Showing posts with label corruption. Show all posts
Showing posts with label corruption. Show all posts

Friday, May 25, 2012

Hun Sen on Election Footing

The Diplomat,  Luke Hunt, May 25, 2012

Commune elections next month are set to offer an interesting test of the Cambodian People’s Party's popularity.

Image credit: World Economic Forum
Cambodian Prime Minister Hun Sen and his Cambodian People’s Party (CPP) have been on election footing since the second half of 2011. The big test is still a year out, when national elections will mark 20 years since U.N. troops oversaw the first ballot that began this country’s transition to democracy.

However, commune elections will be held on June 3, and will provide an important test for the CPP, which has trounced virtually all opposition ranks in recent years. There are about 1,620 communes across the country. Each represents a cluster of villages and the elections, held every five years, aren’t unlike council or local district polls in the West.

The CPP will head into the poll as overwhelming favorite, but how the opposition Sam Rainsy Party (SRP), whose namesake leader lives in self-imposed exile following a conviction, fares will provide valuable insights into Hun Sen’s broader popularity.

His government has been beset by angry protests over alleged land grabs, a yawning wealth gap coupled with rising prices for everyday goods and high handedness and corruption among government officials.

This could translate into a loss of votes, particularly in Phnom Penh and provincial cities where Sam Rainsy has traditionally polled well. Further complicating the issues this year are the royalists, who have been a spent force at recent polls.

Funcinpec had for years played a political game of cat and mouse with Hun Sen until its leader Prince Norodom Ranariddh, son of the King Father and half-brother of King Norodom Sihamoni, was banished by his own members for gross corruption and Funcinpec effectively split and fell apart.

His banishment came after a court jailed him for 18 months in absentia after he quietly sold off Funcinpec party headquarters as if it was personal asset and then re-directed the fund to acquire a private property.

Now, a deal has been struck aimed at ending the animosity between the two main royalist parties. This means the Norodom Ranariddh Party (NRP) will merge with Funcinpec to form a single party under the Funcinpec name. However, Funcinpec has a long and difficult road ahead if it’s to make any kind of return from the political oblivion. At the 2008 national poll, the NRP and Funcinpec won just two seats each in the National Assembly, while the SRP improved its standing to 26; the CPP holds 90 seats.

Any gains could come at the expense of the SRP, but in Cambodia’s remote villages, which have remained loyal to Hun Sen ever since he ended the years of bloody conflict in 1998, Funcinpec are unlikely to score much success.

As a result, Norodom Ranariddh should expect to remain where he has been for the last four years, in the political wilderness. The SRP will maintain its current standing while for the CPP it will be business as usual once the commune elections are done

Wednesday, May 23, 2012

Defrocked Monk Decries ‘Biased’ Decision

It is not okay for SRP monks to observe the debate...But it is okay for CPP monks to kill and beat up Khmer Krom and SRP monks???


RFA, May 22, 2012 
A Cambodian monk is thrown out of his pagoda after observing a political debate.


Ung Kaing speaks with rights groups at the Suriya Rongkor pagoda, May 21, 2102. RFA
A monk in western Cambodia who was defrocked on Monday after observing a political debate ahead of local commune elections has accused his superiors of being politically biased.

Ung Kaing, 25, said he was defrocked after attending a debate along with an activist from the opposition Sam Rainsy Party (SRP), of which he was previously a member. He had left the SRP after taking his vows of monkhood.

According to Cambodia’s commune election law, monks are allowed to vote, but may not participate in political activities or run as candidates. Commune elections will take place on June 3.

The young monk told RFA’s Khmer service on Tuesday that 68-year-old Pot Pun, the chief monk of the Suriya Rongkor Pagoda in Siem Reap province’s Sort Nikum district, had dismissed him from the fold because he did not agree with the policies of the SRP.

“I didn’t agree with his decision to defrock me. I opposed it,” Ung Kaing said.

“He was putting pressure on me because he was biased toward political parties.”

Ung Kaing said that before being defrocked, Pot Pun had also questioned him about his involvement with the SRP in an earlier political debate.

Pot Pun told RFA that he made the decision to defrock Ung Kaing because he had lied to him about going to retrieve medicine from outside of the pagoda when he had really attended the debate.

But he admitted that he had been pressured by higher level monks to kick the monk out of the pagoda.

“The top monks told me that he had breached the law and must be defrocked,” he said.

“Top officials had asked me [about the monk], so in order not to make trouble for myself, I did it.”

SRP District Director Porm Pung confirmed that Ung Kaing had been a party activist, having initially joined the party in 2010.

He said that local party leaders had volunteered the monk as a candidate in Sort Nikum district for the position of commune councilor in Khjash commune, though Ung Kaing maintains that he had never asked to run, which he is prohibited from doing by law.

Monks and politics

According to Cambodia’s commune elections law, anyone, including monks, can vote for commune councilors as long as they are a Cambodian citizen, 18 years of age by the day of the election, and reside in the commune. Only convicts are unable to register to vote.

But the Sangha community has been increasingly divided over politics since monks were given the right to vote in 1993 during the country’s first elections since the fall of the Khmer Rouge regime.

Currently, a small group of politically active monks known as the “young monks”—most of whom are members of the SRP—voice public opposition to the current government, while some senior monks have opposed this activism and called for their arrest or defrocking.

In August last year, Cambodian environmental activist monk Luon Savath was barred by the official Buddhist Sangha Council from entering pagodas in his home province of Siem Reap after participating in protests against rainforest destruction.

Pagodas customarily host traveling monks who are in need of a place to stay.

He was told that the ban would only be lifted if he agreed to end public support for the protesters and “confess his wrongdoings” to the council.

The order followed an earlier one in April, when Luon Savath was banned from entering pagodas in Cambodia's capital Phnom Penh for participating in land protests. 

The Cambodian Center for Human Rights said at the time that the ban represented a political abuse of Buddhism, which does not prohibit social activism.

In June 2011, the New York-based Human Rights Watch awarded Loun Sovath with the Hellman/Hammett grant for his work supporting communities facing forced evictions and land-grabbing in Cambodia.

Luon Savath told RFA that no pagoda has been willing to host him since the ban.

Reported by Hang Savyouth for RFA’s Khmer service. Translated by Samean Yun. Written in English by Joshua Lipes.

Thursday, May 17, 2012

Cambodian troops seal off village after land clashes


Human rights workers denied entry after 15-year-old girl dies in latest confrontation over land development


Associated Press in Phnom Penh
guardian.co.uk, May 17, 2012

Rice farmers near Phnom Penh: Cambodia’s system of commercial 
land concessions has been criticised as corrupt and prompted a UN inquiry. 
Photograph: Heng Sinith/AP

Security forces have sealed off a village in eastern Cambodia and denied entry to human rights workers after the fatal shooting of a teenager in the latest violent eviction aimed at clearing land for development.

Soldiers said they needed to secure the area around Proma village, in eastern Kratie province, to continue the search for five accused ringleaders involved in a clash with security forces a day earlier, said Chan Soveth, a prominent investigator with Cambodian human rights group Adhoc.

He said journalists and human rights activists were initially moved to an area half a mile (1km) from the village but then pushed farther back, raising concerns about the soldiers' conduct and the safety of the villagers.

The interior ministry, meanwhile, issued a statement alleging the protesters were an "anarchic group" trying to set up a self-governing zone outside the law. It accused demonstrators of abducting two soldiers and seizing their weapons.

