KHMER INTELLIGENCE

Khmer Intelligence (KI) is a non-government organisation whose objective is to collect sensitive information from non-easily accessible sources to help Khmer and foreign observers better follow and understand the situation in Cambodia. KI finds out what is behind the latest news and news to come. For security reasons KI must preserve anonymity for its informants. Information is classified according to five levels of reliability: Official or Semi-Official (1), Very Reliable (2), Reliable (3), Insistent Rumour (4), Rumour (5).
News compiled by KI are posted on www.khmerintelligence.org
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31 December 2004

Drug trafficking gets out of control (2)
A front-page article in the December 17-30, 2004 edition of the Phnom Penh Post titled « Drug trafficking “out of control” says UN » timely reminds the international community of one of the most serious problems plaguing Cambodia. The first paragraph of the article reads as follows: “Illegal drug trafficking in the Kingdom [of Cambodia] skyrocketed in 2004 according to information compiled by the United Nations Office on Drugs and Crime (UNODC). Compared with 2003, estimates of the amount of amphetamine-type stimulants (ATS) coming into the country increased ten times.” The article quotes the UNODC program officer in Phnom Penh as saying, “the youth are the major area of concern owing to the potential social and economic chaos caused by widespread drug abuse for the future development of Cambodia.” The article also elaborates on heroin smuggling, saying that “shipping containers appear to be one of several methods of transporting heroin [from Cambodia] to the global market, including North America.”
The United Nations International Drug Control Programme had previously published a report according to which Cambodia is one of the largest suppliers of marijuana to the world, with business estimated to generate nearly $1 billion a year. The report also specified that “significant quantities of heroin from the Golden Triangle of Burma, Laos and Thailand are being shipped through Cambodia” and that “the country has become a safe haven for criminal organizations” (see KI, 11 December 2002: “Cambodia’s mafia state”).    
See full Phnom Penh Post’s article at http://www.cambodiapolitics.org/news/phnompeh_post/041217-30_ppp2.pdf

Taiwanese mafiosi get Cambodian citizenship (2)
In 2004, at least three Taiwanese nationals suspected of having connections with the organized crime (mafia, triad) obtained Cambodian citizenship:
- Lu Hsiu-Shia, born in Taiwan on 29 December 1949, naturalized Cambodian by Royal Decree dated 25 August 2004.    
- Tsai Heng-Lan, born in Taiwan on 11 March 1951, naturalized Cambodian by Royal Decree dated 12 October 2004.
- Ho Wen-Jui, born in Taiwan on 27 October 1972, naturalized Cambodian by Royal Decree dated 12 October 2004.
Several hundreds foreigners (Chinese, Taiwanese, South Koreans, Thais, etc.) have paid bribes to get Cambodian citizenship over the last few years. With their newly-acquired Cambodian passports, and sometimes “Oknha” titles, they can buy or manage to grab land in this country with the complicity of corrupt government officials, which makes more and more native Cambodians landless. Some of those “new Cambodians” were criminals in their countries of origin, who have found a safe haven in Cambodia.

28 December 2004

Ranariddh wants to sell Funcinpec headquarters (1)
Prince Norodom Ranariddh has officially confirmed his intention to sell the present Funcinpec headquarters located next to the French embassy for approximately $3 million. The official reason for his decision is related to feng shui considerations (the present location has allegedly brought bad luck to the royalist party as evidenced by its successive electoral defeats since 1998). But the real reason for the projected sale seems to have more to do with financial considerations since a huge profit will be made – a portion of which under the table – following the transfer of the headquarters to a remote and much cheaper location.
In the eyes of many Funcinpec supporters, Ranariddh’s decision raises a number of sensitive questions related to:
- The impressive North Korean-given bronze statue of retired King Norodom Sihanouk – Funcinpec’s revered Founding-Father – that dominates the present party’s headquarters. The quasi-religious statue will have to be unceremoniously deposed, truck-carried and re-installed in a new place some people fear will be in the middle of rice paddy-fields.
- The symbolism of a vanishing political party that is selling off, or ready to sell off, everything from its name and its identity (as evidenced by Ranariddh’s recent offer to merge his party with the CPP) to its historic headquarters. To many Funcinpec members Ranariddh just gives the impression that he doesn’t care any longer about the future of his party (see KI, 22 November 2004: “Prince Ranariddh may give up politics”).    

International assistance finances 50 percent of public expenditure (1)
In 2002, international assistance covered 52 percent of what would be the State budget in a normal country where the State is held financially responsible for all basic public services (see KI, 21 December 2003: “Breakdown and weight of international assistance”). In Cambodia, a significant portion of public services (notably in health, education, and welfare programmes) are provided by NGOs that are financed by international assistance.
For 2003 (latest year for which all relevant data are available), disbursed international assistance amounted to $635 million (in line with pledges made at the 2002 CG meeting) and broke down as follows:
- Assistance through the State budget: $248 million (of which grants: $103 million; loans: $145 million), representing 34 percent of the State budget..
- Assistance through NGOs and in the form of development projects not included in the State budget: $237 million.
- Technical assistance (mainly fees, salaries and fringe benefits paid to foreign experts): $150 million (see KI, 28 November 2004: “800 foreign advisers earn more than 300,000 Cambodian State employees”).
The State budget for 2003, as actually implemented, amounted to $737 million. If we add the $237 million spent by NGOs, total expenditure ensuring the delivery of all public services reached $794 million, of which $248 million + $237 = $485 million, or exactly 50 percent, came from international assistance.
Sources: Ministry of Finance, World Bank.

27 December 2004

Mass defections of Funcinpec grassroots supporters (2)
Prince Ranariddh’s recent statement on his intention to merge Funcinpec with the CPP (see KI, 24 December 2004: “Behind Ranariddh’s proposal to merge Funcinpec with CPP”) has created an upheaval in the ranks of Funcinpec grassroots supporters in the provinces (in the capital city of Phnom Penh, Funcinpec has already lost most of its supporters to the opposition Sam Rainsy Party, which collected more than 50 percent of the popular votes at the 2003 election). An increasing number of the royalist party’s remaining supporters are accusing their supreme leader (Prince Norodom Ranariddh) of selling out to the CPP and selling off the legacy of former King Norodom Sihanouk (Funcinpec’s Founding Father) with his surprising merger proposal. Defections to the Sam Rainsy Party, which had been noticeable since Ranariddh broke the Alliance of Democrats and joined a two-party government with the CPP last July, have dramatically accelerated over the last few days. In some provinces, such as Kompong Cham, Battambang and Prey Veng, opposition local officials have been instructed to carefully handle unprecedented mass defections.

26 December 2004

Ranariddh is rebuked by the CPP for his political short-sightedness and/or ulterior motive (1)
In a prominent front-page article in its December 26 edition titled, “A merger of Funcinpec and CPP would benefit Sam Rainsy”, CPP mouthpiece Rasmei Kampuchea continues to comment on Prince Ranariddh’s recent proposal to merge the two ruling parties (see KI, 25 December 2004: “CPP rejects Ranariddh’s proposal”). This time, Rasmei Kampuchea seems to reprimand the Funcinpec president for his political short-sightedness since he doesn’t seem to realize that his “surprising” proposal, if implemented, would only help the opposition Sam Rainsy Party, which would become “the only alternative to the CPP”. Rasmei Kampuchea warns: “Both the CPP and Funcinpec would inevitably lose popular votes if the two parties were to merge (...). The position of the Sam Rainsy Party would become more prominent on the political scene if the currently clearly-defined respective identities of the CPP and Funcinpec were to be destroyed to give birth to a half-breed [political creature].” Rasmei Kampuchea continues with an analysis of the reasons for the continuous rise of the opposition party. Finally, it points to the ulterior motive of Prince Ranariddh in making the statement in question. “Because his statement about the CPP absorbing Funcinpec was issued at a time when the royalist party has been suffering from successive electoral defeats, Prince Ranariddh has created the suspicion that he actually has no confidence in the viability (or survival capacity) of his party on the political scene. In any case, the Prince made his statement at a time when there are rumours of attempts by the Sam Rainsy Party to contact the CPP for a possible cooperation in the future (...). Political observers think Prince Ranariddh’s merger proposal is intended to convey the message that he and his party remain loyal and faithful to the CPP as a coalition partner. At the same time, through his message of loyalty, the Prince might want to warn the CPP against any cooperation with the Sam Rainsy Party. In short, the Prince did know the merger he proposed is impossible to achieve, but he must say something to preserve a future with the CPP.”
See full text in Khmer at http://www.cambodiapolitics.org/news/rasmei_koh/december_04/26_r.pdf

How much does Cambodia owe the rest of the world? (1)
As of 30 November 2004, Cambodia’s outstanding debt breaks down as follows:
Concessional loans: $1,692 million
- Asian Development Bank: $757 million
- World Bank: $597 million
- IFAD: $39 million
- OPEC: $28 million
- China: $84 million
- Japan: $69 million
- South Korea: $65 million
- Malaysia: $18 million
- Thailand: $14 million
- India: $10 million
- Other countries: $12 million
Other loans: over $1 billion (unclear status, to be negotiated)
- Russia (former Soviet Union): up to $1 billion (?) contracted in the 1980's under the People's Republic of Kampuchea and the State of Cambodia.
- U.S.A.: up to $200 million (?) Will the Congress accept to write-off the debt contracted in the early 1970's under the Lon Nol regime?
- Other countries (that are not members of the Paris Club): Unknown.

In total, Cambodia’s international debt may finally reach $2 billion to 3 billion, compared to a GDP of less than $4 billion.
Source: Ministry of Finance.

A remarkable DVD on deforestation in Cambodia (1)
The London-based environmental watchdog Global Witness has just produced a remarkable DVD titled “The Green Deal in Cambodia” that contains shocking scenes of the continuous destruction of Cambodia’s forest and its disastrous consequences on the rural people’s livelihoods, despite the Phnom Penh government’s repeated promises to put an end to illegal logging and to crack down on the underlying corruption.
For more information visit http://globalwitness.org/reports/index.php?section=cambodia
or send an e-mail to mail@globalwitness.org or gw.monitoring@online.com.kh or call (855 23) 219 478.

