Inquiry afoot after sand shipping video goes viral

The Ministry of Mines and Energy yesterday said it was investigating potential irregularities in the export of sand after a video from the NGO Mother Nature claiming that banned exports continued unabated went viral yesterday, racking up hundreds of thousands of “likes”.

While the ministry maintained that the sand seen in the video was likely not subject to the ban, it added that it would look into other apparent irregularities related to the export permits.

The export of most mined sand was banned by the government last November after controversy erupted surrounding huge discrepancies between the government’s recorded sand exports, and recorded imports of Cambodian sand to Singapore. However, the Mother Nature video, which was purportedly taken on April 29, shows what appears to be white sand being loaded from a boat onto a larger ship off of Sihanoukville.

The video, which was posted Monday night, had been liked by 425,000 people and shared nearly 28,000 times as of yesterday evening. “Minister of Mines and Energy [Suy Sem], was the ban on all sand exports put in place to benefit Cambodia and its people, or was it just a plot aimed at fooling Cambodians so that powerful individuals could continue destroying local livelihoods and our nation’s natural resources?” 27-year-old Mother Nature activist Lim Kimsor asks in the video.

The Ministry of Mines and Energy yesterday morning deployed two teams to the coastal areas off Preah Sihanouk and Koh Kong provinces, said spokesman Meng Saktheara. He added that ministry officials were “disappointed” because Mother Nature didn’t inform them promptly when they were filming. “We can’t confirm that the activity in the video by Mother Nature is legal or not because we don’t have information on the name of the ship and exact location,” he said. “The ministry will continue to investigate this case.”

He added that based on the colour of the sand in the video, it is “very likely” to be silica sand, which is mined on land for the glass industry and is exempt from the ban on sand exports.

Mong Reththy Group Co Ltd and Silica Services Cambodge are the only two companies licensed to mine and export silica sand, Saktheara said.

The latest export permits approved by the ministry include one granted on April 5, and valid through May 5, for the Mong Reththy Group to export 2,500 tonnes from its private port on a ship identified as Rattanawanich 1.

Content image - Phnom Penh Post

A ship called Deryoung Sunflower believed to be exporting sand was spotted in late April off of Sihanoukville despite a ban on sand exports by the Ministry of Mines and Energy in Novembe. Ly Raksmey/Mother Nature Cambodia

Another permit was granted on April 10, valid through May 1, for Silica Services Cambodge to export 10,000 tonnes of silica from the Koh Kong Port on a ship identified as Efficiency OL, according to records.

But Kimsor said the vessel in the video was called Deryoung Sunflower, and a second ship they spotted, which started moving yesterday afternoon also loaded with sand, was named Ocean Beauty.

The Mong Reththy Group informed the ministry it had completed its exporting on April 10. Meanwhile, the fact that the ship in the video was spotted in Sihanoukville makes it unlikely it was departing from the faraway Koh Kong Port, where Silica Services Cambodge’s exports were approved to depart.

Ros Vanna, head of the Kampuchea Shipping Agency and Brokers, also known as Kamsab, which grants customs clearance to foreign ships, declined to answer questions yesterday regarding the ships indentified by Mother Nature.

A representative at Taiwan-based shipping agency D&S Co Ltd confirmed that the company owns the 12,000-tonne Deryoung Sunflower ship, but declined to comment further.

Alex Gonzalez-Davidson, founder of Mother Nature, said the message his NGO was trying to send was twofold: First, that “government officials regulating exports of sand are incapable and unwilling to enforce the law and existing regulations”, and second, that others should get involved to monitor and expose potential crimes.

Additional reporting by Jovina Chua

Rice millers balk at export fees

Numerous members of the Cambodia Rice Federation (CRF), the body tasked with lobbying on the sectors behalf, have stopped paying membership dues and export fees, claiming that they cannot afford to as the industry continues to struggle with high production costs and regional export competition.

According to the terms of CRF membership, each miller is required to pay $200 annually and an export fee of $0.50 per tonne on white rice and $1 per tonne on fragrant rice.

Chray Son, deputy director of Capital Food Cambodia, said that despite the CRF’s efforts to provide relief to its members, the body had achieved little in lobbying the government and instead praised emergency assistance provided by the state-owned Rural Development Bank.

Nevertheless, he added that with monthly losses during the current harvest season amounting to $10,000 to $15,000, CRF fees were exorbitant and exploited millers that were on the verge of bankruptcy.

