CPP Tycoon-Senator Mong Reththy's shady business deals

Mong Reththy is one of Cambodia’s most prominent tycoons and a close ally of Hun Sen. In 2006 he became a senator for the CPP.

Plantations, commodities trading, cattle farming and real estate development are just some of Mong Reththy’s interests. His eclectic business portfolio has also encompassed illegal logging in Bokor National Park and an economic land concession in Stung Treng which at 100,852 ha is more than ten times the size permitted by the Land Law. This ELC is sited on the cancelled Macro Panin logging concession in violation of the sub-decree on Forest Concession Management. Chan Sarun signed off on the deal in November 2001, three months after the passage of Land Law limiting ELCs to 10,000 ha. When Global Witness wrote to Chan Sarun to question the legality of his decision, the minister responded with the argument that the government was obliged to give Mong Reththy the concession because he had asked for it before the Land Law was ratified. In December 2006 Global Witness received reports from a human rights worker that Mong Reththy’s company had begun clearing parts of the Green Sea ELC close to the Lao border.

Mong Reththy has also been at the forefront of the recent rash of land-swap deals in which ownership of public buildings has been transferred to tycoons with links to the CPP. His land-swap acquisitions have included Cambodia’s Supreme Court, Appeals Court, Phnom Penh Municipal Court and Justice Ministry buildings. He has also flattened the historic Royal University of Fine Arts campus in Phnom Penh and forcibly evicted local residents in order to make way for a development he has named ‘China Town’.

The government’s decision to give the green light for Oknha Mong Port demonstrates considerable confidence in a man previously subject to allegations of drug trafficking. Claims that there was more to Mong Reththy’s import-export business than met the eye first surfaced in April 1997, when officials in Sihanoukville seized seven tons of marijuana from containers labeled as rubber. Newspapers reported that documents taken during the seizure bore stamps and seals of a company belonging to Mong Reththy. In media interviews Mong Reththy denied any involvement.

Secretary of State at the Ministry of Interior Ho Sok, a member of the CPP’s Funcinpec coalition partner, led the investigation into Mong Reththy’s alleged connection with the marijuana. His announcement that a court was preparing an arrest warrant for the tycoon prompted Hun Sen to comment that anyone attempting to arrest Mong Reththy had better “wear a steel helmet”. In July 1997, during the coup in which Hun Sen ousted his Funcinpec co-prime minister Prince Norodom Ranariddh, Ho Sok was detained by CPP forces and murdered. The investigation into Mong Reththy’s dealings proceeded no further.

Mong Reththy has continued to deny any connection with drug trafficking. In an interview with a local newspaper in 2004, he said “I was accused of planting and smuggling marijuana. I have tried to ignore it. I have never even smoked a cigarette in my life, so how could I do business like that? I only do what is legal”.

Global Witness wrote to both Mong Reththy and Hun Sen to ask them for their comment on the reports of drug trafficking. As this report went to print, Hun Sen had not replied, however Mong Reththy’s lawyer responded by e-mail as follows: “We have received the inquiry from your office related to Mr Mong Reththy and he is pleased to receive it. Mr Mong has asked us to inform you that he is unable to give Global Witness a written statement BUT he is willing to interview with a Global Witness representative in Phnom Penh or in London. If you have any further inquiry, please do not hesitate to contact us.”

Global Witness accepted the invitation to take part in an interview with Mong Reththy, and proposed a tape-recorded discussion over the telephone. At the time of the report’s publication, Mong Reththy’s lawyer had not responded to this proposal.

Laos says no need to fear for Hmong deportees

HANOI: Laos insisted on Wednesday that the international community need not fear for thousands of ethnic Hmong expelled from Thailand, after the United Nations and US lawmakers sought access to the deportees.

Bangkok sparked outrage on Monday when it defied global criticism and used troops to forcibly repatriate around 4,500 Hmong, including women and children, from camps on the border with communist Laos.

The Hmong, a Southeast Asian ethnic group, were seeking asylum in Thailand saying they risked persecution by the Lao regime for fighting alongside US forces in the Vietnam War during the 1960s and 1970s.

"These people, they have nothing to worry about them. They are Lao people. They have come back to their own country," Lao government spokesman Khenthong Nuanthasing told AFP by telephone from the capital Vientiane.

UN chief Ban Ki-moon voiced regret on Tuesday over the expulsions and the United Nations High Commissioner for Refugees (UNHCR) said it had filed a formal request with Laos for access to the Hmong.

Four US senators from Minnesota and Wisconsin, home to much of the US Hmong community, urged immediate and ongoing international monitoring of the resettlement and reintegration.

