PM: Don't steal poor's cash - PRIME Minister Hun Sen warns - Phnom Penh Post
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Friday, december 25, 2020 Intelligent . In-depth . Independent Issue NUMBER 3570 / 4000 RIEL
PM: Don’t steal poor’s cash Women in
the thick of
Mom Kunthear significantly contributes to the
improvement and stabilisation of peo-
He said authorities must be diligent
in their oversight of this programme
Planning ministry spokesman Srey
Da told The Post on December 24 that mine, UXO
P
RIME Minister Hun Sen warns ple’s lives during this difficult time, to prevent collusion between those the ministry had so far found irregu-
that he will take swift action
and impose harsh penalties
on any responsible parties if
which hasn’t even ended yet since
Covid-19 remains an immediate threat.
“It is vital that the poor families for
administering the funds and any
attempts to include their family, rela-
tives, friends or anyone who is not
larities such as families with incomes
too high to qualify for this aid pro-
gramme having obtained benefit cards.
clearance
any unexplained financial irregularities whom this cash is intended are able to really poor. The ministry had already confis-
are found in any village or commune receive this allowance because without In order to further improve the cated more than 14,400 benefit cards Khouth Sophak Chakrya
relating to the provision of cash to the it they face severe hardship.” efficiency of these Covid-19 relief that had been issued to people who
poor intended as part of the govern- The prime minister said the cash efforts, Hun Sen advised the Ministry should not have received them. IN PAST decades, only men were
ment’s Covid-19 relief efforts. handout to the poor and vulnerable of Interior to cooperate with the “The planning ministry continues to involved in work to clear mines and
The warning followed reports that depends almost entirely on local Ministry of Planning and other relevant address any issues that arise in the iden- unexploded ordnance (UXO). But
more than 14,000 irregular cases had authorities, especially village chiefs ministries and institutions at all tification of poor households. We now now many women are doing the
been identified by officials, possibly and commune councils. Therefore, levels to monitor the implementa- have a team standing by to investigate job and even leading such teams.
indicating the presence of wide- all relevant authorities and responsi- tion of these programmes and make any further reports of irregularities in the As of November 30 this year,
spread corruption and routine mis- ble citizens must strive to do this sure they are operating as intended. media or social media posts,” he said. there were 2,309 demining person-
use of these funds. work accurately, clearly, transpar- He also gave orders to the effect that At the same time, he said the ministry nel, of whom 647 are women. So
In his Facebook post late on Decem- ently and accountably, and adhere to if any abnormalities occur again what inspired them to take on
ber 23, Hun Sen said: “This programme the highest standards of justice. they are to notify him immediately. Continued – page 2 such dangerous jobs and work
alongside the men?
Cambodia Self Help Demining
Masks block
(CSHD) executive director Sophin
Sophary and women officials of Halo
Trust Cambodia (HTC) told The Post
99.9% of large that both sexes were equal in social
work despite the dangers. Consider-
ing women to be weak and unable
Covid-linked to handle mine clearance smacks of
discrimination, they said.
droplets: study Born into a poor farming family
in Kok Thloak Krom commune’s
Korkoh village in Siem Reap prov-
FACE masks reduce the risk of ince’s Chi Kraeng district, Sophary
spreading large Covid-linked drop- said she volunteered to serve the
lets when speaking or coughing by CSHD in 2009 after graduating
up to 99.9 per cent, according to a with a Bachelor’s degree in
lab experiment with mechanical Accounting despite her parents’
mannequins and human subjects, and siblings’ objections.
researchers said on December 23. Trained in mine clearance and
A woman standing 2m from a UXO techniques for eight years
coughing man without a mask will and having carried out fieldwork,
be exposed to 10,000 times more she was later appointed an execu-
such droplets than if he were wear- tive director of the organisation.
ing one, even if he is only 50cm “My childhood dream was to see
away, they reported in the journal Cambodians, especially children
Royal Society Open Science. kept safe. They should be able to
“There is no more doubt whatso- run and play, free of the dangers of
ever that face masks can dramati- mines and UXOs,” she said.
cally reduce the dispersion of On what inspired her to work in
potentially virus-laden droplets,” the sector, Sophary said in 1992,
said senior author Ignazio Maria she and her friends spotted a part-
Viola, an expert in applied fluid ly buried mine on a sidewalk at the
dynamics at the University of Edin- Krabei Riel Primary School in her
burgh’s School of Engineering. home village.
Large respiratory droplets – She was eight years old then and
which act like projectiles before unaware of the dangers that mines
being pulled toward the ground by posed. As she and a few friends
gravity – are thought to be the prepared to dig the mine out to
main driver of SARS-CoV-2 trans- play with it, a military officer
mission, he noted. arrived at the scene and warned
Smaller ones, sometimes called
Yuletide cheer them not to touch it.
Continued – page 10 Christian devotees dressed as Santa Claus take part in a special service ahead of Christmas in Lahore, Pakistan. AFP Continued – page 4
2 THE PHNOM PENH POST december 25, 2020 www.phnompenhpost.com
National
Oz to assist with vaccine purchase Sar Kheng urged to look
into NSSF graft claims
Niem Chheng
Long Kimmarita Ty Haratheay, a medical staff-
T
HE Australian government has er who also thumbprinted the
pledged to assist Cambodia AROUND 200 people, includ- petition, alleged that Sy Le and
with the speedy acquisition and ing medical staff, officials and his partisans conspired to take
equitable distribution of Covid- locals from Prey Veng prov- the NSSF fund as their own.
19 vaccines once they have been certi- ince’s Preah Sdech district, The money is allocated for
fied by the COVAX Facility. have submitted their petition paying the medical treatment
In a statement to The Post on December to Minister of Interior Sar of civil servants, workers, and
24, the Australian embassy said: “Austra- Kheng requesting legal action members of the Armed Forces
lia welcomes Cambodia’s commitment against Operational Health who are NSSF members.
to only procuring vaccines that are pre- District of Preah Sdach director “For instance, midwives
qualified by the World Health Organisa- You Sy Le for allegedly embez- would receive only 16,000 of
tion [WHO], a position Australia strongly zling National Social Security the 40,000 riel that Samdech
supports, as it is important for ensuring Fund (NSSF) and grabbing state Kittipritbandit Bun Rany Hun
vaccine safety and efficacy.” land for private ownership. Sen donated for a delivery,” he
Australian ambassador Pablo Kang met The petition dated Decem- said, referring to Prime Minis-
with Minister of Economy and Finance Aun ber 15 alleged that Sy Le had ter Hun Sen’s wife.
