Khmer Intelliugence News - 28 July 2009

KHMER INTELLIGENCE NEWS
28 July 2009

Foreign Trade Bank falls victim of economic crisis and property glut (2)

Cambodia’s Foreign Trade Bank (FTB), which is 50 percent owned by the state, is in serious trouble because of the worsening economic crisis and the resulting property glut. A heavy portfolio of bad loans in the property sector may require an overhaul of the bank in the next few months. Canadia Bank, which is Cambodia’s largest bank followed by FTB, is in the same alarming situation. The two financial institutions have been able so far to avoid bankruptcy thanks to a massive fund injection from the National Bank of Cambodia. The other FTB shareholders include Canadia Bank (originally 30 percent) and businessman Ung Bun Heuv (originally 20 percent). Canadia Bank itself is now actually controlled by Prime Minister Hun Sen’s family (originally 35 percent) even though its president and (still?) major shareholder is a shady businessman from Canada, Mr. Pung Kheav Se (originally 65 percent). The fall of Cambodia’s two leading and intertwined commercial banks would lead to the collapse of the whole banking system.

Market operators expect a continuous fall in the Cambodian currency (2)

The Riel has been falling against the US Dollar and major regional currencies over the last few weeks. This represents an acceleration of a trend that has been noticeable over the last 18 months. In January 2008, the US Dollar was worth 4000 Riels. The exchange rate went up to 4125 Riels for $1 by January 2009. Today, one needs 4250 Riels to buy $1. The Riel has therefore dropped by 6.25% since January 2008, whereas the Thai Baht has remained stable against the Dollar during the same period of time (around 34 Bath for $1). Market operators expect the Riel to fall more sharply in August and September, with the exchange rate possibly reaching 4500 Riels for $1. The reasons for this evolution are related to the worsening economic crisis, the severe drop in State revenue and the growing budget deficit. To cover the deficit the National Bank of Cambodia is increasingly printing bank notes (paper money), thus fueling inflation, which may get out of control by the end of the year.

French President Nicolas Sarkozy invited to visit Cambodia in September (2)

While on his official visit to France on July 13 and 14, Cambodian Prime Minister Hun Sen invited French President Nicolas Sarkozy to visit Cambodia in September. A big event then will be the inauguration of the Sihanoukville airport which has just been modernized and expanded and will be managed, like the Phnom Penh and Siemreap-Angkor airports, by a local subsidiary (Société Concessionnaire des Aéroports or SCA) of the French construction group Vinci. The French authorities have yet to positively respond to Hun Sen’s invitation because they are taking into consideration the deterioration in the social and political climate in Cambodia with the increasing number of land evictions and human rights violations and the recent spate of defamation lawsuits against government critics here. President Sarkozy had also received a letter from opposition leader Sam Rainsy prior to Hun Sen’s visit pointing to the way France could really help Cambodia. Read Sam Rainsy’s letter at http://tinyurl.com/lh39sn

CPP parliamentarian involved in criminal acts (1)

A CPP National Assembly member, Long Sakhorn is well known for her involvement in public scandals and a long series of criminal acts, which may lead her to jail since the ruling party is more and more embarrassed by her openly conducting reprehensible activities and her stubbornness. A widow of Sin Song, a former coup leader in 1994, she is continuously involved in land grabbing, environment destruction (deforestation and river filling), deception and forgery of documents and thumbprints. She is expert in cheating people and misleading the courts where she is known for her securing the support of judges through bribery. Concrete examples with photos of Long Sakhorn’s criminal offenses are presented at http://tinyurl.com/llokd2

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Cambodia opens Asia's first bear preservation centre

Sun bears are seen at Phnom Tamao Zoo in Takeo province, some 45 kilometers south of Phnom Penh. Wildlife conservationists in Cambodia have opened Asia's first centre to preserve local bear populations, under severe threat from poachers and exotic pet traders. (AFP/Tang Chhin Sothy)

Wed Mar 19, 2008

PHNOM TAMAO, Cambodia (AFP) - Wildlife conservationists in Cambodia on Wednesday opened Asia's first centre to preserve local bear populations, under severe threat from poachers and exotic pet traders.

The Bear Discovery Centre hopes to promote awareness of the plight of Asia's bears, said Mary Hutton, chairwoman and founder of the Australia-based Free the Bears Fund Inc (FTB).

"It is so important because not so many bears are left in the wild," Hutton told AFP, saying their population was declining, although it is impossible to know how many bears remain.

The Asiatic black bear and Sun bear, both found throughout the region, are considered vulnerable according to the World Conservation Union's Red List of threatened species.

"There are not as many as there should be, and the Sun bears are on their way to becoming an endangered species," Hutton said, adding that there are currently 88 bears at Cambodia's Phnom Tamao Zoo, where the centre is based.

According to the FTB, which says it has rescued more than 100 bears from the wildlife trade in Cambodia, the animals are hunted in large numbers throughout Southeast Asia to feed growing demand for their parts to be used in restaurants.

More than 14,000 bears are also thought to be kept on farms in China and Vietnam where their bile is extracted and used for traditional medicine.

"This is a cruel and unnecessary practice, which should be replaced by modern medicine," FTB said.

In other cases, adult bears are killed so that poachers can capture their cubs to sell to the exotic pet market, Hutton said.

A similar centre is expected to open in Vietnam later this year in a bid to expand conservation efforts, she added.

Bears are only one among many species of animals that have been decimated by Asia's wildlife trafficking, which is fueled in large part by China's massive appetite for exotic meats and other animal parts.