Keat Chhon said that he will take measures against corrupt officials at the Social Welfare ministry who lost more than $5 million

Keat Chhon

Ith Sam Heng

18 July 2011
By Meas Mony
The Free Press Magazine
Translated from Khmer by Soch
Click here to read original article in Khmer

On Monday 18, in front of members of Parliament, Keat Chhon, the minister of Economy and Finance, claimed that he will take measures against corrupt Social Welfare ministry officials for losing more than $5 million in retirement funds.

Keat Chhon – who was an advisor of KR leader Pol Pot – said that, currently, the Anti-Corruption Unit is taking legal measures against these officials.

Keat Chhon’s claim came after the opposition party and the civil society stated that the corrupt officials who stole retirement funds should be brought to face legal charges. Two weeks ago, the ministry of Economy and Finance ordered Ith Sam Heng, the minister of Social Welfare, to pay back to the ministry of Economic and Finance more than $5 million of funds lost.

Don't forget to lift the parliamentary immnity of the former KR leaders summoned by the KRT first!

Let me have a say!

13 October 2009
Op-Ed by Ly Diep
Angkor Borei – The Khmer Voice Overseas
Translated from Khmer by Socheata
Click here to read the article in Khmer

- On 25 September 2009, the Khmer Rouge Tribunal (KRT) summoned 6 former KR leaders as witnesses to the crimes against humanity that took place under the Democratic Kampuchea (DK or KR) regime between 1975 and 1979.
- The 6 former KR leaders are: Chea Sim, Heng Samrin, Keat Chhon, Hor Namhong, Ouk Bunchhoeun and Sim Ka.
- Hun Sen, the former most senior KR commander along the eastern shore of the Mekong River in 1977 – a region which saw savage killing, reacted to the tribunal summonses on 08 October 2009, by saying: “The testimonies provided by high-ranking government officials could affect the future KRT trials against 4 former DK leaders (Khieu Sampham, Nuon Chea, Ieng Sary and Ieng Thirith).” Hun Sen said: “They (high ranking government officials) were the ones who toppled the Pol Pot regime, and they were the ones who ratified the law putting the KR leaders on trial, and if they become witnesses, the accused will be even deader.” Hun Sen added: “So where is justice? I’m thinking: Shoot! What are they doing? This is a legal problem for the tribunal, but the major problem that I understand is that the accusers are now turned into the witnesses, so wouldn’t the accused be dead?”
- In the past, this same former most senior KR commander along the eastern shore of the Mekong threatened the KRT by saying: “If the tribunal dares to summon other KR leaders more than the five who are currently being incarcerated, Cambodia could face war and between 200,000 to 300,000 people will die.”
- The threat leveled by the former most senior KR commander along the eastern shore of the Mekong not only shook up the KRT … but it also scared almost all the Cambodians in the kingdom because [through this threat], they learned that the KR whom Hun Sen boasted that they have all disappeared – just like wax under the scorching sun – in fact, they still have their forces, in particular, they are now crowding the ranks of the current National Assembly, Senate and government (!!).
- Hun Sen’s reaction is likened to a cow with a sore on its back, and it stretched out its tail when the crow flies over it. The problem about these former KR killer chiefs (i.e. the current high-ranking Cambodian government official) is that they are either those who ratified the law, or those who will cause the death of the accused (such as Khieu Samphan, Nuon Chea, Ieng Sary and Ieng Thirith), isn’t this a good thing? Indeed, in order to find the truthful proofs of the crimes, witnesses who were “former KR killers” should be brought in to accuse one another. Suppose that the 4 who are accused tell the court that: These 6 people were also ‘former killer chiefs’ like they were, what will happen then? Uh! This is where justice should lie on (!!), i.e. when the former killer chiefs or the former robbery chiefs are blaming each other (!!). Let Hun Sen asks the following question to the Cambodian victims of the “Killing Fields”: Is there anybody who does not want to see the former KR leaders being subjected to the most severe sentence?? Why would Hun Sen be afraid that the accused “die” instead (??). This is just killing us!!
- Regarding the “arrest of the former KR leaders and bringing them to trial”, the tribunal did not completely fulfill its duty yet, because it cannot just arrest and put on trial Khieu Samphan, the former No. 2 DK president, while bypassing Norodom Sihanouk, the former DK first president. Furthermore, how could it detain and put on trial Ieng Thirith, the former DK minister of national Education while bypassing Keat Chhon, the former deputy prime minister, Tiounn Mom, the former minister of Science, and Chhon Hay, the former minister of Post and Telecommunication, after all, all of these 4 KR cadres occupied similar positions under the DK regime. Similarly, the tribunal cannot just detain Duch, the former S-21 jail chief, and put him on trial while bypassing Hor Namhong, the former Boeung Trabek (B-32) jail chief. More importantly, if Hun Sen himself declared that he was the former most senior KR commander along the eastern shore of the Mekong … why the tribunal does not hurry up to detain him and bring him to trial??? Uh! Is there any justice at all?? What are they trying to do??
- What Sam Rainsy said about the fact that the rank of the current government is packed with former KR leaders, he was right. The summonses issued on 25 September 2009 by the KRT for the 6 KR leaders are proof that they are truly KR leaders (!!)
- Recently also, one of Sok An’s dogs barked: They should not summon these 6 former KR leaders “because it was not necessary” (sic). We believe that this dog must bark about this … “because it is necessary.”
- If the KRT indeed summons these 6 former KR leaders, the National Assembly and the Senate should not forget to hold a session to lift “their parliamentary immunity” first (!!)

