Hang Chakra to maintain his stance

Hang Chakra, Editor-in-chief of The Khmer Machas Srok newspaper

19 April 2010
Free Press Magazine online
Translated from Khmer by Socheata
Click here to read the article in Khmer

Hang Chakra, the Editor-in-chief of the Khmer Machas Srok newspaper who was released from jail on 13 April, i.e. just ahead of the Cambodian New Year celebration, declared that the he will continue to maintain his original conscience in the criticism of the government.

Yesterday, Hang Chakra declared that he will thrive to publish The Khmer Machas Srok newspaper by next week after its publication was suspended since the beginning of April due to financial issue, and he said that he will continue to criticize the government in order to push for progress in national development and to fight against corruption.

At the same time, Hang Chakra denied the rumors claiming that he joined the CPP and that he will stop criticizing the government. Hang Chakra said: “There is no institution that can pressure me to change my conscience when I am using my own funds to publish my newspaper, and when my newspaper is still alive through the support of the readers.”

Nevertheless, prior to his pardon, Hang Chakra wrote a letter of apology to Hun Xen, and he promised that, should he be released, he will not write any article pointing to corruption without proof.

Sacrava's Political Cartoon: A Big Fat Cat

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

Ministry building sold off to developer

Hun Xen's cronies: Lao Meng Khin (under the umbrella) and Chhoeung Sopheap aka Yay Phu (in red blouse) (Photo: CPP)

A monk walks past the Ministry of Cults and Religions’ National Committee for Organising National and International Festivals on Tuesday. (Photo by: Heng Chivoan)

Thursday, 25 March 2010
Cheang Sokha and James O’toole
The Phnom Penh Post

OFFICES of the Ministry of Cults and Religions have been transferred to local investment company Pheapimex in a property deal that some observers say is an example of the malfeasance that characterises the Kingdom’s public land management.

Speaking on the condition of anonymity, officials from the Ministry of Cults and Religions’ National Committee for Organising National and International Festivals said they had received a letter from Cambodian People’s Party (CPP) lawyer Khiev Sepphan dated last Friday that asked them to vacate their offices on Sisowath Quay by the end of the month.

“If you do not follow this notification, the lawyer will make a report to the CPP office to pursue further measures,” read the letter, a copy of which was obtained by the Post.

The letter instructed the officials to move to new offices at the General Inspectorate for the National Buddhist Education of Cambodia and hand over control of their current facilities to Choeung Sopheap, owner of Pheapimex and wife of CPP senator Lao Meng Khin.

Accounts of how the deal had been brokered differed among ministry officials.

One said that Minister of Cults and Religions Min Khin had sold the building to Choeung Sopheap last April, whereas another said the building was being exchanged for Pheapimex land near the Council of Ministers to be used by Prime Minister Hun Sen.

But regardless of how the deal was made, one official said, staff at the committee had been dealt with unfairly.

“We know that the current office has been sold to the private company, but we don’t understand why they used the CPP name to influence us,” he said, adding that the new proposed facilities are too small and lack meeting rooms.

“If they keep us working there without a proper location, that would be unacceptable,” he said.

Khiev Sepphan said he was simply acting on Min Khin’s behalf, declining to discuss specifics of the deal.

“I have informed His Excellency Min Khin that he should negotiate with those officials so that both sides can reach a solution,” Khiev Sepphan said.

Min Khin said Tuesday that he was too busy to comment, and Choeung Sopheap could not be reached for comment.

Legality questioned

The Pheapimex transfer is just one in a series of deals over the past few years in which government facilities have been offered to private companies with ties to the CPP. Former Ministry of Tourism facilities on Monivong Boulevard and Phnom Penh Municipal Police headquarters on Street 51 are now controlled by the Phanimex development company, and land near the National Assembly that once held the Bassac Theatre is now controlled by the Royal Group, as is the former site of the National Radio headquarters in Daun Penh district.