Pornmoniroth on December 23 to discuss conspired with his partisans to “[From] the revenue gained
Australia’s development cooperation with encroach on the land and canal through inpatient consulta-
Cambodia, including plans and procedures of the Angkor Reach Health tion [financing], one per cent
Australian ambassador Pablo Kang (left) and finance minister Aun Pornmoniroth. AUSTRALIAN EMBASSY
for safe access to Covid-19 vaccines. Centre for private ownership. [of it] is paid to the govern-
Kang said the Australian government partners, multilaterally and bilaterally, tions Institute, took issue with some The area, measuring 31m by ment, 39 per cent used for pur-
was already in discussions with the and especially with the WHO, to formu- media outlets that linked Prime Minister 93m, is located in Krasaing Torng chasing hospital supplies and
Cambodian Ministry of Health and key late plans for purchasing Covid-19 vac- Hun Sen’s commitment to purchase only village in Preah Sdach district’s 60 per cent is to be distributed
development partners to determine how cines following confirmation of their ef- COVAX-approved vaccines to China. Angkor Reach commune. among hospital workers. But
to proceed with vaccine purchases. ficacy and implementing vaccinations. Malaysia’s New Straits Times newspa- Sy Le allegedly built a house Sy Le and his partisans did not
He noted Australia’s long-standing sup- “This is to ensure control of the safety, per on December 17published an article of seven rooms on the health [channel the full] 60 per cent
port for Cambodia’s health sector through quality and efficiency of the use of Covid- titled “Cambodia refuses to be ‘guinea centre land for leasing and also to health workers,” he said.
funding of the Health Equity and Qual- 19 vaccines and to ensure that they will pig’ for China’s Covid vaccine”. Likewise, built a fence surrounding it. When contacted, provincial
ity Improvement Project as well as a new be delivered to Cambodians in the timely the South China Morning Post on De- “Please help resolve [the issue] health department director
A$500 million (US$380 million) grant for manner. HE Aun Pornmonirath stressed cember 20 ran the headline “Cambodia’s and take legal action against Seng Panharith said he could
vaccine financing for Southeast Asia and that the Cambodian government will caution over China’s Covid-19 vaccine a You Sy Le and reclaim the land not hear well through the phone
the Pacific announced in October. buy WHO-approved vaccines only,” the signal to US: analysts”. and canal as state property. We and did not answer further.
“Our planned support for Covid-19 vaccines press statement said. Phea said: “Some foreign and local me- would like to request interior Interior ministry spokesman
in Cambodia will include procurement, de- Prime Minister Hun Sen said on Decem- dia seem to confine themselves within minister Samdech Krala Hom Khieu Sopheak confirmed to
livery and health advice,” Kang said. ber 15 that the Kingdom had prepared the scope of Cambodia-China relations. Sar Kheng to help inspect this The Post on December 23 that
Domestically, the Australian govern- around $200 million to purchase Covid- If Prime Minster Hun Sen said Cambodia official,” the petition said. Sar Kheng had received the
ment has entered into multiple advance 19 vaccines certified under the COVAX would buy China’s vaccine, they would The letter also claimed Sy Le complaint and assigned provin-
purchase agreements. Rollout of a vac- initiative for up to 13 million citizens. In say that Cambodia is influenced by Chi- and his accomplices system- cial authorities to investigate.
cination in Australia is subject to the response, people from across the country na. And when he did not even say a word atically formed partisans in “Samdech Krala Hom [Sar
outcomes of clinical trials and approval have expressed their support by donating about China regarding the vaccine, they the Preah Sdach District Refer- Kheng] has assigned the pro-
by Australia’s pharmaceuticals regulator, money for the vaccine purchase. interpreted it to mean another thing. ral Hospital and conspired to vincial governor to investigate
the Therapeutic Goods Administration. Neither health ministry spokeswoman “The prime minister made it clear that commit corruption. and report the results to him.
In a press statement on December Or Vandine nor secretary of state York Cambodia did not reject China’s or any However, in a letter dated Provincial coordinator for
24, the Cambodian finance ministry Sambath could be reached for comment country’s vaccine. Rather, we will purchase November 26, Sy Le rebutted the right group Adhoc Eang Kimly
thanked the Australian government for as to how much the public have contrib- a vaccine that is approved by the WHO be- petitioners’ claims of state land told The Post on December 23
its development assistance and reiterat- uted so far. But local media outlet Fresh cause that will ensure the safety of Cam- grabbing. He said he had been that his organisation will con-
ing the government’s position with re- News reported that as of December 23 bodians. Prime Minister Hun Sen’s posi- living on the land for 13 years, tinue to monitor this case. He
spect to acquiring vaccines. more than $54 million had been donated. tion has not changed with regard to any explaining that the authority had called on the authorities to con-
“The Royal Government of Cambodia Kin Phea, director of the Royal Acad- particular country, his priority remains given him the land because he duct a thorough investigation.
has been working with development emy of Cambodia’s International Rela- ensuring the safety of the public.” did not have a place to stay. “If the people are not happy
“All this is not true, because about this and [further] actions
the land is [under] my owner- are not taken, it will make
Eight held for ‘violence’ in oknha land row
ship. It is neither state land nor them lose confidence in the
has [any] relation to Prey Veng government. I also hope that
provincial health department,” this action is fair and justice
he said. for all people,” she said.
Khouth Sophak Chakrya of “intentional violence” in The land dispute involving district police said the vio-
relation to a land dispute with oknha Phalla and 500 families lence between the villagers
THE Preah Sihanouk Provincial
Court has placed eight men in
tycoon Pheun Phalla, who
holds the honorific “oknha”
living O’Oknha Heng com-
mune’s O’Oknha Heng and
and a group of men allegedly
sent by oknha Phalla is relat- Over 700,000 households
benefit from programme
pre-trial detention on charges title, in Prey Nop district. O’Ta Sek villages erupted into ed to a dispute over the land
violence on December 20. that the villagers had lived on
Provincial deputy police for many years.
chief Kol Phally told The Post Villagers said oknha Phalla Continued from page 1 try have received a cash handout
on December 24 that the sus- had been sending his men to from this programme, an impres-
pects had been identified as the area to prevent them from continues to search for families sive result given that few of the
Saing Kou, 19; Sok Phearum, building houses on the land that had fallen into poverty during recipients have ever even owned
31; Sie Rotha,36 ; Lao Teukyou, which he claimed he owns the Covid-19 pandemic, pledging a bank account previously.
57; Chak Sokun, 56; Song despite the villagers having that he will not allow those fam- The number of households
Chen, 30; Phan Sapich, 37; and occupied it without challenge ilies to be left alone to starve. increased from 526,686 in June
Kong Reaksa, 36. from other parties since The ministry will help them to 704,135 in November, cost-
Prey Nop district police 1993. immediately following an ing the government around
arrested the eight, who alleg- The report said the tycoon’s interview to determine their $175 million.
edly worked for oknha Phalla, workers used sticks, slingshots poverty level and they will On December 24, the gov-
two hours after the violent and even fired a gun several then be qualified to receive ernment also issued a press
incident between them and a times at the villagers in an government support. release offering guidance on
group of O’Oknha Heng vil- attempt to stop them from According to the Ministry of additional measures to man-
lagers. building houses. The villagers Economy and Finance, survey age the impact of the Covid-19
Phally said police completed then tried to use stones and results regarding the implemen- crisis on key sectors of the
their investigation on Decem- sticks in self-defence. tation of the cash handout pro- economy in order to get
ber 23 and determined that District police chief Huor gramme for poor and vulnerable through the crisis and then the
there was sufficient evidence Yai said on December 24 that families during the fight against rehabilitation period after-
to send their cases to court for at least five people – including Covid-19 showed that 99.1 per wards in order to finally return
further legal proceedings. two of the tycoon’s men and cent of respondents had to full economic growth.