Cambodian Gov't officials asked to testify at war crimes trial

October 9, 2009
ABC Radio Australia

In Cambodia, the United Nations-backed Khmer Rouge war crimes tribunal has summoned six senior government ministers and legislative officials to appear as witnesses.

The French investigating judge wants the officials to testify in the second case, which is expected to question former Khmer Rouge idealogue Nuon Chea. But the Cambodian government says any testimony will be given on a voluntary basis.

Presenter: Sen Lam
Speakers: Michelle Staggs Kelsall, Deputy Director, Asian International Justice Initiative

Click here to listen to the audio program (Windows Media)

KELSALL: These are really current senior ministers and legislative officials from the current Cambodian People's Party and the ruling government and we have the president of the Cambodian People's Party, Chea Sim, also the president of the National Assembly, Heng Samrin, Minister of Foreign Affairs and Finance and then two PPP senators, Ouk Bunchhoeun and Sim Ka.

LAM: Do we know why these ministers have been summoned? Has it anything to do with any kind of connection with the former Khmer Rouge?

KELSALL: Eh, well certainly the witnesses who've been testifying in the tribunal to date and certainly the information on public record would suggest that these ministers are being summoned to their role in the Khmer Rouge during the period of 1975 to '79. They are obviously being asked to testify to evidence that they may know with regard to what happened during that period due to their role at that time.

LAM: Has there been any government reaction to the call up of these government ministers?

KELSALL: Yes certainly. The spokesperson for the government, Khieu Kanharith has come out publicly to say that any participation of the ministers should be considered as voluntary and the government's position would be that these summonses should be seen as voluntary contribution to the tribunal's efforts. However, the courts internal rules tend to suggest that anyone issued a summons should comply with it and in actual fact it is mandatory.

LAM: And Michelle, the Khmer Rouge tribunal, of course, is a joint tribunal and the panel is made up of both international and Cambodian judges. Did the Cambodian, the local judges agree to this request?

KELSALL: The summons has been served has only been signed by the court's international co-investigation judge, Marcel Lemonde which tends to suggest that this dispute from the Cambodian side with regard to these summonses going forward. The court has come out publicly to say that they are unaware of any particular dispute, however, the lack of a signature on the summonses tends to suggest that... this is going forward from the international side alone.

LAM: And returning to the people who have been called to testify. There have been questions about Finance Minister, Hor Namhong's role during the Khmer Rouge. Is it likely that he will be questioned directly about his role during the Khmer Rouge rule between 1975 and 1979, or will the testimony largely focus on the defendant?

KELSALL: I think there will be some discussion of his own role just in relation, however, as to how this impacts on the accused person standing trial. Of course, it does have measures in place, witnesses who testify are able to avoid self-incrimination. They do have the right not to answer certain questions if they feel it will incriminate themselves. So in that respect, witnesses are protected from any possibility of this being the case. Obviously the investigating judges are ultimately concerned with the accused on trial and I would have thought the questions would focus on their role and what was occurring at the time period.

Khmer Rouge tribunal summons gov't party officials

2009-10-07
By SOPHENG CHEANG
Associated Press

The tribunal trying former leaders of Cambodia's Khmer Rouge announced Wednesday that it has summoned six leading members of Prime Minister Hun Sen's ruling party to give testimony.

The action is likely to irk Hun Sen, who has repeatedly expressed his sharp dissatisfaction with any efforts by the U.N.-assisted tribunal to expand its scope and possibly include his political allies as suspects in grave human rights abuses committed when the communist Khmer Rouge held power from 1975-79.

The tribunal is seeking justice for the estimated 1.7 million people who died in Cambodia from execution, overwork, disease and malnutrition as a result of the communist Khmer Rouge's radical policies.

The tribunal released copies of letters summoning the six to testify to the investigating judges of the court. They are top members of Hun Sen's Cambodian People's party: Foreign Minister Hor Namhong, Finance Minister Keat Chhon, National Assembly president Heng Samrin, Senate president Chea Sim and two other senators, Ouk Bunchhoeun and Sim Ka.

All are also former members of the Khmer Rouge, or exercised some authority when the group was in power.

The documents were released late in the day, and those named could not immediately be reached for comment.

The letters did not say specifically what information was sought, but said it was in connection with the cases of Nuon Chea, the group's ideologist; Khieu Samphan, its former head of state; Ieng Sary, its foreign minister; and "others." The three, along with Ieng Sary's wife, Ieng Thirith, who was minister for social affairs, are expected to be tried next year.

