VZCZCXRO2526
OO RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHPF #0519/01 0761020
ZNY CCCCC ZZH
O 171020Z MAR 06
FM AMEMBASSY PHNOM PENH
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6290
INFO RUCNASE/ASEAN MEMBER COLLECTIVE PRIORITY
RHHMUNA/HQ USPACOM  PRIORITY
RUEHGV/USMISSION GENEVA PRIORITY 1352

C O N F I D E N T I A L SECTION 01 OF 03 PHNOM PENH 000519 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR EAP/MLS; GENEVA FOR RMA 
 
E.O. 12958: DECL: 03/17/2016 
TAGS: PGOV KDEM CB
SUBJECT: FUNCINPEC LEADER LEAVES COUNTRY, MANY QUESTIONS 
UNANSWERED 
 
 
 ¶1.  (C)  Summary.  FUNCINPEC leader Prince Norodom Ranariddh 
left Phnom Penh for Paris on March 14, having appointed 
Prince Norodom Sirivudh, his half brother and the party's 
Secretary General, to act as the interim party leader in his 
 
SIPDIS 
absence.  The Prince departed the country in the wake of 
further accuations of fiscal malfeasance, nepotism and 
corruption levied against FUNCINPEC and Ranariddh 
specifically by PM Hun Sen.  Ranariddh withdrew Princess 
Norodom Vacheara's name as the FUNCINPEC candidate for second 
Vice President of the National Assembly, substituting instead 
You Hockry -- presumably a more acceptable choice to the CPP. 
 One SRP official offered that Hun Sen and the CPP are trying 
to maintain the facade of a royalist party, while seeking to 
ensure that FUNCINPEC officials with pro-CPP leanings are 
placed in senior positions within the party.  Princess 
Vacheara, FUNCINPEC MP and sister of Norodom Sirivudh, 
believes that Ranariddh and other FUNCINPEC leaders are 
preoccupied with their own political futures and appeasing 
the CPP instead of planning for the future of the party.  End 
Summary. 
 
Ranariddh Goes to Paris 
----------------------- 
 
¶2.  (SBU)  When FUNCINPEC leader and National Assembly 
President Prince Ranariddh announced on March 3 that he would 
step down as National Assembly leader so that he could spend 
more time working on strengthening FUNCINPEC, he complained 
that his duties as National Assembly President required him 
to spend too much time traveling abroad.  Yet on the evening 
on March 14, the FUNCINPEC leader unexpectantly boarded a 
plane to France, where he is said to have teaching 
responsibilities.  FUNCINPEC officials are unsure when their 
party leader will return.  Ranariddh's departure comes after 
a week of blistering remarks and continued criticism of the 
embattled FUNCINPEC leader by Prime Minister Hun Sen, as well 
as rare public in-fighting by some senior FUNCINPEC 
officials. 
 
¶3.  (SBU)  On March 8, National Assembly officials said that 
Ranariddh's 104 advisors would lose their posts following the 
Prince's resignation as President.  CPP member Cheam Yeap, 
said that the legislature's staff budget for Ranariddh and 
the two Vice Presidents was for 90 positions, which Ranariddh 
himself exceeded.  Heng Samrin and Nguon Nhel -- the first 
and second Vice Presidents, respectively, reportedly have 
between 30-40 staff members each.  In addressing the costs of 
the inflated personnel rolls, Cheam Yeap quipped to reporters 
that Prince Ranariddh had a bigger heart and more sympathy 
for his followers, which is why he gave out more positions. 
A few days later, Hun Sen rebuked Ranariddh for continuing to 
tell followers that the selection of village chiefs would 
follow a 70/30 percent split between the CPP and FUNCINPEC, 
which the two parties had agreed to in December 2005.  Hun 
Sen said on March 13 during a trip to Pursat province that 
the quota system was finished and that if communal councils 
elected opposition Sam Rainsy Party (SRP) candidates as 
village chiefs, then so be it.  On March 12, Ranariddh had 
told FUNCINPEC officials in Kandal Province that the 70/30 
formula would still hold, and to prepare lists of FUNCINPEC 
candidates to receive appointments. 
 
¶4.  (SBU)  The most strident remarks from the PM against his 
former ruling coalition partner came on March 14, when Hun 
Sen accused Ranariddh of financial impropriety in conjunction 
with the Cambodian National Olympic Committee, of which 
Ranariddh is the head.  The PM announced that Cambodia would 
not host the Southeast Asian (SEA) games in 2011 and ordered 
the National Olympic Committee to prepare an audit of its 
expenses during the 2005 SEA games held in the Philippines. 
Hun Sen accused Ranariddh and his entourage of inflated 
expense accounts and unnecessary costs associated with 
Cambodia's participation.  The PM warned the Ministry of 
Economics and Finance to withhold future funding of the 
Committee's activities for the time being, and said he would 
fire Finance Minister Keat Chhun and MEF Secretary of State 
Kong Vibol if they give funds to the Committee in violation 
of the PM's orders.  (Note:  There are rumors that one reason 
Ranariddh left the country was to avoid possible legal action 
against him in connection with the Olympic Committee 
finances.  End Note. 
 