25 December 2004

CPP rejects Ranariddh’s proposal (1)
The suggestion to combine the two ruling parties into a single entity (KI, 24 December 2004: “Behind Ranariddh’s proposal to merge Funcinpec with CPP”) is apparently not welcome by the CPP. In its December 25 editorial titled, “When an alliance wants to change into a single man”, CPP mouthpiece Rasmei Kampuchea comments on Ranariddh’s “surprising” statement by pointing to the fact that no CPP leader has ever publicly talked about a merger between the two parties, and that Ranariddh made his proposal at a time when Funcinpec is facing “internal problems”. The editorial also stresses, “without the CPP, Funcinpec would face serious difficulties and would probably not be able to compete with the Sam Rainsy Party”. Finally, Rasmei Kampuchea questions the rationale of a merger and seems to deliver a lesson of democracy to Prince Ranariddh by warning that “the people could be upset by a monopoly” of power if the merger were to materialize.
See full text in Khmer at http://www.cambodiapolitics.org/news/rasmei_koh/december_04/25_r3.pdf

Ranariddh backs off from his proposal (1)
On December 25, pro-CPP newspaper Koh Santepheap describes Prince Ranariddh’s proposal to merge Funcinpec and CPP together as nothing but a “dream”. In a front-page article titled, “The merger between CPP and Funcinpec is still far away”, Ranariddh reportedly declared on December 24, while hastily leaving the National Assembly, “it [the merger] will not take place now, maybe in the distant future.” Koh Santepheap also reproduces large extracts from a December 24 article in The Cambodia Daily, in which opposition leader Sam Rainsy reportedly “welcomes the challenge of a CPP-Funcinpec merger because the SRP would then become the only alternative to the CPP.” Sam Rainsy is also quoted as saying, “Ranariddh’s announcement is a sign Funcinpec does not consider itself a true contender in the next election. There is no future for Funcinpec. The only way out with Prince Ranariddh is to stick with the CPP, otherwise Funcinpec will be wiped out.”
See full text in Khmer at http://www.cambodiapolitics.org/news/rasmei_koh/december_04/25_k.pdf

Who are Cambodia’s main donors? (2)
At the December 6-7, 2004 Consultative Group meeting, the international donor community pledged a total of $504 million to help Cambodia in 2005. The main donor countries or institutions are as follows:
Countries:
- Japan: $123 million
- U.S.A.: $44 million
- France: $33 million
- Australia: $29 million
- Sweden: $28 million
- United Kingdom: $28 million
- Germany: $17 million
- Denmark: $12 million
- Belgium: $12 million
Institutions:
- Asian Development Bank: $105 million over the next two years
- World Bank: $45 million
- European Commission: $40 million.    

24 December 2004

Behind Ranariddh’s proposal to merge Funcinpec with CPP (2)
On December 23, Funcinpec President Prince Norodom Ranariddh surprisingly called for a merger between the so-called royalist Funcinpec party (*) and the former communist Cambodian People’s Party in preparation for the 2008 national elections. Many observers think that Ranariddh made that untimely suggestion out of fear that the ruling CPP might soon dump Funcinpec as its coalition partner, following an apparent improvement in the relations between the CPP and the opposition Sam Rainsy Party.
Earlier this month, following an important donor meeting in Phnom Penh which called for genuine and accelerated reforms in order to reduce poverty, CPP Prime Minister Hun Sen expressed the possibility of involving the opposition in a nationwide “war against corruption” through a to-be-defined information sharing scheme, which opposition leader Sam Rainsy welcomed in a December 16 letter to Hun Sen encouraging the government to effectively implement the long-awaited reforms.
(*) Former King Norodom Sihanouk has shown his disapproval when journalists and observers call Funcinpec – which he founded in 1981 – a “royalist” party (KI, 24 November 2004: “King-Father's likeminded friend continues to lash out at Funcinpec”).

CPP mouthpiece suggests Ranariddh should resign (1)
In a December 16 editorial titled “Responsibility is needed to end Funcinpec’s internal disputes”, CPP mouthpiece Rasmei Kampuchea criticized Funcinpec President Prince Norodom Ranariddh for his “lack of responsibility” when he blames subordinates and other colleagues for the so-called royalist party’s severe setback at the 2003 national elections. The editorial pointed to the dignified attitude of Taiwan’s President Chen Shui-bian, who recognized his responsibility and resigned from the presidency of the Democratic Progressive Party when the latter lost its parliamentary majority following elections held earlier this month.   
See full text in Khmer at http://www.cambodiapolitics.org/news/rasmei_koh/december_04/16_r1.pdf

Pro-CPP newspaper: A golden opportunity (1)
Pro-CPP newspaper Koh Santepheap on December 24 published an editorial titled “Golden opportunity”, which encourages all Cambodian political parties to work together to promote the country’s development. It says the current situation characterized by the recent accession of the young King Norodom Sihamoni to the throne while King-Father Norodom Sihanouk is still with us, the unprecedented determination of the government to implement reforms and fight corruption, the promise of a continuous assistance from the international community, and the less confrontational attitude of the opposition – which on December 22 helped adopt the national budget for 2005 – constitutes a “golden opportunity” not to be missed.  
See full text in Khmer at http://www.cambodiapolitics.org/news/rasmei_koh/december_04/24_koh2.pdf

21 December 2004

King-Father accuses political leaders of violating Constitution (1)
In a December 18 statement posted on his website, King-Father Norodom Sihanouk accuses the “men in power from 1993 to 2004” of violating the 1993 Constitution on the following points:   
1- They have never allowed the National Congress to convene as during the period of the SRN [Sangkum Reastr Niyum, from 1955 to 1970] [as stated in Chapter 12 of the Constitution].
2- They have prohibited peaceful demonstrations; furthermore they have repressed, by using mortal means, demonstrators and protestors who were simply exercising their constitutional rights.
3- They have staged several coups d’état against the winners of general (legislative) elections.
4- They have violated the 1991 Paris Agreements which forbid [signatories] from considering as valid the unfair treaties between the Socialist Republic of Vietnam and the Popular Republic of Kampuchea – or State of Cambodia – regarding the false territorial integrity (land and sea areas) of Cambodia.
5- H.E. Var Kim Hong [head of the Council of Ministers’ joint Border Commission] dared show me [about two years ago] a falsified geographic map of Cambodia, which he deceitfully asserted as being a map from the SRN.
See full statement in French at http://www.norodomsihanouk.info/mes%2004/decembre/2012txt3.htm

Why Royal Air Cambodge went bankrupt (2)
Earlier this month Prime Minister Hun Sen applauded, while King-Father Norodom Sihanouk deplored, the bankruptcy of national flag carrier Royal Air Cambodge. The airline company was formed in 1994 but ceased all operations in 2003, laying off several hundreds employees and leaving some $20 million debts to be settled by the Cambodian government.
Opposition leader Sam Rainsy wrote in 1995 (see KI, 04 December 2004: “Destructive policies continued for 10 years despite early warnings”): “The contract creating Royal Air Cambodge (RAC) leaves one puzzled as to the earning capacity of the enterprise given that RAC has signed a number of agreements with Malaysian Airline System (MAS), a subsidiary of its foreign [major] shareholder Malaysian Helicopter Services (MHS). These confidential agreements, covering management services, leasing of aircraft, and appointment of MAS as RAC’s worldwide general sales agent, leave latitude to switch profits from one entity to another through profit-transfer pricing techniques.” With the complicity of corrupt Cambodian officials, the Malaysian partners had actually siphoned off huge amounts of cash from RAC from its inception until its demise.

19 December 2004

State revenues from tourism have been underestimated (2)
State revenues from tourism are composed of three main items: visa fees, civil aviation (airport taxes and air traffic fees), and sale of tickets (Angkor Wat). Their increase should be proportional to the increase in the number of tourists. Visitor arrivals reached 701,000 in 2003 and will probably exceed 975,000 in 2004 (+40%). The figure could reach 1.1 million in 2005 (+13%).
However, according to figures relating to the implementation of the Budget Law for 2004, total revenues from tourism were much lower than rationally expected (KI, 17 December 2004: “Poor implementation of the national budget for 2004”), and the Budget Law for 2005 shows that the government surprisingly anticipates a decrease for next year, to $44 million.
While the number of tourists will likely increase by more than 50% between 2003 and 2005, the government expects revenues from tourism to increase by hardly 10% over the same period of time. This means that additional revenues of up to $20 million could be collected in 2005 if serious measures were taken to reduce corruption in this sector.

18 December 2004

Corruption money to gradually return to the State (2)
The National Assembly will debate on Monday, December 20, the draft Budget Law for 2005 submitted by the government. A recently-released report entitled, “Cambodian Corruption Assessment” prepared for the U.S. Agency for International Development (USAID) estimates “annual diversions from government coffers ranging between $300 and $500 million”. Opposition leader Sam Rainsy wrote on December 14 in Cambodge Soir: “If we start curbing corruption, at least a portion of the funds that have been up to now diverted should go back to the State coffers (...). In comparison to the 2004 Budget Law, [tax and non tax revenues] in the 2005 Budget are expected to increase by $78 million (+16%). This 16% increase is in line with the increase in State revenues recorded each year since 1998 (...); it has not accounted for any anti-corruption reform; it only reflects the growth of the economy and adjustments made since 1993 to increase the initially very low tax to GDP ratio so as to give more means to the State to improve public services. Therefore, no positive effect from the fight against corruption has been accounted for in the 2005 Budget.”
Full statement at http://www.samrainsyparty.org/national_assembly/2004/12/041218_anti-corruption_reforms_en.htm

Basis for comparison to assess a corruption case involving Ranariddh (2)
There is an ongoing controversy over the construction cost of the National Assembly’s new building. Three new government buildings of similar size and standing have been (or are in the process of being) completed in (or near) Phnom Penh with the following construction costs as officially stated:
- Ministry of Foreign Affairs: $12 million.
- Army Headquarters: $10 million.
- National Assembly: $27 million.
On 10 January 2003, Assembly President Prince Norodom Ranariddh approved the $27-million contract while there was a practically identical offer from another construction company for only $13 million. Opposition Members of Parliament have suggested an audit of the project but to no avail.

For further information see KI, 16 August 2004: “Assembly officials share a $15-million commission”; KI, 07 September 2004: “Evidence of corruption at the National Assembly”; KI, 16 October 2004: “A strange clause in the National Assembly construction contract”; KI, 22 October 2004: “Prince Ranariddh fears corruption lawsuits”.