Yeng Virak, executive director of the Community Legal Education Centre, said such transfers of state public property were illegal under the Kingdom’s 2001 Land Law, which states that state public properties may not be transferred to private hands unless they “lose their public-interest use”. This provision was reinforced in a 2005 sub-decree.

“To our knowledge, there’s no such law on transfer of this state public property to state private property,” Yeng Virak said, arguing that this process is instead carried out through methods that “supersede the law”, with sub-decrees issued to convert public property to private property after deals have already been made.

“Very often, the public does not know the justification for conversion,” Yeng Virak said. “Nobody knows.”

Sam Rainsy Party spokesman Yim Sovann said the companies benefiting from such transfers are not subject to a competitive, public bidding process that could ensure that they pay market prices for the property.

“The most powerful politicians are behind these companies. These companies can do whatever they want in Cambodia, especially they buy or swap or transfer the state property,” Yim Sovann said.

Sung Bonna, president of Bonna Realty Group, said property transfers must be conducted in a transparent manner, though he added that it was unsurprising that just a small group of companies appear to have benefited from such exchanges.

“So far, it’s not so many people that can afford to do this,” he said. “We do not say that it’s negative ... countries in development always have this kind of thing.”

Council of Ministers spokesman Phay Siphan referred questions to the Ministry of Land Management, where spokeswoman Nun Theary said she did not have information on the issue at hand.

Companies Seek Ways Around Corruption [... by paying under the table to gov't officials?]

By Ros Sothea, VOA Khmer
Original report from Phnom Penh
24 March 2010

It is not easy to get ahead in Cambodia’s business environment. Just ask Sam Sambath, CEO of the country’s largest manufacturer of construction coating materials.

Cam-Paint Manufacturing, which has seen rapid growth since 2004, is able to compete with local businesses and imports alike, through a number of strategies.

But success was not possible without monthly payments of at least $1,000 to government officials to avoid full taxes and to help each of his outlets run smoothly, Sam Sambath told VOA Khmer last week.

“We pay $3,000 monthly for the tax, and 30 percent of it is unofficial,” Sam Sambath said.

Cam-Paint is not alone. Cambodia ranks among countries perceived as most corrupt, according to Transparency International, a watchdog group. Corruption hurts businesses, but finding a solution to the graft problem is difficult.

Last week, international experts from the US and Australian embassies urged the business community to take a stand.

“The place to start is the top,” said Tim Phillips, worldwide managing partner of forensics and dispute services of Deloitte Touche Tohmatsu International, an international consulting firm.

“Make sure that government ministers, business leaders and all the important people in Cambodia’s business community talk about the importance of not being corrupt and work through each level, even to the lowest level, and remove as much of that corruption as possible,” he said.

The whole country can benefit, he said, “in particular the people at the lower level who need a prosperous economy to support hospitals and schools.”

Sam Sambath said it is not easy and that companies will lose money if they play by the rules.

“If we try to make ourselves so poor, we will lose our basic competition and our benefit,” he said. “For instance, if one makes corruption, they pay only $1.50, instead of $3, on product tax. So if we pay $3 alone, we will lose $1.50. So we need to increase our product’s price in order to make $1.50 profit. That makes the cost of product higher than others.”

Om Yentieng, head of the government’s anti-corruption body, declined to comment on the concerns.

However, Hang Choun Narun, secretary-general of the Ministry of Economy and Finance, said a new anti-corruption law, passed by the Senate last week, will eliminate unofficial payments inside state institutions.

There are other concerns about business fees and licenses.

“They don’t announce in public how much we have to pay and in how many days we will get the license,” said Prum Soun Praseth, an associate with Allens Arthur Robinson, an international law firm.

Corruption must be fought from within state institutions, he said, giving the business community an even playing field.

“We have to pay them three times more than the original price in order to hasten the procedure,” he said. “If we say no, it will get stuck within the ministry. So what should we do?”