“We cannot afford to pay the CRF’s required amount, and we disagree with the current payment fee as we have already faced heavy losses,” he said. “Rice millers are trying to reduce their production costs, and the CRF must understand this and lower the fees, not just keep them at the same level, otherwise we will go bankrupt by next year.”

However, he added that if members felt that the CRF was operating transparently and actually achieved tangible results for its beleaguered millers, members would happily comply.

“If the CRF can help us find new export markets and operate transparently with its millers, we would be able to make a profit and pay the fees,” he said.

According to his calculations, 90 percent of CRF’s members have willfully decided not to pay export fees during the current harvest season.

Phuor Sokleang, marketing manager of Phour Kokky, a rice miller in Pursat province, said the CRF should not demand the fee payments while it had done nothing to support the sector and achieved none of its promises.

“It is not appropriate to take fees from rice millers when the CRF has not done anything for us,” she said. “The government and relevant ministries are the only ones that have provided support.”

She added that her anger with the CRF stemmed from being taken off of the list of the 26 approved rice millers allowed to export to China.

“When I asked why I was not included in the list for approved access to China, the CRF could not explain to me and told me to check with the Ministry of Commerce,” she said.

“So in my opinion the CRF means nothing to me.”

Norng Veasna, director of sales and marketing at Nikoline Rice Mill, said that the top 10 rice exporters would soon meet with CRF to demand reduced export fees.

“We know the CRF plays an important role in helping the rice industry, but right now we are not profitable,” he said.

“We hope the CRF will accept its members request and reduce export fees to $0.25 per tonne for all kinds of rice.”

Hun Lak, vice president of the CRF, said the export and membership fees had been in place since 2015 and that despite the organisation’s best efforts, millers too often placed the blame on them.

“We work to help the whole rice industry,” he said. “And we understand that we have not fulfilled all of the rice millers’ demands. But we have documented our accomplishments to prove to them what we have done.”

He added that the CRF had successfully negotiated a reduction in the cost of electricity for its members, provided an exemption from the value-added tax (VAT), trimmed down logistical costs at the Kingdom’s ports and helped millers receive international export certification.

“The CRF will discuss and talk with our members about these issues again,” he said. “However, if we are going to achieve any of our goals we need to be unified instead of just complaining.”

Boeung Ket vow to fight for pride in AFC Cup

Cambodian champions Boeung Ket Angkor wind up their AFC Cup Group F campaign against Global FC from the Philippines at the Rizal Memorial Stadium in Manila tonight hoping to turn around last week’s strangely subdued performance in the domestic league against Phnom Penh Crown, with head coach John McGlynn promising his side will be fighting for pride.

Lying third behind Global and Malaysia’s Johor Darul Ta’Zim, Boeung Ket have nothing left to play for except to improve their record of a 1-0 win at home and a 1-1 draw away against Magwe FC of Myanmar after having been beaten by both Global and Johor.

Coach McGlynn will be keen to restore a measure of self-assurance to his players after the way Boeung Ket capitulated against Crown. A positive attitude will be key to the Blue Dragon raising their game against Global to reverse a 2-0 defeat by the Filipinos when they last met two months ago in Phnom Penh.

“It certainly won’t be an exhibition match. We’ll be looking to get a good result against a tough in-form team. We also have a few key players injured and suspended so it’s not an easy task ahead,” McGlynn said yesterday. “That being said, we will be competing with pride and determination for our club and our country”.

It is a crucial outing for Global head coach Toshiaki Imai’s men, who are locked in a tough fight with Johor for the Group F honours that will ensure a place in the zonal semifinals. The Philippine side go into the clash needing a win as Johor have a head-to-head record superior to Global’s, should the Malaysians beat Myanmar side Magwe FC at home.

A defeat against Magwe, however, could be disastrous for Johor, who are currently best placed runners-up from the Asean zone. Going into the final fixtures, Global lead the table with 12 points from four wins and a loss, while Johor are two points adrift with three wins, a draw and a loss.

The Global FC v Boeung Ket match kicks off at 8:35pm local time (7:35pm Cambodian time).

Another glitzy condo sets up in BKK1, but occupancy is dismal

TrendycommuneBoeungKengKang1isnowhometothelatestresidenceintown.PlatinumBay,a32-storeycondo,hasofficiallyopenedthedoorstoits222-unitbuilding.WhilefinishingtoucheswillbecompletebytheendofMay,buyershavealreadystartedtomovein–althoughthenumberispaltry.Atpresent,only10unitsareoccupied.