Cambodia's system of commercial land concessions, decried by activists as opaque and corrupt, has become a volatile issue nationwide and prompted a UN inquiry. Last month, a high-profile activist was shot dead by a military police officer after investigating illegal logging in a forest concession.

On Wednesday, hundreds of police and soldiers raided the settlement in Kratie province after community leaders rejected demands to vacate their farmland, officials said. Security forces clashed with about 200 villagers armed with axes, crossbows and sticks. A 15-year-old girl was critically wounded in the confrontation and later died at a hospital, said the provincial governor, Sar Chamrong.

"The soldiers told us we were not allowed to go inside to see the situation, "Chan Soveth said on Thursday. "We don't know what is happening inside. We are concerned for the safety of the villagers."

He said villagers who left the security perimeter were searched before being allowed to return home.

Authorities say the land is owned by the government, but the activists claim the previously state-owned land already has been awarded to a Russian company to be developed as a plantation. Villagers who have been farming the land for years say they have nowhere else to go.

The incident is the latest fallout from widespread evictions and land grabs that have sparked unrest nationwide, with deadly force sometimes employed by both public and private security forces.

The Cambodian prime minister, Hun Sen, issued a directive last week suspending new land concessions to private companies and ordering a review of existing deals. The move was announced during a visit by a UN human rights envoy who warned that land disputes in Cambodia must be resolved fairly and peacefully.

Many NGOs Contribute to Cycle of Corruption: Filmmaker

Cambodia is facing a cycle of continued aid dependency and corruption, an American filmmaker says. Tim Sorel, who produced the short documentary, "The Trap of Saving Cambodia," told VOA Khmer that local and international NGOs are complicit in the nation's corruption because they allow it or abet it. However, some NGOs are starting to stand up to it and refusing to pay bribes or tolerate other forms of corruption, he said. (Men Kimseng with TV interview in Washington studio.)

Thursday, September 24, 2009

Asian Countries Suffer From Weak Institutions: ADB

By Men Kimseng, VOA Khmer
Original report from Washington
23 September 2009


Asia is suffering from a deficit of governance, public management and rule of law, in large part due to corruption, a senior Asian Development Bank official said, urging institutional capacity building for countries like Cambodia to climb out of poverty.

“Our advice to the government is to continue the momentum of institution-building,” said Rajat Nag, managing director-general of the ADB, in an exclusive interview with VOA last week. “We recognize that these take time. We recognize that it is not only important to have the right laws on the books, but they have to be implemented fairly, and we are working with the government of Cambodia as indeed elsewhere to continue that process.”

Cambodia has spent almost ten years drafting on an anti-corruption law, but it remains unfinished. Efforts are underway meanwhile to help the government set up an anti-corruption body.

“These things are not done overnight,” Nag said. “These things are also, quite frankly, not done in public. I think we should work with the government, and we do talk to them very frankly, but these are done as part of a long-run institutional reform progress which is continuing.”

The ADB believes that investing in health and education is also important and must take place side by side so that Cambodia can bridge the widening gap between the rich and poor.

“In a country like Cambodia, we emphasize very much investment in health and education, but also I think the government needs to look at the issue of rising inequality, rising disparity,” Nag said. “You’ve got people who are doing extremely well and people who are falling below the poverty line and falling through the cracks.”

Tuesday, September 01, 2009

Oil money will not be used to encourage corruption ... but the amount is a state secret that only Hun Xen and Sok An know?

The Challenge of Extracting Oil from Cambodia

Monday, August 31, 2009

Nightly Business Report
Public Broadcasting System (USA)
"We are not going to use this money to pump corruption or to encourage corruption, but the money properly managed, properly monitored and properly spent in the right places" - Cham Prasidh's boasting
SUSIE GHARIB: China is the world's second largest oil consumer and until the recession hit, its appetite for fuel was driving economies around the globe, including Cambodia. As Rian Maelzer reports, the global slowdown has raised doubts about Cambodia's plans to tap recent finds of oil and gas.

RIAN MAELZER, NIGHTLY BUSINESS REPORT CORRESPONDENT: strong demand from the U.S. and EU had been keeping Cambodia's sewing machines working at full tilt. But in the past year, garment exports to those markets have slumped, costing thousands of workers their jobs. Arjun Goswami of the Asian Development Bank says it's a huge blow for a country that still relies on foreign aid for close to half the government's budget.

ARJUN GOSWAMI, COUNTRY DIRECTOR, ASIAN DEVELOPMENT BANK: This is an open economy, it's a small economy and it's not very diversified, so there have been serious impacts.

MAELZER: With tourism also hit hard, Cambodia had hoped it would start to see revenues this year from the country's first ever oil and gas finds. The waters off Cambodia's coast are estimated to contain about two billion barrels of oil -- small by global standards, but significant for one of the world's least developed countries. Subbu Bettadapura of consultancy Frost and Sullivan warns that extracting Cambodia's reserves will be challenging.

SUBBU BETTADAPURA, ENERGY ANALYST, FROST AND SULLIVAN: They are not in a big reservoir where you can go in and tap them. They are in various pools, so there is a technical challenge for the oil companies to go in and try to monetize these reserves.

MAELZER: Chevron has been the most active company in exploring Cambodia's oil potential. Chevron isn't saying how much oil it thinks might be in its offshore block or when it might start commercial operations. A company spokesman said Chevron still has to hammer out legal and financial frameworks with the Cambodian government and those are serious shortcomings cited by multilateral agencies and aide donors working in what is one of the most corrupt countries in Asia. Eleanor Nichol of the watchdog group Global Witness has studied Cambodia's nascent energy and mineral sectors.

ELEANOR NICHOL, RESEARCHER, GLOBAL WITNESS: What you have is two sectors operating in what is effectively a regulatory vacuum with no public or parliamentary oversight. Also, what we've seen happen previously in the forestry sector is that money generated from logging and extraction of that resource never reached the state coffers and we want to try and avoid is a duplication of the same patterns occurring in the oil and mineral sectors.

MAELZER: Commerce Minister Cham Prasidh rejects those concerns.

CHAM PRASIDH, CAMBODIAN MINISTER OF COMMERCE: We are not going to use this money to pump corruption or to encourage corruption, but the money properly managed, properly monitored and properly spent in the right places.

MAELZER: Cambodia is still hoping the oil will start flowing by 2012. Analyst Bettadapura says the timing could end up being a blessing.

BETTADAPURA: If they wait for a little while longer until oil prices pick up, then they are going to get much higher returns and you need to consider the fact that the lifespan of this field is only 10 years.

MAELZER: The government estimates it should reap at least half a billion dollars a year from oil and gas, a huge boost to its revenues, which barely topped $1 billion last year. Rian Maelzer, Cambodia.

Thursday, August 27, 2009

New Income from Woodcarving

Ni Tong, 17, carves a decorative vessel out of wood in Prongil village, Aug. 22, 2009. (RFA/Mondol Keo)
Carved wooden vessels are stored for sale in Prongil village, Aug. 22, 2009. (RFA/Mondol Keo)

2009-08-26
Radio Free Asia

Women in remote Cambodian villages are turning to woodcarving as a new way to raise their standard of living.

BANGKOK—Woodcarving has emerged as a way for women in Cambodia’s remote villages to improve their lives, despite the difficulties associated with living far from traditional centers of commerce.

In Cambodia’s western Pursat province, 23-year-old Uk Srey Mom carves a piece of wood into the shape of a traditional water bowl and proudly announces that her family of five can finally enjoy a better living, even though they don’t own land for rice farming.