The tribunal is currently trying its first defendant, Kaing Guek Eav _ also known as Duch _ who commanded S-21 prison in Phnom Penh, where up to 16,000 people were tortured and then taken away to be killed. He is charged with crimes against humanity, war crimes, murder and torture.

Testimony in the his trial concluded last month, and closing arguments will be held late next month.

Critics accuse Hun Sen of trying to limit the tribunal's scope to prevent his political allies from being indicted. Hun Sen himself once served as a Khmer Rouge officer and many of his main allies are also former members of the group.

Hun Sen has claimed that expanding the list of defendants could lead to civil war, a claim doubted by his critics. The Khmer Rouge took control after a bitter 1970-75 civil war, and after being ousted from power in 1979, fought an insurgency from the jungles until 1999, when they ceased to exist as an organized force.

Last month, a tribunal prosecutor formally recommended that five more suspects be investigated for crimes against humanity and other offenses.

Sacrava's Political Cartoon: Wanted

Cartoon by Sacrava (on the web at http://sacrava.blogspot.com)

Finance minister rejects ADB's growth forecast

Finance Minister Keat Chhon rejected independent growth projections for 2009, saying that the government’s policies can lead to a better economic performance. (Photo by: TRACEY SHELTON)

Thursday, 02 April 2009
Written by Chun Sophal
The Phnom Penh Post

GDP GROWTH 2009

• Government: 6.5 percent
• ADB: 2.5 percent
• World Bank: -0.5 percent
• IMF: -0.5 percent
• EIU: -3 p

• 2008: 6.5 percent

Cambodian government dismisses Asian Development Bank’s latest GDP growth prediction of 2.5 percent for this year as too pessimistic

THE Cambodian government has rejected the Asian Development Bank's latest economic forecast of 2.5 percent GDP growth this year, saying that a strong agricultural and informal sector will lead to growth of more than 6 percent.

"I think it is hard for [the ADB] to be fortune tellers, and we hope that Cambodia will see higher economic growth because the government is walking on the right path to develop the country," Finance Minister Keat Chhon said Wednesday.

The government has rejected major independent forecasts on 2009 growth, including those of the International Monetary Fund (IMF), the World Bank, the ADB and the Economic Intelligence Unit (EIU).

The EIU forecast a 3 percent contraction, the IMF and World bank separately predicted a 0.5 percent contraction, and the ADB projects 2.5 percent growth. Analysts from all four organisations agree that a slowdown in garment sales, construction and tourism will drag down 2009 growth.

Keat Chhon told reporters outside the National Assembly on Wednesday that ADB and IMF reports were unacceptable and that their estimates failed to account for agricultural growth and the country's informal "non-system" economy.

"I am determined to make cambodia’s … growth higher than the forecasts."

"We have big potential for our non-system economy, and we believe that it can help Cambodia see higher growth than the ADB and the IMF forecast," Keat Chhon added.

Agriculture to stay strong

Agriculture is expected to be the one bright spot for the year, and the ADB explained that its more optimistic forecast for productivity growth is because its analysis puts a greater emphasis on the sector.

Agricultural yields are expected to increase in 2009 as irrigation and infrastructure projects are completed. The government and agriculture organisations have also made headway establishing new markets for Cambodian agricultural products and attracting new foreign investment to the sector.

Government forecasts

The Cambodian government's latest prediction was that growth would hit 6.5 percent in 2009, but the finance minister said that figure is under review pending first-quarter results for the country.

"I am determined to make Cambodia's economic growth higher than the forecasts, and I won't let the country decline into chaos because the government has tools ready to move forward," Keat Chhon added.

Eric Sidgwick, the ADB's senior country economist for Cambodia, had no response to the government's latest statement, but said that the ADB and the government had "very good relations".

ADB country director Arjun Goswami said Tuesday that the Cambodian government is coping well with the crisis.

"There is an understanding of the crisis and what needs to be done.... This is a very difficult time for all organisations, including the Cambodian government," Goswami said.

The ADB also predicted that regional growth would slow to 3.4 percent in 2009 on lower exports.

ADDITIONAL REPORTING BY GEORGE MCLEOD

Opposition calls for tariffs as economic crisis mounts

A woman works on a field growing morning glories in Phnom Penh on Tuesday (???). The opposition Sam Rainsy Party has called for protectionist measures to be implemented. (Photo by: AFP)

Thursday, 26 March 2009
Written by May Kunmakara and Kay Kimsong
The Phnom Penh Post

As farming incomes plummet, the opposition says higher tariffs and more subsidies are needed, but government says WTO rules must be respected.

OPPOSITION lawmakers are calling on the government to raise trade barriers and boost agricultural subsidies to mitigate the effects of the global economic slowdown.

The move marks the first time parliamentarians have urged a protectionist response to the crisis.

"Look at Thailand - they are subsidising their farmers and protecting them by preventing Cambodian traders from exporting corn or cassava to Thailand - this is how we should be protecting our farmers," said Sam Rainsy Party lawmaker Son Chhay.

He urged the government to increase tariffs on imported goods to cut the trade deficit with neighbouring countries, citing the US$1.35 billion combined shortfall with Thailand and Vietnam.

