Archive for June 7th, 2007

Wednesday, 6.6.2007: IMF Pushes Cambodian Government to Have Anti-Corruption Law before Getting Oil Output

Posted on 7 June 2007. Filed under: Week 511 |

The Mirror, Vol. 11, No. 511

“Something that annoys the Hun Sen Government much, which is raised by the International Monetary Fund [IMF] and echoed again, is to push the Khmer Government to establish an anti-corruption law before it gets income from oil.

“In a press conference on Tuesday afternoon, Jeremy Carter, an advisor with the IMF Asian and Pacific Department, said that Cambodia should have an anti-corruption law before it gets income from oil – i.e. to manage the oil revenues so that they are not lost.

“He continued to answer journalists’ questions, saying that in future, Cambodia may get much money from the sale of oil, but this will not automatically increase the number of jobs for its citizens.

“The IMF said in its press release, ‘Oil production may increase the amount of national income greatly in the longer term, and the state income from oil will provide important financial resources for development. Due to the uncertainty about the amount of the oil, and the time when oil can be produced, the mission warned about the creation of major infrastructure plans serving the oil fields, and noticed that to take large commercial loans at the time when the amount of income from oil is still uncertain would be imprudent. The mission encouraged the government to go ahead in preparing the locality, the institutions, and the laws for collecting tax on oil, and for the management of the income from oil, as well as to adopt the initiatives for transparency for the collection of resources from the industry.’

“This indirect waning by the IMF means the same as when donor countries previously cautioned the Hun Sen Government, which made Hun Sen furious and he responded with rude words.

“According to reports by the American oil company Chevron which is exploring oil in the Gulf of Cambodia, Cambodia will get oil output by 2008 – which is faster than previously predicted by the United Nations Development Program, which had said that Cambodia will get oil resources from 2009 and 2010.

“Some non-government organizations and some countries do not yet praise a future where Cambodia will get a great deal of oil output. To the contrary, they voice concerns about Cambodia, because oil income may become a curse, if Cambodia does not prepare the measures to manage it properly.

“Mr. Joseph A. Mussomeli, the US Ambassador to Cambodia, presented his considerations in a speech, ‘It should be great news. Indeed, for some countries, industries recovering underground resources are a factor to save the economy and to save poor people from poverty, and such natural resources are also a factor that can save the Cambodian economy. But such a future is still not certain for Cambodia. In our lives, we all know that many things seem to give us satisfaction, but they may give us also suffering.’

“The US Ambassador referred to events that happen regularly in the United States, ‘In America, there is no year without reports about some lucky people who won millions of dollars in a lottery, but later they become even poorer than they were before; wealth which is immediately gained is difficult to be controlled, it is like a tragedy which happens immediately.’

“Moreover, also the World Bank gave recommendations to Cambodia by using Nigeria as an example. It said that for lack of appropriate management, Nigeria, which is rich in natural resources such as oil and precious rubies, became heavily indebted to different countries, and the people are also miserably poor, i.e. they are poorer than before the country got natural mineral resources. This happened because the government of Nigeria increased the borrowing of money from foreign countries, relying on their natural mineral resources. This finally did not only make Nigeria have nothing, but the country now also owes debts to foreign countries. The income from the natural mineral resources made only a small number of people rich, but most people and the country of Nigeria are still miserably poor.

“Concerning what the IMF raised yesterday afternoon, Cambodia will not get loan money from this international monetary institution for 2007, but Jeremy Carter stated that the IMF will provide advisers to the government – that is most reasonable under the present circumstances, so that Cambodia will really get its income from oil. Otherwise the output from oil, which is expected that Cambodia will get, would be very little after the deductions for the company that exploits the oil; it should not be like what Cambodia has lost, relating to gold mining, rubies, and trees, from which not even one cent is used to help develop Cambodia.” Moneaksekar Khmer, Vol.14, #3177, 6.6.2007

Newspapers Appearing on the Newsstand:
Wednesday, 6 June 2007

Deum Ampil, Vol.2, #22, 6-12.6.2007

  • Mr. Sam Rainsy Criticizes Customs Officers and Court Officials for Colluding with Each Other to Check Department Stores for Money Extortion
  • Kem Sokha [President of Human Rights Party] Will Go to Meet Supporters in France Next Week
  • Samdech Mohesra Chakrapong Resigns as Vice-President of Norodom Ranariddh Party [reason not known]

Kampuchea Thmey, Vol.6, #1358, 6.6.2007

  • Madame of X.O. Karaoke Parlor Jumps from Chroy Chongva Bridge into River to Commit Suicide [probably for debt of more than $10,000 – Russey Keo, Phnom Penh]
  • 57-Year-Old Man Rapes 14-Year-Old [mentally-ill] Girl; He Is Arrested by Police [Takhmao, Kandal]

Khmer Amatak, Vol.8, #480, 6.6.2007

  • Government to Spend $10,000 and 300 People per Day to Collect All Global Witness Books [about forest crimes] in Cambodia

Khmer Mekong, Vol.5, #277, 6-8.6.2007

  • World Bank to Support Teachers’ Salaries in Order to Reduce Corruption [in an attempt to strengthen quality of education]
  • Khmer Kampuchea Krom Association Asks Khmer Government to Designate 4 June [on 4 June 1949 France gave Khmer Kampuchea Krom land to Vietnam] as National Public Holiday

Koh Santepheap, Vol.40, #6058, 6.6.2007

  • National Assembly Approves Criminal Procedural Code Concerning Pretrial Detention
  • International Monetary Fund Promises to Help Cambodia Technically and Financially
  • Global Warming Increases Every Year by 0.75 Degrees Celsius [according to a science research]

Moneaksekar Khmer, Vol.14, #3177, 6.6.2007

  • IMF Pushes Cambodian Government to Have Anti-Corruption Law Before Getting Oil Output
  • Sam Rainsy [responding to Hun Sen who said land prices are high for peace and political stability, and land prices would tumble without him]: Land Prices Go Up Like Gold Prices; People Are More Miserable because Power Holders Cruelly Loot Their Land

Rasmei Kampuchea, Vol.15, #4303, 6.6.2007

  • Survey on Peace Situation [by Economist Intelligence]: Cambodia Ranks 85th [among 121 countries – most peaceful countries are Norway, New Zealand, Denmark, Ireland, and Japan]
  • Thailand Announces that It Will Spend Baht 120 Million [approx. US$3.4 million] for Demining in Provinces Near to Cambodia

Go to last week’s editorial

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