Business Corruption

Companies should be aware that environmental regulations are not always enforced uniformly or in an even-handed manner due to corruption and other influences such as the use of connections, as reported by Global Integrity 2008.

In Cambodia, the allotment of oil and gas concessions to companies is conducted in a highly irregular and non-transparent way. Companies have to pay huge sums of money as signature bonus to the CNPA (which is under the direct control of the Prime Minister and his deputy) as well as large annual fees. According to Global Witness 2009, this money does not appear in any ministerial revenue reports. Companies that are contemplating entering into extractive industries in Cambodia are advised to develop and strengthen integrity systems.

Political Corruption

According to Global Witness 2009, concessions in the extractive industries - oil, gas and minerals - are being sold in a non-transparent and secretive way to companies that have strong affiliations with the Cambodian political elite. Furthermore, the organisation established to be in charge of the oil and gas industry, the CNPA, is set up by royal decree only, and so far it has not been included in any legislation. It is under the direct control of Hun Sen and his deputy Sok An. According to Global Witness 2009, millions of USD have been paid in bonuses in exchange for the concessions. None of these sums figure in revenue reports from the Ministry of Economy and Finance, suggesting that the money is being pocketed.

Illegal logging, stripping the country of valuable forest areas, is common. High level politicians and military officers have been exposed as being involved in the lucrative, but very destructive illegal logging trade. According to Global Witness 2007, the most powerful logging syndicate is run by relatives and allies of Prime Minister Hun Sen. They are Hun Chouch (cousin to the Prime Minister), Seng Keang (his ex-wife who is friends with the Prime Minister's wife), Seng Kok Heang (her brother who is a military officer in Brigade 70), and Khun Tong (brother-in-law to the Minister of Agriculture, Forestry and Fisheries). Furthermore, Global Witness 2007 reports that the transport of the illegally logged timber is carried out by Brigade 70 - an elite military unit that also serves as the reserves for the Prime Minister's body guard unit.

The buying and selling of civil service jobs is a common practice. Global Witness 2007 states that it is believed that the Minister of Agriculture, Forestry, and Fisheries, Chan Sarun, and the head of Forest Administration, Ty Sokhun, have sold more than 500 jobs in the Forest Administration, earning them an estimated USD 2.5 million in bribes.