AMBASSADOR REAFFIRMS CONCERNS ABOUT CORRUPTION,

C O N F I D E N T I A L SECTION 01 OF 03 PHNOM PENH 000394 SIPDIS STATE FOR EAP/MLS, P, D, DRL STATE PASS TO USAID - D. WINSTON E.O. 12958: DECL: 06/12/2019 TAGS: PREL PGOV ECON EAID KJUS CB SUBJECT: AMBASSADOR REAFFIRMS CONCERNS ABOUT CORRUPTION, URGES MODERATE RESPONSE, WHILE ASSUAGING CAMBODIAN DISCOMFIT Classified By: AMBASSADOR CAROL A. RODLEY FOR REASONS 1.4 (B, D) ¶1. (C) SUMMARY: The Ambassador June 11 called on Senior Minister and National Counter Terrorism Center (NCTC) Deputy Director Om Yentieng to restate her concern about corruption in Cambodia and to express regret for any misunderstanding about her intentions or the content of remarks at a May 30 "Clean Hands" anti-corruption concert in which she asserted the government lost revenues of up to $500 million annually due to corruption. Noting the obligation to raise concerns about corruption that might affect U.S. assistance or American investments in Cambodia, the Ambassador expressed the hope that, as a bilateral partner, the RGC would cooperate to fight corruption. Stating that she did not intend to offend or embarrass the Royal Government of Cambodia (RGC),the Ambassador elaborated that the $500 million figure was an honest estimate of the lost opportunities for additional revenue to the RGC. The Ambassador also noted her surprise at the strong RGC reaction to her remarks and raised concerns about limitations on free speech and the subsequent municipal-level inquiry into the NGO concert organizer,s role (Pact Cambodia),saying that the organizer had acted properly to support the government,s own anti-corruption policy. ¶2. (C) Om Yentieng appeared to accept there had been a misunderstanding and that $500 million was an estimate. But he repeatedly stated the RGC rejected there was $500 million in annual corruption, and noted the blow to the RGC,s international reputation, as well as the potential negative impact on public opinion of the Ambassador,s reference to the lost school buildings and civil servant salary raises that the sum translated into. He focused on the "substance of the public concert" and the lack of coordination provided to him by concert organizers at NGO Pact Cambodia, who had originally invited him to be a co-sponsor. Because he was not informed of the content of the anti-corruption show and yet he was being asked to speak at and sponsor it, he was treated like a "puppet" and withdrew at the last minute. He remarked on the content of anti-corruption songs drafted by Pact Cambodia, noting that performers had refused to sing them because they were "anti-government." In a somewhat rambling presentation, he noted that by his association with the concert he could have been censured by parliament and referred to the dangers of using artists and comedians in public fora to present an anti-corruption message. He said the public remarks could cause "hatred among the people." While he noted that the Ambassador was considered a friend of Cambodia, he hinted at the possible official interviews of comedians and singers and noted that there would be a further (unspecified) response from the Ministry of Foreign Affairs (MFA). END SUMMARY. Corruption Affects Aid, Investments -------------- ¶3. (C) The Ambassador called on Om Yentieng at the National Police Commissariat Headquarters home of the NCTC at her request to clarify remarks that were met with responses of official paroxysm and fits of denial usually only reserved for international human rights assessments or Global Witness reports on Cambodia. Noting that she was the representative of a major donor nation to Cambodia and the official representative of American investors in Cambodia, she asserted her obligation to speak publicly about corruption that has an impact on U.S. foreign assistance or private investments in Cambodia. The Ambassador remarked on the shared view that corruption existed in Cambodia, but noted a difference of opinion with the RGC on how extensive it is. She clarified that her remarks focused on the potential impact of corruption on the potential revenue of the government. Highlighting that she was talking about "lost opportunities," she noted that the cumulative acts of under-the-table fees to avoid import duties were but one example of lost revenues to the government. She was surprised the remarks had provoked such a response; she spoke about similar findings on corruption at the donors conference in front of senior RGC ministers and the exact same figure had been presented in a public speech by the USAID Mission Director in Sihanoukville, without provoking any reaction. The figure given in her remarks was an estimate. The Ambassador stated that she had no intention to offend or embarrass and that and she regretted any misunderstandings that may have resulted. Concerns for Freedom of Speech, NGO,s -------------- ¶4. (C) Appealing to Om Yentieng in his role as President of PHNOM PENH 00000394 002.2 OF 003 the RGC Human Rights Committee, the Ambassador noted she had to accept that, in her public role, she must herself have a thick skin and that she must listen to public criticism. The concert remarks were a freedom of speech issue, she asserted, and urged more consideration of the concept of "fair comment" toward public figures and the free expression of views. Persons in a public position should be open to public criticism of a public nature, she added. ¶5. (C) As for the organizers who put on the concert, she understood there was a reaction to her specific remarks, but that had nothing to with the proper conduct of NGO Pact Cambodia, she said. The Ambassador expressed concern for the subsequent questioning of the event organizers by Phnom Penh Municipality officials, noting that the NGO supported a legitimate development program in Cambodia that supports the RGC,s Rectangular Strategy (NOTE: Cambodia,s major development plan, routinely cited by the Prime Minister. END NOTE.). The Ambassador emphasized that fighting corruption was one of the core objectives of the Rectangular Strategy, which the RGC has agreed will benefit the Cambodian people. The U.S. government requires that all of its funded activities remain apolitical and neutral and Pact Cambodia had adhered to that policy, she asserted. RGC Cannot Accept $500 Million, Felt Treated Like "Puppet" -------------- -------------- ¶6. (C) Citing the three reactions from the RGC to the Ambassador,s statement -- by the MFA, Council of Ministers, and himself for the Anti-Corruption Unit -- Om Yentieng said that they had to reject the $500 million estimate of annual corruption, which he said was unsubstantiated. He cited public surveys which indicated a downward trend in corruption. He added that citing the impact this