Government-banned book can be read online (1)
The Phnom Penh government has recently banned the sale and circulation of a book first published in France, titled “Who is Angkar”, that alleges involvement by Prime Minister Hun Sen and other high-ranking officials in the crimes of the Khmer Rouge regime (The Cambodia Daily, 17 December 2004: “Government Bans Book Criticizing Current Leaders”).
The Khmer-language book is posted on http://absara.free.fr/Khmer-books/1angkar-cheanona.htm

17 December 2004

Poor implementation of the national budget for 2004 (2)
For the first ten months of 2004, while 83.3% of any objectives for the whole year should have been achieved, the following items reached the following percentage of their target:
Current revenue:
- Tax revenue ($300 million): 82%
- Non tax revenue ($94 million): 60%
Current expenditure:
- Wages ($114 million): 68%
- Non wages ($127 million): 41%
Capital expenditure:
- Domestic financing ($59 million): 72%
- External financing ($161 million): 92%
Spending by ministry/sector:
- Defence and security ($63 million): 58%
- Education ($46 million): 52%
- Health ($16 million): 29%
- Agriculture ($5 million): 46%
- Rural development ($2 million): 26% percent.

Revenues (especially non tax revenue) have been lower than expected but expenditures have been cut even more drastically (especially in the “priority sectors” made up of education, health, agriculture, and rural development), which results in a relatively easy cash situation (with a current surplus of $77 million) and a further deterioration in basic public services (KI, 11 June 2004: “Drastic spending cuts in social sectors”; KI, 13 February 2004: “Social ministries go short of cash”).
As reflected in the above figures, defence and security ($63 million) continue to absorb a larger portion of the national budget than education and health ($62 million).

Sam Rainsy meets with French Cooperation Minister (2)
Opposition leader Sam Rainsy had a meeting with French Cooperation Minister Xavier Darcos upon his arrival in Cambodia on December 16. Darcos is in the country for a three-day official visit.

13 December 2004

Cambodia has gone backward (1)
As already suggested (KI, 06 January 2004: “Details about mortality and illiteracy rates”), Cambodia is the only country in the world where all of the three most important human indicators (poverty, mortally, and illiteracy) have worsened over the last ten years, meaning the country has gone backward.

Poverty (percentage of the population living on less than $0.75 a day):
- 1992: 38%.
- 1998: 36%.
- 2004: 43%.
- 2005 (est.): 45%.
(Sources: World Bank, UNDP).

Infant (under 5) mortality rate:
- 1990: 97 / 1,000.
- 2001: 138 / 1,000.
- 2003: 140 / 1,000 [compared to 23 / 1,000 for Vietnam, and 5 / 1,000 for Singapore].
(Sources: UNDP “Human Development Report” 2003; Unicef “Childhood Under Threat: The State of the World’s Children 2005” Report).
 
Adult (age 15 and above) illiteracy rate in 2003:
- Analphabetism (no knowledge of the alphabet): 36 %.
- Illiteracy (some knowledge of the alphabet but inability to read and write properly): 27%.
- Total adult illiteracy rate: 63%, compared to less than 60% in 1990.
(Sources: UNDP, Cambodian Ministry of Education).

The plight of Cambodian children (1)
- 14 percent of Cambodian babies born today will die before reaching the age of five.
- Almost one in every 10 babies born in Cambodia does not live to their first birthday.
- 60,000 to 65,000 Cambodian babies (less than one-year old) die every year of malnutrition or disease that can be prevented or cured.
- 45 percent of Cambodian children are malnourished.
- 54 percent of Cambodian children suffer from stunted growth.
- 66 percent of Cambodian children do not have access to safe water.
- 2.2 million children in Cambodia live in absolute poverty.
(Sources: UNDP, Unicef).

Who is the prestigious “fake” Cambodian who opposes Hun Sen? (2)
In a December 10 interview posted on his website, King-Father Norodom Sihanouk indirectly responded to Prime Minister Hun Sen who had recently denounced a “prestigious fake Cambodian” as his most virulent critic. According to the King-Father, Hun Sen might have targeted himself (Norodom Sihanouk), or Ruom Ritt, his childhood friend who has been expressing views similar to his, or opposition leader Sam Rainsy. But in the King-Father’s opinion, none of the three “suspects” matches Hun Sen’s accusation or description.
See full interview in French at http://www.norodomsihanouk.info/mes%2004/humour/1112hum1.htm

9 December 2004

King-Father suggests initiative to defend Cambodia’s territorial integrity (1)
In a December 8 text in French to be published in the Bulletin Mensuel de Documentation but already posted on his website, King-Father Norodom Sihanouk suggests an initiative to defend Cambodia’s territorial integrity, which consists in asking the governments of our three neighboring countries (Vietnam, Thailand, and Laos) to join hands with the Cambodian government to “officially verify (in a bilateral way), directly on the spot, the correct delineation of our common borders as of today by using credible geographic maps, the best of which (in my humble opinion) are US military maps used by the US Army (Infantry, and Navy) between 1963 and 1969.” Approximately one year ago, then-King Norodom Sihanouk reportedly met with a top official of the Vietnamese Communist Party and made a proposal reflecting the above suggestion. He specified to the Vietnamese leader that he would accept to go in person to check “unclear” border areas, hand in hand with any Vietnamese leader. No reply has since come from Hanoi.

International Anti-Corruption Day (1)
Today corresponds to International Anti-Corruption Day. Only two days after the last meeting of the donor Consultative Group for Cambodia, which has strongly denounced rampant corruption in this country (KI, 07 December 2004: “Donors reduce aid and spell out conditions for disbursement”), nobody today celebrates in any way this International Anti-Corruption Day, which is not even mentioned in local newspapers.

08 December 2004

How donors’ message is perceived by the CPP (2)
In its today’s edition, CPP mouthpiece Rasmei Kampuchea reflects the way the ruling CPP perceives the strongly-worded message that international donors delivered to the Cambodian government at the last CG meeting (KI, 07 December 2004: “Donors reduce aid and spell out conditions for disbursement”). The most prominent article titled “Cambodia receives $504 million for 2005 along with a push [to achieve] efficiency, reform and elimination of corruption”, recognizes that the Cambodian government has been “criticized” by donors for the low speed of reforms aimed at improving governance and aid effectiveness. It says the aid amount of $504 million is “similar” to pledges announced in previous years, and is “in line” with demand formulated by the Cambodian government. However, readers are “reminded” that “the government’s financing needs expected to be covered by donors amount to $1,8632 billion for the three-year period from 2005 to 2007, meaning $621.1 million a year.”
The article notes that this year’s $504-million pledge is “lower than the $635 million pledged at the 2002 CG meeting [while the government had asked for only $500 million]”. The article elaborates on past CG meetings, with pledges amounting to $501 million in 1996, $450 million in 1997, $471 million in 1999, $548 million in 2000, and $556 million in 2001.
World Bank representative Ian Porter is quoted as saying: “Cambodia is at a crossroads. We believe the Cambodian government is facing a number of difficult choices in the next few weeks or months”, while US Ambassador Charles Ray has reportedly declared: “The donor community considers corruption and accountability as the two most critical problems facing Cambodia today”.
Original article in Khmer at http://www.cambodiapolitics.org/news/rasmei_koh/december_04/08_r2.pdf

A controversial representative of the civil society (2)
At the last donor CG meeting (KI, 07 December 2004: “Donors reduce aid and spell out conditions for disbursement”), a controversial representative of the civil society was allowed to take the floor: Bretton Sciaroni, chairman of the “International Business Club”, who was hired as a lawyer by the CPP in May-June 1993 to contest the results of the elections organized by the United Nations. The CPP lost those elections and started a secessionist movement in order to blackmail the winning Funcinpec and former King Norodom Sihanouk.

Home-delivered PhDs (2)
Prominent commercials in recent issues of Rasmei Kampuchea and Koh Santepheap show Sok Kong, a prominent businessman (chairman of Sokimex conglomerate), and Nhim Vanda, a prominent politician (holding several positions in the government) receiving in Phnom Penh PhD degrees from the dean of Bharath University, India. Similar PhDs can be home-delivered to anybody who financially qualifies.     

07 December 2004

Donors reduce aid and spell out conditions for disbursement (1)
The two-day Consultative Group meeting ended in Phnom Penh this afternoon with some donors (World Bank, ADB, Germany, and USA) announcing a reduction in their aid and all of them strongly pressing the Cambodian government to effectively fight corruption and implement a series of fundamental reforms. Total pledges amount to only $504 million against $635 million (or $514 million on a comparable basis) in 2002 (there was no CG meeting in 2003 because of a political crisis). The Phnom Penh government asked for $1.863 billion over the next three years, or $621 million a year. Besides a reduction in the amount of their assistance, donors have spelt out conditions, in the form of benchmarks, for the effective disbursement of their pledges. Their future pledges also will be linked to performance.
The opposition Sam Rainsy Party issued today a statement titled “International Aid Wiped Out By Corruption”, in which the total cost of corruption for Cambodia is estimated to exceed $800 million a year.   
Full statement at http://www.samrainsyparty.org/national_assembly/2004/12/srcorruptioncosts041207.htm

06 December 2004

International aid to Cambodia has reached $5 billion since 1993 (2)
Finance Minister Keat Chhon confirms that international assistance to Cambodia totals approximately $5 billion since the formation of the Royal Government in 1993 (The Cambodia Daily, 2 December 2004: “Expatriate Experts Swallow One-Fifth of Government Spending”). Aid started to massively pour in after the second International Conference on the Reconstruction of Cambodia (ICORC) in Tokyo in March 1994. Over the last ten years, disbursements have reached between $500 million and $600 million a year, making a total of over $5 billion.
Out of the minimum $500 million that has been disbursed every year, less than $200 million was actually spent – and remained – in Cambodia, which represents slightly over 6 percent of the country’s GDP (average over the 10-year period). This 6 percent rate roughly corresponds to Cambodia’s annual economic growth rate over the same period of time, with no apparent multiplier effect and no significant progress in poverty reduction.

Prince Ranariddh dodged colleagues and journalists (1)
Voice of America last night reported that Funcinpec President Prince Norodom Ranariddh flew back to Phnom Penh on December 5 after a one-month absence from Cambodia. But just after getting off the plane, he immediately and surreptitiously left the airport through the backdoor so as to avoid hundreds of people (party colleagues, government officials, and journalists) who were waiting to greet him – and to ask him a few questions – at the airport section reserved for VIPs.

