Showing posts with label Closure of CamboSix. Show all posts
Showing posts with label Closure of CamboSix. Show all posts

Thursday, March 12, 2009

Cambo Six seeks $12m from govt

THURSDAY, 12 MARCH 2009
Written by Brendan Brady
The Phnom Penh Post


Bookie says it wants govt to pay compensation for its forced closure

SPORTS betting centre Cambo Six suffered more than US$12 million in losses due to lost infrastructure investment from its sudden forced closure by the government and will ask the amount be compensated by the state, according to the company's head office manager Nancy Chau.

"We are hoping for compensation because we have suffered substantial losses from the closure," she said, saying the company has invested heavily in store space and human resources to operate all 20 of its stores.

Another victim of the recent closures, the Sporting Live Group, is also asking for government compensation for the premature end to its licence, according to an employee of the company who requested anonymity as the information had not been made public.

The government had promised to help the internet-based sports gambling chain recoup its losses, but had not specified the amount it would give, he said.

Chea Peng Chheang, a secretary of state at the Ministry of Economy and Finance, said there were ongoing negotiations for compensation, but he did not know which establishments were eligible.

The news came Wednesday, the same day Hong Kong-based Asian Human Rights Commission issued a statement calling on the government to bear the brunt of the costs to workers caused by its decision.

At the end of last month, Prime Minister Hun Sen abruptly ordered the closure of all sports-betting outlets and slot-machine parlours across the country, claiming they had been responsible for moral decline in the Kingdom.

Unlike the larger companies affected by the ban, the estimated 6,000 to 8,000 workers who lost their jobs have no clout to demand compensation, the statement said.

"They can do nothing other than to resign themselves to accepting the government's arbitrating decision," the group said.

It said the move was especially harsh as job prospects are grim in the face of local contractions stemming from the global economic downturn.

The group argued that, as the government was responsible for ending the workers' employment, it must provide them compensation.

Under the 1997 Labour Law, workers with contracts of undetermined length must be compensated when, with no serious performance fault on their part, their contracts are abruptly cancelled.

Employers are required to give a notification of work contract severance seven days to three months in advance, depending on the length of the time the employee has been with the company. Failing to give such prior notification, employers must pay workers' salaries over the required notification period.

Beyond this severance pay, workers are entitled to breach-of-contract damages under the law.

The group also said the government should be forced to pay compensation to the companies whose licences it cancelled prematurely.

"The granting of licences was the government's doing. It has realised it was a mistake and it suddenly revoked those licences. It must, therefore, pay compensation to both the licencees and all their workers for its mistake."

The employee of Sporting Live Group also said the company had paid all of its 200 workers their February salaries. Chau said Cambo Six paid all of its employees - a figure she put at 1,500 people - their salaries for February, but said the workers were entitled to severance and damages payouts, and that those should come from the state.

"They are poor, and it will be difficult for them to find work," she said.

Capital residents for the ban

A majority of Phnom Penh residents see the government ban on licensed gambling establishments as positive, saying the move would benefit a number of facets of the social fabric of society, according to a survey by the local Indochina Research group.

Some 88 percent of people interviewed approved of the move. The number increased slightly, to 91 percent, among women.

Some 55 percent said the ban would reduce robbery and 42 percent said it would reduce crime and violence. About a quarter said it would combat school dropout rates.

Among the small group of dissenters - just 11 percent of those interviewed - nearly three-quarters said the shuttering of gambling establishments was wrong because it put people out of work. Otherwise, there was not a statistically significant category of opposition to the government move.

Indochina Research collected responses from 158 residents of Phnom Penh, balanced evenly between men and women, and people aged 18 to 30 and over 30.

Laurent Notin, the group's research director who oversaw the survey, said the limited sample size meant the numbers provide a "strong reflection" but not a definitive look at the opinions of the capital's residents. He also said the group would not assume the responses of rural Cambodians, who did not have as much access to gambling establishments, would be the same.

ADDITIONAL REPORTING BY HOR HAB

Friday, March 06, 2009

Hun Sen says gambling campaign over

Friday, March 06, 2009
ABC Radio Australia

Cambodia's Prime Minister Hun Sen has declared victory in his fight against football betting shops in Phnom Penh.

Last month, the prime minister blamed football betting, along with slot machine games, for causing social disorder, domestic violence, divorce and robbery.

Kyodo news agency reports the prime minister has now announced his campaign to close the shops is over.

CamboSix, the largest football-betting agency in Cambodia, was given a 10-year licence as the only legal operator of football betting in Cambodia in 2001.

But that licence is now said to have been cancelled.

Hun Sen also says he'll set up a panel of legal experts to study other forms of game-related betting.

Friday, February 27, 2009

More gambling centres close [-Pitfalls in doing business with a lawless regime that rules by Hun Sen's orders]

A security guard stands in front of a closed branch of Sporting Live in Phnom Penh on Thursday. The company is the latest gambling entity to face closure, it said. (Photo by: Heng Chivoan)

Friday, 27 February 2009
Written by Chun Sophal and Hor Hab The Phnom Penh Post

Sporting Live Group among many gaming venues shut down across the Kingdom following Prime Minister Hun Sen's crackdown on Cambo Six.