Srey Mom, a resident of Prongil commune in Pursat’s Phnom Kravanh district, says she is saving the money she earns from woodcarving to learn how to sew for a living.

“If I work hard, I can earn nearly 200,000 riel (U.S. $50.00) [per month]. If I don’t work too hard, I earn only 150,000 riel (U.S. $37.50) or 100,000 riel (U.S. $25.00).”

She carves intricate designs on her work, including knotted braids, vines, decorations in the Phka Chan style, and other forms particular to her province.

Srey Mom says small carvings can sell for 5,000 riel (U.S. $1.25) in the market while larger carvings can bring in anywhere from 10,000 riel (U.S. $2.50) to 20,000 riel (U.S. $5.00), depending on their size.

On average women from Prongil village, where Srey Mom lives, and the surrounding community make U.S. $1.00 a day or less for hard work farming local rice paddies.

Many other young women from nearby villages also come to Prongil to work as woodcarvers to support their families and save money to continue their education.

Ni Tong, a 17-year-old resident of neighboring Santreae commune, says she works part-time as a woodcarver to buy school supplies for her studies at Hun Sen Phnom Kravanh High School and to put some money aside for her family.

“If we work hard, we can finish carving one bowl a day, and the [workshop] owner will pay us after he has sold the bowl.”

Ni Tong says she makes more than 100,000 riel each month and says the experience has taught her the value of learning skills to support herself financially.

“I want the Royal Government to build schools to help poor children get a good education so that they have the knowledge to earn a living by themselves.”

Aiding communities

Prongil village sits nearly 23 kms (14 miles) west of National Highway 5, which runs from the northwestern city of Sisophon to the capital, Phnom Penh.

The village is home to nearly 20 workshops that produce traditional woodcarvings, including flower bowls, water bowls, water pots, Buddha statues, and statues of celestial maidens known as “Apsara.”

Each workshop employs seven to 10 young women as carvers.

The workshops sell their woodcarvings to both tourists and local collectors.

According to village chief Yim Bunly, the majority of Prongil village was poor as recently as a few years ago.

But he says that since they developed a woodcarving industry, more than 60 percent of the residents now live above the poverty line.

The village has a population of 441 families, out of which around 90 families now depend wholly on work as woodcarvers and do not own rice paddies, Yim Bunly said.

He added that hundreds of young people who in the past might have been more likely to leave their villages to find work are now working locally as woodcarvers to support themselves and their families.

Chhim Sina, director of the Pursat Department of Women’s Affairs, said the negative impacts of job migration seem to have disappeared in Prongil commune after the creation of the woodcarving workshops.

“We have projects to help find jobs for women in their own villages so they don’t have to migrate, and from these I have observed that more young people choose not to leave home,” she said.

Prongil Commune chief Yan Thol says woodcarving has also helped to reduce crime and provides area youth with goals to work towards.

“It’s important that the people feel connected to the business in addition to making an income. This reduces the number of troubled youth in the area because they are busy working and don’t get involved in bad things,” Yan Thol said.

“In total, it helps society and helps with village chief management. The village chiefs don’t have as many difficulties because there are fewer problems in the area. When people have jobs to do … they don’t have many arguments,” he said.

Dangers of corruption

Keo Bunsieb, a disabled former soldier and now the owner of a woodcarving workshop with 10 workers, says the business has allowed him to support his family and helps a number of villagers to live better lives.

But he wants the government to protect the industry through regulation to allow his business and others to thrive.

When the carvings are transported, they are often seized [by forestry officials]. This will lead to the disappearance of Khmer culture,” Keo Bunsieb said.

[Also] if a tree falls and we don’t use it, it will be burned. But if we take it for carving, we can be accused of committing an offense,” he said.

Yim Bunly, the chief of Prongil village, agreed that without a comprehensive legal framework to protect the woodcarving businesses, owners and woodcarvers would suffer from corruption and extortion.

“There has been too much pressure on the people. Tax officials collect taxes from them, the military police take money from them, civilian police take money from them, and environmental protection officials take money from them.”

In an interview, Phnom Kravanh District Governor Touch Sambour promised to make the establishment of legal provisions to nurture and protect the industry a priority.

Original reporting by Mondol Keo for RFA’s Khmer service. Khmer service director: Sos Kem. Executive producer: Susan Lavery. Translated by Uon Chhin. Written for the Web in English by Joshua Lipes. Edited by Sarah Jackson-Han.

Thursday, August 20, 2009

Q+A-Will Cambodia's economic woes affect stability?

Thursday August 20, 2009

BANGKOK, Aug 20 (Reuters) - Cambodian Prime Minister Hun Sen is facing pressure from rights groups and foreign donors while he battles to minimise the damage to the country's fragile economy from the global financial crisis.

Foreign governments, rights groups, non-governmental organisations and political rivals continue to hound the former Khmer Rouge soldier over his authoritarian leadership style and his attempts to muzzle critics.

However, analysts say neither the criticism of Hun Sen's government nor the effects of the slowing economy are likely create instability in the near future.

HOW DOES HUN SEN RESPOND TO CRITICS?

Hun Sen's government has filed a series of lawsuits against journalists and opposition lawmakers for defamation or "disinformation", which rights groups and foreign diplomats say are attempts to silence critics and strengthen his grip on power.

Two opposition MPs critical of Hun Sen and his party were recently stripped of parliamentary immunity, effectively unseating them from the national assembly. Other cases have included a young political activist jailed for painting anti-government slogans on his house and an advocate of cultural preservation who criticised lighting plans for the ancient Angkor Wat temple.

"Hun Sen does not know how to respond to criticism and the fear is he will respond with an iron fist through more suppression, which would undermine Cambodia's democratic progress," said Ou Vireak, president of the U.S-funded Cambodian Centre for Human Rights.

WHAT ABOUT FORCED EVICTIONS, CORRUPTION?

Tens of thousands of people have been evicted by force from prime land in the capital, Phnom Penh. Rights groups say as many as 250,000 people have been affected nationwide. The government says the dwellers are land-grabbers who refuse to accept their offers of compensation.

The World Bank and other donors say the evictions are hampering efforts to tackle poverty in a country where 35 percent of the population live on less than $1 a day. The ruling party's control over the police, military and the courts means those made homeless have limited power to fight the evictions.

The government has also come under fire for failing to deal with rampant corruption, which the United States says costs the country $500 million a year. Cambodia, which anti-graft watchdogs rank as one of the world's most corrupt countries, has dismissed the claims as foreign interference. An anti-corruption bill drafted in the 1990s is also yet to be approved.

Analysts say the failure to tackle graft will restrict the amount of foreign investment in the country.

IS ALL THIS ANY THREAT TO HUN SEN?

Hun Sen's Cambodian People's Party (CPP) enjoyed a landslide election victory in 2008 on the back of four years of double-digit growth driven by pro-investment policies, which helped create jobs and improve infrastructure and public services.

Analysts say that after decades of war and political strife, Cambodians are better off under Hun Sen. Although he is criticised for his authoritarian style, people are largely supportive of his nationalist and conservative approach to running the country.

"He has a desire to maintain Khmer traditions and morals and that maintains some strong fabric on which to base policy decisions. That's good for political stability," said Ian Bryson, a specialist on Cambodia at Control Risks in Singapore.

COULD A SLOWING ECONOMY AFFECT CAMBODIA'S STABILITY?

A boom in the garment manufacturing industry in the 1990s helped lift many rural people out of poverty, but the global financial crisis has hurt tourism and slashed demand for Cambodian-made clothes in countries like the United States.