"Even as a member of the World Trade Organisation, we still have five or six years to increase tax barriers for imported goods," he said.

The local protectionist pressures come on the back of what the World Bank is calling a global swing away from free trade.

Leaders at the Group of 20 meeting in November 2008 committed to promote free trade, but a World Bank report released last week said that protectionism was spreading.

The report said 17 of the G20 countries had issued 47 measures to regulate trade.

The protectionist calls have become ever louder as farmers on the Thai border are subject to tougher restrictions.

Tep Khunnal, governor of Malai district in Banteay Meanchey province, said farmers in his district need more government assistance.

"Thai farmers are growing fresh cassava. They [the Thais] are not allowing in Cambodian cassava unless it is dried. They are buying Cambodian dry cassava and exporting it to China," said Tep Khunnal.

"We are not sleeping - we are trying hard to address this crisis."

He said that farm incomes have dropped 40 percent in the past year in line with the falling prices of agriculture goods.

Government response

Minister of Finance Keat Chhon rejected the opposition demands, saying that the government is improving tax collection and investing in vocational training.

He added that Cambodia's membership to the WTO prevents it from raising trade restrictions.

"We are not sleeping - we are trying hard to address this crisis," Keat Chhon told the Post Wednesday.

He said the government has enough resources to mitigate the effects of the economic downturn, but acknowledged that tax revenue fell slightly in the first two months of 2009.

"I am also a bit concerned about falling revenues, but we are trying to improve our tax-collection methods," he said.

"The Ministry of Finance is working with the Ministry of Labour to retrain laidoff workers to help them find other jobs," he said.

"We are working hard to collect revenue for public finances, and we're moving to a second phase of public finance management reform, which means that the accountability of all institutions and ministries will be improved," he said.

"It can be done only when we build on the achievements we made in the first phase. The credibility of the budget means the flow of income will remain strong.

"We have some worries, but we are trying to spend as scheduled for the budget law of 2009," Keat Chhon added.

Responding to questions raised by Son Chhay, Keat Chhon wrote in a letter dated February 11 that the Cambodian economy is affected by the global economic downturn, but that foreign reserves in 2008 stood at $2.1 billion and were guaranteed for 3.8 months.

In 2009 the government decided to increase salaries by 20 percent, or by $30 million per month, Keat Chhon's letter said.

He wrote that the government spent $300 million subsidising electricity prices by freezing rates when oil prices surged 90.4 percent compared to July 2007.

Keat Chhon also said the government provided $450 million in subsidies to boost the fibre industry to reduce costs for garment producers.

He estimated that government intervention would account for about $500 million from the country's GDP.

Help Promote Growth, Keat Chhon Urges Banks

By Ros Sothea, VOA Khmer
Original report from Phnom Penh
24 February 2009

Finance Minister Keat Chhon on Thursday urged commercial banks to expand their loans as a counter to the global economic slowdown, which has already lowered projected growth for the country.

“Banks have to play a role in helping the economy,” Keat Chhon told VOA Khmer. “Now the government has arranged for them to take a role by lowering the reserve requirements.”

In September 2008, the National Bank increased reserve requirements for commercial banks, from 8 percent to 16 percent, to help secure deposits. But Keat Chhon said that requirement will now be lowered to 12 percent.

Adjustments to the banking sector come amid a credit crisis in America that has led to a recession and global financial uncertainty.

In Cambodia, the crisis has hurt garment manufacturing, construction and tourism—three pillars of the economy—and the World Bank recently lowered its growth forecast for the country, to 4.9 percent, compared to a rate of 7 percent in 2008.

In Siphan, head of the credit division for Acleda Bank, said the decrease of reserve requirements will allow his bank to have more cash ready for credit and loans, from about $470 million in 2008 to $700 million in 2009.

“We have enough cash to lend,” he said. “We can provide any kind of credit, because we will increase our loans about $300 million.”

Other major banks like ANZ Royal, Cambodian Public and Japan Maruhan are committed to expanding their loans as well.

However, In Siphan said even with banks expanding their loans, only a limited number of investors is currently looking for credit.

Som Ganty, a financial expert at the Royal University of Law and Economics, said loan expansion by commercial banks would provide more cash flow for investors, which could help Cambodia escape the most serious impact of the financial crisis.

He suggests lowering the reserve rate even more, though, as local banks are not able to find capital from foreign banks.

“The reserve requirement should be as low as 8 percent, so the banks will be able to increase money lending,” he said.

Tal Nay Im, director of the National Bank, said the central bank has no plan to lower reserve requirements further. Commercial banks will have to find resources through foreign lenders to continue their operations, she said.

Economic crisis or not, Cambodia wants its bourse (stock exchange): Keat Chhon

Keat Chhon (Photo: The Phnom Penh Post)

Cambodia is always ready to speculate

12 Feb 2009
By Nhim Sophal
Cambodge Soir Hebdo
Translated from French by Tola Ek
Click here to read the article in French

The current context will keep someone at bay, however, in Cambodia, the idea to create a Bourse (Stock Exchange) is still in the news. The location for the site is almost found.