Government in tourist hub of Siem Reap to quit town in land swap

Thu, 18 Mar 2010
DPA

Phnom Penh - The local government in Cambodia's tourist hub of Siem Reap is to relocate outside the city next month in an opaque property swap that is to see a private company take over government buildings, many on prime riverfront land, national media reported Thursday. The news followed a number of similar reports about swaps of government land in central Phnom Penh, which has rocketed in value in recent years, for cheaper land outside the capital. Details of the deals are seldom made public.

Siem Reap Deputy Governor Bun Tharith told the Cambodia Daily newspaper that every provincial government department would move to the new site except one, the meteorology office, whose specialized equipment means it has to stay in the city.

"It is a special plan, and it is good for providing efficient services," he said. "The old buildings will be handed over to the company for investment. This happens in every developed country."

However, neither he nor the Ministry of Interior, which has authority over the deal, would be drawn on the details of the land swap or the cost of the new 42-hectare site, which is located 16 kilometres from the city centre.

Siem Reap is home to the Angkor Wat temple complex, which draws millions of local and foreign tourists each year.

Som Niyeay Phorng - Op-Ed by Angkor Borey News

Click on the article in Khmer to zoom in

Sacrava's Political Cartoon: Baby Hor 5 Bora

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

UN Rapped for ‘Interfering’ on Graft Law [-PPenh cannot accept lessons!!!]

By Chun Sakada, VOA Khmer
Original report from Phnom Penh
12 March 2010

Cambodia accused the UN’s country team of “flagrantly” interfering in its internal affairs Friday, after the team issued a rebuke of the rapid debate this week of a graft law.

The Ministry of Foreign Affairs said the country team appeared to be “lecturing” the government on the law, passed by the National Assembly on Thursday with little public or parliamentary debate.

The government “cannot accept lessons given by a few individuals comprising this Team,” the Foreign Ministry said.

The UN team “should not act out of its mandate, in flagrantly interfering in the internal affairs of a UN member State,” the ministry said. “Furthermore, it should refrain from acting as if it were the spokesperson of the opposition parties.”

UN representatives were not immediately available for comment Friday.

The Anticorruption Law took only two days to debate and pass, without any significant changes from the original draft of the Council of Ministers, which took more than a decade to create.

Civic groups and both opposition parties quickly decried the law, saying it had not created a sufficiently independent anti-corruption body and was unlikely to curb the practice.

A statement from the UN country team on Wednesday expressed “concern” that the law was passed within days of being announced to the public. The team encouraged delay on debate of the law, to allow public consideration.

The Embassy of Japan on Friday called the law “a step forward for good governance,” but declined to comment further because it had not obtained a copy of the draft until March 9.

John Johnson, a spokesman for the US Embassy, said, “We trust that the implementing regulations will clarify and enhance the law’s aim to detect and punish corruption according to international standards.”

The US estimates that Cambodia loses $500 million a year to graft.

“We are very disappointed and very sorry that we had no ability to push the National Assembly to change its decision,” the Cambodian Human Rights Action Committee, a consortium of more than 20 agencies, said Friday. “We are very worried for some negative articles in the law.”

Cambodia Passes First Law to Combat Graft

Son Chhay, a legislator with the opposition Sam Rainsy Party (Photo: VOA - R. Carmichael)

Phnom Penh 12 March 2010
Robert Carmichael, VOA

Cambodia's parliament has passed the country's first law to combat corruption, but critics say it is flawed, and could entrench rather than end corruption.

After 15 years of trying, Cambodia now has a law against corruption, which is a scourge in this impoverished nation.

Parliament passed the legislation on Thursday. Among other things, it imposes prison sentences of up to 15 years on officials convicted of taking bribes. It also requires politicians, military personnel, police officers, judges, and civil servants to disclose their wealth to a new anti-corruption body. Leaders of civic action groups also must report their wealth.

The government calls the new law an important tool in fighting corruption.

