Saturday, 7 November 2009

Report of the National Audit Authority Does Not Show the Amount of Lost Money – Thursday, 5.11.2009

http://cambodiamirror.wordpress.com/
Posted on 6 November 2009
The Mirror, Vol. 13, No. 637

(Posted by CAAI News Media)

“At the Hotel Cambodiana there was a press conference organized by the National Audit Authority on 30 October 2009, to present an audit report about the management of public finances, which had been checked from 2002 to 2009. But the report was only for 2006.

“The general auditor, Mr. Ut Chhon, stated in the conference that this report only s negatives, but he did not respond in detail to questions of journalists like: ‘According to the audit results, how much money was lost by corruption each year?’

“During the conference, which lasted for several hours to share information through the report presented, there were four main points, which included 12 important items about resource management and the audit results included. Those important points are the same mentioned also in a book of 100 points in a report written by the Sam Rainsy Party in 2003.

“The report speaks about tax on unused land, which is in line with the policy of the Sam Rainsy Party. As a result of the audit it was found that there were many cases where tax was not paid for unused land, while several companies received concession land from the government of more than one million hectares, where the state has not set appropriate costs for leasing this land.

“The report speaks about this point, stressing that the Ministry of Agriculture, on behalf of the whole government, had signed agreements with more than 70 companies from 1992 to 2006, to provide more than one million hectares of concession land for development, and most agreements were made, deciding that the Ministry of Agriculture and the Ministry of Economy and Finance are responsible for assessing and for setting the costs for leasing of the land. But by 2007, the assessment and setting of costs for leasing this concession land was not fully implemented in accordance with the above decision. The Ministry of Economy and Finance agreed with the audit report on this point.

“The National Audit Authority, established in 2000 ,started to work in 2002, and has worked by now for seven years. But this institution has only just now released a report, and the opinions was expressed that it was released to satisfy what donors want. Anyway, the auditor general, Mr. Ut Chhon, told journalists that the release of the report is done based on the will of the government, not because of pressure from any other country.

“Mr. Ut Chhon added that the audit of the working team had discovered some problems, like at some tax institutions, collecting taxes at the border, and monitoring and assessing the tax to be demanded for goods loaded in containers by some companies – this was difficult, and the assessment of tax collection covers only about 25%.

“He spoke also about the management of state property, and about the licensing of ownership of state property, where many of such cases occur in cities and provinces countrywide.

“According to the report consisting of more than 500 cases, it is said that corruption led to the loss of much state resources.

“When asked whether the general auditor can assess how much tax was lost every year, Mr. Ut Chhon said that he cannot say anything, and that every country is the same. But he added that only England made the amount of the lost money publicly known.

“At the end of the conference, Mr. Ut Chhon said that he expects that the release of this report will promote better relation between the public and the National Audit Authority, in order to ease the work of his institution in the future.

“However, what the national and the international public want is to know the amount of money missed because of corruption, and they want to see that the results of the audit explicitly identify negative points, especially about the loss of national resources.

“Recently, the US Ambassador in Phnom Penh, Ms. Carol Rodley, said that corruption in Cambodia amounts to a loss of state resource of about US$500 million each year. This speech had invited strong reactions from government officials.

“Analysts said that the National Audit Authority released the report just to satisfy donors.”

Khmer Machas Srok, Vol.3, #521-522, 31-5.10-11.2009
Newspapers Appearing on the Newsstand:
Thursday, 5 November 2009

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