WHITHER FUNCINPEC? DOWN BUT NOT YET OUT

C O N F I D E N T I A L SECTION 01 OF 03 PHNOM PENH 000328

SIPDIS

SIPDIS

STATE FOR EAP/MLS; GENEVA FOR RMA

E.O. 12958: DECL: 02/17/2016
TAGS: PGOV KDEM CB
SUBJECT: WHITHER FUNCINPEC? DOWN BUT NOT YET OUT


Classified By: Pol/Econ Chief Margaret McKean, Reason 1.4 (b) and (d)


1. (C) Summary. Since Hun Sen's outreach to opposition
leader Sam Rainsy, the Prime Minister and his party have
spoken about ruling coalition partner FUNCINPEC in
increasingly negative and strident tones. Hun Sen recently
criticized FUNCINPEC for being more interested in graft and
less interested in competency of its public officials, and
rejected a FUNCINPEC proposal to divide all state education
positions between the two parties. Two CPP insiders related
to the Embassy their own frustrations with FUNCINPEC. Not to
be outdone on the reform front, FUNCINPEC is considering a
proposal whereby voters would have the opportunity to vote on
individual lawmakers in elections, rather than simply voting
for a political party. End Summary.

Prime Minister Tries to Distance Himself from FUNCINPEC
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2. (U) Prime Minister Hun Sen has been on a public
offensive against ruling coalition partner FUNCINPEC for much
of the past week. On February 14, the Prime Minister railed
against FUNCINPEC's interest in buying government positions
or seeking slots for unqualified relatives. Hun Sen was
quoted as saying that FUNCINPEC appointees were often not
qualified for their positions, and he faulted FUNCINPEC
leader Prince Norodom Ranariddh for failing to ensure that
only qualified applicants' names were being forwarded for
consideration. The PM also noted that in addition to filling
the government with incompetent people, FUNCINPEC made
continued demands for remuneration and financial benefits in
return for joining the CPP-led government. FUNCINPEC's poor
relationship with the CPP has been instrumental in convincing
Hun Sen of the utility of Sam Rainsy's proposal to amend the
Constitution and allow the formation of a government under a
50 percent plus 1 formula. Under the SRP-proposed change,
any party that achieves 50 percent plus one of the National
Assembly seats would be in a position to form a government,
and there would be no need to seek minority parties as
coalition partners. The PM has welcomed the proposed
amendment, saying it would help to prevent the protracted
political deadlock and negotiations that followed the 2003
elections.


3. (U) The PM also rejected a FUNCINPEC proposal that would
have divided all of the education and teaching positions
within the government and state-run schools between the CPP
and FUNCINPEC, saying that educational positions should not
be subject to political patronage quotas. FUNCINPEC had
originally suggested that the government divide the slots
according to the 70/30 ratio based on the two respective
parties' percentage of National Assembly seats. As a further
slap at the royalist party, the Prime Minister spoke out
against mistresses and wives of government officials using
their relationships to further the careers of relatives and
as a means to collects bribes. (Note: Some reporters
consider the PM's reference in this instance to be directed
at the mistress of Prince Ranariddh. End Note.)


4. (U) In response to the Prime Minister's criticisms,
FUNCINPEC leader and National Assembly President Prince
Norodom Ranariddh called Hun Sen's refusal to divide up the
nation's teaching and administrative posts in the educational
sector "narrow minded." The Prince said that PM's negative
attitude and treatment of his coalition partner could
threaten stability within the government. Other FUNCINPEC
officials agreed, with MP Monh Saphan saying that Hun Sen's
withdrawal from any coalition would run counter to former
King Sihanouk's vision of national unity and political
cooperation. Battambang FUNCINPEC MP Mrs. Ky Lum Ang said
that the government political appointments for both the CPP
and FUNCINPEC are based on a quota system and FUNCINPEC has
no more or no less than its agreed-upon share. As for
competency of officials, if the PM is unhappy with FUNCINPEC
officials, the FUNCINPEC parliamentarian suggested he propose
a solution to Prince Ranariddh rather than trying to score
political points in the press. She acknowledged that both
FUNCINPEC and CPP have corrupt and/or unqualified people in
the government, and that any reforms to address the problem
must be applied to both parties.