But many opposition politicians and civic activists are critical.

Yong Kim Eng is from the Coalition for Integrity and Social Accountability, a collection of organizations fighting graft.

He says that since those serving on the anti-corruption body will be appointed by the ruling party and will report to the prime minister, there is the risk of political interference.

"Also we have questioned a lot about that as well - about independence, about what it will be accountable for. We want to have enough independence that this body can take action, can reduce the corruption in Cambodia," he said.

Son Chhay, a legislator with the opposition Sam Rainsy Party, fears the law will be misused.

"Because the prime minister and the deputy minister of the Council of Ministers will have full control over who can be prosecuted. The target will be the opposition and civil society, or the group of businesses who are not willing to support the government, who are critical of the government. So they will be able to find something there to prosecute them," he said.

Critics complain the government ignored requests for the public to have a say in drafting the new law. Son Chhay says that among the changes the ruling party refused to consider was making financial disclosures public.

A government spokesman responded to the criticism by saying that the opposition will have the opportunity to propose amendments in the future, as with any law.

Corruption is a serious problem here. Last year, the U.S. ambassador to Cambodia said that $500 million is lost to graft each year, a comment that angered Phnom Penh. And the international anti-corruption group Transparency International ranks Cambodia as one of the world's most corrupt countries.

On Friday the U.S. Embassy welcomed the passage of the law and expressed hope that rules to implement it will "clarify and enhance" its aim of combating corruption in accordance with international standards.

Businessmen back graft law but doubt it will be enforced

Friday, 12 March 2010
Bejan Siavoshy
The Phnom Penh Post

Legislation could improve business environment, analysts say

"I don't think any businessperson in Phnom Penh thinks corruption is going to be immediately fixed."

BUSINESS leaders expressed optimism regarding the potential effectiveness of Cambodia’s anticorruption law to stave off graft within the private sector, as the long-awaited legislation was passed Thursday.

Though there was little mention of business regulations in the law, which was 15 years in the making, Article 19 declares that a soon-to-be-formed Anticorruption Committee will have the power to command any public or private figure to disclose personal financial information.

Kith Meng, president of Phnom Penh’s Chamber of Commerce and CEO of the Royal Group, one of Cambodia’s most prominent conglomerates, said Wednesday that passing the bill is a sign that the government is dedicated to combating corruption in the Kingdom, which would produce positive results for the private sector.

“With more transparency, the private sector will become more open for foreign investors from all over the world. It will ultimately be a good thing for the private sector and a good thing for the country,” he said, adding that he was not concerned about the law’s lack of material regarding the business community.

Stephen Higgins, CEO of ANZ Royal bank, added Wednesday: “Anything that improves transparency is a good thing for business.”

The Kingdom’s business leaders share an air of optimism about the new law, which they view as a promising sign of change; however, some believe that other concerns will need to be addressed for Cambodia’s economy to reach its full potential.

Khaou Phallaboth, president of Khaou Chuly Group, a conglomerate with holdings in Cambodia’s agricultural and construction sectors, said Thursday: “It is good news for all of Cambodia, but for businesses, corruption is not the most important point.

“The most important concerns are political stability and investment regulations, so [that] a business climate that provides incentives for all kinds of investors can exist.”

Marc Faber, a Hong Kong-based economic analyst and head of the investment advisory and fund-management firm Marc Faber Group, expressed mixed feelings on the new legislation in an email Thursday.

Faber said that the law is not likely to have an impact on the private sector because it will probably not be rigidly enforced.

However, he agreed that Cambodia is set for further economic development.

“I have no doubt that it will improve. I am very optimistic about the prospects of Cambodia,” he wrote.

Corruption ingrained

Earlier this week, a survey of business executives found that Cambodia was perceived as the second-most corrupt country among 16 nations in the wider Asia-Pacific region. The survey was carried out by the Political and Economical Risk Consultancy (PERC) and examined both domestic political and social risks.

