A Change of Guard

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Wednesday 11 April 2012

Ministry calls on telecoms to pay up [This is a result of corruption rather than outstanding debts]

Man walks pass the office of Cambodia Post in phnom Penh. Photo by Heng Chivoan

May Kunmakara
Wednesday, 11 April 2012
Phnom Penh Post

Revenues at the Ministry of Posts and Telecommunications declined by 26 per cent year-on-year in 2011 as the result of more than US$45 million in outstanding debt owed by the Kingdom’s telecom operators, officials alleged yesterday.

Mobile, fixed-line and internet service protocol companies owed more than $16.4 million in fees as of December, according to data released by the ministry yesterday.

Private companies owed more than $15.6 million and state enterprises owed about $10.9 million. Telecom Cambodia’s debt was about $1.71 million.

Officials declined to name other debtors.

The erratic nature of the sector led to the shortfall. Bankruptcies, unauthorised name changes and a lack of collection resources left the ministry at a loss, Minister So Khun said yesterday.

“The rising of our debt was because some users or companies did not pay us on time. Others went bankrupt or shut down and changed business addresses without notification, leaving us with lots of money unpaid,” he said. “We don’t know how to collect [the debt], and we can’t leave it out of the report because we have to report to Ministry of Economy and Finance.”

Operators will not be forced to pay debts all at once, So Khun said. The ministry has devised monthly payment plans in an attempt to retrieve lost revenues, he said.

The ministry collected about $22.2 million in revenues last year, a decrease from $30 million in 2010. Debt figures released yesterday were the first ever from the ministry. Officials were unable to comment on a starting point from which the debt was accrued. Telecom Cambodia attributed the state-owned company’s debt to late payments from clients.

“We’re in debt because our clients pay us late. Normally our customers pay us one or two months late after they receive our service,” the company’s general director, Lao Sareoun, said yesterday.

The company has received collection notices from the ministry and will be fined 2 per cent on the debt, he said, adding that Telecom Cambodia would push clients to pay on time.

Other operators either declined to comment or could not be reached yesterday. Son Chhay, a parliamentarian with the opposition Sam Rainsy Party, said poor management and low efficiency accounted for the debt in a sector he claimed loses $100 million a year.

“They don’t have a clear measurement of revenue collection. This makes an opportunity for corruption,” he said.

The sector generated about $50 million in 1996 when there was only one phone operator contributing to revenues, Son Chhay said. Since then, the industry has failed to develop, he claimed.

4 comments:

Anonymous said...

Too damn corruption of SEE PEE PEE (CPP).

Anonymous said...

Corruptions kills opportunity! Corruptions creates favoritism! Corruptions kills govt revenue Corruptions dividing society!Corruptions is the Root causes of "all problems in srok Khmer " Corruptions creates GREEDS corruptions creates divisions,corruptions does nothing good to any societies... GREEDS CREATES CORRUPTIONS that killing honesty,dignity,intagity,eventually killing humanity like you already seen in Cambodia nowadays,Bang koeuk was one of many example of CORRUPTIONS+CREEDS lead to land grabbing lives displacement chaotic and disobedient to the RULE OF LAWS makes life difficult,makes citizens fight each others,makes it difficult to enforce the LAWS.
People disobedient to the Authority because of GREEDS+CORRUPTIONS,with out laws & orders society will be falling aparts creates more poverty and lawelessness will emerges.

The top officials of the governments must obey the LAWS all the time and get rid of FAVORITISM or CORRUPTIONS in order to set good sample to your fellows citizens in generals.
Enforce the LAWS and prosecute those whose breaks the law,like company that you mention above owe revenue to the state don't let them of the hook,creates collection agency to collect all dept that companies/business people that doing business with state,all revenue collect from tourism must be going to the state to pay for state employees and build country infrastructures etc,etc.

If your govt trying to eliminates corruptions from the top down to the bottom it not hard it is siple-ENFORCE THE LAWS...I know it will not be 100% eliminate it, but atlease you start it now,if not now when?......
Corruption hater!...young Khmer U.S.A

Anonymous said...

I agree with you. Corruption is the root of all evil. Corruption also leads to crime and mismanagement. How is it Thailand, a country of prostitute can maintain economic growth Yet our government uses force eviction to sell out land and violence to break out protest.

Modern day Khme Rogue

Anonymous said...

So Khun, the Minister of Post and Telecommunications, is one of the most corrupt ministers. I remember back around a few years ago, Keat Chhon, the Minister of Finance, asked So Khun to pay the Finance Ministry $30 million of revenues the Post Ministry earned for the year, but So Khun could not find the money to pay the Finance Ministry. Many of his officials said that So Khun took all the $30 million and hide it in his bank account somewhere.