Analysts believe victims of lay-offs are unlikely to blame the government or protest against factory closures. They say stability rests on the government's future handling of inflation, diversifying its economy and improving its investment climate.

"The government should invest more in agriculture and other industries and reduce its reliance on garments and tourism," said Pou Sothirak, a senior research fellow at Singapore's Institute of South East Asian Studies (ISEAS).

(Compiled by Martin Petty and Ek Madra in Phnom Penh; Editing by Alan Raybould and Bill Tarrant)

Cambodia's Hun Sen looks safe despite some unease

Thu Aug 20, 2009
By Ek Madra

PHNOM PENH (Reuters) - Trouble is mounting for Cambodia's long-serving prime minister, Hun Sen, with rising unemployment and an economic slowdown on top of growing criticism from diplomats, rights activists and political rivals.

But analysts see little threat to his power or the long-term investment outlook in a country that has made great strides after decades of poverty, brutalilty and instability.

"Things are far from perfect in Cambodia, but democracy is a slow process and we have to see the bigger picture," said Pou Sothirak, a senior research fellow at Singapore's Institute of South East Asian Studies (ISEAS).

"Hun Sen's priority has been the economy, social order and the avoidance of conflict, and the current situation is a significant improvement from the past."

Hun Sen's government has come under fire recently, accused of corruption, abuse of power, and undermining the judiciary, raising concerns about future stability and its sincerity about carrying out long-awaited reforms.

Tens of thousands of people have been driven out of their homes in a slew of land seizures, while critics have blasted Hun Sen for filing lawsuits they say are merely attempts to intimidate journalists, activists and political opponents.

However, Hun Sen gets plenty of plaudits as well, and some analysts say the firm hand of the undisputed strongman is exactly what Cambodia and its economy needs.

"It's easy to criticise Hun Sen as a single-party ruler, authoritarian and totalitarian, but he's a pragmatist -- he does what he needs to do," said Ian Bryson, a regional analyst for Control Risks.

"There's no reason to forecast any instability in the near future. Cambodia's pretty rock solid. Hun Sen is healthy and he really is quite well-regarded."

Given the steady turnaround in Cambodia's fortunes since Hun Sen came to power 25 years ago, the popularity of the Khmer Rouge defector and former farmer and monk, comes as no surprise.

RECOVERY COURSE

Six years after Vietnamese invaders ended the Khmer Rouge's 1975-79 "killing fields" reign of terror, Hun Sen became premier and cultivated a reputation as a moderate, investor-friendly democrat, which helped put Cambodia on the road to recovery.

Until the global economic crisis struck, Cambodia had seen four straight years of double-digit growth fuelled by Hun Sen's pro-business policies, which created new jobs and infrastructure and raised living standards among the rural poor, many of whom live on less than $1 a day.

With backing from the poor, his Cambodian People's Party (CPP) scored 73 percent of the vote in 2008 elections, which observers said had only minor irregularities, to win its first outright majority after years of bickering coalition governments.

"I see no party that can challenge the CPP. They've improved the livelihoods of the poor and boosted their hopes and expectations for the future," said a Cambodian political science lecturer, who asked not to be named.

"The criticism Hun Sen has received does not reflect the overall situation. I can see the ruling party will continue to hold power ... and foreigners will continue to invest here."

Analysts say complaints about graft, cronyism, lawsuits and forced evictions from donors, rights groups, diplomats and financial institutions have irked Hun Sen, but will have little impact on his popularity.

The biggest challenge for the CPP, they say, is to revive the economy and ensure jobs are created to minimise the threat of social problems or civil disorder that could undermine its grip on power.

Foreign direct investment has slowed since the global financial crisis took its toll. Economic growth slowed to 5.5 percent in 2008 and the economy is forecast to shrink by 0.5 percent this year, according to the International Monetary Fund.

With a slump in demand from key markets like the United States, at least 130 garment factories have closed since late last year, prompting an estimated 50,000-60,000 lay-offs in an industry that brought in $3.8 billion in 2007.

But analysts say workers have accepted this is not the fault of government mismanagment, and that it looks unlikely to pose a threat to Cambodia's stability.

Neither, they say, will long-running diplomatic disputes with traditional foe Thailand over border demarcations, near the 11th-century Preah Vihear temple and in the Gulf of Thailand, where oil and gas deposits have been found.

Both sides have beefed up their military presence in the areas and seven soldiers died in skirmishes over the past year. But too much is at stake for both countries, and that is preventing the disputes from escalating significantly.

"It's been a bumpy ride for Cambodia, but stability is, and will remain, very much intact," added Pou Sothirak of ISEAS. "And for that reason, I expect foreign investors will return when the global economic situation improves."

(Additional reporting by Martin Petty)

Wednesday, July 15, 2009

Win with Women: A struggle for change

July 15, 2009
Source: SRP

Win with Women: A struggle for change

Poverty in Cambodia is caused by the failure of the government to combat corruption. The national budget allocated for the social sector – including health, education and rural development – is lost every year, thus putting human lives at great risk of neglect, deprivation and exposure to violence. Among the victims of neglect, deprivation and violence are women, female youths and children because of gender inequalities, discrimination and extreme forms of abuse such as sexual abuse, rape and trafficking. Victims of violence are usually deprived of justice as the process of legal action against their perpetrators is long, complicated, intimidating, and usually obstructed by a corrupt judiciary system. Impunity rate and court misconduct persist and victims receive little protection.

The Sam Rainsy Party, as the lead opposition in Cambodia , has lent a voice to the democratic movement that no longer can wait for promises made by the government. From farmers defending their land, to ethnic minorities marching to the provincial towns to demand cancellation of illegal concessions of community forests, to workers demanding fair wages, the opportunity for change from the bottom up is a phenomenon that is not possible to ignore. The opposition has made its presence felt.

Founded in February 1998, the Sam Rainsy Party Women’s Wing has helped increase the number of women SRP party members who have been elected to Parliament from only 1 woman MP in 1998, to 3MPs in 2003 and to 6 MPs in 2008. In 2006, the party elected Ms. Mu Sochua as Secretary General, the highest party position ever held by a woman in Cambodia in a political party. The current SG is a prominent woman MP from Siem Reap, a province with many challenges. In 2002, SRP Women’s Wing made gains at the local level with 46 of their members elected and in 2007, the number jumped to 269. In 2009, 42 women gained seats at the sub-national election.

The Women’s Wing will work to continue to encourage women’s leadership, empower women, and foster a paradigm shift towards gender responsive, transformative leadership, politics and good governance in preparation for the upcoming 2012 and 2013 election.

Over 300 women elected commune chiefs, deputies and councilors will join the party leadership at the national level to commemorate the 6th Annual Congress of the Women’s Wing.

Date: Friday, 17 July 2009

Time: 8:30 – 11:30 am

Location: SRP Headquarters, #71, Sothearos Blvd.

Under the theme Win with Women: A Struggle for Change, SRP women activists, supporters and leaders will receive and understand information pertaining to leadership, women’s rights, and Legal Education. A core group of SRP women leaders at all levels will be selected to undergo this 3-year training program to prepare for the 2012 local election and the 2013 national election.

The Sam Rainsy Party Women’s Wing will provide this training in order to meet the following goals:
  • To promote women as leaders.
  • To empower women to demand employment, free education, free medical services and to strengthen their ability to address issues.
  • To sensitize women electorate to vote for social and economic justice.
SRP Secretary General
Contact: 012-934-355

Monday, June 29, 2009

Cambodian tourism operators welcome new legislation

Monday, 29 June 2009
eTravel Blackboard

Tourism service providers in Cambodia have welcomed a new law which aims to develop the tourism sector in a sustainable way that contributes to poverty reduction and preservation of national culture.