Bob Broadfoot, managing director of the PERC, said Wednesday ahead of the law’s being finalised: Passing the law “is a step in the right direction, but I don’t think any businessperson in Phnom Penh thinks corruption is going to be immediately fixed.”

Transparency International’s annual Corruption Perception Index for 2009, assigned Cambodia a score of two – with one being the most corrupt and 10 being the least – in a survey of 180 countries across the world.

Cambodian govt accuses UN of 'flagrant interference' [-Samdach 1-Eye sees opposition parties everywhere!]

Draft anti-corruption law was passed by 82 lawmakers, mostly from PM Hun Sen's ruling Cambodian People's Party

Friday, March 12, 2010
AFP

PHNOM PENH — Cambodia on Friday accused the United Nations of "flagrantly interfering" in its affairs after local agencies expressed concern over a controversial anti-corruption law approved this week.

Ranked one of the most corrupt countries in the world, Cambodia passed the law in parliament on Thursday, more than 15 years after legislation to tackle graft was first proposed, but only days after the draft was shared publicly.

Opposition and rights groups said the draft was flawed and asked for more debate, and a statement this week from the UN country team in Cambodia encouraged enough time to ensure "a transparent and participatory" process.

"This so-called 'UN Country Team' should not act out of its mandate, in flagrantly interfering in the internal affairs of a UN member state," said a statement by Cambodia's foreign affairs ministry.

"Furthermore, it should refrain from acting as if it were the spokesperson of the opposition parties," it added.

All lawmakers from the opposition Sam Rainsy Party walked out of parliament in protest just hours before the draft law was passed by 82 lawmakers, mostly from Prime Minister Hun Sen's ruling Cambodian People's Party.

A national anti-corruption council and an anti-corruption unit will be created to oversee investigations, but critics said it was unlikely either body would be effective because both would be controlled by the ruling party.

Public figures face up to 15 years in prison if convicted of accepting bribes, according to the draft law.

The law will take effect after receiving approval from Cambodia's Senate and promulgation from King Norodom Sihamoni, which are both considered formalities.

Cambodia was ranked 158 out of 180 countries on anti-graft organisation Transparency International's most recent corruption perception index.

It was also ranked the second most corrupt Southeast Asian nation after Indonesia in an annual poll by the Political and Economic Risk Consultancy, seen by AFP on Tuesday.

Last year, a US diplomat said that graft costs Cambodia up to 500 million dollars every year, an allegation the government rejected as "unsubstantiated."

Viva la Corruption Cambodia

Friday, March 12, 2010
Op-Ed by Pretty Ma

To Whom It May Concern,

As always, with little or no regard for public interests at large, the CPP passed a very ineffective anti-corruption law.

The passing graft law, with such obvious flaws as the government intended, will enable the current regime to achieve the following objectives:

1. To continue receiving aid from donors' countries, given their demand has been met somewhat.
2. To completely discourage anyone from reporting or getting involved in a corruption case since he/she is more likely to face jail time on the counter-suit.
3. To give the Cambodian government full access and control to prosecute individuals, businesses or organizations that are in opposition of the government.
4. The law will protect all corrupted officials at the top while low level officials could be compromised at times depend upon the situation.
5. To enable the high ranking officials to continue corruption business as usual, except it is now legal.

The present leaders of Cambodia have done things not so much in the interests of the nation and/or her people, but for the most corrupted elites, always. Cambodian at large will continue to suffer under this kind of useless law.

If the government was ever once serious about cleaning up corruption, then it would have been done very differently, given issues of concerns raised among civil society groups and opposition at large.

Viva la Corruption, Cambodia...... this is what the new law is clearly designed for all its intends and purposes.

Australia stands by Cambodian defence cooperation

March 11, 2010
ABC Radio Australia

Australia will continue its defence cooperation program with Cambodia, despite a controversial new policy which formally links business to Cambodian military units.

