A Change of Guard

សូមស្តាប់វិទ្យុសង្គ្រោះជាតិ Please read more Khmer news and listen to CNRP Radio at National Rescue Party. សូមស្តាប់វីទ្យុខ្មែរប៉ុស្តិ៍/Khmer Post Radio.
Follow Khmerization on Facebook/តាមដានខ្មែរូបនីយកម្មតាម Facebook: https://www.facebook.com/khmerization.khmerican

Sunday 16 August 2009

Son Chhay: Cambodia's foreign debts reached $3 billion


Source: Radio Free Asia
Translated from Khmer into English Khmerization


The following is an interview between Ms. Kim Pov of RFA and MP Son Chhay (pictured) from the Sam Rainsy Party.

Kim Pov: From what you know, up until now, what is the level of Cambodia's foreign debts and which countries do we owe?

Son Chhay: I have received an official letter sent to the parliament since December 2008. The report (letter) indicated that we owed foreign countries to the amount of $US2.693 billion. Up to now, according to an estimated figure, the level of our foreign debts had probably reached $3 billion already. This debt level has caused great concerns to me personally as I believe that we have reached a debt level where international financial institutions are unable to lend us any more because they don't believe that we can repay them.

KP: I want to ask you about the level of our debts. Up until now we owed foreign countries to the tune of $3 billion. Comparing to the level of developments in our country, do you think it is appropriate?

SC: We have seen that there are corruptions in relations to the the foreign loans because loans and grants are two separate things. Grants do not have to be repaid and countries that provide grants have appointed their own monitoring team to follow the use of their grants such as the construction of the Chrouy Changvar Bridge. But the loans, and because we had borrowed from them, we manage the money by ourselves and I observed that there is no quality in the spending of those money. And the quality of the roads built, if we compare to roads in the United States, they have spent roughly the same amount of money but roads constructed there are given 30 years guarantee.

In our country, some roads lasted only two years and others only about one year, they have all completely damaged. This is the problem that in the near future, we will have reached the level where we cannot borrow any more which means that we won't have any roads to use as well as we are deeply indebted to foreign countries.

In 1997, the government told the parliament that it wanted to borrow the money from foreign countries and the parliament demanded the government draws up the plans of what they wanted to spend on. But after 1997, the government said it takes too long to get approval from the parliament so it asked that the foreign loans be approved in a package vote giving the rights to the government to borrow the money without having to ask for approval from the parliament.

KP: Do you think that all the money borrowed have to be repaid?

SC: They all have to be repaid. Some countries lent us the money in the past but after we have gone through wars and genocide, they have forgiven the debts because they think we have gone through great difficulties. But some countries they took a hard line toward us such as the countries of the former Yugoslavia the other day asked us straight in the face to repay them immediately. I believe that the money we owed foreign countries since 1993 will not be forgiven because those countries know full well that we have natural resources. Now we can see that our debt level exceeds our capacity to repay if we compare to our GDP (Growth Domestic Product).

KP: Who is responsible for the repayments of these debts?

SC: This is the responsibility of all our citizens. Governments can come and go like we have seen about the debts we owed to Russia. They have asked us to repay all the debts owed since the previous regime, not the previous government, but we talk about the previous regime. This shows that who is the one who will pay? Not the previous governments (who borrowed), but it is all citizens who have to repay. So, when I did the calculations I came up with the figures that each of us owed $US300 in foreign debts and I want the government as well as all our citizens help to monitor these debts.

KP: It seemed that we have owed a great deal in foreign debts. In your capacity as an MP, do you have any plans?

SC: As I have told shortly before that I intend to write a letter to the Minister of Finance to invite him to explain to the parliament (about these debts). First, he must explain how much the government plans to borrow in the future in order for us to be well prepared. Like I told you earlier that everybody, me as well as our poor peasants from the rural areas, have never seen any money but we owed $300 each in foreign debts. Now we want to know how much more will we borrow? And I want him to explain about our capacity to collect revenues from our natural resources and to reduce our dependence on foreign aids and foreign loans. What measures do we have (in order to achieve this) so that we can steer our country away from falling into a financial quagmire in the future. If not, our children will be paying off these foreign debts forever. In my opinion, we must strengthen the anti-corruption measures immediately and do whatever we can to plan in a way that we can continue to be able to borrow, or the money that we spend on building all infrastructures must ensure the quality which can fulfill the appropriate needs of our people and also to give an opportunity to our future leaders the capacity to be able to borrow for our future infrastructure funding.

5 comments:

Anonymous said...

Hi there,


MP Son Chhay has a peaceful face and a beautiful smile!

Go Son Chhay! Go Son Chhay! Go Son Chhay!

Peace and Freedom to the beautiful Cambodia!!!!

Anonymous said...

$3 billion debts and $300 for each Khmer- when can we pay it off? For $3 billion we don't see value for money. All infrastructures are still very basic and people are still very poor. So, where have the money gone to?

Anonymous said...

Great to see Sam Rainsy bring up real issue that affect all Cambodian rather then just yell at ccp just about everything for nothing … If Sam Rainsy carry on this way I am sure not just me but everyone else will start to see the value of Sam Rainsy and you never we might see a new government one day … well I can only dream!

Anonymous said...

12:47PM, same as you, I'm also dreaming for a new government that actually care for people, not for their own interest. I'm beginning to lose hope that this dream will ever happened. CPP is so well organized and so well quietely sponsor by Hanoi, they're almost unbreakable. Even the next guy after Hun Sen, CPP is still the same. They have everything rigged up to make sure the're not going to lose any election. It would take a miracle for them to lose.

Anonymous said...

Why can those responsible for the corruption not be charged or arrested and their assets confiscated in order for them to repay the Cambodian people the money they stole?

It wouldn't take long to find these people. However, as these people are still in charge of the government and, therefore, the country's finances this will not happen. As a result, why should the citizens have to pay back this money through their taxes when it is well-known where the money has gone and to whom?

Other politicians in other countries have been charged with massive corruption and some of the money has been recovered.

We would also need to look at 'friendly' countries like Singapore who have actively conspired in the theft of public Cambodian funds by letting powerful members of this country smuggle money into Singaporean banks.

In addition, why should the government be so keen to recover fees from motorbike imports while not being interested in recovering money from corruption? Where's the anti-corruption law??? And what is going to happen to the money recovered from moto fees? If there was transparency and explanation of how the money would be used, I would be happier to pay. But interesting to note that the fines and fees demanded by the police are similar to those figures calculated by Son Chhay, coincidence?