He said the provincial court three of the villagers – had expressed their satisfaction after The government has decided
charged the eight men with been injured in the violence. receiving government subsidies. to continue to provide a stipend
“intentional violence” on the A pick-up truck belonging to Many said this cash handout of $40 per month to each worker
evening of December 24. the tycoon’s company was programme was implemented from the garment, textile, footwear,
Provincial court spokesman also destroyed. right when they were facing travelling products and bags
Lim Bun Heng said the eight “The violence was instigated their most dire financial diffi- industries who has been sus-
had in fact been charged with by Pheun Phalla’s group so culties. They also expressed pended for an additional three
the more serious crime of they were the people who our broad satisfaction with the months, starting from January to
“intentional violence with police decided to arrest and procedures for verification March 2021. Factory and enter-
aggravating circumstances” bring to justice,” he said. and cash withdrawal. prise owners in this sector have
under articles 218 and 411 of Oknha Pheun Phalla could From its launch in June until to pay an additional $30 for each
the Criminal Code. not be reached for comment the end of November, a total of worker – a total of $70 in aid per
A report from the Prey Nop on December 24. 704,135 families across the coun- month to each worker.
THE PHNOM PENH POST december 25, 2020 www.phnompenhpost.com 3
National
Quarantine controls tightened Guard-shooting suspect
apprehended in Kampot
Mom Kunthear antine procedures, so local
authorities must diligently Khouth Sophak Chakrya according to Pursat provin-
M
AM Bun Heng, monitor and strictly control cial police chief Sar Theng.
minister of health their movements as well as KAMPOT and Pursat pro- Theng said that on the night
and chairman of administer health exams and vincial police have cooper- of December 22, after receiv-
the Inter-Minis- follow-up checks, he said. ated to apprehend a fugitive ing news that the suspect was
terial Committee to Combat Covid-19 test samples for all wanted in connection with hiding in Pursat, police began
Covid-19, requested all mu- returning individuals must be the November 18 shooting a search operation to locate
nicipal and provincial gover- taken for testing at the Insti- of two security guards work- him. On the next morning at
nors across the country to fo- tut Pasteur du Cambodge, the ing for the So Nguon Group, 8:30am, officers arrested the
cus efforts to improve control National Institute of Public one of whom died from the suspect in Samrong com-
measures at quarantine facili- Health or the Siem Reap pro- injuries. mune’s Veal village of Phnom
ties after a returning migrant vincial hospital. Kampot provincial police Kravanh district.
worker fled from custody. Bun Heng warned that indi- chief Mao Chanmathurith Following the arrest, the
Health ministry spokeswom- viduals who violate quarantine told The Post that a man suspect was handed over to
an Or Vandine explained that measures will be subjected to identified as Heng Yong, a 57- the crime bureau of the Kam-
on December 24, a Cambodian penalties in accordance with year-old resident of Chhouk pot police for further action.
man returning from Thailand the law. Failure to adhere to per- district’s Boeung Nimol com- On the morning of Novem-
via the Poipet international tinent quarantine rules could mune, was captured on the ber 18, two men on duty as
border checkpoint escaped result in imposition of fines of morning of December 23 by security guards were gunned
while he was being transported 200,000 up to one million riel members of the Pursat pro- down in Trapaing Phlaing
to a quarantine facility. and criminal prosecution. vincial police force after he commune’s Prey Peay village
“Upon arriving at an en- Migrant workers at a quarantine centre in Oddar Meanchey province’s had eluded police in Kampot of Kampot’s Chhouk district.
Samrong town on Monday. Oddar Meanchey Provinical Hall On December 24, the minis-
trance gate, he jumped off a try reported the recoveries of for over a month. The shooting left one man
truck, and currently police are 19 in Thailand, 1,000 Cam- checkpoints and corridors two more Covid-19 patients. “Currently, the suspect has dead and another critically
searching for him,” she said. bodian migrant workers had along the Cambodia-Thai- A 30 year-old Cambodian been brought in from Pursat injured.
Banteay Meanchey Provin- returned through Banteay land border most seriously.” woman from Chbar Ampov to the Kampot police station Nuon Pheaktra, 27, died at
cial Administration spokes- Meanchey province from De- “Individuals must not be al- district’s Niroth commune for questioning. The Kampot the scene from a wound to
man Sek Sokhom told The cember 20 to 24. They had lowed to escape quarantine fa- and a 54-year-old Cambodi- police will build a case file to his chest, while 31-year-old
Post on December 24 that the their health checked and were cilities. Authorities must assign an-American man from Daun be referred to the court for Phorn Da sustained injuries
provincial authorities had placed in quarantine. police to guard them,” he said. Penh district’s Phsar Thmey further legal procedures,” he to his throat and was taken to
photographed and identified In a press release on Decem- Bun Heng said that for re- commune were discharged said. the Preah Ang Duong Hospi-
the migrant worker who had ber 23, Bun Heng expressed turning migrants entering from treatment after testing Chanmathurith explained tal in Phnom Penh for treat-
fled the quarantine facility. concerns about maintaining the country secretly – with- negative two times. that the suspect is believed ment. He is now recovering at
“Our migrant worker is in control of people placed in out passing through border The woman is the wife of an to have provided an AK-47 home with his family in Pur-
his 20s. His home is in Ban- quarantine, particularly as the checkpoints on army trucks official at the Ministry of Inte- rifle to Suy Thea, an alleged sat’s Sampov Meas district.
teay Meanchey province, and number of people in quaran- – municipal and provincial rior and was infected in con- assailant and ringleader of Police have so far arrested
he fled the quarantine facility tine could exceed authorities’ authorities should instruct nection with the November the shooting. Thea has gone three suspects implicated in
in Poipet town. We are search- capacities to handle them. district, commune and village 28 community transmission into hiding. the shootings. The first two,
ing for him and will take him He urged governors to “pay authorities to prepare them event while the man had re- Pursat police acted on an ar- Nhan Seng, 23, and Sim The,
for quarantine at the Mon- closer attention to control- for quarantine in their homes cently travelled from China. rest warrant dated November 21, were taken into custody on
gkol Borei Cambodia-Japan ling people in quarantine or other local sites. Nationwide, only 12 Covid- 23 from Kampot court Inves- November 22. They are being
Friendship Hospital,” he said. for 14 days and controlling In such cases, migrants 19 patients remain hospi- tigating Judge Kaom Kongkea held in pre-trial detention in
Sokhom added that since inbound passengers to Cam- would not have undergone talised with all others having and have charged the suspect Kampot prison on charges of
the recent outbreak of Covid- bodia via all international standard medical and quar- recovered. with premeditated murder, premeditated murder.