Economic crisis or not, Cambodia wants its bourse. Keat Chhon, the vice-PM and minister of Economy and Finance, reminded about this issue again in front of reporters this morning.

“The government announced the creation of the bourse in 2009. In spite of the world economic crisis, we are always determined to do so,” Keat Chhon claimed.

If the idea is still current, Keat Chhon said that he was waiting for a move from his South Korean partner.

As for the location to build this establishment, Keat Chhon talked about a 32-story building that Canadia Bank is currently building in front of the Phnom Penh train station.

Government revises down economic growth [-Hun Sen's regime finally waking up to a dose of reality?]

Finance Minister Keat Chhon pictured in this file photo. The minister’s latest prediction for 2009 puts growth at five percent. (Photo by: TRACEY SHELTON)

Monday, 15 December 2008
Written by Nguon Sovan
The Phnom Penh Post

Minister of Economy and Finance Keat Chhon announced that a slowdown in the garment and real estate sectors could drive growth down to 5.0 percent

GOVERNMENT officials have once again lowered Cambodia's economic outlook, saying the Kingdom will see only five percent growth next year.

The revision follows strident criticism by the National Bank of Cambodia governor last week of the World Bank's prediction that growth would shrink to 4.9 percent next year. Previous government predictions vary from nine percent earlier this year to 6.5 percent last week.

Finance Minister Keat Chhon made the announcement at a meeting on Friday with special envoys of Japanese prime minister - Asean Ambassador Yoshinori Katori and Masakazu Toyoda. The dignitaries were visiting Cambodia to discuss the impacts on Asia of the world economic crisis.

Cheam Yeap, chairman of the Commission on Economy, Finance, Banking and Auditing at the National Assembly, told the Post Sunday that the lower growth outlook came after consultation with economic experts.

"I have analysed the growth for 2009 with economists, and we agree with Keat Chhon's forecast of five percent instead of the previous forecast of 6.5 percent," Cheam Yeap said.

He blamed a deepening slowdown in the garment and real estate sectors for the revised estimates, but added that strong agriculture and tourism growth could help limit the impact next year.

"Even the IMF, the World Bank and the ADB have predicted that tourism will also be affected by the crisis. I predict, as the former minister of tourism, that the sector will remain strong because of the political crisis in Thailand, which will divert tourists to Cambodia," he said.

Some 1.7 million tourists visited Cambodia between January and October this year, an increase of 8.5 percent over the same period in 2007, according to statistics from the Ministry of Tourism.

"The government's lowering of the growth rate to five percent is reasonable and probably appropriate," Chan Sophal, president of the Cambodia Economic Association, told the Post on Sunday.

"However, there will still be uncertainties, especially in the garment and real estate sectors, over the involvement of foreign investors."

He added that tourism may be slightly impacted by the crisis.

"The number of Western tourists may decline, but Asian tourists such as the Chinese, Japanese and Koreans may still spend their holidays in Cambodia."

Cambodia saw an average of 11.1 percent economic growth from 2004 to 2007, according to a World Bank report released last week.

The report added that growth would slow this year to 6.7 percent and drop to 4.9 in 2009.

Fuel Importers Agree To Nudge Prices Down

Fuel companies have agreed to lower fuel prices to around 5,000 riel per liter, about $1.25.

By Ros Sothea, VOA Khmer
Original report from Phnom Penh
22 September 2008

Cambodia's main fuel import companies have agreed to reduce the price of fuel by 100 riel, about $0.02, per liter, but economists said last week the decrease doesn't match the fall in global prices.

The lower costs decided at a meeting held by the Ministry of Economy and Finance on Friday, following a call by Prime Minister Hun Sen for a reduction in costs.

"We reached our goal," Finance Minister Keat Chhon said Friday. "From Monday on, oil companies will reduce the fuel price 100 riel per liter. So it will be reduced from 5,000 or 4,900 riel," about $1.25.

Fuel prices directly affect many Cambodians, but the prices are also a driving factor in high inflation in recent months.

On Saturday, global crude oil was at $104 a barrel, down 30 percent from its highest point, $147. But Cambodia's fuel costs have only decreased about 10 percent from their highest prices, which matched the global surge.

"Our fuel price doesn't equal other markets," said Chap Sotharith, an economist at the Cambodian Institute for Cooperation and Peace. The global price "already had a 30 percent decrease, but ours has decreased only 10 percent."

A decrease of 30 percent in Cambodia would mean prices as low as 3,800 riel, or $1.90, said Sok Sina, an independent economist.

Chhun Oun, managing director of the fuel company Tela, disagreed, saying the current Cambodian prices already match global prices.

Cambodia has at least seven local and foreign fuel importers, but most of them before Friday had been reluctant to lower costs.

Asked Friday whether the cost could be lowered more, Seng Chhung Ly, chief of retail network for France's Total, said, "I don't know. We have to wait and see together."

Critics say the price in Cambodia stays high because the major fuel companies cooperate to keep prices inflated.

