strike many airplanes, but did not fall from the sky. Lightning strike out side of airplane and discharge electricity to ground.
Source: Lightning, Discovery Channel
Illegally Sold State Properties
Illegally Removed Parliamentary Immunity of Parliament Members
Plunder National Resources
Acid Attacks
Turn Cambodia into a Lawless Country.
Oppression
Injustice
Steal Votes
Bring Foreigners from Veitnam to vote in Cambodia for Cambodian People's Party.
Use Dead people's names to vote for Cambodian People's Party.
Disqualified potential Sam Rainsy Party's voters.
Abuse the Court as a tools for CPP to send political opponents and journalists to jail.
Abuse of Power
Abuse the Laws
Abuse the National Election Committee
Abuse the National Assembly
Violate the Laws
Violate the Constitution
Violate the Paris Accords
Impunity
Persecution
Unlawful Detention
Death in custody.
Under the Cambodian People's Party Hun Sen Khmer Rouge Regime, no criminals that has been committed crimes against journalists, political opponents, leaders of the Free Trade Union, innocent men, women and children have ever been brought to justice.
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