4 THE PHNOM PENH POST december 25, 2020 www.phnompenhpost.com
National
WCS’ project
manager Sitha
honoured as
‘Mekong Hero’
Mom Kunthear and in assisting the people in
the communities there.
S
OM Sitha, the Koh Kong One campaign in particular
and Mekong Conserva- that he takes special pride in
tion Project manager at involved the efforts to protect
Wildlife Conservation Cantor’s Giant Softshell Turtle, an
Society (WCS Cambodia), has endangered species inhabiting
been selected as one of the six the Mekong River and the largest
Mekong Conservation Heroes freshwater turtle in the world.
for 2020-2021 by the Mekong He and his team rediscovered
Conservation Heroes programme the presence of the Cantor’s
(MCH) – a part of the Wonders Giant Softshell Turtle in the
of the Mekong project funded by Mekong after a number of years
the US Agency for International had passed without one being Sitha’s team’s discovery of a living population of Cantor’s turtles has inspired hope. WCS CAMBODIA
Development (USAID). spotted in the river, leading
The MCH was developed to some to fear that it was extinct. chosen me as an outstanding these efforts,” he said. the Wonders of the Mekong
shine a spotlight on outstand- His team’s discovery of a living person. They see the work that He said that as a next step he project are as follows:
ing individuals doing inspiring population of Cantor’s turtles I strive to carry out and how would continue the work he - Buth Chanmeta, Awareness
conservation work in the Low- inspired hope in other dedicated I have been to had underway already, but he and Outreach Senior Officer at
er Mekong Basin by working to conservationists and the conservation of hopes to get funding from WWF–Cambodia.
research, protect, or raise pub- he has worked hard fishery resources, donor partners to widely expand - Hor Samath, Deputy Chief of
lic awareness about the on behalf of the which is important the reach of his efforts. the Sdey Kroam Rohal Suong
Mekong River’s unique ecosys- turtles ever since to me because In particular, he wants to focus Community Fishery Committee,
tem, biodiversity, habitats, and by engaging those resources on strengthening the commu- Ek Phnom, Battambang province.
cultural heritage. with the com- also help the nity’s ability to protect endan- - Hoy Sreynov, Fisheries
Sitha (pictured, Supplied) is one munity who community. gered species by patrolling the Officer at the Department of
of five outstanding individuals now help him “This recog- territory around their homes Aquaculture Development,
nominated for the Mekong River protect more nition of all the and villages to stop wildlife and Fisheries Administration
Conservation Award for 2020-21. than 50 of the progress we trafficking operations or report of the Ministry of Agriculture
He told The Post on Decem- turtle’s nests have made their presence to authorities. Forestry and Fisheries.
ber 23 that the conservation each year. over the years “I definitely want to focus on - Lor Kimsan, Research Project
work and experience he has “I am happy motivates me community education and Officer at WWF-Cambodia.
accrued over the past 13 years that the Won- to stay com- work related to wildlife traf- - Luy Rasmey, Executive
is what makes him effective in ders of the mitted and ficking,” he said. Director of the Culture and
carrying out conservation Me k o n g keep moving The other five chosen as out- Environment Preservation
work along the Mekong River project have forward with standing conservationists by Association.
Women on a mission to rid Cambodia of mines, UXO
Continued from page 1 and her parents returned to of the international commu- working for HTC to provide for contributing something impor- The Cambodian Mine Ac-
her home province in Leach nity. Also, the job pays much her family since she had little tant to my countrymen. And each tion and Victim Assistance
Sophary said in 1997, a fam- commune’s Kroch Thma better than being a worker education and had always time we safely remove a mine or Authority (CMAA) data shows
ily of seven in her village were village in Pursat province’s on cassava and corn planta- been a poorly paid farm help. UXO, we are saving lives. that from 1979 to November
travelling in a home-made Phnom Kravanh district. tions,” she said. In 2018, national and inter- “It’s not only the men who this year, a total of 64,915
truck which ran over an anti- “My family’s situation at the HTC’s head of mobile mine national specialists provided can do this work but women Cambodians had died from
tank mine, causing an explo- time was extremely hard since research and UXO clearance, much-needed training, and too. And that is important to mines and UXOs. Of the num-
sion which left them with mi- we had no farmland to grow Mao Chanthol, 32, has a simi- she was reassigned to carry know,” she said. ber, 58,669 were men, women
nor and serious injuries. crops. In 2015, HTC recruited lar reason as Soktoeur’s. out research work and de- Now, with over 10 years of (6,183) and children (63).
The same year, a youth me to work in its mines and She said several mine explo- stroy mines in the fields. experience, Chanthol was Coordinated mine and UXO
picked up a UXO from a rice UXO research division with a sions in Thma Puok province’s Today, she is no longer appointed HTC’s head of mo- clearance work has begun in
field and started playfully decent salary and many other Thma Puok district between afraid of the work and said bile mine research and UXO 1992.
pounding on it. As he did so, benefits. 1979 and 1997 caused her to she enjoys detecting and de- clearance. The CMAA has so far complet-
it exploded, instantly killing “I am very happy to work panic and consider mine de- stroying mines and UXOs. On December 8, she led the ed clearing mines on 2,102sq
him and two others. for HTC as it does humani- tection and destruction work “The detection and the de- working group to destroy two km. It has destroyed 1,093,651
“I was very scared at the tarian work that has gained as extremely dangerous. struction of mines and UXOs Russian M-122mm bombs antipersonnel mines, 25,457
time and determined that the recognition and support But in 2012, Chanthol began make me feel as though I am which were detected in Kok- anti-tank mines, and 2,875,870
when I grew up, I would con- mon commune’s Tamoan explosive remnants of war.
tribute to preventing such Senchey village in Oddar There remains another
cases in my village. This is Meanchey province’s Banteay 2,156sq km land with mines
what caused me to go against Ampil district. and UXOs that have yet to be
my parents and siblings and However, Chanthol said wom- cleared. Of the number, 836sq
do this work,” she said. en encountered work challeng- km contain mines while
However, not all Cambo- es and problems such as during 742sq km have cluster bombs
dian women who serve in the their monthly periods and the and 578sq km have explosive
sector had Sophary’s child- initial stages of pregnancy. remnants of war.
hood determination. That apart, men and wom- There are eight mine clear-
Run Soktoeur, 30, who was en face issues when mines ance units including the
named as an outstanding staff are deep in the forest, and CMAC, the National Centre for
of HTC told The Post that due when travelling on bad roads. Peacekeeping Forces, Mines
to difficulties in her family’s In the dry season, the land is and Explosive Remnants of
finances, she dropped out of hard and it becomes difficult War, The Engineering division
school at Grade 4 to initially to clear mines and UXOs. In of the Ministry of National De-
work at cassava and corn rainy seasons, the land is soft fence, HTC, the Mines Advisory
plantations in Pailin province. and poses obstacles to the Group, CSHD, the Norwegian
In 2004, a year before work- clearance work. People’s Aid, and Apopo.
ing in the demining sector, In the 1980s and 1990s, a These organisations are
her friend, Saly, sustained se- lot of farmlands were aban- actively fulfilling their mis-
rious injuries after stepping doned due to the abundance sions to remove the remain-
on a mine while digging for of mines and UXOs which ing mine-contaminated land
bamboo shoots. She died on endangered lives and caused and plantations for the sake
the way to hospital. much suffering to thousands of people’s wellbeing and de-
After that incident, Soktoeur Women and mine detection rats are an indispensable addition to the Kingdom’s demining efforts. CMAC of Cambodians. velopment in Cambodia.
