Steve Finch
The Phnom Penh Post
We will likely never know the extent to which Ly Yong Phat may have profited from this arrangement given the highly opaque nature of his businesses, but from farmers reported testimonies they were offered well below market value or in some cases nothing at all for land, we can assume the CPP senator has made money.
If the EBA is to be a success, and Cambodia’s government is to learn it has to address grave injustices associated with doing business here, then the EU must take a firm stand.
JUNE 4, 2010 was supposed to represent a milestone for Cambodian exports. Taking advantage of zero tariffs in Europe under the Everything But Arms scheme, Thai company Khon Kaen Sugar (KSL) and its Cambodian partner Koh Kong Sugar Industry shipped 10,000 tonnes of sugar to the United Kingdom, the first in 40 years.
But a system the European Union has designed to help least-developed countries enhance “their export earnings, promote their industrialisation and encourage the diversification of their economies” has instead had a negative overall impact in Cambodia’s case. Not only has the development of Cambodia’s sugar export industry led to serious human rights abuses, all evidence suggests it has proven hugely unprofitable for almost everyone involved – except for one man, CPP Senator Ly Yong Phat.
Investigations by the likes of Bridges without Borders and EU officials themselves, among others, have led to identical conclusions – that people have lost their homes and their livelihoods following forced evictions by businesses owned by Ly Yong Phat, including Koh Kong Sugar Industry and Kampong Speu Sugar Company.
After establishing plantations and a factory in Koh Kong Province with KSL, Ly Yong Phat’s joint venture hired locals to cut sugar cane for 10,000 riels (US$2.44) per day, workers told The Post in December. So if a worker was cutting cane every day during a 31-day month they would earn just over $75 per month, or about the same as a garment worker. Except the sugar-cane cutting season only lasts a few months and garment workers usually get one day off per week.
This might all make some sense if Khon Kaen Sugar was profiting from their Cambodian venture, but it is not. In the company’s 2010 report, KSL said it hoped to breakeven on its Cambodia and Laos operations this year and reported increased losses from these operations for 2010.
More worrying was the statement that operating results “will improve after the cane plantations areas expand”.
Meanwhile, although companies in Europe are benefitting from cheaper sugar supplies due to zero tariffs from LDC countries including Cambodia, is the PR fallout worth it? Tate and Lyle, for example, has been the subject of damaging allegations in relation to Cambodian sugar even though it sold its sugar business to American Sugar Refining in July last year.
We will likely never know the extent to which Ly Yong Phat may have profited from this arrangement given the highly opaque nature of his businesses, but from farmers reported testimonies they were offered well below market value or in some cases nothing at all for land, we can assume the CPP senator has made money.
If the EBA is to be a success, and Cambodia’s government is to learn it has to address grave injustices associated with doing business here, then the EU must take a firm stand.
If the government’s reported investigation into this issue does not produce tangible results then the EU must take similar action as it did against Burma previously for grave forced labour abuses that resulted in the abolition of EBA privileges. Anything less would be an unprofitable embarrassment for almost everyone concerned.
6 comments:
The European debt crisis is escalating into a potential financial cataclysm. In fact, the EU continent is on a glide path to the financial armageddon, and this blond should galvanize her clans to combat the current crisis instead of venture to other country giving lecture.
Pi Anh
Sweet Crime against humanity?
Pi Anh
Maybe she is not part of the elitist.
DON'T BUY ANYTHNG " MADE IN VIETNAM ".
THEY ARE THE COUNTRY BEHIND CAMBODIA AND LAOS.
VIETNAM, IS EVIL COUNTRY.
Like CPP and its cronies, Pi Anh loves to attack the person and avoid the subject.
i think this is an example of individual tycoon using money and connection to buy out cheaply from villagers. however, it shouldn't be painted as a whole of cambodia because not everybody is doing this injusticely, you know! of course, there are a couple of bad apples that do this to villagers in the provinces, but to say all tycoon or wealthy people are cheating and doing this to villagers in itself is unjust. can't stereotype. those who cheated and robbed the villagers should be apprended in accordance to the law. of course, it is fair to say that there are some individuals that go out of their way to cheat and rob villagers of their rights to land entitlement, ownership, etc; and those individual should be dealt with by the law, really! that said, of course, not everybody is like this, though! people should treat it as a case by case situation, etc! you have to be careful with certain politician will use it for their own political gain, you know, especially if they mention something about don't vote for this or that party or when they generalized that gov't is bad or corrupted, etc, etc. again, treat it as a case by case issue, really!
*បុគ្គលខ្លះគិតតែប្រយោជន៍ផ្ទាល់ខ្លួនតែប៉ុណ្ណោះ។
**អ្នកខ្លះគិតប្រយោជន៍ខ្លួនស្មើនិងប្រយោជន៍អ្នក ដទៃ។
***តែបុគ្គលមួយជំពូកទៀតមិនខ្វល់និងអ្វីទាំង
អស់ សូម្បីតែប្រយោជន៍ផ្ទាល់ខ្លួន។
ដូច្នេះ លី យ៉ុង ផាត គិតតែប្រយោជ៍ផ្ទាល់ខ្លួនតែ
ប៉ុណ្ណោះ និង បក្សពួកគណបក្សប្រជាជន។
បុគ្គលទីពីរ និង ទីបីនោះ សូមពិចារណាដោយ
ខ្លួនឯងផងចុះ។
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