5. (U) In another step designed to counter CPP accusations

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of incompetency and corruption among FUNCINPEC officials,
Prince Ranariddh has proposed that Cambodian voters be
allowed to cast ballots for individual candidates, and not
just political parties. With the proposal still under
consideration within FUNCINPEC, royalist party members
contend that such a system would be more democratic, reduce
corruption, and make public officials more accountable to the
population. Some observers believe that the
FUNCINPEC-proposed system would favor wealthy candidates, who
would have more resources to devote to campaigning. Within
the SRP, some officials have suggested that FUNCINPEC is
trying to copy Sam Rainsy and the Prime Minister, who have
been capturing headlines for the past week with proposals of
new reforms.

CPP Insiders Relate Disenchantment with FUNCINPEC
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6. (C) In a February 16 meeting with Pol/Econ Chief, MOI
Secretary of State Prum Sokha underscored CPP unhappiness

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with FUNCINPEC and welcomed opposition leader Sam Rainsy's
return as an opening for real reform in Cambodia. He noted
that the PM considers FUNCINPEC as the main obstacle to
reform in Cambodia, and a political liability for the CPP.
Prum Sokha added that following the 2003 elections, he had
been a strong advocate for a CPP-SRP alliance, but that Hun
Sen had opted to form a government with FUNCINPEC, because
the PM thought they would be an easier partner to manage.
Unfortunately, he continued, FUNCINPEC officials have simply
taken advantage of their access to government positions for
purposes of corruption. They have bloated the staffing of
ministries with relatives and party members without
consideration of qualifications or interest in the jobs.
Half the time, complained the MOI official, they do not
bother coming to work but simply collect their salary.


7. (C) Senior Advisor to the PM, Om Yentieng, told DCM
February 16 that the PM is fed up with FUNCINPEC. He
recounted how Prince Ranariddh's mistress had been forwarding
names of officials to be appointed and that Ranariddh had
then sent them along to the PM without any review. (Note:
Yentieng has long complained to us of Ranariddh's insistence
on appointing various officials. End Note) Yentieng said,
"the coalition with FUNCINPEC has cost us dearly." Expanding
on the idea, he said that FUNCINPEC had had no interest in
anything but its own enrichment, with little interest
whatsoever in the country's development. The PM had been
unable to implement reforms, he argued, due to FUNCINPEC's
bad performance. In time, Yentieng said, this would hurt the
CPP at the polls.

Not All FUNCINPEC Officials Pleased with Ranariddh
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8. (C) Dr. Sina Than, FUNCINPEC MP for Kampot Province,
said that he supports Hun Sen's criticisms of FUNCINPEC and
blames party leader Prince Ranariddh and FUNCINPEC Secretary
General Prince Norodom Sirivuddh for having failed the party.
Without a competent government, Cambodia will continue to be
unattractive to foreign investment, said the FUNCINEPC
official. Because of corruption and nepotism, the party is
losing support from the people and talented officials, such
as the SRP's Mu Sochua, have left the party. Dr. Sina Than
said he worked hard for the party and performed well as
Secretary General of the National Assembly, Deputy Governor

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of Phnom Penh, and Deputy Governor of Kampot. Despite his
strong record of public service, he was transferred from the
positions because he refused to succumb to corruption and
accepting bribes and kickbacks that in turn would pass to the
FUNCINPEC party leadership. The FUNCINPEC official is very
pessimistic about the party's future.

Comment
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9. (C) FUNCINPEC is currently everyone's favorite whipping
boy, and has come under criticism from a number of
politicians in the CPP and SRP -- and its own membership.
However, while FUNCINPEC has admittedly its fair share of
corrupt officials with a penchant for graft and cronyism,
they are by no means alone. It is also disingenuous for the
Prime Minister to make himself out to be the victim of

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FUNCINPEC avarice and that he has been unable to do anything
about it until now, when it is clear that FUNCINPEC takes its
orders from the CPP and not the other way around. But the
Prime Minister's remarks do underscore longstanding CPP
disenchantment with their ruling coalition partner and
growing resentment that FUNCINPEC has contributed little to
the government while taking more than its fair share.
Mussomeli