REOPENED CHHAY HOUR II CLOSED; OWNERS RE-ARRESTED

C O N F I D E N T I A L SECTION 01 OF 02 PHNOM PENH 000207

SIPDIS

SIPDIS

STATE FOR EAP/MLS; G/TIP

E.O. 12958: DECL: 02/05/2017
TAGS: PREL KJUS KCRM KWMN CB
SUBJECT: REOPENED CHHAY HOUR II CLOSED; OWNERS RE-ARRESTED

REF: 06 PHNOM PENH 344

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


1. (C) Summary. On February 3, the Minister of Justice
directed the re-arrest of the owners of the Chhay Hour II.
On February 4, the Minister of Interior Sar Kheng shut down
the establishment, vowing that it will not re-open. These
events followed several interventions by the Ambassador.
Press reports indicate that police rescued four women at the
Chhay Hour II who claimed to have been coerced into the sex
trade; the women reportedly were placed in AFESIP's care, but
all have left the NGO. The Ambassador has pressed the RGC
for a full investigation into the circumstances that led to
the two men's release, and Sar Kheng has reported that a
high-level investigation is underway. End Summary.

Chhay Hour II Redux
--------------


2. (C) On February 1, Embassy poloff and two LES visited
the Chhay Hour II site to determine whether the hotel, closed
since 2005, had reopened for business. On entering the
establishment (renamed the Leang Hour Hotel and Restaurant),
Mission personnel identified the two men, Sam Leng and Te Pao
Ly, who had been arrested and convicted in February 2006
(reftel) following a police re-investigation of the Chhay
Hour II. Leng entered into conversation with Mission staff,
explaining that he had paid a large amount of money to the
police (NFI) to be released from prison via a special Appeals
Court verdict. He also alleged that their release had been
approved by the most senior levels of the government.
Mission staff did not identify any possible underage girls
working in the hotel during their visit.


3. (C) On learning of the Chhay Hour II's status, the
Ambassador met the same day with PM advisor Om Yentieng, and
expressed the Embassy's serious concern regarding the
reopening of the Chhay Hour II, the release of the men
imprisoned in 2006, and the allegation by one of those
involved that bribery and high-level RGC involvement had led
to their release. Om Yentieng noted that he was not aware of
the reopening of the Chhay Hour II, but understood USG
concerns and the implication for bilateral relations. The
PM's advisor spoke with Cambodian National Police (CNP)
Commissioner Hok Lundy as well as the PM to alert them to the
situation, and promised prompt RGC action. The PM was
outraged that he had been implicated by name in the release.
An exasperated Om Yentieng complained to the Ambassador that
"you foreigners assume that the government controls the
courts, which is incorrect -- it's money that controls the
courts."


4. (C) Given that February 2 was a Cambodian holiday, CNP
Commissioner Hok Lundy was out of town, and Deputy Police
Commissioner Sok Phal met with the Ambassador and Embassy
staff to discuss next steps. Sok Phal indicated that he also
was not aware that the Chhay Hour II had reopened, but had
been instructed by Hok Lundy to initiate an immediate police
investigation. Sok Phal noted that he had met with Om
Yentieng on the evening of February 1. He said that Om
Yentieng was seeking to file a complaint with the Supreme
Council of the Magistracy regarding the alleged Appeals Court
decision that released the two men. In addition, the police
were in the process of collecting the documents pertaining to
the reopening and renaming of the Chhay Hour II, and the CNP
was beginning an investigation into the new business.


5. (C) The Ambassador stressed that the police must/must
address the bribery accusation and the possible involvement
of senior RGC officials in the release of the two men. Sok
Phal indicated that he understood the Ambassador's concerns,
and urged the Ambassador to meet with Deputy Prime Minister
and Minister of the Interior Sar Kheng on the DPM's return
from Battambang over the weekend.

MOI/MOJ Meeting: Best Bilateral Relations Ever Threatened
-------------- --------------


6. (C) On February 3, the Ambassador and Pol/Econ Chief met
with DPM Sar Kheng, Minister of Justice Ang Vong Vatthana,
Deputy CNP Commissioner Sok Phal, and several of Sar Kheng's
advisors and staff members. Sar Kheng registered his
displeasure over the news regarding the Chhay Hour II and
confirmed that the RGC was moving forward on the
investigation of the hotel. He assured us that the RGC's
position remains the same -- the government means to
implement the law and suppress trafficking in persons. He
underscored the potentially serious negative impact
trafficking has, in what he characterized as the "best
bilateral relationship between Cambodia and the United States

PHNOM PENH 00000207 002 OF 002


ever." He and Sok Phal had discussed the issue and tasked a
special group of police officers to work on the case. In
response to the Ambassador's question, Sar Kheng affirmed
that the RGC was also looking into how the Appeals Court came
to a decision to release the two men. The Ambassador
underscored USG concern over the release and the allegation
by one of the men that payment to RGC official(s) had led to
their release. The Ambassador recalled discussions regarding
Chhay Hour II in mid-2006 with the PM, who had acknowledged
that the two men were trying at that time to bribe their way
out of prison. Sar Kheng assured the Ambassador that the RGC
was also examining the judicial actions that led to the
release. The Ambassador noted that the RGC ought to be less
concerned with those who criticize the government for being
corrupt and far more concerned with those -- like the owners
of the Chhay Hour II -- who praised the government for being
corrupt.

Three Men Arrested; Four Women Rescued
--------------


7. (U) Later on February 3, police officials informed the
Embassy that they had taken the two men back into custody
following a police raid on the hotel, and the MOI issued a
press release on February 4 announcing the re-arrest of both
men as well as a third individual (Em Mardy) who worked at
the hotel. Press reports indicate that four women at the
hotel claimed to have been coerced into providing sexual
services and the police turned them over to AFESIP's care.
AFESIP on February 5 told us that the women did not want to
stay at the shelter, and asked to leave with family members
who visited the AFESIP shelter to visit the women. AFESIP
discussed the matter with the MOI, noting that the women had
requested permission to leave. After consulting with the
MOI, AFESIP granted their request on the guarantee by their
family members that the women would appear in court when
requested. According to AFESIP, the women all claimed to be
20 years of age, but two of them reportedly appeared to be 16
or 17. AFESIP could not comment as to whether the women were
trafficking victims or voluntary sex workers as there was not
enough time for proper interviews and screening.

Comment
--------------


8. (C) The CNP has re-arrested the men who left prison and
the hotel has been shuttered once again. Nevertheless, we
have made clear to all senior officials that the RGC must
address the issue of how the two individuals were able to
leave Prey Sar prison in the first place. We note that
prison authorities were aware of the importance of both men;
Te Pao Ly occupied a cell with only 4 other individuals
(normal occupancy was 15-20 per room),and had special
visitation privileges from family members. It seems unlikely
that his departure would have escaped the notice of senior
prison officials, and that they in turn would have neglected
to notify more senior members of the CNP. The Embassy will
maintain pressure on the RGC to fully investigate the bribery
allegation and the Appeals Court decision, and continue to
monitor the Chhay Hour II site for any signs of further
business. We will also use these developments to remind the
RGC that their Tier 2 Watchlist status is undergoing review
and predicated on the need for tangible and systemic
improvements. From other sources, it appears that the
highest levels of the government were not involved in this
incident and there are some senior officials -- such as the
Ministers of Interior and Justice -- who are ardently
committed to stamping out trafficking. However, more work
needs to be done and we will press the RGC to identify and
punish those who were responsible for the release of the two
men. End Comment.
MUSSOMELI