London-based advocacy group Global Witness has released a statement calling on countries who provide aid to Cambodia to condemn the policy, saying it could foster an arrangement whereby businesses will receive military protection in exchange for financial backing.

Presenter: Liam Cochrane
Speakers: Hor Nambora, Cambodia's Ambassador to the UK and Scandinavia; Eleanor Nichol, a campaigner with Global Witness; spokesman for Australia's Department of Defence

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

Som Niyeay Phorng - Op-Ed by Angkor Borey News

Click on the article in Khmer to zoom in

Cambodia passes controversial anti-graft law

Thu Mar 11, 2010
By Prak Chan Thul

WHISTLE-BLOWERS BEWARE:
He also joined rights groups in condemning a clause under which whistle-blowers making corruption allegations could be jailed for up to six months if their claims could not be proven.

PHNOM PENH (Reuters) - Cambodia's parliament passed a controversial anti-graft law on Thursday, with the government unmoved by protests from rights groups and opposition politicians who say the legislation will entrench official corruption.

The National Assembly, dominated by the ruling Cambodian People's Party, voted in favour of the long-awaited bill despite calls from the United Nations and civil society groups to postpone the vote so the public could be consulted.

Lawmakers from the opposition Sam Rainsy Party (SRP) walked out in protest at what they said was a law that lacked transparency and would deter individuals from reporting corruption.

Critics also complained the law did not require government officials or their spouses to declare their assets, which they said would promote illegal practices.

"This is a law to protect corruption," SRP spokesman and lawmaker Yim Sovann told reporters as he joined the walkout. "It doesn't mean anything. The people have not been involved in the fight against corruption."

Yim Sovann said the legislation did not guarantee members of a yet-to-be appointed Anti-Corruption National Council would be independent of the government.

WHISTLE-BLOWERS BEWARE

He also joined rights groups in condemning a clause under which whistle-blowers making corruption allegations could be jailed for up to six months if their claims could not be proven.

Cambodia has come under fire over its strict defamation laws, which rights groups and opposition lawmakers say are being used to stifle criticism of the government.

Corruption is rife and the payment of bribes is part and parcel of doing business in the impoverished Southeast Asian country, from one-off payments to state officials to guarantees of lucrative contracts or shares of company profits.

Graft watchdog Transparency International last year ranked Cambodia 158th out of 180 countries in terms of corruption, with a low-ranking denoting high instances of graft.

The United Nations had expressed concern about the bill, which took 15 years to draft, and had urged the government to provide more time for the public, aid donors and civil society to scrutinise the legislation before it was passed.

In a statement released on Wednesday, before the law was approved, it said the draft should undergo a "transparent and participatory consultation process" and "contain sufficient safeguards to protect the rights and duties of Cambodian people who will be the ultimate beneficiaries".

Deputy Prime Minister Sok An countered criticism of the draft in parliament and defended the clause that punished whistle-blowers whose claims could not be proven.

"It is not just Cambodia that prevents the issue of causing trouble or launching attacks on individuals," Sok An said.

(Editing by Martin Petty and Alex Richardson)

Cambodia's ruling party pushes through anti-graft law

Thu, 11 Mar 2010
DPA

Phnom Penh - Cambodia's parliament on Thursday passed an anti-corruption law that the opposition has criticized as flawed and politically biased. Earlier on Thursday the opposition Sam Rainsy Party (SRP) quit the parliamentary debate. SRP legislator Son Chhay said that the party's suggested amendments had been repeatedly ignored, including one to ensure the assets of senior government figures were made public.

"This is a bad day for the country - we have waited so long for a mechanism to fight corruption," he said. "We have at least 45 per cent of the population living below the poverty line, and we have a handful of families who become billionaires while there are so many who are starving."

The law was voted through by members of the ruling Cambodian People's Party (CPP), which holds a two-thirds majority in parliament. No government spokesman was available for comment.

