ADB remained largest preferential loan provider for Cambodia in 2006 [and Khmer Children will be the largest debt payers in the world]

July 13, 2007

The Asia Development Bank (ADB) remained to be the largest provider of preferential loan for Cambodia in 2006, local media reported on Friday.

The amount of preferential loan that ADB provided to Cambodia averaged at 54.6 million U.S. dollars a year, the Chinese-language Commercial News quoted the government's efficiency report about the international aid in 2006 as saying.

The kingdom received altogether 136 million U.S. dollars of preferential loan in 2006, compared with 171 million U.S. dollars in 2005, said the report.

The decrease was not a surprise, as the international cooperative partners gave more donation and less loan, it said.

The transportation sector was the largest receiver of preferential loan in 2006, totaling 29.1 million U.S. dollars, it added.

Almost one third of the kingdom's 14 million population live in poverty. ADB, the World Bank and some countries' state-owned banks used to be major loan providers for the kingdom.

Source: Xinhua

Chakrapong Appears in Court for Debt

Reaksmey Heng
VOA Khmer
Phnom Penh
23/03/2007

Prince Norodom Chakrapong, son of the former king, appeared in court Friday to face charges he owed the government money following the failure of a local airline company.

The government claimed the prince owed it $1.3 million following the bankruptcy of Royal Phnom Penh Airways, in a suit that came just days after Prince Norodom Ranariddh, another son of the king, received 18 months prison in absentia on charges related to embezzlement.

Prince Chakrapong said he had no intention of fleeing the country, but his debts are no different than those of other airlines, one of which belongs to Prime Minister Hun Sen's relative.

Prince Chakrapong's lawyer said his client didn't personally owe the government money, and his limited liability company was somewhat protected.

Court summon for Prince Chakrapong regarding $1.3 million government debt

19 March 2007
Rasmei Kampuchea
Translated from Khmer by Socheata

Prince Chakrapong was summoned by the Phnom Penh municipal court on 23 March to clarify on the lawsuit regarding the $1.3 million debt he owed the government. The prince is currently in Bangkok, Thailand.

A high ranking NRP official said on 17 March that “Prince Chakrapong already knew about this summon and he will return to Cambodia on Monday to clarify the court.” The same source indicated that the prince is currently in Bangkok.

Muth Channtha, NRP spokesman, declined answering questions about this court summon for the prince, instead he asked that all questions should be directed to Prime Minister Hun Sen. However, he added that the court is always doing the bidding of the prime minister. Therefore, if the prime minister already spoke about it then the story is true.

Prince Chakrapong becomes the second target of legal challenge following the sentence of 18-month jail and $150,000 compensation handed to Prince Ranariddh. The review of the $1.3 million debt owed by Prince Chakrapong started after the prince heavily criticized the current government of being deeply involved in the court affairs, and that the government is using the court for its own political purpose.

Prince Chakrapong owed the $1.3 million to the government following the bankruptcy of his airline company. Prince Chakrapong and Muth Channtha said that once a company is bankrupt, according to the law, the government must forgive all the debt owed.

Because the demand for reimbursement to the government has already reached the court, Prince Chakrapong may face political difficulties just like his brother, Prince Ranariddh. If the prince does not have money to pay back to the government, his wealth and properties may be confiscated.

Prime Minister Hun Sen already declared his determination to demand back the $1.3 million debt.

Government demands $1.3 million debt payback from Prince Chakrapong

Thursday, March 15, 2007

Rasmei Kampuchea
Translated from Khmer by Heng Soy

The government has decided to review and demand the payback of Prince Chakrapong’s debt amounting to close to $1.3 million. The payback demand was done after the prince severely criticized the current government.

Khieu Kanharith, Minister of Information and government spokesman, said on 14 March that there is a request for the government to be lenient on the debt payment by the prince, however, the prince does not understand and instead, he severely criticized the government. Therefore, we are now having people reviewing the legal mean to demand the debt payment of close to $1.3 million which the prince owes the government. However, the prince seek help from the prime minister to make an arrangement [on this debt in the past], and the prime minister agreed to make an arrangement unofficially. Therefore, now legal means are being looked at to demand the debt payment back.

Prince Chakrapong could not be contacted by phone. Muth Channtha, NRP spokesman, said that according to bankruptcy law, when a company goes bankrupt, the government will erase its debt. He said that from what he heard, lawyers are being asked to look into demanding the debt payment, and that this demand coincides with the latest political situation in the country, therefore, he concludes that this is a political issue.

Prince Chakrapong owed the government close to $1.3 million when he was running his airline company. The government asked that he pays back the debt following a press conference the prince held in which he severely attacked the government. In his 12 March interview, the prince accused the government of meddling with the court affairs and the sentence handed down to Prince Ranariddh, a case which he claimed to be a political case. The prince urged the government to concentrate instead on the urgent passage of the anti-corruption law, and pushing for the start of the Khmer Rouge tribunal.

The government decided to ask the prince to pay back his debt right after the Phnom Penh municipal court sentenced Prince Ranariddh to 18-month jail term, and a $150,000 payment as well as the restitution of the Funcinpec party headquarter to the Funcinpec party. Prince Ranariddh considers this sentence as a ploy to prevent him from returning back home to participate in the election campaign.

$30 billion debt-ridden Cambodia approves draft law on bond publication and public bond market

February 18, 2007
Cambodian government approves draft law on bond publication and public bond market

The Cambodian Council of Ministers approved a draft law on bond publication and public bond market on Friday, which aims at helping to develop the economic and social sectors, a government statement said here on Saturday.

The draft law will be a mechanism for collecting free capital from the public or bond investors for providing the credit in long- term investment projects, said the statement from the spokesman office of the Cambodian government.

This law, which covers all public bond market operations in Cambodia, also aims at controlling other bond markets, the statement added.

Meanwhile, the law also allowed the government to create a committee named Cambodian Bond Committee for administrating the bond publication and public bond market and other involved matters.

The draft law, which will be debated in the National Assembly, has 10 chapters and 58 articles and it was organized by the Ministry of Economics and Finance in cooperation with Asian Development Bank, the statement said.

Source: Xinhua