THE government's crackdown on licensed gambling extended beyond Cambo Six on Thursday following an earlier directive targeting all electronic gaming, slot machines and sports betting in the Kingdom, officials said.

Minister of Finance Keat Chhon said he issued a declaration Wednesday terminating all previously valid licenses following a directive by Prime Minister Hun Sen the same day ending gambling to "make social reform, strengthen public order, and improve social morality".

"We will punish - in accordance with the law - any business licensee who disrespects this declaration," Keat Chhon said.

Sporting Live Group, an internet-based sports gambling chain set up in 2006, was forced to close, it said Thursday, the latest company to be hit by the government crackdown on gambling after Hun Sen's abrupt announcement on Tuesday that Cambo Six would be closed for moral reasons.

"We agreed to close our business in accordance with the government's decision," said a Sporting Live employee who requested anonymity.

Its Phnom Penh branches were shuttered Thursday, while other officials outside the capital reported they had forced closures in the provinces.

Like Cambo Six, Sporting Live also has foreign backers, although the company employee refused to answer questions about the overseas money invested. It employs 200 workers, he said.

Both Sporting Live and Cambo Six said Thursday that they had not been able to pay out all winnings owed to customers because of the crackdown, despite Keat Chhon's insistence that all punters could be paid by the end of Wednesday.

Nancy Chau, manager of Cambo Six's head office, said Thursday that during a meeting with Keat Chhon the previous day, she had been advised to send a letter to the prime minister requesting a compromise on the issue in a bid to save the considerable investment - both domestic and foreign - in the company.
"We agreed to close our business in accordance with the government's decision"
"We told the prime minister we have an agreement; we cannot immediately end the agreement," she said, referring to the company's licence, which before this week's forced termination had been valid until January 31, 2011.

Chau said there had been no reply from Hun Sen as of Thursday afternoon.

"We do not know [the response] - we are lost right now," she said.

Daun Penh district Governor Sok Sambath told the Post he had followed the government's directive to cease the operations of licensed gaming venues.

"We have closed all seven Cambo Six branches, three Sporting Live branches and nine slot-machine venues in Daun Penh, he said.

In Preah Sihanouk province, Governor Sboang Sarath also closed a number of gambling venues, he said.

In Phnom Penh, however, the NagaWorld, a riverside casino featuring slot machines, was still operating as normal on Thursday afternoon.

ADDITIONAL REPORTING BY STEVE FINCH

Thursday, February 26, 2009

CamboSix gone, when will Naga and other casinos go next?

One gone: CamboSix outlet in Phnom Penh
Who's next: Naga casino?

Sole football-gambling agency of Cambodia closes operation countrywide

February 26, 2009

Source: Xinhua

Cambosix, the sole football-gambling agency of Cambodia, had closed all its outlets on Wednesday in accordance with an order issued by Prime Minister Hun Sen on Tuesday, national media said on Thursday.

"The police are forcing us to close," Nancy Chau, manager of the Cambosix's head office in Phnom Penh, was quoted by English-language newspaper the Phnom Penh Post as saying.

Minister of Economy and Finance said that the government would sign a license termination agreement with the company, which would stipulate that it would not receive any compensation.

The betting chain had 20 outlets across the country and its current operation license was due to expire in 2011.

On Tuesday, the premier gave the order to close Cambosix during a student graduation ceremony of a university in Phnom Penh, citing that the government didn't get much tax incomes from Cambosix, but instead its operation caused the country social disorder, domestic violence, family divorce and robbery.

Cambosix, the only legitimate bookmaker in Cambodia, won the license from the government for the first time in 2001 and managed to renew it in Feb. 2007.

Cambo(dia) sick of CamboSix?

CamboSix Betting Halls To Be Shuttered

By Heng Reaksmey, VOA Khmer
Original report from Washington
25 February 2009


The widely popular betting franchise CamboSix will no longer have a valid license with the government, Finance Minister Keat Chhon said Wednesday, putting an end to its operation and a major dent in Cambodia’s gambling industry,.

“Last night I was in a hurry in my office to omit CamboSix’s contract,” the minister told reporters following a UNDP meeting. “Now I’ve decided to officially shut down CamboSix.”

The measure comes on the heels of a speech by Prime Minister Hun Sen this week calling for an end to the company’s contract with the government.

“The Ministry of Economy and Finance can negotiate with CamboSix, and we will pay it back and shut it down immediately,” Hun Sen said Tuesday, at a graduation ceremony at the National Institute of Education.

One CamboSix employee said she was against the new measure, which would end her job.

Keat Chhon said Wednesday those who lost work from the closure would have to find another job.

The government will now target other forms of gambling in the country, he said, including slot machines, lotteries and other enterprises.