King-Father sceptical about Funcinpec's “reforms” (1)
In an annotation in the margin of an article titled “[Disgruntled Funcinpec officials] hope to be heard by Prince Ranariddh” in the November 23 edition of Cambodge Soir, King-Father Norodom Sihanouk wrote: « Those “reforms” [Prince Ranariddh is talking about] only further discredit Funcinpec. »
Source: Bulletin Mensuel de Documentation, 18-24 November 2004.

04 December 2004

World Bank and ADB reduce aid because of poor governance (1)
Excerpt from World Bank report “Cambodia at the Crossroads” to be discussed at next week’s donor meeting (Chapter 6: “Improving Aid Effectiveness”; Sub-chapter F: “How Cambodia’s Development Partners Could Support Better Governance”; page 122): “Some donors, such as the World Bank and the [Asian Development Bank], link the overall country program resource envelope to country performance in an automatic and non-discretionary manner. The World Bank, for example, uses an annual Country Policy and Institutional Assessment (CPIA) to score each country according to a range of criteria. The sub-set of governance indicators are now heavily weighted in the overall CPIA score. In the case of Cambodia, the scores for three of the five governance indicators remained largely the same [showing no progress in governance] or declined between 1999 and 2003 (...). In terms of comparison with other [International Development Assistance] countries, Cambodia in 2003 (...) scored worse than the average for IDA recipients in all five governance criteria. As a result, the Word Bank’s overall IDA allocation for assistance to Cambodia has been reduced. The ADB uses a similar performance rating to assign country-level funds and, on the same basis, has reduced allocations through its Cambodia country window.”   

Destructive policies continued for 10 years despite early warnings (1)
Excerpts from documents submitted by former Finance Minister Sam Rainsy to a ministerial level donor meeting (International Conference for the Reconstruction of Cambodia) in Paris, March 1995:
- An Appeal to the Public Opinion of Donor Countries, pages 2 and 4 : “The [Cambodian] peasantry has indeed more need for wells, reservoirs and canals to irrigate their paddy-fields and other agricultural land, than for the golf-courses and casinos which appear to constitute the priorities of the present Government (...).
International aid can promote a country's development or it can hinder it. The second hypothesis can unfortunately occur if foreign assistance encourages and nourishes corruption, if it maintains and consolidates a conservative system whose sole purpose is to protect its own vested interests, if it exempts the recipient country from making the efforts and showing the imagination necessary to help herself. It is such a hypothesis that must be avoided in the case of Cambodia. To do so, the conditions for the continuation of aid must be clearly set: the establishment of a true rule of law; the creation of a truly independent judicial system; respect for human rights and democratic principles; the preservation of the environment and a sound management of natural resources; the fight against corruption, notably by adopting transparent mechanisms for public decision-making; and the carrying out of indispensable structural reforms to improve the economy and strengthen the society.”
 - The Logging Issue - Its Impact on Public Finance, Environment and the Food Situation, page 8: “It is imperative that the Cambodian Government indeed enforces the total ban on timber exports from 1 May 1995 that is has already declared. It is further imperative that the Government makes it clear that the ban on logging applies to all forest concessions, a complete list of which should be made public.
Prior to any further felling or export of timber in the future, a complete inventory of Cambodia's forest resources must be made. The Royal Government should prepare a public policy document on "the management" of the "forests and forest products". This document must cover at least a ten-year period.”
- Deforestation and Food shortage in Cambodia, pages 1 and 2: “The world community must not only agree on providing massive and urgent food aid to Cambodia for this year, they must ask themselves questions about the causes of this famine which will grow more and more intolerable in the course of the following months. Merely alleviating the symptoms is no substitute for treating the disease itself.
The series of floods and droughts which have recently hit Cambodia are directly linked to the deforestation which has accelerated over the last few years. Poor crops, food shortages and the risk of famine cannot be effectively dealt with unless one carefully assesses the relation between these phenomena.”
- How International Aid Can Foster Development, pages 2 to 4: “Development, to be real, must be sustainable. Assistance, to be effective, must seek to foster and ensure sustainability.
Four examples can be given of areas which donors should carefully consider when deciding how to give their assistance, and use their influence, most effectively:
▪ Strengthening the rule of law
▪ Respect of the law by the Government itself. For the democratic system of checks and balances to work, it is vital that the National Assembly and the Judiciary have the right to examine and judge whether the Government has indeed acted according to the law
▪ Forest management: Deforestation and its consequences is a classic case where the donor nations can use their assistance for the benefit of the recipient country. In many ways, forestry policy can be seen as a pointer to the Cambodian Government's commitment towards sustainable development because it involves so many crucial issues: transparency in public decision-making, respect for the law and for the public finances, empowerment of the local community by involving them in decisions concerning their habitat, and accountability for the effects of one's policies on the country's future
▪ Budget: Instead of addressing the economic and social needs of the poor, the bulk of the Cambodian Budget is being devoted to military expenditure, with nearly 50% of total current expenditure allocated to defence and security.
The donor community should not give a blank cheque. Rather it should provide assistance in stages, impose conditions on its disbursement and continuation, and closely monitor the use made of such assistance to ensure that it contributes to the long-term development of our country. Such conditions should include greater transparency in public decision-making, the continuation of structural reforms (such as land and fiscal reform), the establishment of a true rule of law, the strengthening of democratic institutions and mechanisms, and guarantees that fundamental human rights will be respected.”
More information at www.samrainsyparty.org

World Bank sanctions firms in Cambodia Project (1)
World Bank officials announced on November 22 the debarment of five individuals and four firms for fraudulent practices (corruption) in relation to the Bank-financed Cambodia Demobilization and Reintegration Project in Cambodia. The firms and individuals will be ineligible to receive new Bank-financed contracts for the periods of their debarments. The actions follow an investigation of certain procurement irregularities concerning a US$6.9 million contract for the supply and maintenance of motorcycles. The project intends to assist Cambodia in demobilizing 30,000 soldiers, to aid former soldiers in adapting to civilian life, and to contribute to reallocation of budget resources to social sectors.
More information at
http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:20284953~menuPK:34463~pagePK:64003015~piPK:64003012~theSitePK:4607,00.html

A Cambodian Jan Palach ?  (3)
On November 17, Ouk Vorn, 65, set himself alight next to a small Buddhist shrine, practically in front of Prime Minister Hun Sen’s residence in Phnom Penh. Seriously burnt, he was taken to hospital but died shortly after. According to the Phnom Penh Post (November 19, “Man commits suicide by fire”), “Tal Harhas, an Israeli tourist who was riding his bicycle past as the man was engulfed by flames, said he saw another man take a note from the shrine and show it to a uniformed policeman.” But after the victim was taken to hospital, “police refused to give further information about [the note taken from the scene], according to different witnesses.” Friends and relatives say Ouk Vorn was an educated man, who suffered no particular problem and had no apparent motive for committing suicide. Anyway, it is extremely rare in Cambodia for anybody to commit suicide by fire like Ouk Vorn. Only one similar case had ever been recorded: in 1998, in the midst of anti-government demonstrations following allegedly flawed elections, a man set himself alight and died at the foot of the controversial monument in Phnom Penh honouring Vietnamese soldiers who helped liberate Cambodia in 1979. Like in Ouk Vorn’s case, police had retained information about the man and what he intended to express.     
At least Ouk Vorn’s case may be reminiscent of Jan Palach’s, the Czech student who committed suicide in political protest by self-immolation in January 1969, in the wake of the Soviet-led invasion of Czechoslovakia in 1968.

KI welcomes visitors from faraway countries (1)
According to statistics provided by our Web Hoster (Seanic /Net Web Hosting Control Panel) visitors from a record number of countries (57) visited Khmer Intelligence website in November 2004. Most visitors are based – in decreasing order – in Cambodia, USA, France, Australia, Canada, Japan, Switzerland, Thailand, New Zealand, United Kingdom, Singapore, Belgium, Netherlands, Sweden, and Germany. KI welcomes an increasing number of visitors from politically faraway countries (or with no large Cambodian communities) such as India, Denmark, Greece, Turkey, East Timor, and Papua New Guinea.

03 December 2004

King-Father not amused by Prince’s “black humour” (1)
King-Father Norodom Sihanouk is apparently not amused by what he calls Prince Ranariddh’s “black humour” when elaborating on Funcinpec’s attempt to remove opposition leader Sam Rainsy’s parliamentary immunity (KI, 09 October 2004: “Sam Rainsy to be stripped of his parliamentary immunity”; KI, 20 October 2004: “Sam Rainsy could face prosecution”; KI, 07 November 2004: “International community cautions against removal of parliamentary immunity”). In an annotation in the margin of a Cambodge Soir’s article (November 1^st) quoting Prince Ranariddh as saying: “We must not prevent the [independent] Judiciary from doing its work [and removing Sam Rainsy’s immunity]”, the King-Father blasted Prince Ranariddh’s “black humour” when the Funcinpec president referred to the “independence” of the present Judiciary in Cambodia.
At an audience granted to human rights group leader Kem Sokha on November 23, the King-Father again cautioned against the removal of any National Assembly member’s parliamentary immunity for political reasons.
Sources: Bulletin Mensuel de Documentation (01-06 November 2004), and statement by Kem Sokha.  

CPP opposes removal of parliamentary immunity (2)
In a December 3^rd front page article titled: “National Assembly Permanent Committee discussed request to remove Opposition leader’s immunity”, CPP mouthpiece Rasmei Kampuchea says that, at a December 2^nd meeting, the Permanent Committee decided to “suspend the request, pending the return of [Assembly President] Prince Norodom Ranariddh.” Therefore, “as we approach the donor CG meeting scheduled for December 6 and 7”, the issue of immunity removal will not likely be on the agenda for the Assembly’s extraordinary session to be convened around December 10 to adopt the Budget Law for 2005.
Also on December 3, pro-Funcinpec newspaper Samleng Youvachun Khmer published the answer of CPP acting Assembly President Heng Samrin to the question whether CPP Assembly members would give their support for the removal of Sam Rainsy’s immunity at the request of Prince Ranariddh: “I am in favour of unity and reconciliation, so that our Assembly’s work can proceed smoothly.”       

