VZCZCXRO7776
OO RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHPF #0207/01 0361115
ZNY CCCCC ZZH
O 051115Z FEB 07
FM AMEMBASSY PHNOM PENH
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7977
INFO RUCNASE/ASEAN MEMBER COLLECTIVE PRIORITY

C O N F I D E N T I A L SECTION 01 OF 02 PHNOM PENH 000207 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR EAP/MLS; G/TIP 
 
E.O. 12958: DECL: 02/05/2017 
TAGS: PREL KJUS KCRM KWMN CB
SUBJECT: REOPENED CHHAY HOUR II CLOSED; OWNERS RE-ARRESTED 
 
REF: 06 PHNOM PENH 344 
 
Classified By: Pol/Econ Chief Margaret McKean; Reason 1.4 (b) and (d) 
 
¶1.  (C)  Summary.  On February 3, the Minister of Justice 
directed the re-arrest of the owners of the Chhay Hour II. 
On February 4, the Minister of Interior Sar Kheng shut down 
the establishment, vowing that it will not re-open.  These 
events followed several interventions by the Ambassador. 
Press reports indicate that police rescued four women at the 
Chhay Hour II who claimed to have been coerced into the sex 
trade; the women reportedly were placed in AFESIP's care, but 
all have left the NGO.  The Ambassador has pressed the RGC 
for a full investigation into the circumstances that led to 
the two men's release, and Sar Kheng has reported that a 
high-level investigation is underway.  End Summary. 
 
Chhay Hour II Redux 
------------------- 
 
¶2.  (C)  On February 1, Embassy poloff and two LES visited 
the Chhay Hour II site to determine whether the hotel, closed 
since 2005, had reopened for business.  On entering the 
establishment (renamed the Leang Hour Hotel and Restaurant), 
Mission personnel identified the two men, Sam Leng and Te Pao 
Ly, who had been arrested and convicted in February 2006 
(reftel) following a police re-investigation of the Chhay 
Hour II.  Leng entered into conversation with Mission staff, 
explaining that he had paid a large amount of money to the 
police (NFI) to be released from prison via a special Appeals 
Court verdict.  He also alleged that their release had been 
approved by the most senior levels of the government. 
Mission staff did not identify any possible underage girls 
working in the hotel during their visit. 
 
¶3.  (C)  On learning of the Chhay Hour II's status, the 
Ambassador met the same day with PM advisor Om Yentieng, and 
expressed the Embassy's serious concern regarding the 
reopening of the Chhay Hour II, the release of the men 
imprisoned in 2006, and the allegation by one of those 
involved that bribery and high-level RGC involvement had led 
to their release.  Om Yentieng noted that he was not aware of 
the reopening of the Chhay Hour II, but understood USG 
concerns and the implication for bilateral relations.  The 
PM's advisor spoke with Cambodian National Police (CNP) 
Commissioner Hok Lundy as well as the PM to alert them to the 
situation, and promised prompt RGC action.  The PM was 
outraged that he had been implicated by name in the release. 
An exasperated Om Yentieng complained to the Ambassador that 
"you foreigners assume that the government controls the 
courts, which is incorrect -- it's money that controls the 
courts." 
 
¶4.  (C)  Given that February 2 was a Cambodian holiday, CNP 
Commissioner Hok Lundy was out of town, and Deputy Police 
Commissioner Sok Phal met with the Ambassador and Embassy 
staff to discuss next steps.  Sok Phal indicated that he also 
was not aware that the Chhay Hour II had reopened, but had 
been instructed by Hok Lundy to initiate an immediate police 
investigation.  Sok Phal noted that he had met with Om 
Yentieng on the evening of February 1.  He said that Om 
Yentieng was seeking to file a complaint with the Supreme 
Council of the Magistracy regarding the alleged Appeals Court 
decision that released the two men.  In addition, the police 
were in the process of collecting the documents pertaining to 
the reopening and renaming of the Chhay Hour II, and the CNP 
was beginning an investigation into the new business. 
 
¶5.  (C)  The Ambassador stressed that the police must/must 
address the bribery accusation and the possible involvement 
of senior RGC officials in the release of the two men.  Sok 
Phal indicated that he understood the Ambassador's concerns, 
and urged the Ambassador to meet with Deputy Prime Minister 
and Minister of the Interior Sar Kheng on the DPM's return 
from Battambang over the weekend. 
 
