About the Clear Separation of Functions and Responsibilities – Sunday, 30.5.2010

Posted on 1 June 2010. Filed under: *Editorial*, Week 666 | Tags: , , , , , , , , , , , , , , , , , , , , , |

The Mirror, Vol. 14, No. 666

According to the Preamble of the Constitution, the Kingdom of Cambodia is a multi-party liberal democracy. That different people make different observations and have different information and different opinions is natural – that these can also be expressed and discussed openly is legal under such a constitution, unless there is any criminal intent involved.

When putting the pieces for the Mirror together day by day, we encounter often confrontative news items which could be resolved easily by an open, mutual, clarifying consultation about facts and structural arrangements, which might overcome personal positions and feelings.

During the past week, we carried a report about a tragic event in India: “160 People Were Killed in a Plane Crash in India.” But this is not just a tragedy – it is necessary to investigate what led to this problem, in order to avoid similar events to happen in future. Naturally, questions about safety procedures have to be clarified – and there were some press reports claiming that the accident was the result of a soft handling of air safety regulations. When this discussion started, the management of Air India claimed to make a thorough investigation by themselves – and prohibited its employees to discuss related questions with the press. This resulted in further protests: “The striking employees were upset over the management’s gag order prohibiting some of its leaders to speak out in public on the Mangalore crash.”

In the meantime, the Indian government has set up a Court of Inquiry headed by a former high court judge, and a Civil Aviation Safety Advisory Council with persons with a background in aviation, and experts in engineering and operations. They will conduct the inquiry, not Air India. And the strike was called off.

Does this mean that the Indian government does not trust the management of Air India? Maybe or maybe not – the fundamentally important point is that Operations and Safety are to be handled by two separate, independent bodies, which have to cooperate mutually.

Some months ago, I had an experience in Malaysia where this separation obviously works. – We were about 250 passengers, waiting to board a long distance night flight. But instead of calling us to board the plane, we were told that the flight is canceled, buses would transport us to different hotels and collect us again in the morning. So it happened – connections lost and schedules not met. The explanation: When the plane was prepared for departure, the air safety controller discovered that the pilot had landed only 11 hours ago – but no pilot is allowed to fly again, if not 12 hours passed between two flights. Malaysia Airlines had to accept this ruling from the air safety institution, though it meant a disruption of many schedules and a considerable economic loss. The airline had assigned the pilot – “just one hour too short should be OK” – but the independent safety supervisor rejected this.

Not good personal relations of different actors, and group or institutional loyalties assure smooth an safe procedures, but clearly defined, different institutions – which all have to refer to objectively defined rules. And these rules have to be kept and followed.

When Mr. Om Yentieng was recently appointed as head of the newly created Anti-Corruption Unit, it was reported that some persons from the opposition parties raised critical questions about him – this is a case where different people may have different opinions. But we did not see any critical questions raised against the fact the head of the Anti-Corruption Unit is also automatically a member of the Anti-Corruption Council, the body that is supervising the Anti-Corruption Unit. This is an objectively serious problem, whoever the person is. Everybody has to act responsibly in public offices – but this does not mean to be just responsible to oneself. Responsibility implies that one has to answer what is right and what is wrong to another institution. Where this is not structurally institutionalized, there is the danger that a conflict of interest may lead to wrong results.

Malaysian Airlines had the well founded interest not to disrupt its intercontinental schedule, and not to organize and pay for 250 hotel guests. But the air safety agency hand a different, also well founded interest: that the strict working schedules of pilots have to be kept.

When the US Securities and Exchange Commission [“The mission of the U.S. Securities and Exchange Commission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation”] started to investigate the Australian mining company BHP Billiton, and links to the US$2.5 million which had been paid as tea money to “Cambodia,” this naturally triggered a public interest where and under whose authorities and according to which rules this money was used. Then an amount of US$20 million from the French oil company Total was added to the surprises, and additional millions from an Indonesian company.

Then allegations surfaced that the ban on sand export, imposed by the government, was not applied, and sand exports to Singapore continued.