THE PHNOM PENH POST december 25, 2020 www.phnompenhpost.com 5
National
HAGL denies R’kiri land clearing PlabSihanouk Hospital
upgraded with
Orm Bunthoeurn rice and some are also grow-
ing cashews and cassava.
modern equipment
F
IVE civil society organ- He said clearing streams or
isations urged the gov- canals is not a problem in the
ernment to take action dry season but the activity can
against Hoang Anh Gia flood their field during the rainy Voun Dara der supervision of the pro-
Lai (HAGL), a Vietnamese agri- season, even though HAGL had vincial board of governors,
business firm, for alleged land promised to open the waterway CONSTRUCTION is under- and is scheduled to be com-
clearing activities on areas al- during this period. way at the Preah Sihanouk pleted early next year.
located to indigenous commu- “We don’t want the compa- Provincial Referral Hospital Speaking during the inspec-
nities in Ratanakkiri province’s ny to clear the land or do any- on a medical laboratory to tion, Bun Heng beseeched
Andong Meas district. thing,” he said. be equipped with modern supervisors to ensure that the
However, provincial author- Provincial administra- diagnostic equipment pro- quality of the construction
ities denied the accusation, tion director and spokesman vided by the Global Fund work will meet the precise
saying the local community Moeng Sinath fired back at and Chinese government. technical standards required
welcomed the money that had the accusations. Provincial Hall spokes- for the high-tech instruments
poured into the area due to “The canal is just a small man Kheang Phearum told to be used there.
the presence of HAGL. stream, not a big waterway that The Post on December 23 Hospital director Seng Nong
The Cambodian Indigenous they rely upon as a water catch- that the government-fund- told The Post on December 23
Youth Association, Equitable Vietnamese agribusiness firm Hoang Anh Gia Lai has been implicated in ment. Some civil society organ- ed facility is about 70 per that the new lab, when com-
land clearing activities on areas allocated to indigenous communities in
Cambodia, Highlanders Asso- Andong Meas district, Ratanakkiri province. SUPPLIED isations are causing trouble by cent complete. pleted, will speed up testing
ciation, Inclusive Development inflating the issues,” he said. “Once the laboratory for residents as well as tour-
International and Indigenous Ratanakkiri Provincial Admin- turn the land they use as worship According to Sinath, the building is completed, it will ists and foreign investors vis-
Rights Action Movement issued istration, which ordered the re- [locations]. The local communi- relevant parties have met to facilitate the diagnosis of iting the province.
a joint press release on Decem- turn of the Patu Mountain area ties raised this issue because the discuss the land dispute be- common diseases, especial- “Once the laboratory is
ber 23. They asked the govern- to the Muoy village community. company has recently dug into tween HAGL, the indigenous ly infectious diseases such operational, travellers from
ment to protect the Muoy vil- Equitable Cambodia execu- a mountain and then filled in community and the provincial as Covid-19,” he said. abroad will be able to have
lage and Inn village indigenous tive director Eang Vuthy said the a canal that they use as a water administration. On December 19, Minis- their diagnostic testing
cultures by stopping HAGL issue between HAGL and the lo- catchment,” he said. “After we [conducted our] ter of Health Mam Bunheng conducted on-site here.
from further land clearing. cal community is not a new con- According to the joint press research, we found that there and provincial governor This will make it easier,
The group claimed that HAGL flict, but now the land clearing release, the areas concerned was no one residing in the Kuoch Chamroeun inspect- faster and more cost-effec-
is clearing land allocated to the had spread to additional areas. are part of the 742.6ha of land, location [that was part of the ed progress at the construc- tive,” he said.
Muoy Village community to fill The area in question had been containing 64 separate areas complaint against HAGL re- tion site and agreed to ex- Currently, according to
two nearby watercourses – An- a part of discussions by a joint of high cultural importance, garding land clearing]. pedite its completion. Nong, Preah Sihanouk pro-
sang Creek and Rok Creek -- in committee made up of repre- which had been designated for HAGL representative in In a Facebook post, the vincial health authorities
the Patu Mountain area. sentatives from the provincial return to 12 local indigenous Ratanakkiri province, Thach ministry said the lab is one of typically collect 100 to 150
In a related controversy, the administration, HAGL and in- communities, as instructed Habin, denied that the canal three medical facility expan- samples per day from tour-
Inn village community is con- digenous communities, he said. by the Ratanakkiri provincial had been filled. sion projects recommended ists and foreign travellers
cerned about fencing erected Vuthy added that a consen- governor Thong Savon. “We have not grabbed any by Prime Minister Hun Sen, which are then taken to the
by HAGL around wetlands or sus was reached and forward- Sev Suen, Kachak indig- land from the indigenous peo- along with the Battambang Institut Pasteur du Cam-
creeks where villagers gather ed to the Ministry of Agricul- enous community repre- ples, but they have actually and Siem Reap provincial bodge for testing.
natural wild greens. ture, Forestry and Fisheries for sentative from Kak village in encroached on the company’s referral hospitals.
The civil society organisa- an official decision. Andong Meas district’s Talav land. However, we believe the The Preah Sihanouk pro- www.phnompenhpost.com
tions said that HAGL’s activity “In this case, the indigenous commune, said that in this issue has now been resolved,” vincial laboratory is being check the post website
for breaking news
violates an instruction from the people demanded [HAGL] re- area some people are growing he said. built on 458sqm of land, un-
6 THE PHNOM PENH POST december 25, 2020 www.phnompenhpost.com
Business
USD / KHR USD / CAD USD / CNY USD / JPY USD / MYR USD / SGD USD / THB AUD / USD EUR / USD GBP / USD
4,038 1.2840 6.5289 103.65 4.0620 1.3286 30.03 0.7597 1.2201 1.3591
Things looking up: Gov’t extends G Capital mapping out
plans for Cambodia unit
Covid-19 aid for aviation, tourism FRESH from getting approval to
set up a full-fledged commercial
He said the bank’s manage-
ment team also has vast ex-
Thou Vireak bank in Cambodia, Malaysia’s G perience in the financial ser-
Capital Bhd is already mapping vices and banking sector.