"On what grounds is UNHCR requesting?" Khenthong said. "It's a problem between Thailand and UNHCR. It's not a problem with Laos."

Thailand and Laos both say the Hmong were illegal economic immigrants and not political refugees as they contended, dismissing concerns by diplomats that they have genuine claims.

One of the deported Hmong contacted AFP by telephone from the central Lao province of Bolikhamsay to say that they had not been mistreated since their arrival but feared for the future.

"My family is OK, everybody is OK," said the 35-year-old man, who was deported with his wife, mother and five children. "But I worry for the situation in the future. I don't know if it is safe."

The man, who asked not to be identified, said they were being held at a detention centre and did not know how long they would be held there but that Lao authorities had made a "new camp" dozens of miles (kilometres) away.

Khenthong said, however, that more than 3,000 Hmong had already returned to Laos in previous years.

"Their lives are much better than in the detention camp in Thailand," he said.

Foreign delegations can apply to visit the returnees, but the newly-arrived Hmong are still being interviewed by Lao authorities to determine where in Laos they wish to go, Khenthong said.

He said they will be given free transport, a year's supply of rice, and other reintegration assistance.

Thailand on Monday also sent back a separate group of 158 Hmong with recognised UN refugee status, in a move the UNHCR said was a breach of international law.

Thai Foreign Minister Kasit Piromya tried to quell international concerns.

"Laos has promised Thailand that they will give good treatment to these people. They will not be jailed and they will be given passports and a chance to meet with third countries that could resettle them," Kasit told reporters.

"We are confident that they will proceed as promised."

Kasit said the international community should also "help develop Laos to strengthen Laos" if they wanted to ensure the good treatment of the Hmong.

Thousands of Hmong, a highland people, sided with the United States during the Vietnam War and formed a CIA-funded "secret army" when the conflict spread to Laos.

When the Communists took power in Laos in 1975, Hmong fighters feared the regime would hunt them down for working with the Americans. About 150,000 fled and found homes abroad, mainly in the United States.

Others hid in the Lao jungle, some fighting a low-level rebellion that has been largely quashed. Thousands have fled to neighbouring Thailand, which also backed the United States in the war. - AFP/de

Under-employment among older PMETs becoming an uptrend in Singapore

SINGAPORE: Singapore's labour movement said tackling the issue of under-employed workers will be a big challenge in the coming year.

It said under-employment is becoming more pertinent among older Professionals, Managers, Executives and Technicians also known as (PMETs).

And efforts must be put in place to help them get jobs suited to their skills and qualifications.

PMETs were the hardest hit during the economic downturn.

Many, like those in the financial sector, were left jobless and the labour movement said they had to settle for whatever job they could get to make ends meet.

But while this brings down unemployment levels, the issue of under-employment has been on the uptrend.

Halimah Yacob, Deputy Secretary-General, NTUC, said: "He may be very qualified, very skilled, but the jobs that he wants to do and is willing to do is not available. H

“He ends up doing a job that does not make full capacity, productive use of his capabilities. It also involves the case where jobs are not paying them the kind of salary or earning that they feel is commensurate with their qualifications and skills."

Madam Halimah said she's seen many cases where middle-aged degree-holders who lost jobs during the downturn become taxi drivers.

She said such under-employment is unavoidable as with slow economic growth, job opportunities are limited.

But as the economy recovers, the labour movement will offer targeted help to under-employed workers.

Mdm Halimah said: "We recognise that the person cannot remain underemployed in perpetuity because that is going to be very frustrating and demoralising. That is where we then need to focus help to help him to transit so that he can make better use of his skills and capabilities to move to other sectors and to retrain them and move to other sectors that require their skills and qualifications.

“Of course it may not be easy because some of them may be working in one sector for so many years. So a re-tuning is needed to acquire other skills to move to other sectors."

The labour movement will work on job-matching assistance and training courses and Madam Halimah said workers must also actively find out more about job opportunities relevant to them. - CNA/vm

H1N1 and health reform dominated 2009 medical news

(CNN) -- It was the year that a new pandemic flu swept across the globe, initially baffling health authorities and causing worldwide panic.

It was also the year a new president and Congress tackled America's ailing health care system.

In the research world, the well-accepted notion that more cancer screenings benefit patients came under scrutiny. And a controversial stem cell policy was reversed.

And in the realm of food safety, Salmonella-tainted peanut butter products sickened and killed consumers across the nation and led to one of the largest food recalls in U.S. history.

Here's a closer look at five of the biggest health stories that emerged in 2009.