amount of corruption could have on fewer schools built or fewer salary increases paid was particularly sensitive for public order. The RGC did not react to freedom of speech (sic),but to the "substance of the public meeting," for which someone must be responsible, he said. ¶7. (C) Turning to the organizers, Om Yentieng said that he received no cooperation at all from Pact Cambodia. He complained that he was not informed in advance about the substance of six songs or additional comedy routines especially written for the "Clean Hands" concert, nor has he been informed since. As for the performers, he did not know why they did not end up singing their songs, but those songs were supposed to be against corruption, not against the government, he added. Thus the organizers had to be responsible and not authorize songs that were against corruption and against the government at the same time. Since they set up the entire show and asked him to appear in it (without informing about its contents),he would have looked like a puppet, he noted. Another reason stated for not joining was his fear for safety and security at the concert. At another point, he said reference to the loss of new schools or lack of salary raises due to the corruption would "cause hatred among the people." The use of artists is very dangerous, he noted. If artists say or do anything wrong they could face either the public (NOTE: presumably mob violence. END NOTE),or they could face legal action. ¶8. (C) Noting the surprise of himself and Prime Minister Hun Sen at the Ambassador,s remarks on coruption, Om Yentieng stated the Prime Minister viewed the Ambassador as a "very nice and good person," but they didn,t know why the concert took place as it did. Acknowledging that opposition parties would say corruption was even greater than $500 million, Om Yentieng noted that as the opposition they should be able to say this. But as an official ambassador, he continued, we do not think this is freedom of speech, because it affects the government,s reputation. He later said the only loser would be Cambodia from this event. Admonishing the Ambassador to listen to public opinion polls (showing only 14 percent of Cambodians believed corruption was increasing),he urged that this episode have a "silent ending" because the government "cannot accept your remarks." NGO Under Scrutiny -------------- ¶9. (C) Continuing his lament against Pact Cambodia, Om Yentieng complained that when he invited a senior Cambodian staff member at Pact, Sek Barisoth, to meet with him only junior staff came. He had asked for the content of Pact,s six anti-corruption songs but was never provided the information. Yet Pact invited Om Yentieng to give a speech which would make it look like Pact and the government were PHNOM PENH 00000394 003 OF 003 working together, he continued, when in fact he would only be made to act like a puppet. The Pact staff told Om Yentieng that only some of the performers would not sing the six anti-corruption songs. In fact, none of the performers would sing the songs Pact prepared, he said, implying they were all anti-government songs. Om Yentieng noted he had still not received copies of the songs, but said that it did not matter because more government activities would continue with the performers (unspecified, but presumably official interviews or the taking of testimony). Om Yentieng also showed the Ambassador a contract that Pact had signed with the Phnom Penh Municipality clearly promising that the event would not have any images or content that "attacked the government." When the Ambassador noted that the "Clean Hands" concert went very smoothly and the singers performed only romantic songs, Om Yentieng acknowledged the sentimental song program but cited the case of a Cambodian performer in front of a Cambodian-American crowd at a U.S. location who by "just a few words" had provoked an angry mob reaction; that performer was now afraid to travel to the U.S., he said. Noting that a 2009 survey by Pact showed that 45-47 percent of Cambodians believed that corruption was lower than before, Om Yentieng asked rhetorically why Pact did not take into account its own survey in preparing the concert. Draft Penal Code, Anti-Corruption Law; MFA Action -------------- -------------- ¶10. (C) Om Yentieng also indicated that the Penal Code, which had 20 articles related to anti-corruption, was already under consideration at the Council of Ministers. Once the Penal Code was approved by the National Assembly, the Anti-Corruption Law would follow he said. While looking at the draft Anti-Corruption Law recently, Om Yentieng was sorely disappointed that, even though poll survey results showed a reduction in corruption, the "Clean Hands" concert had painted a different picture. While the Anti-Corruption Unit could present a technical response to the situation, the MFA would have an additional response, he said. (NOTE: Known by its full name as the Ministry of Foreign Affairs and International Cooperation, the MFA has responsibility for the registration and approval of all foreign NGOs. END NOTE.) COMMENT -------------- ¶11. (C) Om Yentieng,s image as CPP,s lead anti-corruption crusader overseeing a claimed downturn in corruption has been harmed by the Ambassador,s high-profile speech noting continued endemic corruption. We do not discount his personal stake in this issue and note that his long history as a party propagandist only highlights his emotional involvement. While not presenting an entirely linear argument, Om Yentieng has certainly conveyed his sense of mistrust and betrayal at the hands of an uncommunicative NGO that, at least according to Om Yentieng, may not have been as cooperative as it could have been. That said, Om Yentieng never indicated he had been promised control of the concert or the contents of its presentations. The head of the Anti-Corruption Unit similarly appears to want to control all messages about the extent of corruption in Cambodia. We doubt that he is flabbergasted when confronted with the reality: corruption stares Cambodians in the face on a regular basis and they do not need the government to tell them how much it does or does not cost -- they are the ones who pay. As to the depth of the Cambodian official reaction: we view Hun Sen,s absence (while in Korea) as one cause for multiple RGC actors trying to assert a role in taming the westerner speaking an inconvenient truth. It may be that high-level, ongoing Cambodian business deals in Korea were tarnished by the highly public reference to corruption and that RGC officials felt frustrated at not being able to "manage" their image problem. In the meantime, we are internally reviewing Pact,s performance and its level of coordination. RODLEY