An Kim Eang, the president of the Cambodian Association of Travel Agents (CATA), said the new law – 10 years in the making - would be of great benefit to service providers.

"I welcome this new law on behalf of the whole private sector, because it will generate competition, and service prices will not be set excessively high or freely," he said.

An Kim Eang added that the new law would help protect providers from violations by government officials, who he said previously accused some operators of illegal activities.

Lao Heng, general manager of VLK Royal Tourism concurred, saying that the new law prevented businesses from operating without a licence.

"Before this law we encountered a number of difficulties ... our company is large, and operates legally," he said.

"We have to pay our taxes, and that means we make a profit of just US$2 to $3 per ticket.

“But smaller companies were able to sell at a lower price because they don't pay taxes."

Ministry of Tourism Undersecretary of State So Mara said the entire process had taken 10 years involving in-depth discussions with the private sector.

"Both the private and the public sectors must fall under the umbrella of this law - and I believe it will ensure effective management, quality and sustainability in the tourism sector," So Mara said. "Without this law I am certain investors would not remain here."

So Mara said the ministry is in the process of informing tourism providers about the provisions of the new law.

Operators in Phnom Penh were informed last week, and the ministry's information effort is to roll out to other operators nationwide next.

One of the provisions of the new law is covered by Article 50, which requires all tourists to respect the country's traditions and customs.

Another - Article 70 - bars minors from going to adults-only entertainment areas, and businesses that flout this could be fined up to 10 million riels ($2,500).

Under Article 65, owners or managers of unlicensed businesses are liable to a fine of up to 20 million riels ($5,000).

Friday, June 26, 2009

New UN rights envoy to Cambodia pledges 'constructive' talks

United Nations Special Rapporteur for Human Rights Surya Subedi speaks to the media during a news conference in Phnom Penh June 25, 2009 after paying a 10-day official visit to Cambodia. REUTERS/Chor Sokunthea

Friday, June 26, 2009

PHNOM PENH (AFP) — The new UN special envoy for human rights to Cambodia on Thursday pledged a "constructive approach" as he replaced his predecessor, who resigned after a long war of words with the government.

Surya Subedi levelled no direct criticism of the Cambodian government's poor human rights record as he concluded his first trip to the country.

"I'm hoping to build on the work done by my predecessors," Subedi told reporters at a press conference, adding, "I have my own style, and that style will be a constructive one."

Prime Minister Hun Sen called the envoy's predecessor, Yash Ghai, rude, stupid and a "god without virtue". The Kenyan lawyer resigned in September after government officials refused to meet him.

Subedi told reporters he met Hun Sen, other government officials, opposition and civil society members during his 10-day visit to Cambodia.

On his meeting with Hun Sen, Subedi said: "What I can assure you is that there was a willingness to work with me in a constructive manner, and I was pleased with that."

The Nepalese law professor, who will issue a report on his trip to the UN's Human Rights Council, said the independence of Cambodia's judiciary and people being forcibly evicted from their homes were among his chief concerns.

Thursday, June 25, 2009

Reality off the rails in Phnom Penh [-Phnom Penh is in complete denial]

Muzzled opposition in front of the National Assembly (Photo: SRP)

Jun 26, 2009
By Sam Campbell
Asia Times (Hong Kong)


PHNOM PENH - Science fiction author Philip K Dick once explained reality as "that which, when you stop believing in it, doesn't go away". As sensible as this may sound, it is a definition unlikely to take hold in Cambodia, where recent events have shown the government's tendency to obstinately dismiss anything but the most convenient information.

The denials have come from the highest ranks of government to the lowest rungs of social entertainment and conscripted the judicial system to fend off criticism. Experts and economists say the government backlash risks driving away the vital foreign investment and international aid the country now desperately needs to keep the economy afloat.

The World Bank and the International Monetary Fund have both predicted a 0.5% contraction in Cambodia's 2009 gross domestic product (GDP), while the independent Economist Intelligence Unit (EIU) estimated an even sharper 3% drop. The government sees things differently and announced last month a beaming 6% GDP growth projection, down only slightly from its 7% projection in April.

That optimistic spin, economists and experts say, is totally out of whack with Cambodia's on-the-ground economic realities, as well as regional and global trends. The crucial garment industry, usually the country's main export engine, saw exports plummet 25% year-on-year in the first quarter of 2009. The foreign revenue-generating tourism sector is equally troubled, with air arrivals in the first four months of 2009 down 16% over the same period last year.

The kingdom's rapid economic growth - GDP increases were measured in double digits for several years - seems to have made officials reluctant to concede that the downturn is having serious effects in Cambodia.

Indeed, Prime Minister Hun Sen's economic lieutenants have been slow to acknowledge the impact of the global crisis on Cambodia's until recently rising fortunes, opting instead to discredit or clamp down on critical news and assessments.

Minister of Economy and Finance Keat Chhon said in early June that a US$6.6 million training program and a $1 million micro-loans program would be adequate to mitigate the 60,000 garment factory workers who recently lost their jobs - a claim greeted with skepticism from economic analysts. Keat Chhon did not respond to an Asia Times Online request for an interview about the programs.

Hun Sen has responded to downcast projections with a characteristic sharp tongue. When the EIU this year rated Cambodia among global countries at high risk of political instability due to the economic crisis, the strongman leader questioned the report's "political orientation" and said the experts that compiled it wore "glasses with prescriptions too strong for their eyes".

In an April 6 speech, the premier went further, claiming that the report was "a political attempt to stop the flow of investments". Meanwhile, Cambodia's ambassador to the United Kingdom, Hor Nambora, dismissed the report as based on "sketchy and unconvincing" evidence. In a letter to the EIU, he called the report "perverse" and "insulting".

"Your scare-mongering allegations are highly dangerous, as they could be construed as actively inciting unrest," wrote Hor Nambora, son of Cambodia's veteran Foreign Minister Hor Namhong. "They also happen to be a gross distortion and misrepresentation of Cambodia's true position, and there can be no justification for these claims."

He also upbraided the EIU for having "arrogantly dismissed" Hun Sen's vow that Cambodia would maintain its economic growth this year: "You seem to have ignored this reassurance from the highest possible level, preferring to rely on your own evidence."

Comedic criticism

The government's protestations peaked in early June following a May 30 concert organized by rights organizations to bring attention to the thorny issue of corruption.

At the so-called "Clean Hands Concert", newly appointed United States ambassador Carol Rodley called corruption one of the main obstacles to socio-economic development in the country, claiming the scourge "costs Cambodia up to $500 million per year in terms of forgone state revenue that could otherwise be spent on public services in education and health care and jobs for Cambodian youth".

She claimed that the sum was "equivalent to the cost of constructing 20,000 six-room school buildings or the ability to pay every civil servant in Cambodia an additional US$260 per month". Her arithmetic, however, was not well received by the government.

"The Royal Government of Cambodia absolutely refutes the politically motivated and unsubstantiated allegation made by the United States diplomat in contradiction of the good relations between Cambodia and the United States Government," read a stern letter the Cambodian Foreign Ministry sent to the US Embassy.

Cambodia's UK ambassador Hor Nambora again entered the fray, saying Rodley seemed to have allied herself "with the discredited views of the international pressure group Global Witness which continually engages in virulent and malicious campaigns against the Royal Government of Cambodia". Global Witness has long been an irritating antagonist to Hun Sen's administration, once labeling its leaders as a "kleptocratic elite".

