contents home cover 1. recommendations 2. introduction 3. the case for positive conditionality & international responsibility 4. the forest policy reform project & the steering committee 5. transparency 6. forest yield & revenue potential 7. concession activity and review 8. dfw–enforcement & jurisdiction 9. situation update–general special military region military region 1 military region 2 military region 3 military region 4 military region 5 10. the role of cambodia’s neighbours & other importing countries thailand laos vietnam japan 11. opportunities the forest stewardship council (fsc) protected areas and world heritage status 12. conclusion

7. CONCESSION ACTIVITY AND REVIEW Virtually every concessionaire in Cambodia exploits poor regulatory authority to break Cambodian law and forestry regulations, in addition to which they try to obtain preferential tax exemptions. The Forest Policy Reform Project provides an ideal opportunity to weed out those concessionaires with a poor track record, replacing them with responsible operators. As the Forest Policy Reform Project has not yet begun its task it is not possible to develop a well managed timber industry. For this reason all concessions should be suspended and concession activity stopped. Pending the concession review concessions should either be re-awarded or, in the case of those with poor expertise and a record of illegal activity, terminated. The recent termination of 11 concession areas is to be welcomed, but the records of the majority of companies retaining concessions are a major cause for concern. Of the 20 remaining concessionaires at least 14 operate or have operated illegally. The Forest Policy Reform Project allows for the termination of concessions if the companies concerned have contravened their contracts and/or forestry law. The companies listed in the table below fall into this category. All such companies should be prevented from obtaining new contracts under the contract review process. Legal concessionaires operating illegally. Colexim Transporting logs cut illegally in the Beng Per Wildlife Sanctuary, and likely export of logs to Japan. Casotim Receiving approximately 10,000 m3 of logs from the Beng Per Wildlife Sanctuary at their Neak Loeng Factory. Samling/SL Int. Continues to buy illegally cut logs from MR2 and local businessmen. In April 1997, the company was found to be cutting without permission, cutting undersized logs and cutting in areas not permitted by the DFW. Mieng Ly Heng Purchasing logs outside their concession, supplied by Soeurn Pendai. Longday Illegally cutting in Bokor National Park, and buying illegally felled logs from Kun Kim (Vice Governor of Kandal Province). Pheapimex Illegally cutting logs in Stung Treng and Kompong Cham, and intimidation of officials. Brokering an illegal log export deal with the Pipat company to Laos and Thailand. Lang Song Int. Illegal cutting in the Beng per Wildlife Sanctuary. Hero Obtaining logs illegally felled by MR1 in all districts in Ratanakiri, whilst having no permission to cut. Exporting processed timber from these illegal logs. Kingwood Buying fresh cut logs in other concessions and from MR1 along route 13. Cherndar Plywood Buying illegally felled logs from the Military from a different Province outside their concession. Everbright For collecting 20,000 m3 of illegally felled logs. Talam Resources For illegally cutting in Koh Kong You Ry Sako For operating illegally in Koh Kong for years, prior to receiving a concession & for illegally exporting logs to China & Singapore. Wood Tee Peanich (Mai Voot Tee) For operating illegally in Koh Kong for years prior to receiving a concession and for illegally exporting logs to Japan, Thailand and Indonesia. Khmer Construction Co. This company has no concession, but was involved in illegal Company log exports to Vietnam in 1998. The company is seeking permission to resume exports to Vietnam. Only two concessionaires in Cambodia, Samling and GAT International, employ their own technical expertise to exploit their concessions and Samling have an appalling record of illegal activity. The rest employ contractors, usually the military. Thus the concessionaires are bringing the military into the forestry equation at a time when it is essential they are removed from it. The employment of contractors is unacceptable because the majority of them lack technical expertise making sustainable forest management impossible: when accused of illegal logging activities companies such as Pheapimex-Fuchan claim it is their contractors acting illegally (using their name), not them, thus abdicating responsibility and avoiding prosecution. Concessionaires must take full legal responsibility for any activities carried out by their agents, and must be capable of employing sustainable forest management techniques. Cambodia provides an example of what happens when these precepts are ignored. Unethical operators, under the guise of investment, secure access to vast tracts of land at favourable prices, and then exploit the forests using loose geographical interpretation of where their concession actually lies. We know of no attempts at sustainable harvesting or replanting at any location in Cambodia. back top next