Identifier
Created
Classification
Origin
09PHNOMPENH394
2009-06-12 10:33:00
CONFIDENTIAL
Embassy Phnom Penh
Cable title:  

AMBASSADOR REAFFIRMS CONCERNS ABOUT CORRUPTION,

Tags:  PREL PGOV ECON EAID KJUS CB 
pdf how-to read a cable
VZCZCXRO7480
OO RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHPF #0394/01 1631033
ZNY CCCCC ZZH
O 121033Z JUN 09
FM AMEMBASSY PHNOM PENH
TO RUEHC/SECSTATE WASHDC IMMEDIATE 0822
INFO RUCNASE/ASEAN MEMBER COLLECTIVE PRIORITY
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)

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