It is incumbent for the PRU to bring to
the attention of the public at large, international and national, the
truth regarding the deception of the above media report and will
exonerate all accusations of involvement in BHP corruption case against
Samdech Techo Hun Sen.
1- It is worth noting that Samdech
Techo Hun Sen has always managed to spend time with investors who are
interested in investing in Cambodia, and who wished to pay a courtesy
call or to bring to his attention various aspects of foreign or domestic
investments. The meeting should not be viewed as an unusual favor for
BHP when Samdech Techo Hun Sen received BHP executives on their visit to
Cambodia, but rather as a routine part of the Prime Minister’s job to
encourage investment.
2- The Agreement between the Royal
Government and BHP called for the Australian company to allocate a
social fund in the amount of $2.5 million to be disbursed to the Royal
Government of Cambodia in three installments: $0.5 million in the first
18 months, $1 million for the next two years, and another $1 million for
the following next two years of exploration activity. Actually, BHP had
disbursed only a total of $1.5 million as BHP decided to withdraw its
investment after three years and a half, namely at the end of the second
phase of Pre-Feasibility Study (2009). However, BHP had deposited only
$1.35 million into the Cambodian government budget (Ministry of Economy
and Finance) account. And with the approval of the Royal Government, the
remaining 10 percent of $1.5 million or $150,000 was retained and to be
used directly by BHP for settlement of social and environmental impacts
in Mondolkiri province, the site of the mining exploration.
3- According to the article, a
Cambodian government official was cited as saying that the Royal
Government of Cambodia had received $2.5 million in the so-called “tea
money” from BHP. The referred amount was in fact the expected “social
fund” as stipulated in the Agreement. Unfortunately, some media outlets
interpreted it as bribe money.
4- BHP received the license to
explore 99,600 hectares for bauxite mining as stipulated in the
Agreement, not “1,000,000 hectares of land” as mentioned in the article.
5- It was a fabrication and a
distortion of the fact when various media asserted that the withdrawal
of BHP was done shortly following the release of a report by Global
Witness on the “missing of $3.5 million”. In fact, based on its thorough
analysis, BHP had clearly explained the causes of its withdrawal, one
of which was that the bauxite deposit was not large enough and the
project was then not economically profitable.
6- The article was inaccurate in
another respect: Bretton Sciaroni, a lawyer, did not represent either
BHP or the Royal Government of Cambodia, nor was he involved in this
project.
The Press and Quick Reaction Unit of the
Office of the Council of Ministers deplores and dismisses such an
ill-intention and misinformation leveled by certain media outlets in
their attempt to tarnish the reputation of the Prime Minister of the
Royal Government of Cambodia in connection with the BHP alleged
corruption case in the run-up to the forthcoming General Election in
Cambodia. However, this misleading information can not and would not
deter the firm commitment of the Royal Government of Cambodia to attract
more investments, foreign and domestic, which are crucial for economic
development, growth and reduction of people’s poverty.
27 March 2013
Press and Quick Reaction Unit
Office of the Council of Ministers