Cambodia is regarded as one of the most corrupt countries in the world, and donors and civil society have called since 1995 for a law to tackle graft.

The proposed text, as passed by parliament, states that politicians, military personnel, police, judges, civil servants and the heads of civil society organizations must disclose their wealth to the anti-corruption body, which is to keep that information private.

Yong Kim Eng from the Coalition for Integrity and Social Accountability, a civil society group against corruption, said one weakness in the law is that most members of the two anti-corruption agencies would be hand-picked by the ruling party or Prime Minister Hun Sen.

"I don't think this can be independent," he said.

The draft was made public on March 4, leaving just four days for opposition legislators and civil society groups to study its provisions before the vote on Thursday.

That brief time frame drew condemnation from civil society and the United Nations, which has been deeply involved in the process since 2004. The UN called unsuccessfully on Wednesday for the government to allow more time to ensure debate by all interested parties.

The UN refused further comment Thursday once parliament had passed the law, which now proceeds to the Senate for approval.

The international corruption watchdog Transparency International placed Cambodia in lowly 158th place last year, on a par with the Central African Republic and Laos. Just 19 nations were ranked as more corrupt.

The US ambassador to Phnom Penh outraged the government in 2009 when she cited a number of studies indicating that corruption costs the impoverished nation up to 500 million US dollars annually.

Sacrava's Political Cartoon: The Champions

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

Cambodia ranks the second most corrupt nation in Southeast Asia: Bravo Mr. Hun Xen!?!?

Corruption worsens in Indonesia: survey

March 9, 2010
BERNICE HAN
AFP

Indonesia remains the most corrupt country in Southeast Asia and graft is getting even worse, a poll of businessmen says, dealing a blow to the president's efforts to clean up the country.

The news comes as President Susilo Bambang Yudhoyono is under mounting pressure with his vice-president and finance minister facing a criminal probe into their role in the controversial bailout of a troubled bank.

The annual poll by the Political and Economic Risk Consultancy (PERC), made available to AFP on Tuesday, put Southeast Asia's biggest economy last in a table of regional economies with a score of 9.27 out of the worst possible 10.

Indonesia also came last in 2009 but with a marginally better score of 8.32.

Cambodia was ranked the second most corrupt regional nation with a grade of 9.10, followed by Vietnam and the Philippines.

Singapore remained top of the list with a score of 1.42, while Australia was second with 2.28 and Hong Kong third on 2.67.

Zero means the country or territory is seen to suffer the least corruption among politicians and civil servants, PERC said in the report.

The Hong Kong-based consultancy said Indonesian lawmakers' call for a criminal probe into the Yudhoyono government's bailout of Bank Century in 2008 reflected attempts by a corrupt establishment to maintain the status quo.

"Corruption has become a charge being used by corrupt people to protect themselves and to stifle reform," PERC said.

"The whole fight against corruption is in danger of being corrupted," it said.

Vice President Boediono and Finance Minister Sri Mulyani Indrawati, who both authorised the $US724 million ($A796.3 million) bailout, have consistently ranked as among the most respected figures in Yudhoyono's cabinet among foreign investors.

The probe into their decision to rescue Bank Century may cost them their jobs, but "is entirely manipulated and entirely political", PERC said.

Yudhoyono, a liberal ex-general who first came to power in 2004, was re-elected in 2009 on promises to root out corruption, which riddles every aspect of Indonesian public life, from the courts to the customs office.

Hong Kong slipped a place from a year ago, with PERC saying questionable tactics by powerful property developers in the Chinese territory likely dragged it down.

"There are still criticisms of some practices, particularly in the real-estate sector, concerning tactics used by developers that, to be generous, play on a lack of transparency that would not be allowed in many other markets," PERC said.

"This could account for why a number of perceptions this year for Hong Kong are slightly worse than last year. However, overall Hong Kong has maintained its favourable ranking in our survey," it said.

