Illegal slot machine operations was a corruption case of a CPP official after all?

A slot-machine parlour in Phnom Penh. The government is in the midst of a crackdown on illegally licensed slot-machine establishments. (Photo by: HOR HAB)

Official suspended over slots

Tuesday, 06 January 2009
Written by Nguon Sovan and Chhay Channyda
The Phnom Penh Post

The head of the Phnom Penh tourism authority has been suspended for his role in illegally licensing slot-machine parlours, minister says

PHNOM Penh's tourism director was suspended last Tuesday for his role in a hotel licensing scam that helped dubious establishments use a legal loophole and illegally operate slot machines, according to Cambodia's minister of tourism.

"I suspended Chen Saman, the director of the Phnom Penh tourism department, on December 30 for his involvement in issuing licences for six nominal hotels without practical inspections," Minister of Tourism Thong Khon told the Post on Sunday.

"[Chen Saman] was careless in his duties because he failed to have these venues properly inspected before licensing them as hotels," said Thong Khon. He said some of the places that received licenses were actually restaurants with only one or two rooms, but Chen Saman's office nonetheless designated them as hotels.

Following a December 5 government directive, the Ministry of Finance can only issue licences to operate slot machines legally inside hotels. Individual slot-machine owners may rent space at hotels if they want to continue to run their business.

Thong Khon acknowledged that some places applied for hotel licences just so they could operate slot machines.

"The problem is that our officials conspire with the operators in issuing licences improperly," he said. "From now on, we will thoroughly inspect the hotels before issuing their licences."

"...our officials conspire with the operators in issuing licences improperly."

Opposition lawmaker Yim Sovann said on Sunday that since the directive was issued, many slot-machine operators have relabeled their venues as hotels, even though they do not offer accommodation.

"The suspension of Chen Saman is not enough," he said. "I believe there are many officials involved in this process, as corruption is a fact of life in Cambodia."

He said he did not think the December 5 directive was effective because inspectors sent by the ministry would take bribes from slot-machine operators and turn a blind eye on the issue. He criticised the government for allowing any slot machines, saying that the revenue did not benefit government coffers but was shared by operators and corrupt officials.

Chen Saman could not be reached for comment on Sunday.

On December 19, Prime Minister Hun Sen ordered all relevant authorities to shut down 12 slot-machine operators in Phnom Penh, two in Sihanoukville and one in Kandal province, all of which operated without licences.

Em Sam An, a secretary of state at the Ministry of Interior, said Sunday that he could not provide figures on how many slot machines have been shut down so far, but said that the specific venues named by the prime minister were shut down immediately.

He said the government had to continue its drive to identify slot machines operating without licences and fake hotels.

"I urge the Tourism and Finance ministries to investigate before issuing licences for hotels and slot machines."

Gambling Crackdown Underway: Police Chief

By Sok Khemara, VOA Khmer
Original from Washington
30 December 2008

Click here to listen to the Khmer audio program

Phnom Penh authorities have taken down 21 illegal slot machine operations in recent days, following a crackdown order by Prime Minister Hun Sen, a top police official said Monday.

"We will not allow them to do it, and we will raid any place we find defying the law," said Brig. Gen. Touch Naroth, chief of Phnom Penh police, as a guest on "Hello VOA."

Many of the establishments had opened for Cambodian customers, despite a law banning gambling for nationals. Of the 21 operations, seven of them were completely illegal and 14 of them were operating in the wrong locations, Touch Naroth said.

Gambling establishments have blossomed around the capital, in cafes,hotels and restaurants, as well as private venues, some of them near schools, leading to worries about crime and instability. Earlier this month, Hun Sen ordered a crackdown.

Overall crime in Cambodia decreased 20 percent in the city in 2008,Touch Naroth said, but gambling operations remain a leading cause of criminal activity.

Police have set up tip boxes in every city commune, or sangkat, for residents to report violations of the gambling law or other crimes, he said. Concerned citizens can also call 012 999 999.

Touch Naroth said his department would not protect police personnel violating the law, and measures would be doubly harsh against anyone protecting gambling.