H1N1 pandemic flu

In April, the Centers for Disease Control and Prevention announced the detection of swine flu cases in the United States. When the 2009 H1N1 pandemic virus became widespread, massive confusion and panic ensued. Face masks and hand sanitizers sold out at stores.
Video: Top medical stories of 2009
Gallery: Top health stories of 2009
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* Swine Flu
* Health Care Issues
* Cancer
* Stem Cell Research
* Peanut Corporation of America

Unlike the seasonal flu, most of the H1N1 deaths in the U.S. have been in children and younger adults, according to the CDC.

In Mexico, the government ordered all schools and nonessential businesses to close as the nation grappled with the epidemic. In Egypt, the government ordered that all pigs be slaughtered -- although eating pork does not spread the virus.

In June, the World Health Organization raised the alert to its highest level, stating that the H1N1 virus had spread to enough countries to be considered a global pandemic. In October, President Obama declared a national emergency to deal with the "rapid increase in illness" from H1N1.

But the panic eased after health authorities determined that the H1N1 virus appeared to be no more dangerous than the regular flu virus. Evidence also showed many of the seriously ill patients had underlying medical conditions.

Since the pandemic began, 50 million in the United States have been infected. The CDC estimates about 200,000 hospitalizations and about 10,000 deaths from H1N1.

A vaccine created this year, which public health authorities say is the best way to protect against H1N1, was made available to the public this fall.

Health care reform

Obama made health care reform a top priority on his domestic agenda and urged Congress to pass such a bill, sparking months of political wrangling.

The health care reform bill, if it passes into law, would be the biggest expansion of federal health care guarantees since the enactment of Medicare and Medicaid. It would extend insurance coverage to an estimated 30 million additional Americans. Among other things, the House and Senate bills -- which still need to be reconciled -- require individuals to buy health insurance and limit insurance companies from denying coverage for pre-existing conditions.

As the cost of health care skyrockets in America, supporters say reform would slow this economic burden. But critics voice concerns about the reform's impact on the existing health care system and its cost. Those anxieties flamed protests and contentious town hall meetings around the country.

In November, the House passed a $1 trillion health care reform bill that includes a public option, a government-funded, government-run health care plan. The $871 billion bill that the Senate passed does not include the public option.

Liberal members of the Democratic Party said the Senate bill has been too watered down. Meanwhile, Republicans slammed both versions of the bill, saying it will raise taxes while doing little to slow spiraling health care costs; they have labeled it "a monstrosity."

A conference committee will convene to iron out the differences between the two versions in January.

Cancer screenings/mammograms

The medical establishment raised questions about certain cancer screening tests that for years people were told were a necessity.

In November, a government task force recommended that women in their 40s not get routine annual mammograms. It advised women between 40 and 50 to discuss with their doctor the benefits and harms of having a mammogram, since these tests could result in false positives, anxiety and unnecessary biopsies.

The change in the task force's guidelines triggered confusion, outrage and accusations of health care rationing. Cancer survivors and patient advocate groups said that routine mammograms save lives. A spokeswoman for the task force later said the guidelines had been communicated poorly to the public.

For men, a decade-long study found that prostate cancer screenings led to more diagnoses but did not reduce the number of deaths.

Since the early 1990s, controversy around annual prostate screening has persisted in the medical community. Some doctors and medical organizations are skeptical of the screening, citing lack of scientific evidence that it saves lives and the risk of common treatment side effects, including impotence and incontinence. Doctors say that more research is required and that there's no definitive answer on prostate screenings yet.

Stem cell policy reversal

Obama signed an executive order this year repealing a Bush-era policy that limited federal dollars for human stem cell research, permitting the National Institutes of Health to conduct and fund studies on controversial embryonic stem cells.

Some scientists believe embryonic stem cells could help treat many diseases and disabilities, because of their potential to develop into many different cell types in the body.

While some advocates praised the executive order as a a giant step forward for medical research, conservatives groups objected, contending that the destruction of human embryos ends human life.

Peanut butter scare

Salmonella-tainted peanut butter paste -- found in crackers, cookies, ice cream and snack items -- sickened more than 600 people and killed nine in the United States. The outbreak, which came to light in January, was traced back to a processing plant in Blakely, Georgia, owned by Peanut Corp. of America. A second PCA-owned plant in Plainview, Texas, was later raided and shut down by state health officials for health violations.

The outbreak led to one of the largest food recalls in U.S. history, involving more than 1,000 products. A Food and Drug Administration report said Peanut Corp. of America shipped a tainted product it knew had tested positive for salmonella. The company filed for bankruptcy in February.

The outbreak renewed criticism about the lack of food safety oversight in the country.

