By Mondol Keo
Radio Free Asia
Translated from Khmer by Heng Soy
The opposition party has criticized a draft law proposed by the government for the approval by the National Assembly to provide government guarantee to 2 Chinese companies that will invest in hydroelectricity in Cambodia.
SRP MP Son Chhay told RFA on 15 May that among all the countries in the world, there is no country which forces its parliament to approve a law for the government to guarantee the payment of compensations to a company if that company’s investment encounters any problem.
Son Chhay added that normally, for foreign investment, all that is needed is an agreement between the parties involved or the ministry involved, there is no need for a law.
Son Chhay said: “This is not only opposite to the international business standards, it is also against our law. As a parliament, our duty is to draft laws for the state to govern the country, under the rule of law, and we also approve international treaties, agreements, and conventions. But when they (government) ask us to guarantee the Chinese loans for Chinese companies without any price bidding, without transparency, this is against the law.”
However, Chiem Yeap, the chairman of the finance, economy, and banking committee of the National Assembly, explained that this is normal, and other countries are also taking this step, especially, countries that are under development need foreign capital investment, and the law would be approved to provide confidence to foreign investors. Chiem Yeap believes that there is nothing wrong at all about such law.
Chiem Yeap said: “It is the duty of the state to guarantee so that it provides confidence to the foreign investors, and for them to invest in Cambodia.”
Nevertheless, Monh Saphan, Funcinpec MP, said the drafting of a law in order to obtain financial investment is not against the Constitution. However, the need for such law indicates that foreign investors do not trust the justice system in Cambodia.
Monh Saphan said: “Their (foreign countries) law is equitable, their court system is fair, therefore, the lenders have trust. [But] in our country, it is different, first, the application of the law is not done correctly, second, the court is unfair.”
This is the second time that the Cambodian National Assembly is forced to approve a law to guarantee payment to a Chinese hydroelectricity investment company.
The names of the 2 Chinese companies involved in the investment of hydroelectricity are: China Yunan, and Yunan Southeast Asia, and the investments made by these two companies amounts to $255 million.
SRP MP Son Chhay told RFA on 15 May that among all the countries in the world, there is no country which forces its parliament to approve a law for the government to guarantee the payment of compensations to a company if that company’s investment encounters any problem.
Son Chhay added that normally, for foreign investment, all that is needed is an agreement between the parties involved or the ministry involved, there is no need for a law.
Son Chhay said: “This is not only opposite to the international business standards, it is also against our law. As a parliament, our duty is to draft laws for the state to govern the country, under the rule of law, and we also approve international treaties, agreements, and conventions. But when they (government) ask us to guarantee the Chinese loans for Chinese companies without any price bidding, without transparency, this is against the law.”
However, Chiem Yeap, the chairman of the finance, economy, and banking committee of the National Assembly, explained that this is normal, and other countries are also taking this step, especially, countries that are under development need foreign capital investment, and the law would be approved to provide confidence to foreign investors. Chiem Yeap believes that there is nothing wrong at all about such law.
Chiem Yeap said: “It is the duty of the state to guarantee so that it provides confidence to the foreign investors, and for them to invest in Cambodia.”
Nevertheless, Monh Saphan, Funcinpec MP, said the drafting of a law in order to obtain financial investment is not against the Constitution. However, the need for such law indicates that foreign investors do not trust the justice system in Cambodia.
Monh Saphan said: “Their (foreign countries) law is equitable, their court system is fair, therefore, the lenders have trust. [But] in our country, it is different, first, the application of the law is not done correctly, second, the court is unfair.”
This is the second time that the Cambodian National Assembly is forced to approve a law to guarantee payment to a Chinese hydroelectricity investment company.
The names of the 2 Chinese companies involved in the investment of hydroelectricity are: China Yunan, and Yunan Southeast Asia, and the investments made by these two companies amounts to $255 million.
