Sebastian Strango and Meas Sokchea
The Phnom Penh Post
THE government has defended its handling of extractive resource exploration agreements, in response to opposition queries about payments made by foreign firms for the right to explore Cambodian oil and mineral deposits.
On May 7, Sam Rainsy Party lawmaker Son Chhay wrote to Deputy Prime Minister Sok An requesting information about which companies have been awarded the right to prospect for oil and gas and how funds from those companies have been administered.
He also requested information about a US$28 million payment by French oil giant Total to secure offshore oil exploration rights, as well as the nature of a “social development fund” set up to distribute a portion of that firm’s payment.
In a letter dated June 9, a copy of which was seen Thursday, Sok An confirmed that a total of 23 companies have been awarded rights to explore for oil in Cambodia, although not all of them are still operating.
He also confirmed the $28 million Total payment, stating that it included a $20 million signature bonus, $6 million to be paid into a social-development fund, and another $2 million for administrative purposes.
The letter denies any misuse of the funds, and says that all signature bonuses are made into a National Bank of Cambodia account jointly managed by the Cambodian National Petroleum Authority (CNPA) and the Ministry of Economy and Finance.
“Like other national budgets, the money has a single exit and a single entry point with only one commander in chief and one chief of staff,” said Sok An, who is also the president of the CNPA.
“No payment has been paid directly to any government official,” his letter added. “All payments must be made according to oil agreements ... [and] put into an account which is defined by the government.”
The social development fund is jointly managed in the same way, but “consultation” with a particular company is required before its funds can be disbursed, Sok An stated.
The recent concerns about extractive resource revenues arose in April, when mining giant BHP Billiton announced it was under investigation by the US securities and exchange commission for possible violations of anticorruption laws.
Some linked the probe to Cambodia because of comments by Minister of Water Resources and Meteorology Lim Kean Hor, who told the National Assembly in 2007 that BHP had secured rights to a concession in Mondulkiri province by paying $2.5 million in “tea money”.
In a speech later that month, Prime Minister Hun Sen mentioned the Total payment, prompting government critics and opposition members to call for further disclosure.
In a statement issued in May, London-based graft watchdog Global Witness said foreign donors should confront the government about whether such payments have been registered in national accounts.
“No information about the whereabouts of these payments has been made public by the authorities,” Global Witness said.
On Thursday, Son Chhay welcomed Sok An’s letter, saying it provided new information on a number of issues.
But he said some of his questions remained unanswered. He noted that the letter does not address his request that the government disclose information about revenues and expenses from the social development fund, as well as the legal framework that dictates its use.
“Where is the money that is collected from all these companies? How can the government create a fund without regulation or a law to regulate the fund?” he said. “It’s these sorts of things that have been criticised by the public. There are still more questions that need to be answered.”
He also disputed Sok An’s claim that no government officials have received direct payments, saying he has evidence of a senior government official receiving a personal payment in relation to an oil and gas deal.
The identity of the official will be revealed after more evidence is collected, he said, and vowed to “push for more details” about the government’s handling of oil and gas exploration payments.
Tith Sothea, a spokesman for the Council of Ministers’ Press and Quick Reaction Unit, said Sok An’s responses to Son Chhay were thorough and dismissed Son Chhay’s concerns.
“All answers are not to Son Chhay’s liking, since he has the opposite ideas. If Son Chhay accepts them or not it is up to him,” he said.
Mam Sambath, chairman and executive director of the NGO Cambodians for Resource Revenue Transparency, told the Post in May that the premier’s announcement of the Total payment in April was a positive sign for future transparency, but that further disclosure is necessary.
“They should improve how to disclose information by having more detailed information,” he said.
On May 7, Sam Rainsy Party lawmaker Son Chhay wrote to Deputy Prime Minister Sok An requesting information about which companies have been awarded the right to prospect for oil and gas and how funds from those companies have been administered.
He also requested information about a US$28 million payment by French oil giant Total to secure offshore oil exploration rights, as well as the nature of a “social development fund” set up to distribute a portion of that firm’s payment.
In a letter dated June 9, a copy of which was seen Thursday, Sok An confirmed that a total of 23 companies have been awarded rights to explore for oil in Cambodia, although not all of them are still operating.
He also confirmed the $28 million Total payment, stating that it included a $20 million signature bonus, $6 million to be paid into a social-development fund, and another $2 million for administrative purposes.
The letter denies any misuse of the funds, and says that all signature bonuses are made into a National Bank of Cambodia account jointly managed by the Cambodian National Petroleum Authority (CNPA) and the Ministry of Economy and Finance.
“Like other national budgets, the money has a single exit and a single entry point with only one commander in chief and one chief of staff,” said Sok An, who is also the president of the CNPA.
“No payment has been paid directly to any government official,” his letter added. “All payments must be made according to oil agreements ... [and] put into an account which is defined by the government.”