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Economy remains in peril: IMF

Banking and garment sectors must evolve, organisation says

THE International Monetary Fund issued a stark warning to Cambodia’s struggling garment industry and financial sector in a report late Tuesday that highlighted persisting structural problems. The organisation said that in 2009, Cambodia will experience its first recession in years.

Following consultations with the Cambodian government that ended on November 18, the IMF reported that the Kingdom’s banking sector remains vulnerable despite increasing liquidity after a credit squeeze that started a year ago.

“While banks’ liquidity has improved, staff noted that bank balance sheets have further weakened and credit risks have risen sharply over the past year,” the report said.

The report pointed to rising rates of non-performing loans (NPLs) – which hit 5.25 percent in June – as a continuing concern for the industry, “but the figures officially reported by banks likely fail to capture the true extent of the problem”, it added.

The National Bank of Cambodia (NBC) has increased oversight of the sector and conducted spot checks to complement more-stringent classification rules, the IMF said, but a shortage of resources has prevented adequate supervision.

More damning was the report’s suggestion that the central bank has not shown sufficient willingness to clamp down on the banking industry, a sector that has continued in some cases to report zero NPLs.

“While the authorities agreed on the need to deal firmly with problem banks, they preferred a more gradual approach,” the IMF said, without naming the lenders that continued to underreport bad loans.

“The NBC has taken measured steps to deal with problem banks, with much more forceful action needed to reduce systemic risks,” it added.
NBC officials were unavailable for comment Wednesday.

Stephen Higgins, CEO of ANZ Royal, agreed with the IMF that the central bank had made progress, adding that banks in Cambodia remain well-capitalised compared with other markets, a factor that helps to combat the threat of bad loans.

“The NBC has already been quite strict in enforcing the new asset-classification regime, and I think there is no doubt that their supervision capacity is stronger,” he said Wednesday. “I think the NBC should be applauded for the steps they are taking.”

The IMF said that profitability of banks will continue to be adversely affected while increasing deposits remain with the central bank instead of being offered to lenders, but Higgins said demand remains low and quality borrowers lacking.

ACLEDA Bank profits soared more than 72 percent in the third quarter compared to the previous period, and ANZ Royal saw profits rise 25 percent in the same quarter over the period from January to March.

But the persistent lack of openness in the sector means other banks have not broken down their financial results in public.

The IMF maintained its prediction of a 2.75 contraction in GDP for this year, citing the continuing problems facing the tourism industry, property sector and, most notably, garment exports in what is set to be the worst economic performance by the Kingdom in recent years. Cambodia saw double-digit GDP growth in 2006 and 2007, and 6.7 percent last year.

The garment sector, the country’s primary export industry, remains mired in a downturn with little sign of recovery given the underlying structural issues that have kept costs high and maintained an enduring “productivity gap” with the rest of the region.

“The outlook for Cambodian garment exports is clouded by structural changes in the market, in addition to lagging competitiveness,” the IMF said. “The global recovery is not expected to be consumer-led, dimming prospects for 2010.”

Statistics compiled by the US Office of Textiles and Apparel show that Cambodia’s garment downturn in the first eight months – a 23.1 percent decline in exports to its primary market the United States – was more severe than the global industry average of a 14.3 percent drop, showing that the Kingdom had failed to compete during the global economic crisis.

Bangladesh, by contrast saw exports rise 4.7 percent, and neighbouring Vietnam’s shipments to the US dropped just 1.2 percent over the same period.

“We have always tried to address the issues of costs and productivity; however … some of these issues, such as infrastructure deficiencies, are not within our control and take a long time to resolve,” Ken Loo, secretary general of the Garment Manufacturers Association of Cambodia (GMAC), said Wednesday. “The issue of the price of electricity is a case in point.”

The IMF report noted that Cambodian electricity cost US$0.22 a kilowatt-hour versus just $0.07 in Vietnam.

Garment bulk buyers in Taiwan and Hong Kong, for example, sourced from “the most cost-efficient” factories first, the report said.

“Declining orders [during the crisis] have left fewer allocated to garment manufacturers with relatively high unit costs and compress profit margins for all.”

Cambodia is unlikely to benefit from reduced tariffs on its garments exported to the US anytime soon, the IMF predicted, given that relevant free trade agreements are currently stalled “due to political considerations”, including the Doha round.

The Kingdom is subject to average tariff of 16 percent on shipments to the US.

Loo said that although GMAC continues to work with the government and relevant stakeholders in a bid to fix underlying weaknesses in the sector, the future remains unclear.

“Without … cooperation from all parties, it would be extremely difficult for us to recover from this current economic crisis,” he said.