Number of lawsuits against the Long Chhin Co. increases to almost 60

Monday, September 17, 2007
Everyday.com.kh
Translated from Khmer by Socheata

The number of lawsuits to demand compensations back from the Long Chhin Resorts Company sent to the Kandal province municipal court, has increased to almost 60 now. The court has not issued any rulings on any of these lawsuits yet. A source from Kandal provincial court indicated that the amount of compensations claimed by all these lawsuits has increased to almost $2 million. Among all these claims made against the Long Chhin Company, the government lawsuit was the first one lodged with the court. The same source indicated that among all the claims, the court only dealt with the government lawsuit by charging Su Si Minh, president of the Long Chhin Company, with cheating and falsifying public documents. As for all the other lawsuits, the court did not do anything with them at all, so far.

Corruption surfaces in Cambodia housing fiasco

HONG KONG, Aug. 22, 2007
LAO MONG HAY
Posted at UPI Asia Online

Column: Rule by Fear

On July 31, the Cambodian government sent a delegation of officials, ten excavators and over 100 workers under the protection of armed policemen to reclaim a site that once included Lake Kob Srov. Long Chhin (Cambodia) Investment Ltd. had filled in the lake in order to build a luxurious housing estate, called Long Chhin Resorts, 12 kilometers northwest of Phnom Penh.

The government moved to reclaim the lake site following the expiry of a deadline for the company to dismantle its construction there. The government has claimed that the filling-in of that lake was illegal and that it needed to reclaim the site as the construction work on the estate would block the water flow in the area and cause floods in the capital, Phnom Penh.

In the presence of the government delegation and the company's representative, the excavators and workers tore down and demolished all construction on the estate, turning it into rubble in three days. The demolished structures included all the brick walls around the estate, all entrance porches, seven two-story apartment blocks, 21 finished villas, eight villas that were still under construction, three guesthouses, a karaoke hall, 10 leisure kiosks, a warehouse, an office building and other amenities.

A number of Cambodians have lost all their investments in the estate, having already bought villas and apartments from the company or made deposits on them. Suppliers of construction materials have also lost the money that the company owed them. The total losses suffered by house buyers and the company's creditors are estimated to amount to around US$20 million -- a huge sum in a poverty-ridden country. Thirty-seven house buyers and creditors have now filed separate suits against the company to get their money back.

The government has promised to help repay them if the company's assets are insufficient. The chance of them getting their money back from the company is very slim, as the company's now frozen bank account has a balance of only US$4,000 in credit. The owner of the company, Zhou Shi Min, a mainland Chinese man, has "disappeared" and is believed to have fled Cambodia. Not much can be recovered from the rubble that is left on the estate. It is highly unlikely that the government, which is cash-strapped and corrupt, will ever live up to its promises and repay those who have lost money.

The house buyers and the company's creditors will have to pay for the corruption in high places that allowed Long Chhin (Cambodia) Investment Ltd. to do business in housing development in Cambodia, dupe them into buying its houses and supplying construction materials on credit, and also to defy the government's order to dismantle the estate.

In a brochure published in 2005 to attract buyers for its houses and apartments, the company claimed it had purchased the land in that area in 1993, that it had received authorization for development in the area from Prime Minister Hun Sen and the Cambodia Development Council in 2004, and that Zhu Shi Min had relations with Cambodian and Chinese leaders. As proof of these relations and the support they entailed, the brochure showed photos of Zhu shaking hands with or standing beside Cambodian leaders, as well as autographs provided by Cambodian and Chinese leaders.

The government has acknowledged that it had given authorization "in principle" for housing development on "28 hectares" in the area, "subject to a set of conditions" including the need for the company to get permission from relevant departments and for it not to affect the water flow in the area. However, the government has accused the company of filling in "hundreds of hectares" of the lake.

Just days before the demolition took place, the government sacked the governor and two deputy governors of Kandal province, as well as the governors of the two districts in which the lake is located, for their involvement in the Long Chhin Resorts project. Two weeks before the demolition, one of these district governors, Tep Sothy, was quoted by a newspaper as saying that Long Chhin Resorts "had followed the law" and had permission from the government for its construction project.