Prince Chakrapong Receives Bill from RGC for USD 1.36 Million 
--------------------------------------------- ---------------- 
 
¶5.  (U)  On March 14, the Ministry of Economics and Finance 
billed Prince Norodom Chakrapong for USD 1.36 million in 
unpaid taxes and expenses incurred by Royal Phnom Penh 
 
PHNOM PENH 00000519  002 OF 003 
 
 
Airlines, a bankrupt private Cambodian airline company of 
which Chakrapong was Chairman.  The money owed has been 
outstanding for five years, according to the MEF and press 
reports.  SRP official Son Chhay indicated that the timing of 
the renewed call by the government for payment of the debt 
smacks of politics and interference into Ranariddh's 
nomination of Chakrapong as Secretary General of FUNCINPEC. 
Chakrapong has since withdrawn his nomination as SG of the 
party following a meeting of senior FUNCINPEC officials, 
according to You Hockry, FUNCINPEC MP.  In the meantime, Nhek 
Bun Chhay, recently dismissed Co-Minister of Defense, has put 
forward his name as a candidate for the Secretary General 
position, saying that Chakrapong was ill suited for the 
position based on the Prince's questionable loyalty to the 
party. 
 
¶6.  (SBU)  Nhek Bun Chhay's public announcement on March 11 
that he would be a preferable candidate for the Secretary 
General position led to a call from Prince Ranariddh for 
party unity and an end to intraparty bickering.  While there 
was a good deal of private discontent among FUNCINPEC members 
over Chakrapong's appointment by Ranariddh, senior members of 
the party had kept their discussions on the topic private and 
out of the media.  Nhek Bun Chhay's public complaints in the 
press prompted observers in FUNCINPEC as well as the SRP to 
speculate that the CPP was behind Nhek Bun Chhay's remarks in 
order to further embarrass Ranariddh and divide the party. 
Nhek Bun Chhay accused Chakrapong of being disloyal to 
FUNCINPEC, but others have equally questioned Nhek Bun 
Chhay's loyalty, and see him as close ally of Hun Sen. 
 
National Assembly Second VP Nomination 
-------------------------------------- 
 
¶7.  (SBU)  Early in the week, SRP MP Son Chhay told us that 
You Hockry came to the National Assembly with a letter from 
Prince Ranariddh naming You Hockry as the FUNCINPEC candidate 
for the position of Second Vice President.  Ranariddh had 
earlier nominated Princess Norodom Vacheara to the post.  Son 
Chhay said that acting President Heng Samrin showed copies of 
both letters to Sam Rainsy and Son Chhay, noting that the 
dual letters were yet another indication of the weak 
leadership and indecision within FUNCINPEC.  After several 
hours, Ranariddh withdrew the nomination of Princess 
Vacheara, who frankly told the press that You Hockry likely 
represented a preferable candidate to the CPP. 
 
¶8.  (C)  In discussing FUNCINPEC's image with Princess 
Vacheara, the FUNCINPEC official told Pol/Econ Chief that 
Ranariddh chose to (literally) run away from the bad press 
and his problems with Hun Sen.  When asked why FUNCINPEC was 
not mounting a media counterattack against the CPP, Vacheara 
said that Ranariddh told senior party officials that they 
should not respond to the attacks.  Ranariddh reportedly 
explained that at some point, Hun Sen will tire of his 
new-found friend Sam Rainsy and will once again seek a strong 
alliance with FUNCINPEC.  If FUNCINPEC does nothing at this 
time, it will be easier to regain the cooperation of CPP in 
the governing coalition.  Vacheara agreed with the analysis 
of some observers that CPP is seeking to gain influence 
within FUNCINPEC through some of the party's senior 
officials.  She lamented that Ranariddh and others seem to 
only think of their own political futures and retaining their 
positions rather than focusing on the future of the party. 
She argued that FUNCINPEC would do well to rethink the focus 
on the CPP and look towards the SRP for future collaboration. 
 She noted that the CPP only wishes to use FUNCINPEC against 
the SRP and vice versa; democratically-minded politicians in 
both parties should resist being pawns in the CPP game.  With 
the 50 plus one formula, Vacheara would prefer a resurrection 
of the old Alliance of Democrats to face off against the CPP 
in the future.  (Note:  Vacheara was one of the FUNCINPEC 
officials who pushed for the AD.  End Note.) 
 
Comment 
------- 
 
¶9.  (C)  Each day seems to bring more bad news for FUNCINPEC, 
and its officials seem to be running for cover or doing their 
best to appease the CPP rather than squarely facing the 
party's image problems.  We agree with Princess Vacheara's 
comments and those of other observers who see FUNCINPEC being 
manipulated by the CPP.  We also note that Ranariddh's naming 
of Prince Sirivudh to lead the party in his absence was a 
significant departure from past practice.  No matter where 
Ranariddh traveled or for how long, he always retained 
authority over party decisions and did not entrust management 
of the party to Sirivudh or any other FUNCINPEC official. 
 
PHNOM PENH 00000519  003 OF 003 
 
 
End Comment. 
Mussomeli