T
HE government on December out plans to carve a significant Meanwhile, G Capital execu-
24 announced a seventh round presence in the country as it tive director Dr Ali Hamsa said
of stimulus measures for the moves to list the banking entity with a minimum 20 per cent
aviation and tourism sectors in the next five years. stake in Oriental Bank Plc, the
aimed at boosting their business activi- Towards this end, the com- company is looking to unlock
ties and easing their financial burden in pany would be tapping the the value of its investment via
the face of severe challenges stemming expertise of season banker the listing of the bank.
from the spread of Covid-19. Phan Ying Tong to lay down Nevertheless, he said G
The measures will extend the 10 per cent the groundwork and strate- Capital shall remain as a sub-
minimum tax exemption for all airlines gies to penetrate the Cam- stantial investor in the bank
registered in Cambodia for a period of three bodian banking sector. Phan as it planned to maintain its
months from January to March next year, would also be in the manage- presence in the ever-growing
the government said in a press release. ment team of the new bank. banking industry there.
At the same time, the government has G Capital would have a Commenting on the listing,
extended the payment of civil aviation minimum of 20 per cent in Phan said: “We are eyeing to
fees for three months and allowed the the banking venture. list on the Cambodia Securi-
airlines to arrange for the payment of On December 8, the com- ties Exchange or any other
debts outstanding in instalments after pany entered into a head of stock exchange.
the extension period. agreement with Phan and ES “We will look for a perfect
The government will also extend its Packaging Co Ltd (Cambo- timing to list the entity, af-
$40 payments to suspended employees dia) to jointly establish a new ter taking into consideration
in tourism-related businesses, including International tourist arrivals to Cambodia dwindled down to 1,267,890 in the first 10 months of bank named Oriental Bank various factors including the
this year. pOST STAFF
hotels, guesthouses, restaurants and trav- Plc in the Kingdom. progress of the business.
el agencies based in Phnom Penh, Kam- latest round of stimulus measures would According to data from the Ministry of When contacted via e-mail, “For now, our timeline to list is
pot, Preah Sihanouk, Kep and Siem Reap better serve to alleviate the burden on Tourism released early this month, in- Phan told The Star that the about five years after the com-
provinces or Bavet and Poipet towns. the public sector and allow businesses ternational tourist arrivals to Cambodia bank, which is targeting to mencement of the business.”
It called on employers to offer them to stay afloat during this time. dwindled down to 1,267,890 in the first 10 commence operations by While not dismissing plans
additional perks on a voluntary basis. “These measures have trimmed taxes months of this year, sinking an unprec- the third quarter of next year, for expansion into the banking
The government will also extend its and lent a helping hand for the private sec- edented 76.1 per cent from the 5,296,088 would be engaging in a 60:40 sector in the region if opportu-
offer of bearing patent tax and stamp tor. So far, no companies have gone bank- recorded in same period last year. digital and conventional bank- nity arises and if there is syner-
duty charges for travel agencies and rupt,” he claimed. “I understand that if A total of 734,309 tourists entered the ing approach respectively. gy, Ali Hamsa said the move to
tour operators. these measures continue, the private sector Kingdom through its three international He said: “This is the strategy to venture into Cambodia was due
Pacific Asia Travel Association Cambo- will be motivated to do their business.” airports in January-October, taking an capture the market share of the to the Kingdom’s fast growing
dia chapter chairman Thourn Sinan said Hong Vanak, an economic researcher 80.2 per cent year-on-year nosedive, while tech savvy consumers as well economy – referred to by some
the government’s renewed tax exemptions at the Royal Academy of Cambodia’s 533,581 arrived by land or waterways, as those who prefer the brick- as the land of opportunity.
for the tourism industry are a small but Institute of International Relations, ob- plunging 66.3 per cent year-on-year. and-mortar banking experi- He said it has a legal frame-
welcome gesture that will ease some of the served that the government’s implemen- Chinese tourists once again topped ence. Additionally, studies have work that provides favourable
burden off the operators’ shoulders. tation of the past six rounds has brought the list at 314,291 visitors, representing found that a stronger focus into provisions for foreign investors
He said: “The extension of the govern- significant, targeted and effective ben- an 84.5 per cent year-on-year dip. digital solutions will enhance a who are seeking investment
ment’s favourable measures for the sec- efits to the tourism industry. Thai, Vietnamese and US tourists bank’s profitability, perceived opportunities in the country.
tor is a welcome breath of fresh air. [But] He said: “They seem happy and appre- numbered 194,774; 181,328; and 55,170, value, convenience, functional Among those provisions
we’ve yet to witness a positive sign of re- ciate that the measures have been very all of which dropped by 41.5, 74.8 and quality and service quality. are the fact that there are no
covery for the tourism industry.” effective, while the industry hadn’t been 71.6 per cent year-on-year. Tourists from “Digital banking innovations restrictions on foreign own-
Cambodia Chamber of Commerce able to run at full capacity during the the UK, France and Japan all registered are important in improving ership in a business, low tax
vice-president Lim Heng noted that this Covid-19 outbreak.” lower figures over last year. customer experience, satis- rates and investment incen-
faction and loyalty as well as tives, he said.
banks’ financial performance. Meanwhile, G Capital, with
For banks to remain relevant its mainstay in renewable
Two firms get priority rights to mines in the competition, we need to
quickly respond and manage
the ever-changing environ-
ment, especially with the fast
energy (RE), would continue
to look at new initiatives to
build its RE business.
Ali Hamsa said both RE and
Hin Pisei where their respective conces- “Four companies were short- largely weathered the fallout evolvement of financial tech- banking business would be the
sions are located. listed, but after reviewing the from Covid-19 and is on track nology.” two-pronged growth engines
THE Ministry of Mines and Once confirmed by the offic- procedures, the ministry to begin extracting gold in the Phan added that as a newly for the company going for-
Energy has given the nod to es, the firms must report to the decided to select the two firms first half of next year. set up bank, he does not have ward.
two companies to continue ministry within 15 days. Fail- as winners, which are allowed The company is in the proc- the legacy burden of the old The company recently an-
their exploration licence ure to do so will result in relin- to continue their processes to ess of developing a gold mine technology, which is nor- nounced that its 90 per cent
approval processes for some quishing the priority rights obtain exploration licences in in the Okvau area in Mon- mally slow and clumsy, but subsidiary, Gunung Hydro-
207sq km of gold-polymetallic given by the ministry, accord- the area,” Mony Rath said. dulkiri province’s southwest- instead the bank would have power Sdn Bhd (GHSB), has
mining areas in Tbong Khmum ing to the letter. But this does not immedi- ern Keo Seima district. the advantage of designing its obtained approval for its re-
and Ratanakkiri provinces. The ministry denied Xin- ately authorise the companies It is also building a gold business strategy, products vised feed-in-tariff rate from
The areas are 107.10sq km in ruichang Mining Co Ltd’s and to start mining activities on processing plant in Okvau, and services capitalising on the Sustainable Energy De-
the Memot area in Tbong Asian Comfort Investment Co the sites, he said, pointing out which it expects will be able to the latest technology such as velopment Authority (SEDA)
Khmum’s eastern Memot dis- Ltd’s bids for mining licences that an environmental impact extract gold in the first half of blockchain and fintech. for a 10MW small hydropower
trict and 100sq km in the Phnom for the Memot bloc, citing assessment (EIA) and other next year. Original Wisdom is Customers nowadays, he project in Salu, Sungai Perak.