The government officials who had authorized and supported the development at the lake site, whether in principle or by giving definitive approval to the project, have violated the country's Constitution and land law, which classify lakes as being inalienable public property. Any such violation is punishable by a fine between 5 and 50 million riels (between around US$1,250 and US$12,500) and/or one to five years imprisonment. Those responsible should be prosecuted and made to repay the house buyers and creditors.

However, Zhu Shi Min's disappearance has rendered difficult any public action against the government officials in question. Zhu is the cases' key witness and is also charged with the crimes of fraud and the destruction of public property. It is quite legitimate to suspect that Zhu may have been deliberately helped to "disappear" by those seeking to avoid legal action being taken against them.

--

(Lao Mong Hay is currently a senior researcher at the Asian Human Rights Commission in Hong Kong. He was previously the director of the Khmer Institute of Democracy in Phnom Penh, Cambodia, and a visiting professor at the University of Toronto in 2003. In 1997, he received an award from Human Rights Watch and the Nansen Medal in 2000 from the United Nations High Commissioner for Refugees.)

37 Lawsuits demanding money back from Long Chhin

Thursday, August 16, 2007
Everyday.com.kh
Translated from Khmer by Socheata

The Long Chhin company is currently facing with 37 lawsuits demanding the return of the construction monies already paid, amounting to more than $1 million. One court official told Rasmei Kampuchea on Wednesday that there are several people who bought lands and houses from this company, and they are now sending their lawsuit the Kandal provincial court to sue Su Si Minh, the director of the company, and his group for cheating and for falsification of letters. The court official indicated that between 01 and 15 August, the number of lawsuits has increased to 37 cases which were lodged with the Kandal provincial court. Each claim demands a compensation of no less than $30,000. The court official also said that among the 37 lawsuits, the court is following up on a number of them by charging Su Si Minh, Long Chhin Resorts’ director, with cheating and destruction of public assets. After the charge is brought up by the prosecutor on 03 August, the investigation judge issued an arrest warrant for the director of the company and ordered that he be brought to court, all properties belonging to the company will also be confiscated to pay back the victims.

Diplomatic Feathers Unruffled by Failed Developer's Flight

Long Chhin standing near Hun Sen, waiting to greet a Chinese delegation (Top Left). Long Chhin welcomed by King-Father (Top Right). Long Chhin resort buildings (Bottom Left). King-Father's handwriting shown on Long Chhin resort entry date and signatures of Chea Sim and King-Father on Long Chhin documents (Bottom Right) (Photo: Sralanh Khmer newspaper)

Chun Sakada, VOA Khmer
Original report from Phnom Penh
15 August 2007

The decision to tear down an illegally erected series of villas on the outskirts of Phnom Penh is unlikely to hurt Cambodia's relationship with its large neighbor, China, officials said Wednesday, but it might strengthen the ruling party's support among the populace.

Long Chin, a Chinese citizen, built the villas on government land he did not own. He sold the villas and fled the country when the government learned what he had done. Authorities reclaimed the land and knocked down the buildings.

New-home buyers on the site have not been repaid their money, and Long Chin is gone, but the entire row is unlikely to ruffle any diplomatic feathers, officials agree.

"I think that it will not have an adverse effect on the relationship between Cambodia and China," said Son Chhay, a lawmaker for the Sam Rainsy Party. "China receives big benefits from the present government, compared to this minor loss of benefits from the Kap Srov lake development."

The demolition will more likely strengthen Prime Minister Hun Sen's political position ahead of the 2008 national elections, as it will showcase him as tough on land theft, observers said.

Ny Chariya, a human rights investigator for Adhoc, said the government's move will bolster its popular support.

He warned, though, that while Long Chin's company lost on a land grab, other companies continue to operate, especially on shallow lakes near the capital, which they are filling in for development.

This often hurts local residents, who rely on the seasonal lakes for fishing and farming.

"This is not a law enforcement. It is not an implementation of the rule of law. It becomes a threat to investment that [the government] does not like," Ny Chariya said.

Some observers warned that the demolition could worry future investors.

However, even one such demolition could give investors more confidence, said Kang Chandararoth, an economic researcher at the Cambodian Institute of Economic Research.

Other investors could become more fearful of breaking the law, he said, and use natural resources more responsibly.