02 December 2004

NGO leader to form political party (3)
Over the last few weeks, Thun Saray, president of the rights group Adhoc, has approached several civil society leaders as well as Funcinpec and SRP officials, proposing them to form a new political party to contest the forthcoming elections (local elections in 2007, and national elections in 2008). He told them that, even though he might lose the financial support his NGO has been receiving from donors, in particular the European Union that supports Cambodian civil society, the new political party would have no financial problem.

01 December 2004

Parallel CG meetings (1)
Shortly ahead of an important donor gathering (KI, 04 November 2004: “Schedule of the December 6-7 Consultative Group meeting”), the civil society and the parliamentary opposition conveyed yesterday and today their concerns and recommendations to representatives of the international donor community in Phnom Penh.

Civil society’s dialogue with donors (1) 
At a forum held on November 30, some 200 NGOs and civil society groups made a joint plea for Cambodia’s donors to stand their ground against a government they criticized for flaunting international aid and stalling crucial reforms. They urged donors to adopt a united stance and be prepared to scrutinize the government’s reform agenda that has flagged or failed to produce results after a decade of foreign assistance totaling $3 billions. Participants expressed the view that “the ball is in the donors’ court”, blaming the aggravation of poverty over the past ten years on donors’ leniency and complacency when dealing with the corrupt Phnom Penh government. Donors are asked to better coordinate among themselves and to set clear benchmarks for the government, with a series of consequences if the government fails to meet those benchmarks.

Opposition’s dialogue with donors (1)     
The opposition Sam Rainsy Party hosted on December 1^st a meeting with a group of donor representatives, including Japan, France, USA, World Bank, Asian Development Bank, and UNDP. A statement says the SRP supports the World Bank’s recommendations contained in “Cambodia at the Crossroads” (KI, 28 November 2004: “World Bank report puts both government and donors before crucial choices”) and will help in their implementation. Because “any improvement in governance means a strengthening of democracy, and vice versa”, the SRP calls on donors to help consolidate democracy in Cambodia, at all levels, by pressing for the election of new village chiefs, the respect for the rights of the opposition at the National Assembly, the election (not appointment) of Senators starting from 2005, an overhaul of the National Audit Authority, an overhaul of the National Election Committee, and the creation of a Governance Council in order to institutionalize a dialogue between donors and all Cambodian stakeholders.
Documents on government corruption prepared by former Finance Minister Sam Rainsy for a previous donor meeting in Paris in 1995 were also presented, which show the situation has not improved over the last ten years.
See “Recommendation to the CG Meeting on Governance and Democracy” at
http://www.samrainsyparty.org/national_assembly/2004/12/041201_recommendation_to_cg_meeting_gov_democracy.htm
See “Historical documents for donors (Paris, March 14-15, 1995)” at
http://www.cambodiapolitics.org/appeal%20to%20donor%20countires/appeal_to_donor_countries_1.pdf

29 November 2004

U.N. report stresses the need for urgent land reform (1)
Peter Leuprecht, the Special Representative of the United Nations Secretary-General for Human Rights in Cambodia, issued earlier this month a 39-page report (+ several annexes) titled “Land concessions for economic purposes in Cambodia – A human rights perspective”.
The report timely addresses the critical issue of land distribution, stressing the need for a land reform if Cambodia is to engage in any real development process (KI, 26 February 2004: “The Mystery of Capital” or the missing knowledge to address persistent poverty”).
Talking about land management by the government and referring to the 80 percent of Cambodia’s territory that is owned by the state but is being transferred to private companies with powerful connections, Leuprecht writes: “The situation I met shocked me. The companies have been given rights over land that are very similar to ownership. Yet they have little or no regard for welfare; and they contribute little, if anything, to overall state revenue. I have concluded that the policies are wrong. They are not reducing poverty in Cambodia, and they are allowing the continued plundering of its natural resources.”
Leuprecht calls on the international donor community to push the Cambodian government to seriously address the issue of corruption and to implement a land law and a forest law [written with the assistance of foreign advisers] that exist only on paper.
See full Report at http://www.cambodiapolitics.org/united_nations/u_n_report_nov_2004.PDF

Global Witness report stresses the need for urgent forestry reform (1)
The respected London-based environmental watchdog Global Witness published this month an alarming report titled “Taking a Cut” and subtitled “Institutionalised Corruption and Illegal Logging in Cambodia’s Aural Wildlife Sanctuary”. The abundantly illustrated 54-page report is a timely reminder of the tragic deforestation process that is destroying the livelihood of the Cambodian people (KI, 07 November 2004: “Deforestation continues unabated”; KI, 17 November 2004: “How deforestation leads to floods and droughts”).
As quoted in the November 22 edition of The Cambodia Daily (“Illegal Timber: Seeing the Forest for the Thieves”), “Government officials responsible for cracking down on illegal logging are actually organizing and profiting by the lucrative black-market timber trade in a web of corruption that reaches the highest levels of government.” The report points to “the countrywide involvement of local and national military, military police, police, forestry, environmental, provincial and district officials in illegal logging.”
Global Witness criticized officials and donors for not effectively fighting corruption. It called on donors to tie non-humanitarian aid to reforms such as the full disclosure of documents relating to the forestry sector and the creation of a register of business and familial links to the timber trade for politicians, civil servants and military officers.
The following government officials were mentioned with their photos in the report: Prime Minister Hun Sen, General Hok Lundy (National Director-General of Police), General Ke Kimyan, General Pol Saroeun, General Meas Sophea, General Kun Kim, General Mol Roeup, Lt-General Dom Hak (who was involved in a recent drug-trafficking scandal), Lt-General Moeng Samphan, Lt-General Sao Sokha (Commander, Military Police), Major-General Hing Bun Heang (Commander, Hun Sen’s bodyguard unit B70), Ty Sokun (Forestry Administration Director), Om Yentieng (advisor to Hun Sen on Human Rights issues).
See full Report at http://globalwitness.org/reports/show.php/en.00066.html

28 November 2004

World Bank report puts both government and donors before crucial choices (1)
A landmark document in development approach and international assistance to Cambodia has been “prepared by the World Bank in collaboration with the IMF for the Cambodia Consultative Group Meeting” to be held in Phnom Penh next month (KI, 04 November 2004: “Schedule of the December 6-7 Consultative Group meeting”). Titled “Cambodia at the crossroads”, the 124-page report has already been given to diplomats and journalists.  
Some of the World Bank’s most interesting conclusions and recommendations are reflected in the November 19 – December 02 edition of the Phnom Penh Post (“Billions in aid ineffective”). Excerpts:
« After a decade of pumping $500-600 million of foreign aid per year into Cambodia, little has been achieved in terms of poverty, public health, corruption, accountability, governance and jobs, says the World Bank in its briefing paper (...).
The World Bank remains extremely concerned about more people starving, more children dying of disease, endemic corruption, weak governance, lack of jobs, rape of natural resources, land-grabbing, and warns that growth could collapse after the garment industry preferential quotas end December 31.
However, the donors are part of the problem, [says the World Bank’s country manager Nisha Agrawal]. “We believe part of the problem is the ineffective way we donors are providing assistance. Because of our complicated procedures, the lack of coordination, gaps in important areas and duplications in others, and high volumes of aid coming in the form of technical assistance, it’s not being well used. We need to harmonize what we do collectively and align our missions with the country’s priorities.”
“At the next [Consultative Group] meeting, what is less important is the amount of aid and what is more important is the quality of that aid. How do we deliver at less cost to government and where does it go?” (...)
On “capacity building”, Agrawal said it should be within the capacity of the [Cambodian] government to deliver their own programs. “We believe donors, instead of trying to teach them [Cambodian leaders], have been doing it for them. They [donors] have been substituting their own people. There are an estimated 800 foreign advisers here, and that is large by any standards, including African countries.” »
See the full World Bank report at http://www.cambodiapolitics.org/IMF/world_bank.pdf

800 foreign advisers earn more than 300,000 Cambodian State employees (1)
The latest World Bank report (“Cambodia at the crossroads”) says there are some 800 foreign advisers currently working in Cambodia. “These advisers cost donors collectively more than the government’s total wages bill” (representing a $146 million disbursement in 2003) that covers the salaries for approximately 300,000 Cambodian civil servants, policemen and soldiers.
Therefore, each foreign adviser earns on average $15,000 per month versus $40 per month for an average Cambodian State employee. Both figures include fringe benefits.

Cambodia’s three parties have different strategies to fight corruption (1)
The following is an excerpt from the recently released report titled “Cambodian Corruption Assessment” (page 8) sponsored by the U.S. Agency for International Development (KI, 04 November 2004: “USAID document says corruption costs the State between $300 and $500 million a year”). It shows the respective strategies of Cambodia’s three main political parties in dealing with government corruption, which is unanimously considered as the most crucial issue facing Cambodia.
« Political Party Efforts:
- The Cambodian People’s Party (CPP) does not seem to acknowledge the need for anti-corruption reforms at all, and [our investigating team] is unaware of efforts that have been taken in this direction.
- Funcinpec offers the Governance Action Plans I and II [written by foreign advisers paid by technical assistance from donors] as their strategy to address governance and corruption problems, and [our team] was assured that, if implemented, these plans would solve the problems facing the country. But when Funcinpec leaders were probed for more concrete plans, for examples and explanations of how specific departments or programs might be reformed step-by-step, no concrete responses were forthcoming.
- Sam Rainsy Party leaders (SRP) struck [our team] as far more analytical in diagnosing problems, and more concrete in prescribing solutions. Their booklet, “100 Measures to be Implemented by a Sam Rainsy Party Government”, offers a far more comprehensive analysis of Cambodia’s problems, and more concrete solutions, than are available from the other parties. »
Full USAID report available by clicking at
http://www.cambodiapolitics.org/cambodian_corruption_assessment.pdf
Sam Rainsy Party’s “100 Measures” available by clicking at
http://www.cambodiapolitics.org/100m_neg/100m_eng.pdf

