1. Colexim Enterprise
Colexim Enterprise currently controls a 147,187 hectare timber concession covering part
of Prey Long – one of Cambodia’s most valuable remaining areas of forest, both in
commercial and ecological terms. During its tenure, Colexim has consistently
demonstrated its contempt for Cambodian law and its unsuitability as a custodian of
Cambodia’s natural heritage. It should on no account be accorded further opportunities
to ravage the country’s forests.
Illegal logging:
Global Witness has documented many instances of illegal logging by Colexim since
1995, including logging in contravention of the January 1st 1995 cutting ban, obtaining
illegally felled logs from the neighbouring GAT International concession and receiving
logs from the Boeung Per Wildlife Sanctuary.
More recently, in October 2001, Global Witness found Colexim sub-contractors illegally
felling trees being tapped for resin by local people. A subsequent investigation by the
Department of Forestry and Wildlife (DFW) found that Colexim had cut 240 trees in
three different locations. However, DFW accepted the company’s excuses that it needed
the timber to collect sample data for its inventory and that it intended to use the wood to
build schools and repair a bridge. DFW recommended that the Ministry of Agriculture,
Forestry and Fisheries (MAFF) issue Colexim with a written warning. MAFF instead
opted to furnish the company with ‘advice’ and then to close the investigation.
Had this volume of timber been logged legally, royalties to the Cambodian treasury
would have amounted to approximately $60,000. Under Article 33 No. 35 (June 1998),
the appropriate fine for Colexim’s illegal logging should have been between two and
three times the value of the logs.
Disregard for the rights of local inhabitants:
In April 1997 Colexim security personnel murdered Chan Oeurn, a local resin tapper, at
the company’s logging camp ‘99’. Chan Oeurn was trying to persuade a Colexim subcontractor, Mr Chon, not to cut resin trees in the area, when he was shot three times by Chhroch, a company security officer. Chhroch subsequently fled the area with the
assistance of other Colexim security guards and has never been charged with the murder.
In early 2003, local people living within the Colexim concession reported that company
representatives were visiting villages and handing out blankets in exchange for villagers
thumb-printing a document. Colexim subsequently sought to present this exercise as a
consultation with local people about the content and implications of the company’s
Strategic Forest Management Plan.
Poor concession management:
The Asian Development Bank-funded 1999-2000 concession review observed that
‘Colexim staff possess low technical capacity and under the present administration
system are “required” to employ DFW teams to undertake inventory, tree marking and
planning functions.’ The ADB review also concluded that Colexim had committed seven
different breaches of its contractual obligations and Cambodia’s Environmental and
Forestry laws. Of these breaches, four related to deficiencies in the company’s concession
management.
During an aerial survey in March 2003 Global Witness observed extensive illegal forest
clearance in the areas surrounding Colexim’s 1999 coupe and the company’s logging
camp ‘99’. While it is not known whether the company itself commissioned these illegal
activities, their continuation is, at very least, indicative of Colexim’s unwillingness or
inability to manage responsibly forest within its concession.
Failure to pay royalties:
The Asian Development Bank-funded concession review found that Colexim failed to
pay the Cambodian Government royalties in 1996 and 1997 and in 1999 still owed
$40,000. It is not known whether this debt has since been paid.
Conflicts of interest:
DFW is a major shareholder in Colexim. Fifty one percent of the company is Cambodian
Government owned, with 40% controlled by the Japanese firm Okada and the remaining
9% by former Colexim account So Sovann. The lack of any meaningful separation
between the company and DFW is such that a senior member of DFW staff working on
the World Bank-funded Forest Concession Management and Control Project, Hang Sun
Tra, who is Director of the Project Management Unit, also describes himself as an
assistant to Colexim shareholder So Sovann.
In 2002, Colexim submitted Strategic Forest Management Plans and ESIAs which had
been prepared by DFW’s Forestry Research Institute. The fact that the plans had been
written with staff of the same institution charged with assessing them, represents a clear
conflict of interest.