MOI/MOJ Meeting:  Best Bilateral Relations Ever Threatened 
--------------------------------------------- ------------- 
 
¶6.  (C)  On February 3, the Ambassador and Pol/Econ Chief met 
with DPM Sar Kheng, Minister of Justice Ang Vong Vatthana, 
Deputy CNP Commissioner Sok Phal, and several of Sar Kheng's 
advisors and staff members.  Sar Kheng registered his 
displeasure over the news regarding the Chhay Hour II and 
confirmed that the RGC was moving forward on the 
investigation of the hotel.  He assured us that the RGC's 
position remains the same -- the government means to 
implement the law and suppress trafficking in persons.  He 
underscored the potentially serious negative impact 
trafficking has, in what he characterized as the "best 
bilateral relationship between Cambodia and the United States 
 
PHNOM PENH 00000207  002 OF 002 
 
 
ever."  He and Sok Phal had discussed the issue and tasked a 
special group of police officers to work on the case.  In 
response to the Ambassador's question, Sar Kheng affirmed 
that the RGC was also looking into how the Appeals Court came 
to a decision to release the two men.  The Ambassador 
underscored USG concern over the release and the allegation 
by one of the men that payment to RGC official(s) had led to 
their release.  The Ambassador recalled discussions regarding 
Chhay Hour II in mid-2006 with the PM, who had acknowledged 
that the two men were trying at that time to bribe their way 
out of prison.  Sar Kheng assured the Ambassador that the RGC 
was also examining the judicial actions that led to the 
release.  The Ambassador noted that the RGC ought to be less 
concerned with those who criticize the government for being 
corrupt and far more concerned with those -- like the owners 
of the Chhay Hour II -- who praised the government for being 
corrupt. 
 
Three Men Arrested; Four Women Rescued 
-------------------------------------- 
 
¶7.  (U)  Later on February 3, police officials informed the 
Embassy that they had taken the two men back into custody 
following a police raid on the hotel, and the MOI issued a 
press release on February 4 announcing the re-arrest of both 
men as well as a third individual (Em Mardy) who worked at 
the hotel.  Press reports indicate that four women at the 
hotel claimed to have been coerced into providing sexual 
services and the police turned them over to AFESIP's care. 
AFESIP on February 5 told us that the women did not want to 
stay at the shelter, and asked to leave with family members 
who visited the AFESIP shelter to visit the women.  AFESIP 
discussed the matter with the MOI, noting that the women had 
requested permission to leave.  After consulting with the 
MOI, AFESIP granted their request on the guarantee by their 
family members that the women would appear in court when 
requested.  According to AFESIP, the women all claimed to be 
20 years of age, but two of them reportedly appeared to be 16 
or 17.  AFESIP could not comment as to whether the women were 
trafficking victims or voluntary sex workers as there was not 
enough time for proper interviews and screening. 
 
Comment 
------- 
 
¶8.  (C)  The CNP has re-arrested the men who left prison and 
the hotel has been shuttered once again.  Nevertheless, we 
have made clear to all senior officials that the RGC must 
address the issue of how the two individuals were able to 
leave Prey Sar prison in the first place.  We note that 
prison authorities were aware of the importance of both men; 
Te Pao Ly occupied a cell with only 4 other individuals 
(normal occupancy was 15-20 per room), and had special 
visitation privileges from family members.  It seems unlikely 
that his departure would have escaped the notice of senior 
prison officials, and that they in turn would have neglected 
to notify more senior members of the CNP.  The Embassy will 
maintain pressure on the RGC to fully investigate the bribery 
allegation and the Appeals Court decision, and continue to 
monitor the Chhay Hour II site for any signs of further 
business.  We will also use these developments to remind the 
RGC that their Tier 2 Watchlist status is undergoing review 
and predicated on the need for tangible and systemic 
improvements.  From other sources, it appears that the 
highest levels of the government were not involved in this 
incident and there are some senior officials -- such as the 
Ministers of Interior and Justice -- who are ardently 
committed to stamping out trafficking.  However, more work 
needs to be done and we will press the RGC to identify and 
punish those who were responsible for the release of the two 
men.  End Comment. 
MUSSOMELI