26 November 2004

IMF-suggested tax reform increases corruption and poverty (2)
On the advice of the International Monetary Fund the Cambodian government has dramatically increased taxes on gasoline over the last few years. As a result, the retail price of gasoline is now approximately 50 percent higher in Cambodia ($0.75 per litre) than in neighboring countries ($0.50 per litre), which has led to a spectacular boom in illegal import (smuggling) from Thailand and Vietnam.
According to a report recently released by the U.S. Agency for International Development (KI, 04 November 2004: “USAID document says corruption costs the State between $300 and $500 million a year”), “legal import of petroleum has not increased over the past 10 years, while the number of vehicles has increased fivefold. Just for this one product, a large smuggling industry must necessarily be in place, providing significant payments into the illicit system.” (Cambodian Corruption Assessment, page 3).
The above case is an example of a well-intended measure as suggested by the IMF (to increase tax revenue for the state), but the measure was ill-conceived because it did not take into account the legal and political context (no rule of law, systemic corruption taking advantage of porous borders).
The Cambodian government has been enthusiastic about the IMF's suggestion since the very beginning, knowing its corrupt officials would be able to pervert the tax increase and to divert revenue from the state coffers.
Only foreign-owned petroleum companies (Caltex, Shell, Total), which account for less than one fifth of Cambodia’s import of gasoline, pay taxes as required by the law. At the current level of gasoline retail price, they are hardly breaking even. Their Cambodian competitors (Kampuchea Tela, Sokimex), which are owned by pro-CPP businessmen or government officials and/or their relatives, do not pay any tax at all, while selling gasoline at the same retail price as their foreign competitors.
Because of the “illicit system” – as the USAID report puts it – the loss of revenue for the state amounts to nearly $90 million a year (*), which represents in fact a private tax levied by some top CPP officials and their business cronies on the public. Corruption definitely increases poverty.
See USAID report at http://www.cambodiapolitics.org/cambodian_corruption_assessment.pdf
(*) According to the Economic Institute of Cambodia ("Cambodia Economic Watch", October 2004), taxes effectively collected on petroleum products represented $69.7 million in 2003, of which $22.4 million from gasoline. The loss of revenue due to gasoline smuggling is four times that amount, i.e. $89.6 million.
 

Schedules of political leaders (1)
Continued from KI, 04 November 2004: “Schedules of political leaders”:
- Hun Sen: left Cambodia for Laos on November 25 to attend the 10^th Asean summit meeting and some other meetings with Asian/Pacific leaders. Will be absent from Cambodia for about a week.
- Norodom Ranariddh: is currently still in France. Will attend the Association of Asian Parliaments for Peace (AAPP) conference to be held in Pakistan from November 29 to December 03. Is expected to be back in Cambodia on December 04 (?).
- Norodom Sirivudh: left Cambodia on November 21 to attend the Fifth Francophone Summit in Ouagadougou (Burkina Faso) on November 26 and 27. Traveled through Paris and met with Prince Ranariddh there earlier this week.
- Sam Rainsy: currently in Phnom Penh after returning from France on November 19. Had a meeting in Paris with Eric Raoult, Vice-President of the French National Assembly; gave a lecture at the Ecole Normale Supérieure. Presided over several meetings in Phnom Penh and visited Prey Veng and Kompong Cham provinces earlier this week.

A new Web site for the CPP (1)
The ruling CPP has recently overhauled its Web site. Only a few people so far have seen the updated version.
Number of visitors for Web sites run by the three main Cambodian political parties as of 26 November 2004 at 11:00 a.m. Phnom Penh time:
- CPP: 2,479 (November 2004 only). http://www.thecpp.org
- Funcinpec: 258,212 (since 1998). http://www.funcinpec.org
- Sam Rainsy Party: 729,214 (since 1996). http://www.samrainsyparty.org

An appeal in favor of Touch Srey Nich (1)
An appeal has been launched to help Touch Srey Nich (alias Touch Sunnich), the former singer who was victim of an assassination attempt in Phnom Penh in October 2003 (KI, 24 October 2003: “Rumors about the shooting of Touch Srey Nich”; KI, 15 September 2004: “A plot to kill Touch Srey Nich in Bangkok”).
For more information please click at http://www.khmerintelligence.org/Announcements-KI.html

24 November 2004

King-Father's likeminded friend continues to lash out at Funcinpec (1)
Ruom Ritt, the well-known childhood and likeminded friend of King-Father Norodom Sihanouk wrote in a 19 November 2004 letter published on the royal web site: « To label Funcinpec a “royalist” party is deceiving the Cambodian people. » The same Ruom Ritt wrote on 06 October 2004: « One must not confuse [the Funcinpec party] with [Norodom Sihanouk]”. Moreover, one should not say or write that [Funcinpec] is a Royalist Party. One may call it [Ranariddhist], but calling it “Royalist” is an insult to the King. » (KI, 30 October 2004: « Ruom Ritt: “Funcinpec isn’t a royalist party” ». 
By publishing letters repeatedly expressing the same view, King-Father Norodom Sihanouk apparently wants to distance himself further from the disintegrating Funcinpec (KI, 22 November 2004: “Prince Ranariddh may give up politics”).
See original letter in French at http://www.norodomsihanouk.info/mes%2004/humour/1911hum1.htm

22 November 2004 

Prince Ranariddh may give up politics (3)
Several sources indicate that Prince Norodom Ranariddh may give up politics in the near future. Even though the Funcinpec President is expected to be back in Cambodia in the next few days after a prolonged and unexplained absence (KI, 20 November 2004: “Where is Prince Ranariddh?”), he may resign from all political positions some time in 2005 for the following reasons:
1- He realizes that his political future is rather bleak given his Funcinpec party’s continuous and apparently irreversible downward trend in popularity (KI, 08 September 2004: “Funcinpec heading for crisis”; KI, 06 November 2004: “Funcinpec unable to resolve internal problems”; KI, 20 November 2004: “CCP is worried about Funcinpec”). It will be extremely difficult for Funcinpec to overcome its current crisis at a time when Ranariddh will be prevented from using the name of [former] King Norodom Sihanouk to serve his personal interest as he has done since 1993.
Of the only three positions suitable to his rank – King, Prime Minister, or Speaker of the National Assembly – none will likely be accessible to Ranariddh after the forthcoming general elections in 2008. On the one hand, it was Ranariddh’s younger half-brother, Sihamoni, who acceded to the throne last October according to the wish of King-Father Norodom Sihanouk, while Ranariddh had always wanted to succeed his father as King (KI, 07 August 2004: “Prince Ranariddh sides with Hun Sen against his father”; KI, 13 March 2004: “Hun Sen promises the throne to Prince Ranariddh”). On the other hand, it will be virtually impossible for Ranariddh to become Prime Minister or even to simply remain Speaker of the National Assembly with his disintegrating Funcinpec. This party, whose “royalist” credentials are denied by King-Father Norodom Sihanouk, has already become the smallest party in terms of popular votes after the last elections in 2003, and has obviously no decent future. 
2- With his newly amassed fortune (KI, 03 August 2004: “Prince Ranariddh receiving extra cash”; KI, 07 August 2004: “Prince Ranariddh hiding his money”), Ranariddh seems to have found new goals in life. He seems to be happy in France, and oblivious of anything else, with his second wife and their one-year-old baby.

Nhiek Bun Chhay may succeed Prince Ranariddh as Funcinpec President (3)
Political manoeuvres have already started within the “royalist” party to replace Prince Norodom Ranariddh as Funcinpec President. With the discreet support of CPP Prime Minister Hun Sen and an open support from a number of disgruntled party members, a faction discretely led by Deputy Prime Minister and Co-Defence Minister Nhiek Bun Chhay, but loudly spearheaded by Senior Minister without portfolio Serei Kosal, is lobbying to oust Deputy Prime Minister, Co-Interior Minister and party Secretary-General Prince Norodom Sirivudh (KI, 14 November 2004: “Prince Sirivudh increasingly contested in Funcinpec’s ranks”).
In the eyes of Hun Sen, Prince Sirivudh is an ally to opposition leader Sam Rainsy and must be neutralized before the beginning of the official race for the replacement of Prince Ranariddh at the helm of an ailing Funcinpec, which needs to be closely controlled by the CPP.
Nhiek Bun Chhay has reportedly asked for an audience with King-Father Norodom Sihanouk, the historic founder of Funcinpec (Pyongyang, 1981), in order to boost his legitimacy as a possible successor to Prince Ranariddh. But King-Father Norodom Sihanouk seems to have little esteem for Nhiek Bun Chhay (KI, 31 August 2004: “King denounces illegal use of his name”).        

20 November 2004 

Where is Prince Ranariddh? (1)
On November 19, CPP mouthpiece Rasmei Kampuchea published an editorial titled “Where is the Royal President?”. Excerpts: « People have noticed that Funcinpec leaders, in particular Prince Norodom Ranariddh, the party’s Royal President, is seldom present in the country, especially in times of crisis. His Royal Father [the King] has dubbed him the “Invisible Man”. Now, at this critical time when [Funcinpec] newly-appointed provincial governors and deputy-governors are officially taking up their positions amid virulent protests from disgruntled party members, Prince Ranariddh is again away [abroad] until today (...). What the Prince has done, and is doing, shows his irresponsibility as a leader. » See KI, 6 November 2004: “Prince Ranariddh in France”.
See original text in Khmer at http://www.cambodiapolitics.org/news/rasmei_koh/november_04/19_2.PDF

CCP is worried about Funcinpec (1)
In its today’s editorial (November 20) titled “Blaming the lower echelons is an irresponsible attitude”, CPP mouthpiece Rasmei Kampuchea decried the attitude of Funcinpec top leadership who tend to blame their subordinates at the provincial and district levels for the party’s heavy losses at recent elections. “At the present time, Funcinpec grassroots supporters at the provincial and district levels are in turmoil. They are demoralized and don’t know what to do. This situation will lead to further decline for Funcinpec.” Quoting from a leaflet attributed to Funcinpec dissidents, Rasmei Kampuchea pointed to a possible “plot” led by Funcinpec Secretary-General Prince Norodom Sirivudh to “destroy Funcinpec from within, with the complicity of [opposition leader] Sam Rainsy.”
CPP Prime Minister Hun Sen has recently said “Funcinpec and CPP are like twin brothers” (KI, 15 November 2004: “Hun Sen wants to abolish the Monarchy, counts on Funcinpec but is afraid of SRP”).
See original text in Khmer at http://www.cambodiapolitics.org/news/rasmei_koh/november_04/20_r2.pdf