"I think that legal investors will consider the law as supreme," he said. "They will not hesitate to invest in Cambodia. Those investors who do not want to come, or who are afraid, are those who will take advantage of our country. Therefore it is a good thing."

Hun Sen: The Chhay Hour II Affair is not over yet

Tuesday, August 14, 2007
Everyday.com.kh
Translated from Khmer by Socheata

Prime minister Hun Sen declared on Monday morning, during the occasion of the announcement for the new criminal code in Phnom Penh, that the Chhay Hour II case is not over yet following the revelation of bribery in exchange for the release of criminals by the Appeals Court. Hun Sen said that this affair is a very hot issue involving human trafficking therefore it should be considered a criminal case and those who are involved should be sent to jail. Hun Sen also said that the court must not rule like it did in the Chhay Hour II case. Hun Sen added that now some information are known and the Chhay Hour II affair is not over yet, it will move forward because how could the municipal court sentence the accused but the Appeals Court released the accused instead, Hun Sen said that the involvement behind this case is now revealed. According to an investigation on the Appeals Court, it was learnt that the release of Te Pao Ly, the owner of the Chhay Hour II hotel, was done because Chhun Poch, Te Pao Ly’s 63-year-old father, bribed the Appeals Court $30,000. Regarding the Long Chhin Resorts company which filled in the Kob Sorv Lake to build houses, Hun Sen said: “What so important about the Long Chhin case which filled in a huge areas of the lake, I will deal with him with a strong fist, now take the landfill out of the lake.”

Foreign Investor Flees With Villa Money

Top Left: Hun Sen welcoming Long Chhin; Top Right: Long Chhin received a gift from King-Father's hand; Bottom Left: A villa not yet destroyed by Hun Sen's regime; Bottom right: Demolition of Long Chhin villas (Photo: Sralanh Khmer newspaper)

Chun Sakada, VOA Khmer
Original report from Phnom Penh
13 August 2007

A foreign land developer who allegedly bilked dozens of victims out of money for villas has fled the country, Prime Minsiter Hun Sen announced Monday.

Long Chhin, who allegedly built villas on land that belonged to the government, has taken the money and fled, Hun Sen announced at a public conference in the capital.

The government had meant to allow fill and development on 10 hectares of land in the Kab Srew lake area north of Phnom Penh, but Long Chhin built villas on up to hundreds of hectares. He sold the villas and fled when the government moved to take the land back.

The government has since destroyed the villas, leaving those who bought them without their money or new homes.

"In the end Long Chhin disappeared, and his whereabouts are unknown," Hun Sen said. "Long Chhin took big land, as big as the sky."

Hun Sen has been fighting the public perception that land grabbing and theft are on the rise. The land-theft issue has become a political flashpoint, as Cambodia heads into national elections next year.

Opposition legislator Son Chhay called the government's efforts to stop Long Chhin's crime weak, claiming his company's bank was protected while he was living in Cambodia and no efforts were made to keep him in the country.

Kek Galabru, founder of the rights group Licadho, said Long Chhin's company should compensate the people. Or the government.

"The company's owner fled," she said. "No one compensated the people. So the government demolished the constructions that the people already paid for. I believe that the government should have compassion for the people. They should not lose money."

The Long Chhin Co. has only $4,000 in the bank

Monday, August 6, 2007
Everyday.com.kh
Translated from Khmer by Socheata

According to an official from the Ministry of Interior (MoI), the Long Chhin Resorts company which is a development company for luxurious homes, and for which the government ordered to destroy all its constructions in Kob Srov Lake last week, has only $4,000 in its bank account. Nuth Sa An, a secretary of state at the MoI, told The Cambodia Daily on Sunday that, after prime minister Hun Sen ordered a freeze of this company’s assets, the Ministry of Finance only found $4,000 in the company’s bank account. Nuth Sa An said that, during the meeting of the council of ministers on Friday, Hun Sen issued a directive to search for the company assets which can be used to pay back the people whose properties were destroyed. Nuth Sa An added that the government will pursue its help if the frozen assets are not sufficient (to cover the payback).