Around the time when different partial answers related to payments were reported in the press (which could not be reconciled with each other) the Prime Minister tasked the Senior Ministers Sok An and Keat Chhon to present a consolidated answer to the National Assembly; then also the Ambassador of Cambodia in London offered to publicly discuss and refute such allegations, raised by the British NGO Global Witness.

But on 21 May 2010, the Cambodian Embassy in London withdrew the offer in a letter from which we quote:

On the issue you raised, I am pleased to advise that His Excellency Hor Nambora is no longer prepared
to enter into a public debate with Global Witness.

First, we believe it would be inappropriate to share a platform with representatives of your organisation
since it would appear you have a politically-motivated and hidden agenda to discredit the legitimately-
elected Government of Prime Minister Hun Sen.

Second, it seems clear that your group is starting to lose credibility and respect within the international
community, not least for the irresponsible and devious way in which you operate…

In short, as your group, leadership and campaigners certainly suffered from epilepsy and other mental disabilities, it would be more prudent for any Cambodian representatives or officials, not to take part in the debate.

Epilepsy is disease defined in medical terms as “a disorder of the central nervous system characterized by loss of consciousness and convulsions” – it is surprising that the Cambodian embassy claims to have such medical data on the staff of Global Witness, quite apart form the whole style of this official letter.

We do also not have any information that Global Witness “is starting to lose credibility and respect within the international community.” – Global Witness shares the list of their supporters publicly:

Trusts and foundations

  • Adessium Foundation
  • The Blue Moon Fund
  • The Conrad N. Hilton Foundation
  • The DOEN Foundation
  • The Fledgling Fund
  • The Ford Foundation
  • The Jocarno Fund
  • The Joffe Charitable Trust
  • Foundation Open Society Institute (Zug)
  • The David and Elaine Potter Foundation
  • The RH Southern Trust
  • The Richard and Rhoda Goldman Fund
  • The Roddick Foundation
  • The Rufford Maurice Laing Foundation
  • The Sigrid Rausing Trust
  • The Staples Trust
  • The Wallace Global Fund

Development organisations

  • Concern Worldwide
  • Humanist Institute for Co-operation with Developing Countries (Hivos)
  • Oxfam Novib
  • Trocaire

Governments

  • Canadian Department of Foreign Affairs and International Trade
  • DFID – Department for International Development (UK)
  • The European Commission
  • Irish Aid – Irish Department of Foreign Affairs
  • Netherlands Ministry of Foreign Affairs
  • Swedish International Development Co-operation Agency (Sida)
  • Norad

To accuse Global Witness leadership of “epilepsy and other mental disabilities” is probably not making an impression on the supporters of the world wide activities of Global Witness. It will rather bring embarrassing questions, asking to explain how an embassy of the Kingdom of Cambodia can act in such a non-professional way.

In Cambodia today, to make such a public statement, might this lead to a court case for disinformation and defamation.

Again: this is not first of all a question about the person who wrote this letter. It is a question in which way, in the diplomatic service where such a letter was written, responsibility is exercised – not only personally by oneself and for oneself – but in a way that one institution, or one part of the institution, has to submit itself to another institution, to clarify what is acceptable, and what is not, for the Kingdom of Cambodia.

During the week, the question has also been raised, whether somebody from outside tries “to teach” something to Cambodia. This may happen occasionally, but it is not as important as that the field, as described by the Constitution, is kept open to exercise the freedoms of expression and opinion. The article about Mr. Vann Molyvann, who has shaped the image of Phnom Penh and some other places in the contry, is such an example. In spite of his historical role and his achievements, he felt compelled to resign, when his professional judgment as an architect and as a long term protector of Khmer traditional culture was overruled for shot term economic gain. To listen to him is worth while. Not only because this previous warnings about the over-use of ground water in the Angkor area have now – finally – been seen as a real problem which may lead to the collapse of some of the old temples – similar to the destruction of more modern, but historical buildings in Phnom Penh and other cities, that are being destroyed and replaced by modern business buildings, for economic gain.

