Business Corruption

According to World Economic Forum Global Enabling Trade Report 2010, business executives rate the transparency of the border administration, regarding irregular payments in exports and imports, as relatively low, constituting a competitive disadvantage for the country. Furthermore, Global Integrity 2008 states that burdensome customs regulation provides opportunities for custom officers to demand bribes from companies. Custom officers enforce custom regulations discriminatorily, for instance by treating companies that are not prone to corruption or who offer less, differently than those that are willing to pay.

Political Corruption

The Prime Minister allegedly shields political allies, such as Mong Reththy, from investigations of illegal business activities. According to the Global Witness 2007 report, Mong Reththy runs the Oknha Mong Port as his own fiefdom. Apparently, the customs officials answer only to him and it is allegedly the port through which large-scale smuggling operations are carried out.

Parallel to their other activities, the elite military unit Brigade 70 runs a transportation service smuggling goods mainly through Oknha Mong and cheating the Cambodian state out of customs revenues. The illegal timber transports and the smuggling operations earn the Brigade approximately USD 2.5 million per year. According to the Global Witness 2007 report, Brigade 70 is transporting other smuggled commodities (such as beer, spirits, perfume, cigarettes, electronics, construction material, clothing, sugar, pharmaceuticals, ice cream) for clients who include both tycoons and very high-ranking government officials.

Frequency

The World Bank & IFC: Doing Business 2012:
- A standard export shipment of goods requires 9 documents and takes 22 days at an average cost of USD 732 per container.

- A standard import shipment of goods requires 10 documents and takes 26 days at an average cost of USD 872 per container.

World Economic Forum: Global Competitiveness Report 2011-2012: 
- Business executives give the efficiency of customs procedures (formalities regulating the entry and exit of merchandise) in Cambodia a score of 3.7 on a 7-point scale (1 being 'extremely inefficient' and 7 'extremely efficient').

World Economic Forum: The Global Enabling Trade Report 2010:
- Business executives give the transparency of border administration (irregular payments in exports and imports) a score of 2.6 on a 7-point scale (1 'not transparent' and 7 'transparent').

Transparency International: Global Corruption Barometer 2010:
- 76% of households who had contact with the customs administration throughout 2009 report to have paid a bribe.

The World Bank & IFC: Enterprise Surveys 2007:
- 43.8% of companies surveyed expect to give gifts in order to obtain an import licence.