The social development fund is jointly managed in the same way, but “consultation” with a particular company is required before its funds can be disbursed, Sok An stated.
The recent concerns about extractive resource revenues arose in April, when mining giant BHP Billiton announced it was under investigation by the US securities and exchange commission for possible violations of anticorruption laws.
Some linked the probe to Cambodia because of comments by Minister of Water Resources and Meteorology Lim Kean Hor, who told the National Assembly in 2007 that BHP had secured rights to a concession in Mondulkiri province by paying $2.5 million in “tea money”.
In a speech later that month, Prime Minister Hun Sen mentioned the Total payment, prompting government critics and opposition members to call for further disclosure.
In a statement issued in May, London-based graft watchdog Global Witness said foreign donors should confront the government about whether such payments have been registered in national accounts.
“No information about the whereabouts of these payments has been made public by the authorities,” Global Witness said.
On Thursday, Son Chhay welcomed Sok An’s letter, saying it provided new information on a number of issues.
But he said some of his questions remained unanswered. He noted that the letter does not address his request that the government disclose information about revenues and expenses from the social development fund, as well as the legal framework that dictates its use.
“Where is the money that is collected from all these companies? How can the government create a fund without regulation or a law to regulate the fund?” he said. “It’s these sorts of things that have been criticised by the public. There are still more questions that need to be answered.”
He also disputed Sok An’s claim that no government officials have received direct payments, saying he has evidence of a senior government official receiving a personal payment in relation to an oil and gas deal.
The identity of the official will be revealed after more evidence is collected, he said, and vowed to “push for more details” about the government’s handling of oil and gas exploration payments.
Tith Sothea, a spokesman for the Council of Ministers’ Press and Quick Reaction Unit, said Sok An’s responses to Son Chhay were thorough and dismissed Son Chhay’s concerns.
“All answers are not to Son Chhay’s liking, since he has the opposite ideas. If Son Chhay accepts them or not it is up to him,” he said.
Mam Sambath, chairman and executive director of the NGO Cambodians for Resource Revenue Transparency, told the Post in May that the premier’s announcement of the Total payment in April was a positive sign for future transparency, but that further disclosure is necessary.
“They should improve how to disclose information by having more detailed information,” he said.
10 comments:
Da oil will ultimately give SenVarman to powerfully become as a king lion with wings!
If when oil money arrived, then Cambodian can build more infrastructures such as road and bridges. But right now, there is no money from selling oil yet. They don't even start the production drill. Government don't even issue any license for oil companies to extract oil from the ground yet.
Thief never tells the truth. Do you think this story will come to the surface if it was not questioned by the group in US? I bet ah Sok An and clan will keep it quiet for their benefit.
2:32AM! ah kwack just bak a few weeks ago if Chevron do not exptact the oil by 2012 , he would cancel the contrac!
Read and remember boy!
Ministry of Finance is one of the corrupted engine for The Royal Corruption Government of Cambodia. Officers are enjoying pocketing money from various fields, from demanding tea money and or percentage money from each government agency. Each officers release the national money to the needed agencies thru percentages or isn't that the officers at the ministry of finance just ignore and don release the money to the needed event if there are sign or agree from the Prime Minister Ah Hun Sen. Each of them earn at least 10000 $ per month. like ah Oun 1000 pearn moniroth can earn 500000 per month or more than that.Just one example of corrupter. Ah Hun Sen is strongly committed supporting and encouraging corruption of the Royal Corruption of the Government of Cambodia. So that is why ah Keat Chhum did not want to open account for each government officer directly, each transaction of money have to come thru officers of the finance ministry. Bravo xcambodia moha khoch moha puk rolui
Oil and gas is the position by the Hun Sen Sok Anh Choam Prasit Cheam Yap and all CPP clique. Oil and gas will burn them someday due to their much thrithy. People of Cambodia should all remember that all their wealths are yours those are not belong to them at all. Ask to god and cursing them. stop nave look at your children ant its children why so much different 1000%. Cambodian people please stand up again them stope fearing them, poor military poor police poor government officers please stand up again them. use your right as state in the constitution stand up again them isn't that you life your children life your grand children life will end up in poverty and they are the god king.
Take anything what Sok Anh says is unreliable.He,himself is mastermind of corruption,and tried to produce poor anti-corruption laws.
It is a joke of a jerk.
you have to belive me for the long awaited anti corruption law because i will never make it to turn to my self my family.i don't care because you are just a large handfull of people, if you don't trust this law please leave cambodia and if cambodian don't trust this law i just kill them
Everything is in the hand of Hun Xen!
I support Mr Son Chhay to question Mr Sok An on the revenue or tea money management. Even oil production has not started yet but the government has made millions of dollars already. But it is very unfortunate that most Cambodian do not understand about that, that is why it is very easy for government officials including the prime minister can manipulate public opinion as we see the comment of 2:32 AM. He/she doesn't understand at all about those money.
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