The United States - included for comparison purposes - was fourth with a score of 3.42, followed by Japan (3.49), Macau (4.96), South Korea (5.98), Taiwan (6.28), Malaysia (6.47) and China (6.52).

"Measuring the level of corruption (in China) is nothing more than guesswork," PERC said.

"What is fairly clear is that the problem of corruption is more severe at the local level of government and business, particularly state-owned enterprises, than at the national level, although there are plenty examples of graft at the national level too," it said.

PERC's poll was conducted from December to February, and involved 2,147 mid-level and senior Asian and expatriate business executives working in the 16 economies.

Corruption Law Moves to Assembly for Debate

By Chun Sakada, VOA Khmer
Original report from Phnom Penh
05 March 2010

“This law will be used to pressure and suppress opposition businessmen in the private sector” - SRP MP Son Chhay

The National Assembly will begin debate next week on an anti-corruption law that was 15 years in the making, with opposition lawmakers and rights groups pointing to weaknesses they say must be addressed.

The National Assembly will convene March 10 to debate the law, which moved from the Council of Ministers Feb 24.

Opposition lawmaker Son Chhay, of the Sam Rainsy Party, said the upcoming date for debate was too soon to allow proper study of the draft.

Donors have pushed for the passage of anti-corruption legislation for years, with the US claiming Cambodia loses $500 million per year to such practices. The announcement of the draft comes following the training of government officials by the US last month.

“Corruption is an obstacle of national economic development, the strengthening of the rule of law, democracy, social stability and poverty,” Prime Minister Hun Sen wrote in a note to the National Assembly accompanying the draft law. “Fighting against corruption is part of government reform for good governance, to strengthen the rule of law and sustainable economic development and poverty reduction.”

The draft law has 57 articles, covering all forms of corruption, for government offices, businesses and non-governmental agencies. It creates an independent Anti-Corruption Council and an anti-corruption unit under the Council of Ministers.

The 11-seat Anti-Corruption Council will consist of political appointees chosen one each by the king, Senate and National Assembly and eight by different executive offices. The president of the council will hold the rank of deputy prime minister. It is mainly an oversight body.

The Council of Ministers’ anti-corruption unit will be led by a senior minister and will investigate corruption allegations and research corruption offenses in ministries, public institutions, government offices and the private sector, according to the draft. The unit will also be in charge of the government’s strategy to fight corruption and will receive complaints.

The draft law requires all government officials to disclose their assets and debts to the unit, including the Senate, National Assembly, the prime minister, military personnel and police. It also requires “the leadership” of non-governmental organizations to disclose their assets. The disclosures are sealed to the public but accessible by the anti-corruption unit “as necessary.”

The draft empowers the court to seize as state property interests and assets of those found guilty of corruption. Maximum jail time on corruption charges would be 15 years.

The draft law has created worries among the opposition and rights groups, who say the Council should not be chosen by political appointment but should include unbiased members.

“We want the Council to comprise independent, neutral, capable and well-known persons to work to fight against corruption,” said Thun Saray, head of the rights group Adhoc.

“This law will be used to pressure and suppress opposition businessmen in the private sector,” Son Chhay said.

Cambodian parliament to debate anti-corruption law

Fri, 5 Mar 2010
Robert Carmichael, Phnom Penh
Radio Australia News

A draft anti-corruption law has finally made to parliament in Cambodia, more than 15 years after it was first proposed.

But its proposed passage has alarmed some legislators, who are concerned the country's ruling party will force it through with insufficient debate.

Cambodia's parliament could debate a long-awaited anti-corruption law as early as next week, after the 25-page draft was given to members of parliament late Thursday.

The draft law states that an investigating body and an oversight body would be created to deal with corruption. It also says that civil servants, judges, members of the military, and legislators would need to disclose their wealth.

But the independence of the two agencies is already in question, since the draft states that the government would appoint most of their senior members.

Cambodia was last year ranked as the 166th most corrupt country on earth out of 180 nations in Transparency International's annual index.