CPP Lim Kean Hor: Success in the demolition of Boeng Kob Srov constructions

Friday, August 03, 2007
Everyday.com.kh
Translated from Khmer by Heng Soy

The demolition operation on villas and housing developments of the Long Chhin company on land filled in the Kob Srov Lake on Tuesday, was completed on Thursday. Lim Kean Hor, the minister of water resources and meteorology, the demolition operation chief, considers this operation as a success by the government. Lim Kean Hor said that the action taken against the arrogant Long Chhin company which dared filled in the lake to built housing for sale, is a warning to others. The Cambodia Daily quoted Lim Kean Hor saying that “Samdach Hun Sen ring a bell to warn those who undertake illegal action. If these people fill in this lake, they have to excavate it back out. The Long Chhin company mocked the government.” After the demolition of all the buildings, report indicated that the owners of the Long Chhin company are in China currently. Lim Kean Hor said that the government will freeze the Long Chhin company funds in Cambodia, and this company has to reimburse back for the buildings (already bought). He said that those who bought houses from the Long Chhin company are victims therefore, the company must reimburse them back.

Photos from the Operation “Demolition of the Long Chhin Resorts buildings”

New Long Chhin resorts entrance gate before demolition (Photo: Narith, Koh Santepheap)

An old Long Chhin resorts entrance gate before demolition (Photo: Narith, Koh Santepheap)

Roundabout inside the Long Chhin resorts before demolition (Photo: Narith, Koh Santepheap)

Roundabout inside the Long Chhin resorts after demolition (Photo: Narith, Koh Santepheap)

Lim Kean Hor directing the bulldozers from afar with a communication radio (Photo: Narith, Koh Santepheap)

Operation “Demolition of the Long Chhin Resorts buildings”

Wednesday, August 01, 2007
Everyday.com.kh
Translated from Khmer by Socheata

A government delegation led by Lim Kean Hor, the minister of water resources and meteorology, and general Sao Sokha, the military police chief, undertook an operation to demolish hundred of housing constructions located within the Long Chhin Resorts, in the morning of 31 July 2007. The Long Chhin Resorts is located in Prek Phnov village, Prek Phnov commune, Pohnea Loeu district, Kandal province, occupying an area of 60-hectare extending directly on top of Boeng Kob Srov Lake. During the demolition operation, several hundreds of police and military police officers can be seen, as well as about 50 mechanical equipments, and about 100 workers. Lim Kean Hor said that the demolition of the Long Chhin Resorts was done through an order issued by Hun Sen and the operation will start from 31 July until everything returns back to its original condition. The demolition of the buildings was done because the Long Chhin Company filled in the Kob Srov Lake for building by grabbing the lake which belongs to the state. Lim Kean Hor said that the flooding from the Mekong River could be significant if companies are allowed to fill in the lake in this manner, and that Phnom Penh city could face dire (flooding) consequences.

Hun Sen orders local authorities to stop lake-filling [-How long will this new order last?]

July 31, 2007
Cambodia PM orders local authorities to stop lake-filling

Cambodian Prime Minister Hun Sen here on Tuesday ordered all the local authorities to stop filling lakes for real estate and other projects to safeguard the public interests.

"It is time for me to take measures to fight against public land robbers" and those who violate the order will be removed from power and face jail term from one to five years in accordance with the law, he told officials and students at a graduation ceremony.

"I have ordered to destroy the buildings constructed on the Boeng Kob Srov Lake in the outskirts of Phnom Penh by the Long Chhin Resort Company, because it violated the investment agreement, " he said, adding that the company's bank account will be frozen.

"We have to ruin (the illegal buildings) and take public lakes back," he added.

Kandal Provincial Governor Khim Bo and his deputies He Kann and Cheng Nhanh have been fired for their involvement in the Long Chhin project.

The government also set the end of July as deadline for the company to dismantle all the 18 villas and flats built on the Kob Srov Lake, a section of which it has already filled in for its unauthorized housing development.

Source: Xinhua

Cambodian gov't gives ultimatum for dismantlement of unauthorized development [-Could this be a case of bribery money dispute among CPP officials?]

The Cambodian government has set Long Chhin Resorts a deadline at the end of July to dismantle all its buildings from Kob Srov Lake, a section of which the construction company had filled in for an unauthorized housing development, local media said on Tuesday.