Pang area in Ratanakkiri’s “ineligibility for recruitment”. procedures are required for a joint venture between Chi- said, are very knowledgeable GHSB, which participated
southeastern O’Yadao district. Yos Mony Rath, director-gen- the issue of a licence. nese and Cambodian inves- and their demands for fi- in the e-bidding process that
In a December 21 letter signed eral of the ministry’s General He also noted that applica- tors, according to Mony Rath. nancial services are also very was announced by SEDA in
by minister Suy Sem and Department of Mineral tions for mining investment Last year, Cambodia received sophisticated and fast chang- February, received the ap-
addressed to the two firms, the Resources, told The Post on licences in Cambodia had not about $21 million in non-tax ing. “We believe it is now the proval to increase tariff rates
ministry said Renaissance Min- December 24 that the ministry’s declined despite the outbreak revenue from the mining sec- perfect timing of our incor- to 0.28 ringgit ($0.069) per
erals (Cambodia) Ltd had been commission officials made of Covid-19, which will con- tor, compared to about $20 poration with such a business kilowatt-hour from the 0.25
selected for the bloc in Memot, their selection after an evalua- tribute to Cambodia’s eco- million in 2018, the ministry strategy to meet the demands received in March 2018.
while Original Wisdom Consult- tion that took “the confirmation nomic growth. reported. of more knowledgeable and The project would have a
ing Services (Cambodia) Invest- of skills, experience and According to him, there are Mony Rath defines “non-tax sophisticated customers.” yearly energy yield of 68,000
ment Co Ltd had been chosen research techniques” into currently about 50 companies revenue” as recurring income Phan would be on the man- megawatt-hours at a fixed
for the Phnom Pang bloc. account. licensed to mine in Cambodia. obtained by the ministry through agement team to spearhead price of 0.28 ringgit per kilo-
The letter obliged the two He stressed the areas’ poten- Renaissance, a subsidiary of sources other than taxes such as Oriental Bank’s growth and watt-hour for a period of 21
companies to process their tial for exploitable metallic min- Australia-listed Emerald licensing fees, land leases, royal- earning moving forward in years. THE STAR (MALAYSIA)/ASIA NEWS
permits at the commune halls eral resources, chiefly gold. Resources NL, says it has ties and penalties. Cambodia. NETWORK
THE PHNOM PENH POST december 25, 2020 www.phnompenhpost.com 7
Business
Top six agro-industrial crops Minister calls on Oz to
speed up MoU on trade
net Kingdom $2.32B in 2020 May Kunmakara
MINISTER of Commerce Pan Sora-
invest in Cambodia,” Sorasak said.
Kang remarked that the Australian
government, through the Cambo-
Thou Vireak the pepper market appears sak on December 22 requested the dia-Australia Agricultural Value
to have recovered slightly Australian Chamber of Commerce Chain Programme (CAVAC), has
C
AMBODIA ex- after being hit by Covid-19 in Cambodia (AusCham) to expe- trained some 2,000 of the Kingdom’s
ported 8.55 mil- nearly a year ago.” dite the signing of a memorandum farmers in e-commerce, enabling
lion tonnes of its Minister Sakhon told The of understanding (MoU) with the them to sell their products online.
six most profit- Post in October that the gov- Cambodia Chamber of Commerce He lauded the Kingdom’s success
able agro-industrial crops, ernment is aiming for a three (CCC) on trade and investment. in increasing jasmine milled-rice
through formal and infor- per cent annual growth rate The deal aims to give a further exports to Australia by 60 per cent
mal channels, worth more of agricultural value added – push to trade and investment this year over 2019 despite the diffi-
than $2.32 billion this year the net output of the agricul- between the two countries after hav- cult situation of the Covid-19 crisis.
as of December 15, accord- tural sector after adding up all ing signed the Regional Comprehen- CCC vice-president Lim Heng told
ing to Minister of Agricul- outputs and subtracting the sive Economic Partnership Agree- The Post on December 24 that the
ture, Forestry and Fisheries value of intermediate inputs. ment (RCEP) in mid-November. chamber had signed similar MoUs
Veng Sakhon. He said the government Sorasak made the remark during with other countries such as South
In a December 24 post on also aspires to increase agri- a courtesy visit by Australian Korea, Japan and the US on the
his official Facebook page, the cultural labour productivity ambassador to Cambodia Pablo exchange of trade and investment
minister listed the crops as – the annual output per agri- Kang to the ministry. information, with a focus on foster-
cassava, cashew nuts, man- cultural worker – from $1,839 He said the Australian side should ing private-public relations and seek-
Cambodia exported 313,410.94 tonnes of fresh yellow bananas
goes, yellow bananas, pep- worth $451 million this year as of December 15. hENG CHIVOAN last year to $4,625 by 2030. make more investments in the ing investment opportunities and
percorn and Pailin longan. “The agricultural sector is Kingdom, especially in e-com- cementing business partnerships.
During the period, Cam- other agro-industrial prod- EU countries purport- an important engine of eco- merce businesses and capitalise on “I fully support and welcome the
bodia exported 7,075,494 ucts have potential on the ing to be Kampot pepper nomic growth and could en- the recently-enacted e-commerce signing of the memorandum of
tonnes of cassava products international market. must “carry the PGI quality joy a one per cent surge this and consumer protection laws. understanding with Australia to
(worth $1,026,232,000), The Ministry of Com- logo from now on” which year,” he said. “Agriculture re- He also suggested that Kang bring further enhance the relations and
218,884.29 tonnes of ca- merce granted domestic GI certifies that it originates mains crucial considering the experienced technicians from Aus- trust between the private sectors
shew nuts ($288,111,700), status to the commodity in from the Kingdom’s main downswing experienced by tralia to provide additional training. to another level, where we can
945,274.44 tonnes of fresh 2010 under the World Trade pepper-producing region – industry and services. Today, “With the recently promulgated work together for change.
mangoes ($473,207,700) and Organisation’s (WTO’s) Kampot and Kep provinces, only agriculture could feasi- e-Commerce Law, the ministry has “Our two countries also signed
313,410.94 tonnes of fresh yel- agreement on Trade-Relat- according to the EC. bly revive the economy.” also launched a Cambodian the RCEP agreement, which gives
low bananas ($451,125,700). ed Aspects of Intellectual Lay said at least four com- Cambodia exported $14.1 e-commerce programme, the so- both sides more opportunities to
The Kingdom also shipped Property Rights. panies have signed purchase billion worth of goods in called Go4eCam, to promote further increase trade and invest-
out 174.52 tonnes of Pailin On February 18, 2016, agreements with small-scale the first nine months of this e-commerce business. ment,” Heng said.
longan (worth $57,763,100) the European Commission Kampot pepper farmers year, up 20.07 per cent from “At the same time, the Australian Bilateral trade between Cambo-
and 5,005.65 tonnes of pep- (EC) registered “Mrech Kampot” for next year, with Czech- the same period last year, side will provide technical consum- dia and Australia reached A$285
percorn ($25,490,200). /”Poivre de Kampot” (Kampot owned EU Land and Pepper according to the Ministry of er-protection officials to be stationed million (US$216 million) last year,
Kampot Pepper Promo- pepper) as a Protected Geo- Investment Co Ltd recently Economy and Finance. in Cambodia, share their experiences up 32.6 per cent from 2018, data
tion Association president graphical Indication (PGI), penning a contract for 10 The Kingdom imported and improve work efficiency in order from the embassy show.