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Reasons Why Investors from Korea Fail in Cambodia – Friday, 23.1.2009

Posted on 23 January 2009. Filed under: Week 596 | Tags: , , , , , , , , , , , , , , , , , , , , , , , |

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The Mirror, Vol. 13, No. 596

“Seeming to be floating towards failure of their long term investments in Cambodia, while the global financial crisis expands, investors in construction and in real estate from Korea are seeking interventions from Samdech Dekchor Hun Sen, the outstanding Prime Minister of Cambodia.

“The director of the Public Internal Financial Control framework which also represents investors from Korea, Mr. Kim Suan Mok [phonetic], said that because Cambodia has Samdech Dekchor Hun Sen as the cleverest and most intelligent Prime Minister and leader, more investors came to invest in Cambodia unexpectedly.

“Mr. Kim Suan Mok added that being a leader with high determination, Samdech Dekchor Hun Sen provides opportunities to investors to invest billions of dollars in Cambodia. They expect to receive warmth from the leadership of Samdech Dekchor Hun Sen as well as support from the Council for the Development of Cambodia; for example Mr. Kim Sun Sok [phonetic] has invested more than US$2 billion in Cambodia, with other investors also having billions of dollars.

“However, the financial crisis which is plaguing the world seems to drive investors in Cambodia more towards failure than towards hope for potential profit from investments in Cambodia. Mr. Kim Suan Mok said that the financial crisis results in a decline of real estate prices in the world by 50%. This led to bankruptcy for some banks. Mr. Kim Suan Mok emphasized that big financial institutions lacking capital had to announced that the world is in crisis, and some financial institutions have to minimize their operations.

“The more than US$2 billion investment mentioned by Mr. Kim Suan Mok is a huge contribution for the Cambodian economy, but some problems, related to skyrocketing prices of real estate in Cambodia, seem to encourage investors to abandon their projects. This will become a bad model for investors having invested their capital, then they will transfer it out again..

Mr. Kim Suan Mok noticed that prices of real estate in the word dropped sharply, but real estate owners in Cambodia seem not to care for world developments and changes. Because the price of real estate in Cambodia is too high, compared to the world market, some investors have given up their plans to buy real estate for investment. Moreover, it is not only investors who worry, but also many Cambodian people are seriously affected by this problem.

“Mr. Kim Suan Mok added that most investors from Korea face failure in Cambodia, and only 10% of them achieve success with their plans. This failure is he result of the fact that most investors did not know the cultural and commercial situation in Cambodia well. Another important point is that investors find it very difficult to find real information leading to success. So far, some investors from Korea have given up their long term investment plans and just wait and see whether the situation of the financial crisis might change soon.

“To support investors so that they have the opportunity to invest in Cambodia for a long period, investors ask the government to help ease the general legal framework for investments, such as the rights to buy and own land for a long period, and not only to lease land from the state for a period of 99 years. The Cambodian government itself should broaden the actual opportunities for investors.

“Also, Mr. Kim Suan Mok appealed to Samdech Dekchor Hun Sen to publish information about the changed global economic situation in order to persuade real estate owners in Cambodia to sell their real estate to investors at prices which are in line with world market price levels.

“Mr. Sung Bunna, director of the Bunna Realty Group and director of the Khmer Real Estate Appraisal Association, said that prices of real estate in Cambodia are fixed and have not declined like in other countries. This is a big problem for investors. Facing the general financial crisis, Mr. Sung Bunna asked the Cambodian government to help rescuing the real estate situation in Cambodia.

“Mr. Sung Bunna estimated that at present, many Cambodian citizen rush to sell their real estate in a narrow market; that means there are many people who rush to sell, while the number of buyers is small. This situation will make the prices of real estate in Cambodia drop dramatically in the near future, and the government should release some money to buy real estate from businesspeople and from banks which might lack money, in order to avoid Cambodia from falling into a crisis.

“Mr. Sung Bunna added that whether the price of real estate in Cambodia will recover again soon or not depends on the confidence of Khmer citizens, but not on foreign investors. Even real estate companies around the country joined as an associations to prevent the price of houses to drop further. In another separate case, more than 730 construction companies are not likely to leave their plans being orphaned too long, and that will be the time when the Khmer real estate sector will be in a good condition again, at the latest in 2010.