Water Resources and Meteorology Minister Lim Kean Hor said on Sunday that the deadline orders the company to destroy 18 villas and flats built on a section of the lake it has already filled in.

If the company fails to carry out the dismantlement, the government would bring in bulldozers to flatten the unlawful buildings to restore the lake as it is a water reservoir and flood prevention facility, Lim Kean Hor was quoted by Cambodian-language newspaper the Rasmei Kampuchea as saying.

The minister called the filling-in of the lake and construction of houses by Long Chhin Resorts as very bad, adding that it sent out negative signals to other private developers.

The government action to order the destruction of the buildings is the right decision to strengthen law, he added.

"This is a lesson to other people not to (behave) like this," said Lim Kean Hor.

A staffer from Long Chhin Resorts speaking on condition of anonymity said Sunday that the company had received the notice and that her boss was negotiating with officials concerned over the issue.

Kandal Provincial Governor Khim Bo and his deputies He Kann and Cheng Nhanh were removed for their involvement in the scandal.

Source: Xinhua

Hun Sen decides to remove 2 officials from Kandal province [involved in the filling of Kob Srov Lake]

Saturday, July 28, 2007
Koh Santepheap newspaper
Translated from Khmer by Socheata

The filling of Boeng Kob Srov Lake which got the attention from the public last week, seems to be concluded at the end of this week, following a strong reaction from Lim Kean Hor, the minister of water resources and meteorology. A report indicated that the lake filling operation took place in Kandal province by the Long Chhin Resorts company. The report also indicated that this company plans to build a recreation area. Nevertheless, this action is an extremely bad case of land-grabbing, and even lakes are being filled in for grabbing. This is not different from the case of Boeng Samrong located not too far from Pohnea Loeu district, where people have filled almost all the lake which extents on several hundred of hectares.

During the plenary meeting of the council of ministers in the morning of 27 July, prime minister Hun Sen said that regarding the case of the Kob Srov lake could lead to the removal of two high ranking officials from the Kandal province, and these officials would be deputy provincial governors. There is no indication about the identity of these two officials yet, or whether they will be immediately removed from their positions. Nevertheless, the names of these two officials are already unofficially known, and they are involved in the filling operation of the Kob Srov Lake. On 25 July, a new committee was formed with 9 institutions participating in the resolution, and this committee was formed after the reaction expressed by Lim Kean Hor who defended the entire extent of the Kob Srov Lake, and he claimed that the lake is very important for the drainage of water for the city of Phnom Penh.

He rejected the claim that this operation received the proper legal authorization by saying that there is no such authorization for land filling of the lake. The ministry of water resources and meteorology was responsible for building the Kob Srov dike with an aid from Japan, this dike is located north of Phnom Penh city. Boeng Kob Srov is important for the protection against flooding, and should the city of Phnom Penh be flooded, the amount of damage would be very significant, therefore the filling of the lake is a violation which should be dealt with. According to the 2001 land law, it is stipulated that all lakes are public lands belonging to the state, and they cannot be sold, and no institution is allowed to issue the ownership title to them.

Boeng Kob Srov is located in Russei Keo district, Phnom Penh city, it is located next to a solid dike extending about 3-kilometer long which also serves as a road. The dike was built with a multi-million dollar aid from Japan. This dike protects the northern portion of the city from flooding for many decades. Last May, a number of people have posted their phone numbers looking for land buyers (under the Kob Srov lake), claiming that the flooded lands are their properties in the Kob Srov Lake, nevertheless, the city of Phnom Penh replied with determination that it will protect the extent of the lake, and it also confiscated back lands. This city directive said that claims on the ownership of the Kob Srov Lake will be rejected.

Pa Socheatvong, the deputy governor of the city of Phnom Penh, said, on 22 July, that the portion of the Kob Srov Lake which was filled in is under the responsibility of the Kandal provincial authority. Nevertheless, Pa Socheatvong said that nobody in this company (Long Chhin Resorts) received the authorization to fill in the lake at all. Pa Socheatvong declared: “This is a bad place for a recreation area, because flood water in Phnom Penh city will be pumped into this lake.” He said that: “Those who are conducting this activity are doing it to grab land for business purposes. I think they will face the law.”