Cambodia gambles on development

Jul 3, 2012
By Muhammad Cohen
Asia Times Online

One key motivation for both was to change their international reputations. To get what they wanted, both countries decided to give foreign investors a lot of what they demanded. Both allow full foreign ownership of casinos, lengthy lease and license terms, and low gaming taxes, compared with nearly 40% in Macau.

PHNOM PENH and MACAU - Since its casino resorts opened in 2010, Singapore has stood out as a shining example for global gaming companies. Everyone wants to imitate its success.

But few places can match Singapore as a destination for international tourism and investment. Rather than trying to copy the Lion City, many aspiring gaming centers would do well to consider the Naga alternative, based on the casino in Cambodia.

Singapore's example has been compelling. The country held an open tender for its two casino licenses starting in 2005, inspiring a fierce competition between most of the world's leading gaming companies.

Scandal at the Buddhist Instittute in Phnom Penh - Information provided by Anonymous

Nagacorp announced 118% increase in net profit in Cambodia ... how much does Cambodia pocket from this?

NagaCorp Announces 2011 Interim Results

* * * * *

118% Surge in Net Profit to US$45.9 Million

Source: Nagacorp Ltd.

Hong Kong, August 9, 2011 - NagaCorp Ltd. ("NagaCorp" or the "Group", SEHK stock code: 3918), the largest integrated entertainment hotel complex in Cambodia, announced today that it achieved a record-breaking 118% increase in net profit for the six months ended June 30, 2011.

65% increase in revenue: Revenue increased 65% to approximately US$111.8 million for the six months ended 30 June 2011, from approximately US$67.8 million for the same period in 2010.

Gross profit increased by 59%: The Group increased gross profit by 59% to approximately US$79.9 million. Gross profit margins were 71.5% for the first six months of 2011, and 74.2% for the first six months of 2010.

Kingdom of Wonder: Where money and culture/religion goes hand in hand ... at the expense of Samdech Sangh Chuon Nath

Nagaworld Casino dwarf the Buddhist Institute and the Chuon Nath Statue

Nagaworld is located next the Koh Pich foot bridge where the stampede took place

Cambodia Beyond the Wonderment: "Buttering" tradition is well entrenched among the cronies

Buttering up of the elite by Nagaworld

Casino players keep the faith

Jun 15, 2011
By Muhammad Cohen
Asia Times Online

NagaCorp, with a 70-year license and 40-year monopoly in Cambodia's capital, Phnom Penh, listed on the Hong Kong stock market in 2006. Chairman Timothy McNally told G2E Asia delegates the casino's mass market revenue grew 69% last year.

MACAU - A mass meeting of the Optimists Club took place here last week. They called the event Global Gaming Expo Asia 2011.

In the mock splendor the Venetian Macao casino resort, hundreds of gaming company executives, financial analysts, gaming equipment suppliers and manufacturers - deploying bevies of Asian beauties to demonstrate the virtues of their products - gathered to hear about the incredible growth and even more incredible potential of Asia's gaming industry. Adding to the throng were gaming industry observers, and envious leisure and hospitality decision-makers from as far away as South Africa.

Skeptics need not apply.

Naga World: The New Year Scrooge?

Fired Naga World employees protested in front of the company on 13 April 2010 (Photo: Khe Sonorng, RFA)
Naga World Casino

Naga World staff protest against unexplained firing

14 April 2010
By Khe Sonorng
Radio Free Asia
Translated from Khmer by Heng Soy
Click here to read the article in Khmer

About 50 employees of the Naga World Casino have gathered to protest their firing without prior warning and without providing clear reason on this action.

On 13 April, several employees of the Naga World Company, including both employees who were already fired and those who are not fired yet, have gathered in front of the company office after their managers fired them one after another without providing any explanation.

Miss San Molita, a more than 1-year-long card dealer for Naga World Casino, indicated that the company administrators fired her from her job on the spot without giving her any prior notice nor explaining the reason or providing any of the mistakes she may have committed.

San Molita said: “Less than one hour after I was dealin[g card to customers, I was told to go meet them (managers). I asked them what was the problem? [I was told:] ‘Sister! They are firing you! They told you to get all your stuff and get out!’. I said that I have no problem, but this is my working hour, and if I leave during working hours, I’m afraid that they would accuse me of being absent from work today. They counted the money for me, I got $515.15, but I lost my night shift pay and a lot of tip money. I can’t tell you the whole thing, it’s too much! What they did was not right. Then they lifted me and dragged me out, they asked the security to kick me out!”

Miss Thet Sophannary, a 7-year employee of Naga World who was fired by the company’s administrator, made similar claims also: “When they fired us, they had employees on standby to replace us. They fired us during the Cambodian New Year celebration and all state institutions are not working, therefore, I don’t know who can help us? I think what they did was against the law, I don’t know the exact cause [of the firing]. If we didn’t follow the [company’s] rule by, say if we were to steal money – because this job involves dealing with money – or affect the company, etc… then their firing would be legal and we wouldn’t have anything to protest about, but here there is no clear cause [for the firing].”

