[PHNOM PENH POST]
The National Assembly is set to discuss today whether to approve
guaranteed payments for electricity, potentially worth millions of
dollars, which will be generated from a coal-fired power plant in Preah
Sihanouk province constructed by a company owned by ruling party Senator
Lao Meng Khin.
Observers said the deal represented yet another
example of the ruling oligarchy close to Prime Minister Hun Sen
enriching itself via state coffers.
The Ministry of Economy and
Finance has submitted a proposed guarantee of payments agreement to the
National Assembly for approval.
The proposal, a February 9 copy
of which was obtained by The Post yesterday, reveals that state power
company Electricité du Cambodge entered into a power-purchase agreement
with a firm known as Cambodia International Investment Development Group
Co Ltd on January 6.
The Ministry of Economy and Finance is
asking the National Assembly to ratify the agreement, which would
“irrevocably and unconditionally” guarantee that the government would
pay any debts owed to the company.
Chiv Bunly, an assistant to
Lao Meng Khin’s son, Lao Vann, confirmed yesterday that CIIDG is in fact
owned by the senator. He did not know, however, how much the company
will make on the Preah Sihanouk plant.
In December, Hun Sen
signed off on an agreement during a trip to China that approved a joint
venture between a Chinese company and CIIDG to build the US$362 million
power plant, which has an expected capacity of 270 megawatts.
Cambodia
International Development Group Co Ltd, the joint venture company, was
granted a 33-year concession to build and operate the plant starting
this year.
Lao Meng Khin and CIIDG are also involved in the
133-hectare real estate development at Boeung Kak lake in Phnom Penh,
which has attracted international condemnation and is set to displace
more than 4,000 families who have so far been short-changed of adequate
compensation.
In 2007, local developer Shukaku Inc, also run by
the senator, was granted a 99-year lease at Boeung Kak. Shukaku
established a joint venture with Chinese-owned Inner Mongolia Erdos Hung
Jun Investment Co last year, according to an official letter that Phnom
Penh Governor Kep Chuktema wrote to Hun Sen, who later signed off on
the agreement.
Son Soubert, a former member of the Constitutional
Council, said yesterday he believed it was “illegal” for Lao Meng Khin
to be involved in such business ventures as a senator.
“I can’t
understand how they can do that,” he said. “A senator, like the member
of the National Assembly, cannot deal with business at the same time.”
Ou
Virak, president of the Cambodian Centre for Human Rights, said the
fact that Lao Meng Khin was involved in yet another costly development
scheme was “basically expected”, calling him “one of the few close
allies of the ruling elites who will be involved in all of these deals”.
Lao
Meng Khin’s wife, Choeung Sopheap, owns Pheapimex Group, which has
numerous assets including a 315,028-hectare concession in Pursat and
Kampong Chhnang provinces.
“The reality is that most of these
people create these contracts and agreements so they can sell them to
another company. Same thing with Boeung Kak ... The senator’s job is to
broker a deal and he gets a big amount of money for doing that,” Ou
Virak said.
The proposal sent to lawmakers for the Preah Sihanouk
power plant does not specify at what price or quantity electricity will
be purchased, though the deal is likely worth millions of dollars.
Sam
Rainsy Party parliamentarian Mu Sochua said lawmakers were being used
as a “rubber stamp” to approve a “sweetheart deal”, noting that she had
seen neither the terms of the agreement between the government and CIIDG
nor an environmental impact assessment.
“The fact that they come
to the National Assembly without even giving us the contract that they
signed … it is a total abuse of power from the executive branch, and
it’s a total manipulation,” she said. “How can we accept this?”
Mu
Sochua said numerous questions remained about the project, ranging from
the unspecified costs for the Cambodian public to the impact a
coal-fired power plant might have on the environment in the tourist hub
of Sihanoukville.
“Until we can see that it is a transparent
bidding system, the contract is available, we know exactly who is behind
it... it’s more or less a secret and then we are used, the National
Assembly is used as a rubber stamp,” she said.
Ou Virak said the
lack of information about the project and the abuse of parliament was “a
great indicator in what the role of the National Assembly is”.
“This
is normal. Everything is in secrecy,” he said. “If we hired 123 people
to just rubber stamp, we don’t need to pay them that much.”
Pan
Sorasak, secretary of state at the Ministry of Commerce, declined to
comment yesterday. Sok Chenda, head of the Council for the Development
of Cambodia, could not be reached.
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