Two Foreign Companies Planning to Develop the Boeng Kak Lake Area Withdraw

Two Foreign Companies Planning to Develop the Boeng Kak Lake Area Withdraw

Photo Credit - Dara Keo [3]

The Mirror, Vol. 14, No. 656

“An official of a party having seats in the National Assembly said that some foreign companies that cooperate with the Shukaku Inc. company to develop the Boeng Kak lake area have withdrawn their stakes, because the development in the area involves forced evictions of citizens which might bring a bad reputation for their companies on the international level.

“The Shukaku Inc. company of Mr. Lao Meng Khin, a senator and husband of Ms. Chhoeung Sopheap, known as Yeay Phou, who are very close to Prime Minister Hun Sen, had received the right from the Cambodian government to develop the area with a 99 years contract, which resulted in criticism from national and international organizations and from Sam Rainsy Party officials, as the authorities forcedly evicted citizens from the area.

“A government official told Khmer Machas Srok that foreign companies did withdrew their stakes in the Shukaku Inc. company. But this official did not disclose the identities of the foreign companies. The official added that also the government suspended the development plan for the Boeng Kak Lake for a while.

“A Sam Rainsy Party parliamentarian from Phnom Penh and an active activist who assists Boeng Kak Lake residents, Mr. Son Chhay, said that he also got the information, and he welcomes it. He added that he does not oppose the development plan of the government, but he wants a transparent solution for the citizens.

“Mr. Son Chhay went on to say that he received the information over two months ago, and government leaders knew the real story relating to the Shukaku Inc. company that is dredging sand to fill the Boeng Kak Lake by colluding with officials of the Phnom Penh Municipality, while citizens were forced and threatened to remove their houses and leave the area. These activities are cruel and unjust.

“Mr. Son Chhay added, ‘They evicted citizens by force and cruelly to grab the land for the construction of buildings for the profit of their company, and there are many irregularities that the leaders knew and then blamed on others. The company might be stopped from filling the lake and evicting common citizens.’

“However, Mr. Son Chhay could not make sure whether the information is true or not. ‘But we hope that it would be good information for the Boeng Kak residents, if the leader know about the exploitation and the mistreatment of the residents in the area, and ordered to stop these activities.’ He totally supports this.

“Mr. Son Chhay continued to say that he will encourage the government to offer ownership to the residents of the Boeng Kak community where some of them have been living over ten years.

“In 2009, national and international organizations and leaders of the Sam Rainsy Party seriously condemned the authorities’ action to evict the Boeng Kak residents, offering them US$8,000 [per family] as compensation in exchange. Some citizens did not want to suffer violence from the authorities and decided to leave with tears.

“A senior economist said that big international companies with a good reputation worldwide do not want to invest millions of dollars in a country where transparent solutions have not been offered to citizens. The solutions for the Boeng Kak residents came with force and intimidation, and such activities were known publicly.

“The Boeng Kak region extends to more than 130 hectares and was a reservoir for the water in the center of Phnom Penh when there was heavy rain, so that the city did not get flooded.

“The Shukaku Inc. company is dredging sand from the river to fill the lake and it is already almost filled 100% at the time when the new information became available that foreign companies revoked their stakes.

“However, despite the information that two foreign companies have withdrawn, after related problems had been published in newspapers, it is seen that the sand dredging continues sometimes.

“Last year, Boeng Kak Lake residents gathered in front of a foreign embassy when it was assumed that persons with the nationality of that embassy had invested in the Shukaku Inc. company. Consequently, the protest made the investors take out their stakes for the development of the Boeng Kak Lake.

“Nevertheless, there is no public clarification from the Shukaku Inc. company and from officials of the government about the suspension of the development of the Boeng Kak Lake.” Khmer Machas Srok, Vol.4, #629, 18.3.2010

This article was first published by The Mirror, [4] Vol. 14, No. 656 - Thursday, 18.3.2010
Have a look at the last editorial - you can access it directly from the main page of The Mirror. [4]

Norbert Klein is the Editor of The Mirror [5] – The Mirror is a daily comprehensive summary and translation of the major Khmer language press - More about The Mirror [6]