Thursday, March 28, 2013

Clarification: The Press and Quick Reaction Unit (PRU) of the Office of the Council of Ministers

The Press and Quick Reaction Unit (PRU) of the Office of the Council of Ministers is  surprised and dismayed by the lack of professionalism of some media reports, one of which under the title “Cambodian PM linked to talks” by Richard Baker and Nick McKenzie. All these media outlets carry out misinformation with an obviously malicious purpose to distort the facts aimed at tarnishing the reputation of Samdech Techo Hun Sen, Prime Minister of Cambodia, in the case of BHP Billiton, the world’s largest Australian mining corporation.

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