Pointing to a conspiracy to undermine the government is becoming a common theme when responding to critics of the government. The eventual aims of this unnamed group of conspirators - which encompasses such diverse organizations as environmental watchdogs like Global Witness, economic think-tanks such as the EIU and human-rights groups - is unclear.

One conspiracy theory was put forth publicly by Chy Koy, a performer with the popular Koy comedy troupe. Although Koy had performed at the Clean Hands anti-graft concert, he appeared on June 6 on a Cambodian People's Party-owned television station to ridicule anti-corruption NGOs (non-governmental organizations) as money hungry fabricators of non-existent corruption.

"Some NGOs accuse the government of being corrupt without thinking about its achievements," he explained to the local press after the parody. "You can say that the government is corrupt if nothing had developed in our country, but the government is working and everything is developing." Although Cambodia is officially one of the world's least-developed countries, the comedian claimed: "Now we have everything. Some families have two SUVs, some have three."

The Koy performance was followed - again on CPP-controlled TV - on June 13 by the Krem comedy troupe, which portrayed NGOs and journalists as conspiring to stage fake forced evictions - another bete noir of the Cambodian government. The well-documented and sometimes violent evictions of impoverished communities, according to Krem's sketch, are merely an invented tool to enable greedy foreigners to indulge their appetites for luxury hotels and local women.

With official denials and social satire fending off criticism on one front, another battle was playing out in a very different sphere: home decoration.

In what many viewed as one of the most peculiar assaults on free speech so far this year, Soung Sophorn, a 22-year-old law student, was fined $1,250 after being convicted of defamation. Oddly, the medium for the defamation was graffiti, and the slogans "Against dictatorial policy", "People suffer because the government bows down to the company", and "Stop Evictions" in English, had been sprayed on June 1 on the side of Soung Sophorn's own home.

Phnom Penh Municipal Police Chief Touch Naruth told local media that Soung Sophorn, a member of the opposition Sam Rainsy Party (SRP) and a vocal critic of evictions, was convicted because, "He can insult any individual or company but not the government." Prior to the three-day arrest and conviction process, Soung Sophorn had been summoned to the headquarters of local developer Shukaku Inc, the company responsible for the looming eviction of Soung Sophorn's community, for his opinionated house painting.

Private developer Shukaku's 99-year, $79 million lease to develop 133 hectares of state land where 4,000 mainly poor families live, including the area adjacent to the Boeung Kak backpacker ghetto, has provoked a steady stream of censure from foreign diplomats and rights organizations. According to local reports, the company and its owner, CPP Senator Lao Meng Kim, have steadfastly refused to engage with civil society or the media.

Disorienting defamation

Meanwhile, an ongoing dispute between opposition Sam Rainsy Party (SRP) parliamentarian Mu Sochua and Hun Sen typifies a flurry of tit-for-tat lawsuits that also represents a clear threat to democratic debate. For years, the CPP has used out-dated defamation laws to muzzle critics, among then union leaders, journalists and opposition leaders.

According a lawsuit filed by Mu Sochua on April 27, the premier allegedly made defamatory comments in an April 4 speech; the only compensation sought was an apology. The lawsuit claims that Hun Sen defamed Mu Sochua by referring to a female parliamentarian from Kampot province who embraced a general and then later complained that the buttons of her shirt had come undone. Mu Sochua, the only female MP from Kampot province, had complained of voter irregularities and physical intimidation from CPP officials during the run-up to the 2008 national assembly elections.

Mu Sochua's case was dismissed on June 10, but the premier struck back with a counter defamation case against Mu Sochua that is ongoing. Kong Sam Onn, the lawyer representing Mu Sochua, is also being sued for having held a press conference where he had allegedly defamed the prime minister by claiming that the prime minister had defamed his client. The Cambodian Bar Association has begun an investigation into this alleged ethical misconduct of speaking publicly about a case.

The National Assembly voted on June 22 to lift Mu Sochua's parliamentary immunity, leaving her open to criminal prosecution. Hun Sen noted on June 17 that the two-thirds parliamentary majority required to strip immunity would also be needed to reinstate it. He also used the opportunity to threaten further lawsuits against interfering NGOs.

Even nationalists cannot safely criticize, as Moeung Sonn, a local tour operator and president of the Khmer Civilization Foundation, found out. Moeung Sonn was slapped with a $2,400 lawsuit by the government after he claimed at a press conference that the installation of new lights at Angkor Wat might have damaged the legendary temple. Moeung Sonn, a vocal supporter of the government on cultural and territorial issues, and a significant donor to Cambodian soldiers stationed around disputed zones near Preah Vihear, has fled to France to avoid arrest.

While later information suggests that the light installation has done no damage to the ancient structure, draconian reactions to well-meaning comments suggest that dissenting voices will no longer be allowed.

Opposition leader Sam Rainsy, SRP parliamentarian Ho Vann (also stripped of his parliamentary immunity) and Hang Chakra, editor-in-chief of Khmer Machas Srok newspaper, are also facing defamation suits.

Cambodia doth protest too much

The increasing trend toward intolerance has not gone unnoticed. A June 15 statement from the UN Office of the High Commissioner for Human Rights in Cambodia cautioned, "Pursuing the current complaints may reverse the course of the still fragile democratic development process in Cambodia."

"This recent surge in the use of criminal defamation and disinformation lawsuits filed mostly against politicians, journalists and other persons expressing their views in a peaceful manner on matters of public interest threatens to inhibit what should be a free debate and exchange of ideas and views on these matters," the UNOHCHR wrote.

The group also warned that stifling freedom of expression through such means "is a serious threat to democratic development which may undermine the efforts of the past 16 years to rebuild a tolerant and pluralistic environment in Cambodia". The same day, US rights advocacy Human Rights Watch appealed for the CPP to halt "threats, harassment and spurious legal action against members of parliament and lawyers defending free expression".

The crackdown on political opposition is all the more perplexing, given that the CPP, with 90 of 123 seats, is in firm control of the National Assembly. A showing of 58% in the generally free and fair 2008 parliamentary elections, the biggest margin ever for a National Assembly election, shows widespread support for the CPP.

Some analysts believe that by persecuting a mostly fractured and generally powerless opposition, the government risks making martyrs of otherwise unremarkable politicians. Perhaps more significantly, Hun Sen risks further alienating the Western donor nations and the foreign business community that in recent years have contributed largely to Cambodia’s economic progress.

The US, a major donor and significant provider of aid and technical assistance, not to mention one of the kingdom's biggest export markets, has been critical of the recent turn of events.

"It appears that the courts are being used to silence critics of the government," US Embassy spokesman John Johnson told Asia Times Online. "Free speech and freedom of the press are fundamental rights in democracies throughout the world, and public figures and politicians should be prepared to receive both praise and criticism from the people they govern as part of the democratic process."

It's a democratic reality Hun Sen's government seems reluctant to face.

Sam Campbell is a reporter and editor based in Cambodia.

New UN human rights envoy to Cambodia targets "serious shortcomings"

Thu, 06/25/2009
DPA

Phnom Penh - The United Nations' new human rights envoy to Cambodia said Thursday he believed the government was willing to move on from its strained relationship with his predecessor and address a number of "serious shortcomings" in the country's rights record.

At the end of his first two-week visit, Surya Subedi, special rapporteur for human rights in Cambodia, said establishing an independent judiciary and ensuring freedom of expression were two crucial steps in the path towards democratization.