Opinion poll on political leaders may need update (2)
In January 2004 an opinion poll was made with the support of the Washington-based International Republican Institute (KI, 12 March 2004: “Cambodia’s first scientifically conducted opinion poll on political preferences”). It showed, among other things, the popularity of the main political leaders in the following order: Prince Norodom Ranariddh (67 percent of Cambodians expressing a favourable opinion), Chea Sim (66 percent), Hun Sen (66 percent), and Sam Rainsy (62 percent).
Prince Ranariddh has recently and extensively made use of the above figures to blame Funcinpec’s electoral setback in July 2003 – a decline from 43 seats to 26 seats at the National Assembly – on his subordinates and the party organization in general because, according to the poll, his popularity as party president is “not in question”.
However, some observers suggest that Prince Ranariddh’s popularity might have evolved over a recent period of time, reflecting the evolution of his political position. The poll was conducted in January 2004, at a time when Prince Ranariddh was president of the Alliance of Democrats (grouping Funcinpec and Sam Rainsy Party) that was vigorously opposing Hun Sen in his attempt to remain prime minister. The Alliance enjoyed strong popular support that naturally benefited its president. But since Prince Ranariddh’s decision in June-July 2004 to support Hun Sen again, as he had done before the July 2003 elections, his popularity might have gone back to its immediate pre-election level. At last year’s elections Funcinpec collected 21 percent of the popular votes, versus 22 percent for SRP and 47 percent for CPP.
On the basis of recent developments (KI, 20 November 2004: “CCP is worried about Funcinpec”), the same observers suggest that Funcinpec’s popularity may be even lower now than what it was in 2003. The International Republican Institute (IRI) is expected to sponsor another opinion poll in early 2005.       
See full results of the latest poll at http://www.cambodiapolitics.org/iri_survey/iri_doc.pdf

17 November 2004 

Hun Sen doesn't understand relationship between deforestation and drought (1)
Cambodia is suffering from a devastating drought (The Cambodia Daily, 16 November 2004: “Government Drought Efforts Falter, Hunger Looms”; KI, 06 November 2004: “Severe drought affecting Cambodia”).
Since Hun Sen was appointed prime minister in 1985 Cambodia’s forest cover has dwindled from approximately 70 percent (73 percent in 1969) to less than 35 percent, with a noticeable acceleration of deforestation over the last ten years. Over the same period of time, Cambodia has been suffering from a series of unprecedented floods and droughts.
Many independent observers, including King Norodom Sihanouk, have blamed deforestation for the successive natural disasters, which are seen as a result of the disruption of a specific ecosystem. Any scientific reasoning on deforestation and its consequences has made Hun Sen angry (KI, 26 December 2002: « Hun Sen indirectly refers to the King as a “stupid beast” »). In a message to the Cambodian people on 11 August 2002, King Norodom Sihanouk wrote: “In the present times, we clearly see the devastating results for our country, our agriculture, our farmers (…) of the continuous and unstoppable destruction of our forest (...). I want to underline the fact that our present Cambodia has lost nearly all of its once extensive and thick rainforest, which is a major cause for the catastrophic droughts and floods that destroy our country and the livelihoods of our people who find themselves plunged into misery.”
CPP mouthpiece Rasmei Kampuchea on 16 November 2004 (article titled « Hun Sen: “Dictatorship” and “Democracy” mean the same thing ») quoted Hun Sen as saying in public: “Those who criticize me have said that floods [in a recent past] were caused by deforestation. Now they say that the current drought is also a result of deforestation. How come? This is inconsistent!”

How deforestation leads to floods and droughts (2)  
Deforestation, by depriving the soil of its natural cover, accelerates soil erosion and the sedimentation of rivers and lakes, which get shallower and shallower. Since rivers and lakes play the regulating role of natural reservoirs, the fact that they become shallower has serious consequences:
- They tend to overflow in the rainy season (Mai to October), meaning floods.
- They tend to dry up more quickly in the dry season (November to April), meaning a lack of water for agriculture. Moreover, droughts are compounded by a reduction in moisture and water vapour produced by the shrinking vegetation. This leads to a decrease in rainfall since water vapour helps produce rain when it condenses in the atmosphere. Wells also tend to dry up more quickly. With less vegetation protecting the soil and slowing the flow of rainwater on the soil (erosion), a larger amount of the rainwater streams down into rivers and lakes (sedimentation), leaving a smaller amount to infiltrate into the soil. This reduction in the amount of infiltrating rainwater causes underground water tables to shrink and wells to dry up more quickly. Deforestation definitely triggers off a desertification process.
Deforestation has also adverse consequences on fish stocks and the Cambodian people's diet (KI, 25 September 2004: “Depletion of fish stocks is cause for alarm”; KI, 23 May 2004: “Food shortage looming”; KI, 8 January 2004: “Cambodia heading for famine”).
For a more comprehensive assessment of the effects of deforestation in Cambodia, see KI, 29 April 2004: “Economic, social and environmental cost of deforestation exceeds $500 million a year”.  

15 November 2004

Hun Sen wants to abolish the Monarchy, counts on Funcinpec but is afraid of SRP (2)
The following is the transcript of some of Prime Minister Hun Sen’s words at a meeting between top-ranking officials from the CPP and Funcinpec on 9 September 2004 (minutes available in Khmer only):
« - It would not be my fault if the King [Norodom Sihanouk] dies and Cambodia becomes a Republic (*).
   - The [new] government was born [on 15 July 2004] with me [Hun Sen] and Prince Ranariddh acting as midwives, whereas the King used to be the midwife [for the previous governments] (**).
   - Helping Funcinpec is helping CPP; helping CPP is helping Funcinpec.
   - Funcinpec and CPP are [like] twin brothers.
   - If Funcinpec wins over CPP, the other parties can continue to live. The same applies if CPP wins.
   - But if SRP wins, we are not sure [CPP can survive].
   - When I [last] went to France, he [Sam Rainsy] wanted the French tribunal to arrest me (***).
   - I will not do like Suharto [the former Indonesian President who was forced to step down in May 1998 following unprecedented popular demonstrations].
   - In [July-August-September] 1998, even though I had won the elections [for the National Assembly’s second term], I asked Chea Sim and the CPP to retire, but they refused to let me go. » (****)
___________________________________________________________________________________________________________________________________
(*) This statement by Hun Sen might have prompted King Norodom Sihanouk to abdicate the throne on 7 October 2004 so as to prevent the abolition of the Monarchy upon his demise. See also KI, 13 October 2004: “Hun Sen threatens to proclaim the Republic”.
(**) King Norodom Sihanouk resented being excluded from the government formation process. He said Hun Sen and Prince Ranariddh had given him a “slap on the face” (KI, 15 May 2004: « King elaborates on the “slap on the face” he received »). See also KI, 29 June 2004: “A coup against the King”; and KI, 14 October 2004: “Behind [or the real reasons for] the King's abdication”.
(***) See KI, 12 August 2004: “Hun Sen arrived today in Paris”; and KI, 15 August 2004: “French judge may summon Hun Sen”.
(****) See original document at Minutes in Khmer

14 November 2004

Hun Sen met with Burmese leaders in China (2)
When he was discretely in China earlier this month (KI, 4 November 2004: “Schedules of political leaders”), Prime Minister Hun Sen met with some top leaders from Burma who had been also discretely invited by the Chinese leadership.
China seems to follow in Cambodia the same strategy she has been following for many years already in Burma, which consists in encouraging and supporting the authoritarian regime in place, promoting “Asian values” (economic development first, democracy and human rights later), countering Western influences and pressure by promoting solidarity among Asian countries sharing the same philosophy (as during the preparations for the last ASEM meeting in Hanoi), gaining access to the Southern seas (Bay of Bengal, Andaman Sea, Gulf of Thailand), increasing Beijing’s economic weight in Southeast Asia through all sorts of investments and joint-ventures (including dubious ones such as those related to deforestation), and eventually building a new Asian “Co-Prosperity Sphere” à la chinoise.

King-Father calls some present Cambodian leaders “former Khmer Rouge trained by the Viet” (1)
In a November 11 interview in French with the “Phseng Phseng Team” posted on his Web site, King-Father Norodom Sihanouk called some present Cambodian leaders “former Khmer Rouge trained by the Vietnamese who distinguished themselves by committing atrocities on [their] Royalist/Sihanoukist [fellow compatriots] between 1979 and 1990, and in 1993, 1997 and 1998.”
In several interviews and statements published over the past few years, the then-King Norodom Sihanouk irked the present Cambodian political leadership – most of whom were installed in power by the Vietnamese army in 1979 – by describing Cambodia in the 1980s as a “Vietnamese colony”, whereas the Chea Sim / Heng Samrin / Hun Sen pro-Vietnamese regime continues to claim, as its raison d’être, to have “liberated” Cambodia from the Khmer Rouge.

Prince Sirivudh increasingly contested in Funcinpec's ranks (2)
As previously reported (KI, 6 November 2004: “Funcinpec unable to resolve internal problems”), dissatisfaction and turmoil seem to spread in Funcinpec's ranks in relation to the allocation of lucrative provincial and municipal governor positions. In their November 12 and 13 editions, pro-CPP newspapers Rasmei Kampuchea and Koh Santepheap stressed the growing challenge faced by Funcinpec Secretatry-General Prince Norodom Sirivudh, who is accused by a number of party supporters of “corruption”, “cronyism” and “favouritism”. Demonstrations are being organized throughout the country calling on Funcinpec President Prince Norodom Ranariddh – currently in France – to remove Prince Sirivudh.

The mafia consolidates its grip on Cambodia (2)
The regional mafia finds many ways to preserve and consolidate its grip on Cambodia. Through corruption of political leaders from the ruling CPP and Funcinpec, it has secured influential/strategic positions for the organized crime.
The Cambodian-Thai mafia is represented by Ly Yong Phat, also known as Phat Suphapha on his Thai passport (KI, 06 July 2004: “Australian authorities investigate pro-CPP businessman Ly Yong Phat”). Ly Yong Phat, also known as the "King of Koh Kong", is notoriously engaged in smuggling, casinos, and money laundering. Following a severe crackdown on the mafia by the Thai authorities, illicit drug trafficking (heroin) and drug manufacturing (amphetamines, methamphetamines) activities are thriving in Cambodia, along the border with Thailand, from Koh Kong to Poipet to O Smach.
Already in a long-time symbiotic relationship with the CPP, the mafia has, over a more recent period of time, successfully infiltrated Funcinpec (KI, 25 February 2004: “CPP-affiliated businessmen try to buy Alliance leaders”; KI, 03 August 2004: “Prince Ranariddh receiving extra cash”).
While most Funcinpec-affilialed provincial or municipal Governors have been recently dismissed, demoted or transferred, Say Hak, one of Ly Yong Phat’s relatives and close associates, has just been re-appointed Governor of the port city of Sihanoukville, a key position to oversee illegal activities including drug trafficking. New evidence of drug trafficking activities through Sihanoukville has been made available to Interpol and the DEA.
On 6 March 2004, Ly Yong Phat and Say Hak were seen in Bangkok escorting Prince Norodom Ranariddh from the airport to the latter’s luxurious residence at the “All Seasons Place”, on Wireless Road.