Contacts:
Nut Un Voan Heng
Manager
Colexim Enterprise
Km 13, Sangkat Svay Pak
Khan Russey Keo
Phnom Penh
Tel: (855) 12 902 394
Oknha So Sovann
Director General
So Sovann Import, Export and Transport Co. Ltd
Tel: (855) 12 812 384
(855) 12 882 357
Fax: (855) 23 720 587
[email protected]
2. Everbright CIG Wood
Everbright CIG Wood is a subsidiary of the Chinese state-owned Everbright group, a
conglomerate which was recently at the centre of high-profile corruption scandal in
mainland China. Like Colexim, Everbright’s 136,376 hectare concession contains one
section of the Prey Long forest area. Like Colexim, Everbright has a documented history
of illegal operations and poor management and cannot be considered an appropriate
manager of this or any other part of Cambodia’s forest estate.
Illegal logging:
Everbright carried out illegal logging operations in Cambodia in 2000 and 2001. In
January 2001 Global Witness gathered evidence of Everbright logging illegally inside its
timber concession in Kratie province. Company staff were observed collecting old and
freshly cut logs at a range of locations within concession coupe 2, in which the company
had no authorisation to cut. Loss of royalties to the Cambodian treasury from
Everbright’s illegal logging in coupe 2 alone could be as much as $250,000.
Approximately 20% of the logs inspected by Global Witness at Everbright’s plywood
factory in Kandal province in January 2001 had not been stamped by the Department of
Forestry and Wildlife (DFW), indicating that they had been harvested illegally. If the
same proportion of the remaining logs in the compound on the same date were also
unmarked, this would point to a loss of royalties amounting to approximately $26,000.
While the evidence gathered in January 2001 warranted the termination of Everbright’s
concession, the company escaped any punishment. Everbright did, however, receive an
official warning from the Ministry of Agriculture, Forestry and Fisheries (MAFF)
concerning the company’s "illegal logging activities" in which the Ministry threatened to
cancel the concession agreement if the terms of the order were not adhered to.
In 2002 Everbright submitted to DFW its Strategic Forest Management Plan. This
document proposed harvesting operations within 11 years in the same area (coupe 2)
where Everbright was caught logging illegally in 2001. A basic premise of sustainable
forest management is that logged areas should be allowed 25 years of regeneration prior
to renewed cutting.
Disregard for the rights of local inhabitants:
Everbright’s 2002 Strategic Forest Management Plan proposes to impose illegal
restrictions on local inhabitants’ use of the forest in its concession. It also unilaterally
delineates areas which local inhabitants may use for community forestry, without taking
account of the views of the communities affected.
Poor concession management:
The Asian Development Bank-funded 1999-2000 concession review concluded that
‘Everbright staff possess low technical capacity and under the present administration
system are “required” to employ DFW teams to undertake inventory, tree marking and
planning functions.’ The review team also noted that Everbright had committed eight
different breaches of Cambodian law and its investment agreement with the Cambodian
Government. Four of these concerned deficiencies in the company’s management of its
concession.
Failure to pay royalties:
The 1999-2000 ADB concession review team found that Everbright owed the Cambodian
Government $200,000 in unpaid royalties and deposits. It is not known whether the
company has since cleared its debts.
Conflicts of interest:
One of Everbright’s sub-contractors has close familial links with senior Government
officials responsible for determining whether or not Everbright should be permitted to
continue operating. Sub-contractor Kun Tong is the father-in-law of DFW Director
General Ty Sokhun and brother-in-law of Minister for Agriculture Chan Sarun.
Contacts:
Mr Guo Ge
Manager
Everbright CIG Wood Co. Ltd
#10 St 240
Phnom Penh
Tel: (855) 12 812 878
(855) 23 218 435
Fax: (855) 23 218 436
Press Release / Oct. 22, 2003