"This is a country that has so many human rights issues and I would like to cooperate with the government in this respect," he said. "In my discussions I found that senior ministers recognized there were some shortcomings and room for improvement."

His predecessor, Yash Ghai, resigned from the post in frustration in September, citing a lack of support from the Cambodian government amid a series of personal attacks by Prime Minister Hun Sen.

But Subedi, a Nepali national who was previously professor of international and human rights law at Leeds University in Britain, said his two-hour meeting with the prime minister was "highly constructive."

"We discussed the possibility of putting in place new institutions to ensure human rights standards," he said. "There was a willingness to work with me in a concerted manner."

The UN Office of the High Commission for Human Rights appointed Subedi to the post in March.

Subedi said at a press conference Thursday that forced land evictions, corruption and the lack of an independent judiciary were among his most serious concerns but he declined to go into detail about specific human rights issues.

Sunday, April 26, 2009

Khmer Intelligence News - 25 April 2009

KHMER INTELLIGENCE NEWS
25 April 2009

Japan suspends financing of major bridge (1)

The $70-million Neak Loeung Bridge on the Mekong River will not be completed in 2010 as originally scheduled. No works has started yet for the construction of this major bridge on National Road # 1 from Phnom Penh to Ho Chi Minh City. Japan, which has accepted to finance the project, now refuses to make any disbursement as long as the Cambodian government is unable to reach an agreement with local residents who must be evicted. The agreement is related to financial compensation to be given to those villagers whose homes must be removed because located on the construction site. Corrupt government officials are used to evicting villagers without proper compensation, the former stealing allowances earmarked for the latter.

Former Khmer Rouge soldiers defending border with Thailand (2)

The ongoing Khmer Rouge Tribunal influences Cambodia's defense policy. The bulk of the Cambodian armed forces recently sent to defend the border with Thailand is made up of former Khmer Rouge soldiers. Because the current Phnom Penh government thinks that prosecuting former Khmer Rouge leaders could jeopardize national unity and political stability, it has second thoughts when dispatching former Khmer Rouge military units, now incorporated within the Royal Cambodian Armed Forces, to face Thai troops along the border. The government wants to ensure that former Khmer Rouge soldiers would not be able to defend their former leaders facing prosecution if there were any appeal to do so. Government strategists remember that the Khmer Rouge had vigorously fought against the Hun Sen regime from 1979 to 1998.

China unhappy with Hun Sen for discarding Beijing-financed building (2)

Council of Ministers building (Photo: http://tumnei.worldpress.com)

China is not happy with Cambodian Prime Minister Hun Sen following the latter's refusal to use a brand new building which has just been completed with Chinese technical and financial assistance. The impressive building was destined and designed to be the seat of the Council of Ministers. But a few days before its scheduled inauguration Hun Sen surprisingly said he did not like the building layout. But why didn't he let the Chinese know when they first showed him the blueprints? The fact is that some influential fortune tellers very lately asserted that the building had shapes and features that make it look like a mausoleum, which is a bad harbinger for Hun Sen's political fortune.

Worsening corruption at Customs Department (1)

Corruption is expected to worsen at the Customs Department in the next few months with the end of the contract on Pre-Shipment Inspection (PSI) between the Finance Ministry and BIVAC. French-based BIVAC replaced Swiss-based SGS in 2006 as Cambodia's mandated PSI agency. PSI is inspection of goods being exported prior to the shipment by a mandated agency. PSI services cover:
  • verifying the quality and quantity of imports;
  • verifying the accuracy of tariff codes classification;
  • assisting Customs with collecting the correct amount of duties & taxes;
  • providing Customs with an independent opinion of the dutiable value for customs purposes;
  • computing the correct duties and taxes payable; and
  • providing Customs with an up-to-date price database.
Without proper PSI services, first introduced in Cambodia by then Finance Minister Sam Rainsy in the early 1990's, Cambodia will lose larger and larger amounts of customs revenue because of corruption.

Cambodia's Central Bank to massively print money (3)

Several factors will lead the National Bank of Cambodia (NBC) to massively print money (bank notes) in the next few months:
  • The government is facing a steep fall in revenue because of the economic recession compounded by increasing corruption. See news above "Worsening corruption at Customs Department" and "Sharp drop in customs revenue" (KI News, 11 March 2009).
  • The national budget cannot be implemented for lack of resources. See "State budget for 2009 in jeopardy" (KI News, 11 March 2009).
  • State bankruptcy is looming. See "Foreign currency reserves evaporating" (KI News, 25 March 2009).
  • The government refuses to recognize the seriousness of the situation and to conceive any economic stimulus package to counter the ongoing crisis.
  • Without a formal request for financial assistance to counter the crisis and a credible economic stimulus package, international financial institutions such as the IMF cannot adequately help.
Knowing that its piecemeal and ineffective approach to the worsening crisis could lead to social unrest and political instability as predicted by the Economist Intelligence Unit, the government can only ask the very docile and secretive NBC to massively print money as a short-term solution to the country's woes. But this easy monetary policy will lead to an acceleration of inflation and other problems.
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ARCHIVES

25 March 2009

Foreign currency reserves evaporating (2)

The National Bank of Cambodia has seen its foreign currency reserves evaporate. NBC Governor Chea Chanto indicated at a recent Council of Ministers meeting that the country is seriously suffering from a rapidly deteriorating current account balance (sharp drop in exports and revenue from tourism) and capital outflows (reversal of foreign investment inflows). Taking also into account fiscal revenue shortfalls and subsequent budgetary problems, the government will be unable to meet its obligations in the next few months. See "Sharp drop in customs revenue" and "State budget for 2009 in jeopardy" (KI News, 11 March 2009).

11 March 2009

Sharp drop in customs revenue (2)

In the 2008 state budget, the Customs Department accounted for over 60 percent of all tax revenue, which is a relatively high figure in the region. For 2009, it should collect US$585 million, a figure that now looks impossible to achieve given the ongoing economic slowdown.

For the first two months of 2009, customs revenue reached only US$64 million compared to US$86 million for the same period last year, which represents a 25 percent drop [adjusted for the collection of a US$7 million duty pertaining to 2008].

State budget for 2009 in jeopardy (2)

The government will soon be obliged to revise downward the state budget for 2009 that was adopted last December because it is unable to collect the projected revenue. See above news "Sharp drop in customs revenue" while noting that the fall in revenue also holds for other sources of income. The projected 2009 budget amounts to US$1.75 billion compared to US$1.37 billion for the 2008 budget, representing a 28 percent increase. This 28 percent increase will likely evaporate and be replaced by a decrease instead. Cambodia is facing the world economic crisis with a collapsing budget, let alone a strong budget with an appropriate economic stimulus package.>

Friday, March 20, 2009

Teachers say PM's claims dubious

Friday, 20 March 2009
Written by Sam Rith
The Phnom Penh Post

At an education summit Wednesday, Hun Sen said he did not have the budget to raise the salaries of teachers; teacher associations say the money could be found if the PM wanted to

TEACHER associations criticised Prime Minister Hun Sen Thursday after he said at an education summit that he could not raise teacher salaries, though he really wanted to.

"I would like to inform you ... those who are in charge of education ... I really want to raise your salaries but our budget is limited," Hun Sen said during concluding remarks at the National Education Congress Wednesday, which was attended by teachers, NGO members and development partners.

"And where should we find the money [to raise salaries]?" he asked, adding that now the world's economy was slowing down, the people who used to have incomes are losing them.