Nguon Lay said Kampot making it the first Cambo- tonnes of peppercorn. $13.6 billion worth of goods to increase the volume of Cambodian Of the amount, Cambodia export-
pepper, with its geographi- dian product to receive the He said: “Pepper exports in the first nine months of products exported to Australia. ed A$224 million, an increase of 34.9
cal indication (GI) recog- status from the EU. are expected to remain at this year, dipping 8.70 per “And Australian e-commerce per cent, and imported A$61 mil-
nition, and the Kingdom’s Any product sold in the around 70 tonnes by 2021 as cent year-on-year. companies are also encouraged to lion, a 24.8 per cent increase.
8 THE PHNOM PENH POST december 25, 2020 www.phnompenhpost.com
SpecialReport
Report
Profiting or profiteering? A niggling question
behind Cambodia’s banking growth
As the sector expands, allegations of financial institutions engaged in unconventional
activities continue to show up like a bad debt
Sangeetha Amarthalingam
‘A
LOT of it involves
their own proj-
ect financing,” an
industry player
spoke in hushed tones over
how the burgeoning banking
sector sustains itself.
“Some banks are set up by
large-scale foreign investors
with billion dollar projects in
Cambodia to channel their
funds,” he said. “The banks
also own equity in the proj-
ects, at times.”
One of the ways is to pro-
vide collateralised overdraft
facilities that run into mil-
lions to investors.
“That way, the investor
need not drawdown its capi-
tal investment, allowing it to
instead earn interest from
fixed deposits,” he said.
The growth of banks in
Cambodia has been brow-
raising if not ironical, seeing
that some 70 per cent of the
population is unbanked.
There are 52 commercial
banks and counting, 81 micro-
finance institutions including
microfinance deposit-taking
institutions (MDIs) while spe- Most of Cambodia’s FDIs in recent years has been the area of construction and real estate. heng chivoan
cialised banks make up 14, as
of August 31, 2020. banks were set up solely to But this here brings to ques- “But how do they make stands, Cambodia’s popula- count which leaves the rest of
Separately, there are scores serve their own self interest, tion the issue of profitability money? It is difficult to say tion is about 16 million with country unbanked.
of pawn shops and unlicensed either to finance their proj- and solvency for the entire because there are too many an adult population of around However, they are highly
money lenders dotted around ects and group operations, sector as the growth of banks banks [fighting] for market 10 million. leveraged, owing to staggering
the countryside offering small and as a conduit for financial starts to crowd the market. share,” said In Channy, chair- In 2017, the World Bank said loans from microfinance insti-
but instant microfinance credit. transactions. It also questions the type of man of the Association of only 22 per cent of those aged tutions, which have resulted
Out of the 52 commercial Some foreign-owned banks business the banks conduct Banks in Cambodia. 15 and above had a bank ac- in an outstanding debt of $10
banks, only 22 are locally- also cater to investors from to survive, especially if they all Citing the example of his billion.
incorporated and of that just base countries. claim to do the same business. bank, Acleda Bank Plc, Echoing Channy, David Van
a handful are established by To give an idea, real estate On average, the National where he is the presi- said despite being a “such a
Cambodians as the others are and construction FDIs were Bank of Cambodia (NBC) dent and CEO, tiny market”, Cambodia
foreign-owned. among the largest in the re- noted that profitability, rep- Channy said its constantly saw new
Cambodia’s economic cent years, as the country dug resented by a return on asset customer loans commercial banks.
boom in the last 10 years and into development as a means and return on equity, im- and deposits “[It] is a real mind
favourable business condi- to build the nation. proved by 1.9 per cent and make up about boggling fact un-
tions where foreign parties Some 50 per cent of the total 9.8 per cent year-on-year, re- half its bank less these many
are permitted to wholly own FDI originated from China and spectively, in 2019. portfolio. banks have a mag-
companies and remit their its greater region, with half of The central bank’s Annual “Our loan vol- ic formula for their
profit home, makes it a mag- that invested in those two sec- Supervision Report last year ume in terms of intended clientele,”
net for investors. tors, the World Bank said in May. also showed that solvency dollars is 16 said the senior as-
In the past, massive invest- For instance, Chinese prop- ratio stood at 24 per cent per cent of sociate (private
ments went to garment, foot- erty developer Prince Group, while liquidity coverage ratio the over- public partner-
wear and travel goods manufac- one of the major players in was 155.7 per cent, reflecting all market ship) of Platform
turing as the US and EU granted the real estate industry, has overall stability. share while Impact, an invest-
preferential tariff schemes in poured in $2 billion since its Having said that, Stephen savings rep- ment platform
1997 and 2001, respectively. debut in Cambodia in 2015. Higgins, co-partner of Mekong resented 17 per which owns seven
Later on, real estate, con- Over time, the conglomer- Strategic Partners Co Ltd who cent. This is the portfolios valued at
struction and public infra- ate expanded to include avia- authored a review on the sec- major business $200 million.
structure investments rolled tion - where it owns an airline tor titled Time for Consolida- of our bank,” he However, he felt that
in on the heels of China’s Belt - hospitality and banking. tion, said around 20 per cent of added. “Cambo- local commercial banks
and Road Initiative. “For Prince, their own proj- banks reported losses in 2019. dia is a small coun- are conservative and lack
These investments, approxi- ects can sustain their banking “But [some] 80 per cent try [where] five to in-house expertise to
mately $85.9 billion between business,” the banker said. earned a return on capital six banks are okay but handle risk manage-
1995 and 2019, also heralded the Questions to Prince did not that is subeconomic,” he told now we have 10 times ment for trade
entry of financial institutions. elicit a reply. The Post. more.”
“The fact that it is a highly The banker claimed that Commercial bank operating As it
dollarised open economy homegrown banks such as licence granted by the NBC
also attracts foreign direct in- Canadia Bank Plc, Chip Mong enables banks to give out
vestment (FDI) in the billions Commercial Bank Plc and Vat- loans and earn interest
compared to regional peers,” tanac Bank Plc, with roots in to raise revenue,
said the banker, who request- real estate and construction, mobilise savings
ed anonymity due to the sen- most likely enjoyed a signifi- and use it to
sitivity of the subject. “The cant revenue stream from this fund projects, Difficult to say how banks make their
market is flush with cash, business segment although and provide money when the market is small, In
Channy said. Hean Rangsey
hence the rise in banks.” their core business remains in fund trans-
Essentially, a number of the consumer banking facilities. fer service.
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