Slot machines: The aftermath of Hun Sen’s wrath

27 Dec 2008
By Ung Chamroeun
Cambodge Soir Hebdo
Click here to read the article in French
Translated from French by Tola Ek

During a meeting of the Council of Ministers, Hun Sen indicated his will for a strict application of the 04-December circular regulating the operation of slot machine parlors.

Following Hun Sen’s noisy declarations, a report was immediately issued providing details about the closing of 15 gambling parlors throughout the kingdom. 12 of them were located in Phnom Penh, two in Sihanoukville and one in Kandal province. Touch Naroth, the Phnom Penh police commissioner, indicated that strict measures were taken by his force based on the government circular.

In Siem Reap, a meeting was organized in urgency by Sou Phirin, the provincial governor, to inform gambling parlor owners about the content of the circular. According to a police official, 12 gambling parlors were accounted for in the city, only one of them was shut down: the “Rambo” nightclub, which is located not too far from the royal residence and outside of a hotel, was found to be against the law. According to Oum Mara, the Siem Reap province deputy governor, cops and military police, as well as the district authorities received orders to observe the operation of these gambling parlors. If any one of them is proved to be frequented by Cambodian citizens, legal actions will be taken against them because they are reserved for foreigners only. Hun Sen declared that any owner going against this rule will see their gambling license revoked within 24 hours.

Several people from Siem Reap cheered this measure. “With slot machines, we know what awaits us: first we win, then we lose everything. Some youths sold their motorcycles and cars to gamble. Some had to flee their village,” an anonymous dweller from Siem Reap indicated. However, this person still remains pessimistic about the situation: he added that these measures are followed only after Hun Sen’s wrath, but there is nothing to guarantee that this situation will last forever.

Hun Sen tackling slot machines [-Rong Chhun: Hun Sen made a lot of announcements but his subordinates never follow up on his orders]

20 Dec 2008
By Ky Soklim and Romain Roget
Cambodge Soir Hebdo
Translated from French by Luc Sâr
Click here to read the article in French

During Friday 19 December’s meeting at the Council of Ministers, Hun Sen declared war on slot machine operators who flaunt the law.

Hun Sen asked the national police and the military police to investigate license and to put an end to the operation of slot machines in 15 gambling parlors in the kingdom. According to Hun Sen, these parlors – 12 of which are located in Phnom Penh – do not respect the 4 December directive regulating gambling machines.

He also asked the ministry of Economy and Finance about machines installed in hotels. These slot machines should theoretically be accessible to foreigners only, but Cambodians also have access to them. On this issue, Hun Sen is firm in his demand. He also announced that any parlor where fraud is perpetrated will lose its license within 24 hours.

When contacted by Cambodge Soir Hebdo, Rong Chhun, President of the Cambodia Independent Teachers’ Association (CITA), is skeptical about Hun Sen’s resolve. According to Rong Chhun, Hun Sen made a lot of announcements but his subordinates never follow up on his orders. Rong Chhun also stressed that Hun Sen’s attack should also be aimed at Cambosix (betting parlor). Soccer betting organized by Cambosix creates havocs among poor people and students.

Nevertheless, refuting Rong Chhun’s skepticism, Cambodian news media have announced today that local authorities are already at work and several gambling parlors have been shut down since yesterday.

Cambodia imposes slot machine ban

11 December 2008
Casino City Times

PHNOM PENH, Camboidia -- As reported by The Phnom Penh Post: "The government has ordered all slot machines at entertainment clubs to be removed, but will allow them to remain in many of the Kingdom's hotels, saying the change will improve security and public order.

"According to a directive signed by Prime Minister Hun Sen on December 2, 'the government has agreed in principle to open entertainment clubs equipped with slot machines at hotels in cities and some provinces.'

"To control abuse, the government will require companies running slot machines to get licences from the Ministry of Economy and Finance, and only hotels that have certifications from the Ministry of Tourism will be allowed to house the machines, the new law stipulates.

"If a company refuses to move their machines into hotels within six months, the ministries of the Interior and Economy will withdraw their licenses.

"The prime minister's directive clearly reiterated that Cambodians are not allowed to go to an area designated for slot machines, adding that if this law is broken, the offending company's license will be immediately withdrawn..."