"When a salary is raised, it has to be raised forever," he said.

However, Rong Chhun, president of the Cambodian Independent Teachers' Association, said the government today would have no problem raising teacher salaries, which he believed should be lifted to 800,000 to 1,000,000 riels (US$200-$250) a month for a suitable living standard.

"I think the government has enough money to raise teachers' salary and would do so if the prime minister wanted to raise teachers' salary to a suitable standard of living," he said.

He said the money could come from tax collecting, eliminating corruption or simply wasting less money on the delegation that usually accompanies the prime minster at such ceremonial events.

"As far as I know, each delegate receives 2,000,000 riels plus expenses on gasoline when they accompany the prime minister to inauguration celebrations or other missions," Rong Chhun said.

He added that Cambodia currently has over 100,000 teachers working throughout the country, and that "93 percent of them have to have another job on top of teaching in order to support their families".

According to the association president, primary school teachers currently get paid 100,000 riels, lower secondary school teachers around 200,000 riels and upper secondary school teachers about 250,000 riels.

A recent report conducted by NGO Education Partnership claimed that 99 percent of them said a teacher's salary alone is not enough for them to live on.

The report stated that the Ministry of Education, Youth and Sport budget for 2008 was more than twice what it was in 2000: $508,865,000 compared to $209,246,000.

In the same period, teachers starting salaries are anecdotally reported to have increased from $20 since 1999 to $30 today.

"At present, salary levels make it impossible for teachers to afford the basic necessities ... and leave teachers with no other option but to seek other income generating activities," the report stated.

Wednesday, March 18, 2009

Cambodia's coming oil economy

This map, prepared by U.K. nonprofit Global Witness, reveals the offshore Cambodian territory U.S. energy firm Chevron plans to drill for petroleum. Source: Global Witness

Analysis: What might oil drilling do to a poor country, its people, and its government?

March 18, 2009

By Patrick Winn
GlobalPost

They’ll have so much money from oil and mining, that they’ll be untouchable" - Global Witness Director Gavin Hayman talking about Cambodian rulers
BANGKOK – Haunted by war, and wracked by poverty, Cambodia has had little opportunity to enjoy one its few blessings.

The nation of 14 million people, sandwiched between Thailand and Vietnam, is flush with natural resources. Veins of iron and gold run beneath its soil. Natural forests offer a wealth of timber. Most promising of all are Cambodia’s deposits of oil and gas, believed to snake offshore all the way through the kingdom’s lush interior.

But as Cambodia’s leaders begin to parlay these natural blessings into wealth, selling off drilling rights to firms across the globe, there is reason to worry.

Foreign aid, in large part from U.S. tax dollars, accounts for half of Cambodia’s national budget. Much of this is aimed at the more than one-third of Cambodians living on roughly 50 cents per day.

While Cambodia’s ruling party could use the coming resource wealth to wean the country off foreign aid — and potentially lift millions out of poverty — leaders already appear to be hording this money for themselves, watchdogs say.

According to Global Witness — the U.K.-based non-profit that helped expose the West African “blood diamonds” trade — the coming oil wealth will likely just entrench Cambodia’s ruling cabal in corruption.

“In a couple of years, the elites will be so wealthy it will be hard to rewind the tape,” said Global Witness Director Gavin Hayman during a business trip in Bangkok. The non-profit recently published an investigative report on Cambodia’s growing oil wealth.

According to International Monetary Fund forecasts, Cambodia’s annual oil revenue should begin at about $174 million in 2011 and climb to $1.7 billion by 2021 — and plunge thereafter as resources are sucked dry.

This oil future has grabbed the attention of the global oil industry.

Just this past weekend, U.S. oil industry representatives invited Cambodian energy leaders to observe drilling operations near the Gulf of Mexico, home to dozens of major offshore oil rigs.

“Cambodia is on the verge of an oil and minerals windfall,” said Eleanor Nichol, a Global Witness campaigner. “The stakes are very, very high.”

A global fuel chase has led many foreign firms to cut deals with Cambodia’s ruling party. They’ve since carved the nation into 20-odd oil-and-gas districts that will be developed.

Most firms with Cambodian oil concessions are Chinese, some with little experience in the energy sector. Various South Korean, Southeast Asian and Middle Eastern companies round out the concession holders.

But the best-known energy firm with Cambodian drilling rights is the California-based Chevron Corporation.

Chevron is preparing as many as nine wells for what it calls a “complex reservoir” off Cambodia’s coast. The firm is now “working closely with the Royal Government of Cambodia to complete the fiscal and legal framework that will be required for the development of petroleum resources in Cambodia,” said Gareth Johnstone, Chevron’s Asia-Pacific media director.

Chevron is a high-profile member of the Extracative Industries Transparency Initiative — an anti-corruption movement devoted to “full publication and verification of company payments and government revenues from oil, gas and mining.”

No allegations of corrupton have been made against the company, though the oil giant has come under pressure from watchdog groups to be more transparent in its dealings here.

Chevron will not reveal its payments to Cambodia nor its start-up drilling dates, said Johnstone, who is based in Singapore.

Cambodia is rated the world’s 18th most-corrupt country by Transparency International, which publishes the world’s leading corruption measure. Chevron also operates in Burma, run by an oppressive military junta.

When resource-rich areas are ready for excavation, Cambodia’s government is suspected of dispatching soldiers and police to forcibly remove residents. According to Human Rights Watch, armed government militants have torched homes and pushed out hundreds of families. Once excavation begins, soldiers are believed to stand watch over the sites as international firms do their work.

Global Witness’ work in Cambodia has brought death threats and a promise from one senior official to hit investigators “until their heads are broken,” Nichol said.

Repeated inquiries to the Cambodia’s National Petroleum Authority were ignored. With no explanation, some emails to the entity’s listed addresses were automatically routed to Petroleum Geo-Services, a Norwegian firm specializing in finding oil and gas reserves.

Cambodia’s U.K. ambassador, Hor Nambora, issued one of Cambodia’s more public rebuttals to corruption claims. “It is naive for Global Witness to imagine that Cambodia’s international donors are not fully aware of the way the Royal Cambodian Government’s (sic) conducts its affairs,” Nambora wrote in a release.

His response included an odd, mocking parody of a Global Witness document called “Rubbish Report by Global Witness.” It features an image of a comically upright baby sea lion saying, “I shall not tolerate such rubbish. Good day, sir.”

Last year, Cambodia absorbed roughly $1 billion in foreign aid. Even as major donors acknowledge Cambodia’s corruption, money continues to pour in.

In 2008, U.S. Agency for International Development offered $54,994,000 to Cambodia in various programs targeted at health, education, human rights and more. The agency, in a corruption assessment, expressed frustration that “donor resources are being wasted and diverted.”

Many Cambodian bureaucrats, the USAID report stated, are “masters of spin” and “… most reform efforts have had limited impact on a persistent, less-than-scrupulous opponent.”

Many donors decide that, even if aid is filtered through corrupt bureaucrats, pulling back funding will only deprive the poor, Hayman said. And further, Western powers and their donation arms now worry that strained relations will push Cambodia dangerously close to China.

Still, analysts say the Cambodian government craves something China can’t offer — legitimacy in the Western world. American aid, and ties to giant firms like Chevron, supply much of this esteem.

The Western world, however, can only use this leverage for so long. Once Cambodia’s rulers hit the oil-and-gas jackpot, Hayman said, they’ll be too rich to reign in.

They’ll have so much money from oil and mining,” he said, “that they’ll be untouchable."