Naga World employees who are protesting in front of the company claimed that, up until 13 April, the company managers have already fired 38 employees and a number of other employees will be fired next: “They said that on 13 April, there will be 60 other employees fired. Now, we heard that they already highlighted the names of those who will be fired [next]…”

Gregory Goh, director of human resources for Naga World, declined to comment on the cause of the firing or the number of employees fired.

Today, RFA could not reach the ministry of Labor yet as it is closed for the Cambodian New Year celebration.

Protesting Naga World employees indicated that on 26 February 2009, the company managers fired 14 employees who were labor union representatives there. Then on 16 February 2010, a group of mediators ordered Naga World to reintegrate 4 of the union representatives fired, but the company refused. Because of this problem, on 08 March 2010, more than 1,000 employees boycotted their work and they asked that their union representatives be reintegrated back to work, but so far the company did not provide any resolution to this problem.

No Legal Backing for Casino Closures: Lawmaker

By Kong Sothanarith, VOA Khmer
Phnom Penh
27 March 2009

While the closures of slot machine and sports gambling sites are a welcome change to Cambodia, the way they were closed was outside the law and should be reviewed, an opposition lawmaker said Monday.

Prime Minister Hun Sen recently ordered the closure of Cambo Six sites, which were popular for sports betting, as well as slot machines that had found their ways into many hotels in the capital.

"We were asking this for years," Sam Rainsy Party parliamentarian Son Chhay said, as a guest on "Hello VOA." "But the measure is strange and unlawful, because it proves this practice was done by decisions of power, not decisions of the judiciary."

So even if the gambling shut-down was good for Cambodia, decision-making outside the law could keep potential investors away, he said.

Meanwhile, he said, even though Cambo Six sites were closed, betting could be secretly practiced at the one casino in Phnom Penh that has avoided closure for years, Naga.

"We will lodge complaints against Naga if we find this true" he said.

Sports betting is still being done over the Internet, and the orders have not stamped out overnight the Cambodian penchant for gambling, Son Chhay said.

More than most countries in the world, Cambodians love to bet, "including betting on soccer, betting on boxing, betting on the rain and on cock fighting," he said. "Therefore, this phenomenon causes banditry, family crises and social insecurity."

The closure order was not backed by any law making investment in casinos and other gambling sites illegal, Son Chhay said, adding that around 40 casinos are still operating on the borders of Vietnam and Thailand.

Responding to a caller's question, Son Chhay said state revenue from casinos over the last three years exceeded $10 million, "but foreign investors took more than $300 million, $400 million, per year from our country and our citizens."

Why wasn't the Naga Casino closed?: Seng Theary

Motive of Gambling Crackdown Questioned

By Sok Khemara, VOA Khmer
Washington
10 March 2009

The jury is still out on whether a gambling crackdown ordered recently by Prime Minister Hun Sen was done for the good of the public or for personal gain, a civil society advocate said Monday.

“We need more explanation from the government on whether the closures are in favor of an individual or the public,” said Seng Theary, executive director of the Center for Social Development, as a guest on “Hello VOA.”

Hun Sen last month ordered the closure of the popular sports betting company CamboSix, a move that followed stricter measures against gambling machines in hotels.

While the move against gambling, which Seng Theary called a worm that corrupted morality and split families, was welcome, it should have been done through legal procedures, she said.

She also questioned why the largest casino, Naga, in Phnom Penh, wasn’t closed. “Why just close the small gambling sites?” she asked.

Casino burns briefly in Cambodian capital, guests evacuated

April 12th, 2008
DPA

Phnom Penh - About 100 foreign guests at Phnom Penh's only legal casino and its adjoining hotel were evacuated after a fire broke out, sending smoke billowing and all the Cambodian capital's fire units into action, a casino official and police said Saturday.

Around 300 Cambodian, Malaysian and other staff were also evacuated, police said.

A man who identified himself as a senior official for the NagaCorp Hotel but declined to be named said the blaze looked worse than it was and there had been no injuries.

"I am not sure what started it at this stage, but everyone is out and no one has been hurt," he said, adding that the blaze had been contained to one area at the back of the building.

At least 50 firefighters and volunteers worked for around three hours to control the blaze and around 100 more police kept crowds back from the riverfront property, which cost 100 million dollars and is designed to accommodate 900 guests, according to the company.

It rubs shoulders with the nation's multi-million dollar brand new National Assembly, or parliament, which was not damaged in the blaze.

The NagaCorp official declined to say what nationalities had been evacuated, but the casino is a favourite haunt of South Korean, Singaporean, Malaysian and Chinese visitors especially.