"The situation in Cambodia seems to be one of the underdog against oil companies," said Chan Sophal, president of the Cambodian Economic Association. "The four or five companies together limit the price to look like only one. In this situation, the consumers are the losers and the sellers are the winners."

Keat Chhon dismissed such criticisms, saying that during a period when global oil prices rose 80 percent, Cambodia's prices rose only 40 percent.

Meanwhile, he said, the government has subsidized fuel costs more than $260 million since January and plans to spend another $30 million a month through the end of the year.

Thank you, Comrade Keat Chhon, for obtaining the penny drop in gasoline price!

Gasoline price to drop by 100 riels ($0.025) in Cambodia on 22 September

19 Sept 2008
By Leang Delux Cambodge Soir Hedbo
Translated from French by Luc Sâr Click here to read the article in French

Keat Chhon, the minister of Economy, obtained from the distributors a lowering of the retail price of gasoline.

To save money, it is better off to wait until Monday morning to fill in your tank. By then, the current retail price of gasoline will drop from 5,000 riels ($1.25) to 4,900 riels ($1.225), this starting from next week.

In the morning of Friday 19 September, Keat Chhon, the minister of Economy and Finance, was able to request this price drop from the distributors during a meeting at his ministry. The roundtable meeting took place only four days after Prime minister Hun Sen called for a push in the lowering of fuel price which started in the last few weeks.

“Our efforts to lower the price of gasoline was not done to attract popularity, but to better control inflation,” Keat Chhon explained while indicating that, since the beginning of the year, the State lost an earning of $263 million from imported gasoline tax in order to rein in the increase of gasoline price.

During the first six months of the year, fuel consumption in Cambodia has increased by 24%.

Government moves to end price gouging as gasoline prices hit record highs

Pump prices remain at records highs, hovering just below 6,000 riels per liter. (Photo: Tracey Shelton)

Friday, 06 June 2008
Written by Kay Kimsong
The Phnom Penh Post

Finance Minister Keat Chhon has ordered a special ministry committee to be formed to monitor the price of gasoline amid fears the fuel companies were gouging prices, which have crept towards record highs of 6,000 riels ($1.50) a liter during the past few days, a ministry official said.

The move, announced June 4, was the first time the government has intervened directly to try and ease spiraling gas prices, which have also driven up the cost of food and other consumer goods.

Finance Secretary of State Chea Peng Chheang told the Post that the ministry was worried that fuel companies were taking advantage of skyrocketing global oil costs to unfairly raise local pump prices

The new committee, while not putting caps on prices, would "work closely" with the fuel companies to determine how much should be charged for gasoline and diesel.

“Petroleum companies need not ask the ministry how much to raise prices, but they need to make sure they are not charging over market value,” he said.

The committee will also assess the cost of other consumer goods, which have risen sharply.

"The ministry just wants to understand why a company decides to raise prices for this or that, but the ministry will never interfere with a company's pricing decisions ... it is a free market in Cambodia," Chheang said.

Officials from fuel companies participating in the June 4 meeting with the finance minister said they welcomed the creation of the committee.

“I think the ministry wants to know the price of gasoline to make sure that petroleum companies are not overcharging,” said Hour Heng, vice president of the Cambodian fuel giant Sokimex.

“We accept the request of the ministry to control the price of gasoline and diesel,” he said. “It is an acceptable idea."

But they also pointed out that their pricing decisions were driven largely by international oil prices.

“We can’t predict future international oil prices and are not sure if the price of fuel in Cambodia will increase," Heng said, while Stephane Dion, managing director for Total Cambodge, wrote an email on June 5: “This is a simple question of supply and demand."

The government has already tried to curb the price of gasoline by not raising the tariff on imported fuel – a move that officials say will cost the government $300 million in uncollected tax revenue.

Diesel is currently taxed at $103 per ton, while the per ton tax on gasoline is $254.

Some one million tons of petroleum products, including gasoline and diesel, are imported each year into Cambodia, according to industry officials.

Even with this measure in place, fuel company officials say they are making very little money.

According to a senior official at Tela Kampuchea Company who did not want to be named, global oil costs have reduced the company's profits to about 200 riels per liter.

“We only make a little profit – many people do not know that," he said.

SRP MP Son Chhay: “If the government intends to reduce inflation and boost local production, the government should cancel tax on gasoline completely”

Fuel subsidies to cost US$300 million in 2008

Wednesday, 28 May 2008
Chun Sophal
The Mekong Times

With discontent growing over rampant inflation, the Cambodian government yesterday claimed it will spend US$300 million on fuel subsidies in 2008.

“We are trying to control inflation which is a phenomenon that influences [Cambodia] from outside by … subsidizing gasoline,” said Economy and Finance Minister Keat Chhon yesterday. He predicted the subsidies would cost the state US$300 million by year’s end.

The government claimed last month it had spent US$29 million on gasoline subsidies so far this year.

Keat Chhon said yesterday the government still imposes the same tax on oil – US$309 per ton for gasoline and US$267 for diesel – despite the fact that imported oil has recently increased price to over US$1,000 per ton. “Currently, we do not take [tax] freight and insurance even though the oil price is rising,” he added.

