THE MIRROR 4 11 May 2003 - 17 May 2003

Corruption Is Becoming Part of Culture

Corruption is becoming part of the culture in Cambodia, causing the most serious social crises and obstructing the progress of development in all areas. In 2002, there were irregularities relating to corruption by leading officials of the government and non-government organizations. Recently, up to thirty percent of funds were lost during transfers and allocations to various areas. A Cambodian organization for combating corruption, KHRACO [Khmer Human Rights and Anti-Corruption Organization], released a shocking report in 2002 about a large sum of money deposited in a foreign bank (Singapore), which could repay Cambodia's foreign debt from 1993 until now. However, so far no independent organization has affirmed that this report is true.

A parliamentarian who asked not to be named told us directly about his research on the national income, saying that the present revenue would be able to meet current national expenditure and to increase salaries for officials at all levels to a level at which officials would be able to live in dignity, if revenue were properly managed.

According to a table he prepared of financial and economic operations in 2002, the total income collected was only 76 percent of the planned income, equal to Riel 1,380,160 million [$345 million]. The revenue was only 51 percent of the plan from oil taxes, 57 percent from tourist admission to Angkor, 45 percent from visas and civil aviation, and 60 percent from all kinds of taxes. Such revenue figures are contrary to the real situation of Cambodian society, because the Ministry of Public Works and Transport reported that the amount of imported fuel increased to meet the needs of consumers. So when oil imports increased, oil taxes increased too. Moreover, the unit price of oil was high compared to Thailand and Vietnam - this means that the level of taxes remained high. Furthermore, the Ministry of Tourism reported that the number of tourists was at least 800,000 - also an increase - and the number of people using telephones increased too, and so on. Such data show that there were not any obstacles at all, but officials did not achieve tax collections in accordance with the plan in 2002, because through October only 76 percent of taxes was collected, and by then officials should have collected at least 83 percent of the plan for 2002. The big income sources were very far from the plan. The Parliamentarian's study found that the biggest factor in the losses of income was the corruption of officials. Other factors were a lack of transparency in carrying out the law and the lack of an independent institution to check and take action against offenders and people who collude in corruption.

The above financial analysis showed that the government does not have the real political will to meet its obligations (respect, commitment, and protection) in solving problems of economic, social, and cultural rights for the people.

Khmer Mekong,
Vol.2, #95, 14-16.5.2003