Naga Casino fire

The Naga Casino is enveloped in smoke in Phnom Penh, Cambodia, on April 12, 2008. The fire started at around 7:20 a.m. at the rear part of the Naga complex. Naga is the largest casino of its kind within 200 kilometers around. Its clients mainly come from Southeast Asia and China. (Xinhua Photo)
Heavy smoke arises from the rear part of the Naga Casino in Phnom Penh, Cambodia, on April 12, 2008. The fire started at around 7:20 a.m. at the rear part of the Naga complex. Naga is the largest casino of its kind within 200 kilometers around. Its clients mainly come from Southeast Asia and China. (Xinhua Photo)
The Naga Casino is enveloped in smoke in Phnom Penh, Cambodia, on April 12, 2008. The fire started at around 7:20 a.m. at the rear part of the Naga complex. Naga is the largest casino of its kind within 200 kilometers around. Its clients mainly come from Southeast Asia and China. (Xinhua Photo)
The Naga Casino is enveloped in smoke in Phnom Penh, Cambodia, on April 12, 2008. The fire started at around 7:20 a.m. at the rear part of the Naga complex. Naga is the largest casino of its kind within 200 kilometers around. Its clients mainly come from Southeast Asia and China. (Xinhua Photo)

Police: No casualties in Naga Casino fire in Phnom Penh

PHNOM PENH, April 12 (Xinhua) -- There were no casualties in the fire which burned part of the Naga Casino here on Saturday, Cambodian police said.

"We are preparing to create a committee to investigate this fire accident," Phnom Penh Police Commander Touch Naroath told Xinhua.

Nobody died from this accident, he added.

The fire only destroyed some construction materials inside the building and part of its first and second floor, staff and construction workers said.

The guests of Naga, which is also a hotel, fled from their rooms, they said, adding that all staff members were also evacuated from the building.

Wood being used for remodeling the Naga Casino caught fire, sparking the blaze in a district of the city crowded with government offices, including the National Assembly and Foreign Ministry, military police officer Klook Chandara said.

The fire has been put out and it did not cause damage to other buildings in the same block.

Naga is operated by Malaysian investors and it is the only casino of its kind within 200 kilograms (KI-Media note: 200kilometers?) around.

Some parts of the Naga building was on business while other parts are still under construction.

The blaze was the second major fire in two days in Cambodia's capital, after more than 200 wooden shacks in a slum area were destroyed early Friday, leaving thousands homeless.

Cambodia: Garment workers threaten strikes

May 22nd, 2007
By Jef Costello
libcom.org

Garment workers are trying to prevent large pay cuts. At the same time building workers have gone on strike in support of sacked colleagues.

The garment workers are threatening strikes in reaction to governement proposals to change the law that compels employers to pay double wages for night work. By cutting this premium by 70% the Prime Minister, Hun Sen, claims he will be able to create tens of thousands of new jobs. The industry is currently responsible for US$2.3bn worth of exports yearly, almost 80% of the total.

The government plans will affect other industries if they can be succesfully applied here. The 70000-strong Free Trade Union of Workers of the Kingdom of Cambodia (FTUWKC) has threatened strike action. Currently only 10000 out of some 300000 workers work at night, with the Garment Manufacturers Association of Cambodia claiming that night-workers are too expensive. The legislation is clearly an attempt by the government to normalise night work enabling factories to run 24 hours a day. With the minimum monthly wage set at $50 and union members estimating monthly living costs at $57, it is easy to see that workers will be rapidly forced into night work.

Last year there was a large increase in labour disputes and an increase in the number of disputes that led to strikes. For almost 80% of strikes the reason given was the refusal of management to respect employment laws.

In the Naga resort, near the capital Phnom Penh, workers building a new casino have gone on strike, calling for the reinstatement of 36 carpenters who were fired on Sunday. Management is denying that the workers were fired, claiming that the work they had been contracted to do was finished.

The workers, employed by China Central Asia Group, are also angered by salary cuts, one worker said there had been a pay cut from 14000 riels to 8000 per day (£1.76 to £1). Workers also demand that conditions be improved at the site.

One of the workers claimed that management was deliberately pressuring unionised workers to force them to quit. Mœun Tola, the President of the National Building Workers union claimed that the sacked workers were not on the site due to fear of reprisals. Workers and organisers have been reported rising intimidation i recent years and three union leaders have been murdered, with pro-government forces being blamed.

A Cambodian journalist, Keo Nimol, has gone into hiding after Prime Minister Hun Sen called him "insolent" and "rude" during a radio broadcast. It is claimed that after the broadcast Mr Sen asked for personal information on Mr Nimol. During the interview Mr Nimol had tried to ask Mr Sen if rumours of a rift between the two parties in the government coalition were true.

Construction Workers Cite Abuses on Casino Hotel Construction

Thida Win, VOA Khmer
Original report from Phnom Penh
22/05/2007

The Cambodian National Federation of Building and Wood Workers issued a statement Tuesday accusing a construction group of threats against workers and abuse of labor rights in the building of a hotel next to Phnom Penh's Naga casino.

The union said it was disappointed because earlier this month the Cambodia China Asia Group laid off 36 member workers due to their union affiliation.

A company spokesman, Sin Peang, said they were laid off because their specialties were no longer needed.

Federation president Sok Sovandeth said the workers were now afraid of being put in prison.

"They were driven from the place where they live," he said. "Therefore, they do not dare come out in the open, because of the threats."