Son Chhay, a Sam Rainsy Party parliamentarian, was unconvinced. He said the government’s claims were contrary to fact, noting that the government had previously taxed fuel at 100 percent, only lowering the price when international prices soared.

“I think that if the government taxed [fuel] at the same level as in 1999, gasoline would increase to US$2.50 per liter,” he claimed. “I think that the minister [Keat Chhon]’s speech was an empty claim that projects a technical image but falsely leads public opinion [astray] because the government has allocated no budget to subsidize [fuel] inflation.”

Chan Sophal, president of the Cambodian Economic Association, was also left cold by Keat Chhon’s claims. “We do not see the government subsidizing oil,” he said. “Now, Cambodia has imposed the highest tax on fuel [in the region], three times higher than neighboring countries.”

In any case, Chan Sophal said fuel subsidies “look good on paper”, but are “ineffective in curbing inflation.”

Opposition leader Sam Rainsy has frequently promised to lower fuel prices by cutting fuel taxes and regulating the sale of fuel.

Son Chhay yesterday jumped on the bandwagon. “[I]f the government intends to reduce inflation and boost local production, the government should cancel tax on gasoline completely,” he said.

$300 mln in fuel subsidies and yet the highest price of gasoline in the region?

Cambodia's fuel subsidies to cost 300 mln USD in 2008

PHNOM PENH, May 28, 2008 (Xinhua) -- With discontent growing over rampant inflation, the Cambodian government has claimed it will spent 300 million U.S. dollars on fuel subsidies in 2008, local media reported Wednesday.

"We are trying to control inflation which is a phenomenon that influences Cambodia from outside by subsidizing gasoline," Keat Chhon, Cambodian Minister of Economics and Finance, was quoted by the Mekong Times newspaper as saying.

Keat Chhon predicted the subsidies would cost the state 300 million U.S. dollars by year's end, the newspaper said.

The government still imposes the same tax on oil - 309 U.S. dollars per ton for gasoline and 267 U.S. dollars for diesel - despite the fact imported oil has currently increased price to over 1,000 U.S. dollars per ton, Keat Chhon said.

"Currently, we do not take tax freight and insurance even though the oil price is rising," he added.

The Cambodian government claimed last month it had spent 29 million U.S. dollars on gasoline subsidies so far this year.

Cambodian gov't warns island developers over breaches of contract

PHNOM PENH, May 26 (Xinhua) -- A senior Cambodian official has told investors developing islands to speed up their projects, warning that they must not divide their land concessions into plots for resale, local media reported Monday.

"Investors should not construct houses or villas for sale. They have to establish hotels or resorts to attract tourists to Cambodia," Keat Chhon, Cambodian Minister of Economics and Finance, was quoted by the Mekong Times as saying.

"We will not allow companies to violate their contracts," he warned.

The Cambodian government has granted permission for private firms to construct resorts worth billions of dollars on 10 islands off the coast of Sihanoukville and Kampot.

However, only a few sites are currently under construction, with rumors that companies are violating their contracts to build luxury residences for sale.

Sihanoukville governor Say Hak has previously warned that investors will lose their deposit and have their islands confiscated if development is too slow.

Political Cartoon: The two ex-Khmer Rouge

Cartoon by Sacrava (on the web at http://sacrava.blogspot.com)

Let’s Battle It Out: The Defamation Case of Hor Namhong vs. Sam Rainsy

Friday, April 18, 2008
Editorial by Khmerization
Originally posted at http://khmerization.blogspot.com

“The Khmer Rouge Tribunal is still in full operation. It is not too late to bring the perpetrators of the crimes, the likes of Hor Namhong and Keat Chhon, to answer what they knew about the Khmer Rouge atrocities and their involvements in those atrocities. So, let’s battle it out, Rainsy.”

Some people would just want to let the Khmer Rouge leaders live with their guilt and let bygones be bygones for the sake of national reconciliation, peace, prosperity and stability. But with over 1.7 million Khmers died in tragic circumstances and with many victims traumatised and national healing is at stake, it is unimaginable to let the Khmer Rouge crimes go unpunished and let bygones to be gone by. We Khmer must be reconciled to the fact that national reconciliation must come with justice, and to let the bygones to by gone by as in the case of the Khmer Rouge crimes, would be a betrayal of mankind and the 1.7 million who perished in the most inhuman ways. The truth must be revealed and that the perpetrators and their cohorts must be unmasked.

It is interesting to see that, while the Khmer Rouge Tribunal is making great efforts to bring former Khmer Rouge to justice, other former Khmer Rouge, the likes of Hor Namhong and Keat Chhon are trying to battle it out with their victims (Sam Rainsy and co.) in the Cambodian court, citing defamation (read this link).

While defamation is very hard to prove and prosecute in an independent judiciary, it is not in the Cambodian judiciary, especially when the court is at the disposal of the plaintiff, in this case Hor Namhong, who is a senior government minister and the defendant, Sam Rainsy, who happens to be an opposition leader. But this is a fight over principle and, win or lose, the one who has the most to lose will be Hor Namhong himself.