Thedeveloper,TangChenInvestmentCo.,couldnotbereachedforcommentonthecondo’stotaloccupancyrate.PlatinumBay,whichannounceditsprojectin2013,wasinitiallyslatedfora2015completion.

KekNarinn,CEOofFocusProperty,whoseofficeresidesinBKK1,saidearlierthisweekthattheroomrateinthecommunehastakenaslowdipduetotheriseofnewcondosandapartmentsallopeningtheirdoorswithinmonthsofeachother.Despitethis,hesaid,judgingfromtheoveralloccupancyrate,BKK1stillranksthehighestamongallofPhnomPenh’smainresidentialdistricts.Thisratecorrespondstoalmost90percentoccupancy.

Condoandapartmentownersaregoingforwardwithpreservingtheircurrentpricingwithoutofferingdiscounts,butthiscomeswithaddedservicesandamenities,becausecompetitionisincreasinglytoughernowwiththesupplyofhomesspiking,”Narinnadded.

Onamonthlyrentalbasis,accordingtoNarinn,high-endapartmentsinBKK1cancommand$1,500foraone-bedroomunit,upto$2,500foratwo-bedroom,andbetween$2,500and$3,500forathree-bedroomapartment.

WhileBKK1continuestoenjoyhigheroccupancyratesforitsresidencesthanotherareas,CEOofCentury21MekongChrekSoknimsaidadeeperlookhastobetakenfromadevelopers’perspective.Investorsareshiftingstrategies,withthefirstwavehavingmainlytargetedtheforeignerandexpatmarket.Today’sinvestors,however,arefindingmoresubstantialvalueinprioritisingthelocalmarket,withtheprovisionoflower-pricedcondosandapartments.

Still,themindsetoflocalsperseveresinthattheyarestillattachedtotheirshophouseandflathousedwellingswhencomparedtothefairlynewconceptofhigh-rises.

NotmanyCambodianpeoplearereadytoleavethecomfortsoftheirhomesandmoveintocondos.Thecountryneedsanotherdecadeforthepeopletocometotermswiththeidea,beeducated,andhavetheirmentalityaboutthissectorchanged,”saidSoknim.

KimHeang,headoftheCambodianValuersandEstateAgentsAssociation(CVEA),notedthatiftheBKK1areawasshowingitscurrentlackofdemandforapartments,andcondosalescontinueddwindling,nootherareainPhnomPenhwouldbesparedthesameconditions.

Headded, Therentrateandthequalityofthebuildingareacceptableinthecurrentclimate.

Therearenoproblemsinthepresent,butthefutureoftheseresidencesholdsgreatuncertainty.

Cambodia’s business landscape remains healthy

The sixth ANZ Royal Business Confidence Index (BCI) research findings conducted by Kantar TNS recently released reflects the story of two markets, with the confidence of larger corporates holding steady and SMEs expressing lower confidence. The overall business confidence dropped to 76 compared to 83 in 2015. The aggregate drop in confidence echoes lower expectations for increases in revenue and bottom line profit in the next 12 months. The slight drop can be attributed to a number of factors including an increase in competition within the market, deterring business from investments in the near term. Despite the same concerns raised by large-scale companies, their confidence persists. These positive prospects are fuelled by the “growth” of their business which enhances their ongoing performance and secures room for future expansion. The business community is pleased with Cambodia’s stable economic growth and growing demand from consumers. Sixth BCI key findings include: • Increasing number of businesses believe ASEAN Integration has little effect on Cambodia’s market. Positive impacts such as access to a larger market and reduced taxes are still embraced, though associated with stiff competition. • Despite the rapid emergence of digital in business over the past few years, marketing activities on digital platforms are considered “a little” important with its importance continuing to grow. • Migration has resulted in labour shortages and loss of consumption, posing challenges to businesses, particularly in the agriculture sector. • The business community is pleased with Cambodia’s reclassification from lower-income to lower-middle-income economy in 2016, a status believed to attract more investors and to indicate of higher expenditure from consumers. Content image - Phnom Penh Post About the index The ANZ Royal Business Confidence Index is a measurement of business and economic sentiment in Cambodia. Drawing upon customer data and insights, it’s the first index of its kind and serves as a leading indicator of confidence in the market. ANZ Royal delivers a number of insight-driven initiatives like this to its customers. For example, it just recently hosted its Annual Outlook Conference with the Cambodia Development Resource Institute (CDRI), where industry experts discussed how Cambodia can continue to progress with industrialisation, digitisation, growth and development.