12 November 2004

Cambodian parliamentarians in Brussels (2)
Opposition parliamentarians Sam Rainsy, Tioulong Saumura and Ung Bun-Ang have been in Brussels over the last three days attending a first ever official meeting between European parliamentarians and Asian parliamentarians (KI, 4 November 2004: “Schedules of political leaders”).
The Alliance of Liberals and Democrats for Europe (ELDE, a parliamentary group with 88 Members of the European Parliament) had working sessions with a delegation of the Council of Asian Liberals and Democrats (CALD) made up of some 30 parliamentarians and political leaders from 14 Asian countries.
Besides MEPs, Sam Rainsy met with two European Commissioners: Louis Michel (former Minister of Foreign Affairs of Belgium) and Janez Potocnik (a former Cabinet member of Slovenia).

Cambodia’s highly dollarized economy (1)
According to a recent IMF report on Cambodia (“Concluding Statement for the 2004 Article IV Consultation Discussions”, 15 July 2004), “as much as 95 percent of total liquidity, including estimated U.S. dollars in circulation, is in dollars.”
The report points to the fact that “most prices are denominated in U.S. dollars” while “the riel is predominantly used by the poor in rural areas”. It suggests that “Cambodia would benefit from de-dollarizing the economy in the long run” because “in addition to the loss of seigniorage, the lack of monetary policy independence and the central bank's inability to act as a lender of last resort could eventually threaten financial stability.” As an example of possible “de-dollarization initiatives”, the report cites the requirement that “all government transactions be conducted in domestic currency”, but warns that “forceful administrative measures or political uncertainty could immediately translate into capital flight.”

Advantages and disadvantages of a dollarized economy (2)
In the present circumstances, the most obvious advantage and disadvantage of a dollarized economy are as follows:
- Advantage: relatively low inflation since, as pointed out in the above-mentioned report, “with few monetary policy instruments, the task of ensuring that aggregate demand does not become a source of inflation necessarily fell to fiscal policy. This task has been made easier in recent years because of low inflation in trading partners.”
- Disadvantage: loss of competitiveness for goods destined for export, especially garments with the end of the quota system in 2005. Export markets will be lost to China in particular whose currency, the Yuan Renminbi, is noticeably undervalued. According to an expert quoted in a recent edition (5 August 2004) of The Christian Science Monitor (“Will China clothe the world?” by David R. Francis), “China's ability to win contracts hangs on a currency that is 45 percent undervalued. This permits China to sell its textiles cheaply.” [In competing countries such as Bangladesh and Cambodia], “wages [could be] 20 to 30 percent lower than those in China. However, wage costs are usually only 10 percent [exactly 8 percent in Cambodia] of the cost of a garment. [Therefore] wage advantage can't overcome the currency disadvantage.”

8 November 2004

New ambassador to Brunei (2)
The new Cambodian ambassador to Brunei could be Nan Sy, a former National Assembly member (Funcinpec).

A henchman behind government-organized demonstrations (2)
For demonstrations organized by the Phnom Penh authorities, such as the anti-Thai riots on 29 January 2003, a henchman (mob leader) has been identified: Choeun Savantha, an army officer from Military Region # 2. Choeun Savantha is a violent man, who has killed his wife in a domestic dispute.

7 November 2004

International community cautions against removal of parliamentary immunity (2)
On November 3, opposition leader Sam Rainsy appealed to the “international solidarity of all parliamentarians because the two ruling parties in my country are joining hands to remove my parliamentary immunity, which will probably be the first step prior to my arrest and my prosecution before a politically subservient tribunal. ”
Over the last few days, Prime Minister Hun Sen and National Assembly President Norodom Ranariddh have received a large number of letters and other messages from the Inter-Parliamentary Union, the European Parliament, national parliaments, parliamentary groups and individual parliamentarians from several countries as well as international human rights organizations, asking the Cambodian authorities to respect the democratic principle of checks and balances, human rights of Cambodian parliamentarians, and due process.
See Sam Rainsy’s appeal at http://www.samrainsyparty.org/national_assembly/2004/11/041103_appeal_english.htm 

Deforestation continues unabated (1)
Over the last few months, weeks and days, there have been practically daily reports in local Khmer-language newspapers about continuous illegal logging.
At the donor Consultative Group (CG) meeting in Tokyo in 1999 Prime Minister Hun Sen made the commitment to stop illegal logging within a period of two years (i.e. not later than 2001), and declared he would quit his job if he failed to keep his promise.
At the forthcoming CG meeting in Phnom Penh scheduled for December 6-7, there is a strong probability that Prime Minister Hun Sen will make the same promise to stop illegal logging, on top of another most interesting commitment: to eradicate graft with his newly proclaimed “War on Corruption”.
A recent report prepared for the U.S. Agency for International Development (USAID) titled “Cambodian Corruption Assessment” points to the fact that “Grand corruption [starts with] illegal grants of logging concessions [approved by the Office of the Prime Minister] (KI, 5 November 2004: “Warning to donor countries prior to CG meeting”).
Deforestation (with the resulting natural disasters such as floods and droughts) and land grabbing (that deprives farmers of lands they need to live on) are believed to be the main causes of worsening poverty over the last ten years (KI, 6 February 2004: “ADB report shows worsening poverty”; KI, 2 May 2004: “World Bank confirms increase in poverty”; KI, 3 June 2004: “UNDP recognizes poverty has increased over the last ten years”).
Revealing articles on illegal logging were published in the following daily newspapers at the following dates:
- Rasmei Kampuchea (pro-CPP): August 1, 4, 5, 11. September 2, 7, 9, 17, 19, 28. October 6, 9, 24, 30. November 2, 3, 5.
- Koh Santepheap (pro-CPP): August 1, 3, 5, 9, 12, 16, 23. September 14, 16, 21, 23, 25, 28, 30. October 1, 2, 7, 12, 16, 18, 25, 27, 30.  
- Samleng Youvachun Khmer (pro-Funcinpec): October 30.
- Moneaksekar Khmer (pro-Sam Rainsy Party): August 1, 4, 7. September 3. October 4, 23, 27, 30.       

SRP embarks on internal reforms (2)
The opposition Sam Rainsy Party is making preparations for a vast reform of its internal structures and organization. According to the party leadership the reform is intended to promote “internal democracy” by “empowering party members in decision making processes”. Party leaders, at all levels, will henceforth be democratically elected by ordinary party members instead of being appointed or co-opted by existing leaders. Elections will start at the village level – all over the country – to select the very grassroots leaders, who will in turn elect higher-level local and regional leaders at the commune, district and provincial levels. The democratically elected provincial and regional leaders or delegates will, at the end of the process, elect the party’s national leaders.
Party candidates for any national elections will be designated through “primary elections” modeled on those organized in the United States by the Republican Party and the Democratic Party.
The reform, to be implemented with the support of the Washington-based National Democratic Institute, is presented as a “revolution” in Cambodian politics and Cambodian traditional mentality based on authoritarianism, paternalism and patronage, and is expected to give birth to a “New SRP” in 2005.
See first comment in Khmer at http://www.cambodiapolitics.org/news/moneaksekar_youth/november_04/7-8_y.pdf

6 November 2004 

Ruom Ritt comes back (1)
After having announced on October 28 that, because of unspecified problems, he would henceforth ban his childhood and likeminded friend Ruom Ritt’s letters from his Web site and from the Bulletin Mensuel de Documentation (BMD) published by his private secretariat, King Father Norodom Sihanouk said in a November 4 letter posted on the royal Web site that [the French-based, 82 years old] Ruom Ritt would come back as a possible intermittent contributor to the BMD.
Countless people, Cambodians and foreigners alike, appreciated Ruom Ritt’s political insight as well as his sarcastic style and unique sense of humour, and have insistently asked for Ruom Ritt’s letters to be published on a continuous basis because the independent and objective views expressed therein definitely and pleasantly fill a vacuum in Cambodian politics (KI, 30 October 2004: « Ruom Ritt: “Funcinpec isn’t a royalist party” »).
See King Father’s decision at http://www.norodomsihanouk.info/mes%2004/novembre/0511txt5.htm 

Funcinpec unable to resolve internal problems (2)
On 8 September 2004, under the headline “Funcinpec heading for crisis”, KI pointed to the “mounting tensions [within Prince Norodom Ranariddh’s party] associated with the ongoing potentially explosive infighting related to allocation of government positions [a limited number of positions have been sold or promised to a much larger number of contestants].”
Two months later, the above problems remain unsolved and tensions have actually mounted. The Sirivudh clan (led by Secretary General Norodom Sirivudh) is confronting the Nhiek Bun Chhay clan (led by the former military Resistance leader, now a pro-Hun Sen deputy prime minister) when it comes to the grabbing of lucrative positions for their respective clients.
As for defectors from the Sam Rainsy Party who have been expecting rewards in the form of government positions (KI, 31 August 2004: “SRP infiltrates fake defectors into Funcinpec”), some have been unmasked as spies and trouble-makers, and will soon be welcome back to the opposition party. 

Prince Ranariddh in France (2)
From Malaysia Prince Norodom Ranariddh has gone to France for very private affairs (KI, 4 November 2004: “Schedules of political leaders”). 

Severe drought affecting Cambodia (1)
A severe drought – largely attributable to deforestation (KI, 29 April 2004: "Economic, social and environmental cost of deforestation exceeds $500 million a year") – is affecting large portions of Cambodia, from Kandal province (from the North of Phnom Penh to the Southern border with Vietnam) to Ratanakiri province (in the Northeast). This calamity is occurring only one to two months before the expected harvest of the wet season rice. The dry season this year has come abnormally soon, jeopardizing crops and possibly lead