Let’s set the record straight here. In order for any defamation cases to prevail and be successfully prosecuted, the plaintiff must prove and satisfy three elements of the laws. Firstly, the plaintiff must prove that the person who defamed him had actually identified him by name. In this case, it’s disputable whether Rainsy did identify Hor Namhong in his speech, although Rainsy did mention the person by his job description as a foreign minister. Secondly, the allegation must have been published or being communicated to the public. Sam Rainsy made the comments and they have been communicated to his audience and the comments were published by local and international media. Thirdly, that the defendant must have known that his statements are false and that the plaintiff must have suffered damages as a result of those false statements. To satisfy this element of the laws, Hor Namhong must prove that he had suffered in the form of damages to his reputation or job loss, he was subject to public ridicule, hatred and contempt or degradation to his dignity.

By close examination, Hor Hamhong has no strong legal basis for a defamation suit. While Hor Namhong can satisfy the second element of the laws described above, it would be very difficult for him to satisfy the first and third element of the laws. In conclusion, his defamation law suit against Sam Rainsy has no merit and is therefore has a very low chance of victory, if the case is brought before an independent judiciary. But in Cambodia, where the judiciary is at Hor Namhong’s disposal, the chance of a legal success over Sam Rainsy is a sure thing.

All the legal challenges above notwithstanding, Sam Rainsy is not left without a defence. While the plaintiff must satisfy three elements of the laws to be able to successfully prosecute the defamation case, the defendant has also three elements of the laws to defend him/herself against the defamation suit. First is the truth. The truth is the ultimate defence against defamation suit. Sam Rainsy said that Hor Namhong was a director of the Boeng Trabek Prison, which was true. And, as a chief of the prison, he was responsible for the tortures, murders and disappearances of many Cambodian and foreign diplomats, the likes of Sarin Chhak, Chau Seng etc. who were imprisoned at Boeng Trabek and who have disappeared mysteriously without a trace.

Secondly, that Sam Rainsy’s statements were made in the public interests. With over 1.7 million deaths under the Khmer Rouge regime, with the Khmer Rouge Tribunal is seeking for the truth and uncountable executions at Boeng Trabek Prison, the public has the interests and the right to know the truth. Thirdly, is the freedom of speech and parliamentary immunity. Freedom of speech here is not a strong defence as freedom of speech has its limits. You can speak freely as long as you don’t defame someone. And parliamentary immunity is certainly not a defence here because Rainsy’s comments were made outside of parliament. It would be an ultimate defence if the comments were made inside of parliament.

In conclusion, Hor Namhong’s prosecution case is very weak, while Sam Rainsy’s case has a very strong defence - and that is the defence of the truth and the defence of public interests. Hor Namhong can only satisfy one element of the defamation laws - and that is the publications of Rainsy‘s comments, but he will not be able to prove that Rainsy’s statements were directed at him personally or that the statements were maliciously or vexatiously intended to ruin his reputation. It would be very hard to prove that he had suffered any damages as a result of Rainsy’s comments. Meanwhile, Sam Rainsy’s case can at least satisfy two elements of the defence in the defamation laws - and that is the truth and public interests. In an independent judiciary, Hor Namhong’s case has very little chance of success at all.

The Khmer Rouge Tribunal is still in full operation. It is not too late to bring the perpetrators of the crimes, the likes of Hor Namhong and Keat Chhon, to answer what they knew about the Khmer Rouge atrocities and their involvements in those atrocities. So, let’s battle it out, Rainsy.

Hor Nam Hong plans to provide free publicity for Sam Rainsy in the upcoming election

Left to right: Keat Chhon, Hor Namhong, Sam Rainsy

FM To Sue Sam Rainsy for Khmer Rouge Remarks

By Mean Veasna, VOA Khmer
Original report from Phnom Penh
18 April 2008

Foreign Minister Hor Namhong plans to sue opposition leader Sam Rainsy over statements made Thursday linking the minister to the Khmer Rouge, an official said Friday.

In a ceremony to commemorate the fall of Phnom Penh to Khmer Rouge guerrillas in 1975, Sam Rainsy said Thursday at least two ministers in the current government were cadres of the regime.

“One of them was secretary and interpreter of Pol Pot and who is senior minister and Minister of Economy and another current deputy prime minister and Minister of Foreign Affairs was director of Beoung Trabek prison,” Sam Rainsy said. “The director of a prison can point someone and this person will be disappeared.”

Keat Chhon is currently the Economy Minister, and Hor Namhong is the Foreign Minister.

Hor Namhong will file a suit against Sam Rainsy for the remarks, said Foreign Ministry spokesman Sim Bunthoeurn. “He will meet with a lawyer this Monday.”

Sam Rainsy could not be reached for comment, because he is abroad.

But Eng Chhay Ieng, SRP secretary-general, said Sam Rainsy had not mentioned Hor Namhong by name, nor accused him of killing anyone.

The party will defend its leader in court, he added.

Keat Chhon could not be reached for comment Friday.

Political Cartoon: Food Power?

Cartoon by Sacrava (on the web at http://sacrava.blogspot.com)