“Mr. Sung Bunna appreciates the real estate market in Cambodia which grew strongly in 2008 and provides good economic growth for Cambodia. The prices of real estate might drop dramatically due to the economic crisis, while some businesspeople and banks might encounter a financial crisis and therefore rush to sell their real estate to have financial resources for their trade – but this will have a negative impact on the Cambodian economy; that is, the Cambodian economic growth will drop sharply, making it difficult recover in the future.” Wat Phnom, Vol.16, #8004, 23-25.1.2009

Newspapers Appearing on the Newsstand:
Friday, 23 January 2009

Cheat Khmer, Vol.1, #9, 23-27.1.2009

  • Mr. Sam Rainsy: Solving Border Disputes with Thailand Has to Be Done Together with the International Community [because it is useless to solve disputes bilaterally]

Deum Ampil, Vol.3, #109, 23-29.1.2009

  • Siam [Thailand] Prohibits the Import of Agricultural Products from Cambodia [after a meeting between the Thai Prime Minister and his officials to ban the import of agricultural products and to prevent the illegal entry of workers from Cambodia for economic reasons]

Kampuchea Thmey, Vol.8, #1854, 23.1.2009

  • Nearly 10,000 Workers of the Yongwa Factories Held a Violent Demonstration [demanding to release the annual saving money of US$50, which was normally provided to each worker in January – Takhmao, Kandal]

Khmer Aphivoath Sethakech, Vol.7, #329, 23.1.2009

  • If There Is No Solution [for land disputes with the Heng Development Company and shooting by military police at people] on 23 January 2009] Kandal Stung Residents Will Protest in Front of the National Assembly
  • The Presidents of Unions and Civil Society Ask the Government to Arrest the Real Murderers for Prosecution [who shot dead Mr. Chea Vichea, the former president of the Free Trade Union of Workers of the Kingdom of Cambodia. On 22 January 2009, around 200 people marched with flowers to the site behind Wat Langka where Mr. Chea Vichea was shot dead]

Khmer Machas Srok, Vol.3, #332, 23-27.1.2009

  • Siamese [Thai] Minister of Foreign Affairs [Mr. Kasit Piromya] Asks to Meet also with [the president of the opposition party] Mr. Sam Rainsy [during his official visit on 25 January 2009 to discuss border disputes]

Khmer Sthapana, Vol.2, #190, 23.1.2009

  • Position of Mr. Ke Kim Yan Is Finished – He Is Replaced by Mr. Pol Saroeun as the Commander-in-Chief of the Royal Cambodian Armed Forces [8 other high ranking military officials are also assigned]

Moneaksekar Khmer, Vol.16, #3673, 23-29.1.2009

  • Appeals Court Begins Investigations to Seek the Real Murderers Who Killed Mr. Chea Vichea

Rasmei Kampuchea, Vol.17, #4802, 23.1.2009

  • More Than 300 People Were Arrested during an Operation to Suppress Fishing Crimes, and People Were Detained for Questioning
  • US Ambassador [Ms. Carol A. Rodley] Talks about the Economic Crisis and about Military Relations with Cambodia
  • A Man Took, Tortured, and Raped a 10-Year-Old Girl while Her Grandmother Was Asleep [he was arrested – Kompong Cham]
  • The Director of a Milk Powder Company [mixing melamine plastic into the milk] Was Sentenced to Imprisonment for Life, and Two Others Received the Verdict of Capital Punishment [China]

Samleng Yuvachun Khmer, Vol.16, #3673, 23-29.1.2009

  • The Victims Unit of the Khmer Rouge Tribunal Announces that Victims of the Khmer Rouge Regime Can now to Lodge Complaints against the Suspect Kaing Gek Eav, Called Duch [the former Tuol Sleng Prison chief, within 10 days before the first hearing on 17 February 2009]

Wat Phnom, Vol.16, #8004, 23-25.1.2009

  • Reasons Why Investors from Korea Fail in Cambodia

Have a look at the last editorial – you can access it directly from the main page of the Mirror.

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