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INFO RUCNASE/ASEAN MEMBER COLLECTIVE PRIORITY

C O N F I D E N T I A L SECTION 01 OF 03 PHNOM PENH 000394 
 
SIPDIS 
 
STATE FOR EAP/MLS, P, D, DRL 
STATE PASS TO USAID - D. WINSTON 
 
E.O. 12958: DECL: 06/12/2019 
TAGS: PREL PGOV ECON EAID KJUS CB
SUBJECT: AMBASSADOR REAFFIRMS CONCERNS ABOUT CORRUPTION, 
URGES MODERATE RESPONSE, WHILE ASSUAGING CAMBODIAN DISCOMFIT 
 
Classified By: AMBASSADOR CAROL A. RODLEY FOR REASONS 1.4 (B, D) 
 
¶1.  (C) SUMMARY: The Ambassador June 11 called on Senior 
Minister and National Counter Terrorism Center (NCTC) Deputy 
Director Om Yentieng to restate her concern about corruption 
in Cambodia and to express regret for any misunderstanding 
about her intentions or the content of remarks at a May 30 
"Clean Hands" anti-corruption concert in which she asserted 
the government lost revenues of up to $500 million annually 
due to corruption.  Noting the obligation to raise concerns 
about corruption that might affect U.S. assistance or 
American investments in Cambodia, the Ambassador expressed 
the hope that, as a bilateral partner, the RGC would 
cooperate to fight corruption.  Stating that she did not 
intend to offend or embarrass the Royal Government of 
Cambodia (RGC), the Ambassador elaborated that the $500 
million figure was an honest estimate of the lost 
opportunities for additional revenue to the RGC.  The 
Ambassador also noted her surprise at the strong RGC reaction 
to her remarks and raised concerns about limitations on free 
speech and the subsequent municipal-level inquiry into the 
NGO concert organizer,s role (Pact Cambodia), saying that 
the organizer had acted properly to support the government,s 
own anti-corruption policy. 
 
¶2.  (C) Om Yentieng appeared to accept there had been a 
misunderstanding and that $500 million was an estimate.  But 
he repeatedly stated the RGC rejected there was $500 million 
in annual corruption, and noted the blow to the RGC,s 
international reputation, as well as the potential negative 
impact on public opinion of the Ambassador,s reference to 
the lost school buildings and civil servant salary raises 
that the sum translated into.  He focused on the "substance 
of the public concert" and the lack of coordination provided 
to him by concert organizers at NGO Pact Cambodia, who had 
originally invited him to be a co-sponsor.  Because he was 
not informed of the content of the anti-corruption show and 
yet he was being asked to speak at and sponsor it, he was 
treated like a "puppet" and withdrew at the last minute.  He 
remarked on the content of anti-corruption songs drafted by 
Pact Cambodia, noting that performers had refused to sing 
them because they were "anti-government."  In a somewhat 
rambling presentation, he noted that by his association with 
the concert he could have been censured by parliament and 
referred to the dangers of using artists and comedians in 
public fora to present an anti-corruption message.  He said 
the public remarks could cause "hatred among the people." 
While he noted that the Ambassador was considered a friend of 
Cambodia, he hinted at the possible official interviews of 
comedians and singers and noted that there would be a further 
(unspecified) response from the Ministry of Foreign Affairs 
(MFA). END SUMMARY. 
 
Corruption Affects Aid, Investments 
----------------------------------- 
 
¶3.  (C) The Ambassador called on Om Yentieng at the National 
Police Commissariat Headquarters home of the NCTC at her 
request to clarify remarks that were met with responses of 
official paroxysm and fits of denial usually only reserved 
for international human rights assessments or Global Witness 
reports on Cambodia.  Noting that she was the representative 
of a major donor nation to Cambodia and the official 
representative of American investors in Cambodia, she 
asserted her obligation to speak publicly about corruption 
that has an impact on U.S. foreign assistance or private 
investments in Cambodia.  The Ambassador remarked on the 
shared view that corruption existed in Cambodia, but noted a 
difference of opinion with the RGC on how extensive it is. 
She clarified that her remarks focused on the potential 
impact of corruption on the potential revenue of the 
government.  Highlighting that she was talking about "lost 
opportunities," she noted that the cumulative acts of 
under-the-table fees to avoid import duties were but one 
example of lost revenues to the government.  She was 
surprised the remarks had provoked such a response; she spoke 
about similar findings on corruption at the donors conference 
in front of senior RGC ministers and the exact same figure 
had been presented in a public speech by the USAID Mission 
Director in Sihanoukville, without provoking any reaction. 
The figure given in her remarks was an estimate.  The 
Ambassador stated that she had no intention to offend or 
embarrass and that and she regretted any misunderstandings 
that may have resulted. 
 
Concerns for Freedom of Speech, NGO,s 
------------------------------------- 
 
¶4.  (C) Appealing to Om Yentieng in his role as President of 
 
PHNOM PENH 00000394  002.2 OF 003 
 
 
the RGC Human Rights Committee, the Ambassador noted she had 
to accept that, in her public role, she must herself have a 
thick skin and that she must listen to public criticism.  The 
concert remarks were a freedom of speech issue, she asserted, 
and urged more consideration of the concept of "fair comment" 
toward public figures and the free expression of views. 
Persons in a public position should be open to public 
criticism of a public nature, she added. 
 
¶5. (C) As for the organizers who put on the concert, she 
understood there was a reaction to her specific remarks, but 
that had nothing to with the proper conduct of NGO Pact 
Cambodia, she said.  The Ambassador expressed concern for the 
subsequent questioning of the event organizers by Phnom Penh 
Municipality officials, noting that the NGO supported a 
legitimate development program in Cambodia that supports the 
RGC,s Rectangular Strategy (NOTE: Cambodia,s major 
development plan, routinely cited by the Prime Minister. END 
NOTE.).  The Ambassador emphasized that fighting corruption 
was one of the core objectives of the Rectangular Strategy, 
which the RGC has agreed will benefit the Cambodian people. 
The U.S. government requires that all of its funded 
activities remain apolitical and neutral and Pact Cambodia 
had adhered to that policy, she asserted. 
 
RGC Cannot Accept $500 Million, Felt Treated Like "Puppet" 
--------------------------------------------- ------------- 
 
¶6.  (C) Citing the three reactions from the RGC to the 
Ambassador,s statement -- by the MFA, Council of Ministers, 
and himself for the Anti-Corruption Unit -- Om Yentieng said 
that they had to reject the $500 million estimate of annual 
corruption, which he said was unsubstantiated.  He cited 
public surveys which indicated a downward trend in 
corruption.  He added that citing the impact this amount of 
corruption could have on fewer schools built or fewer salary 
increases paid was particularly sensitive for public order. 
The RGC did not react to freedom of speech (sic), but to the 
"substance of the public meeting," for which someone must be 
responsible, he said. 
 
¶7.  (C) Turning to the organizers, Om Yentieng said that he 
received no cooperation at all from Pact Cambodia.  He 
complained that he was not informed in advance about the 
substance of six songs or additional comedy routines 
especially written for the "Clean Hands" concert, nor has he 
been informed since.  As for the performers, he did not know 
why they did not end up singing their songs, but those songs 
were supposed to be against corruption, not against the 
government, he added.  Thus the organizers had to be 
responsible and not authorize songs that were against 
corruption and against the government at the same time. 
Since they set up the entire show and asked him to appear in 
it (without informing about its contents), he would have 
looked like a puppet, he noted.  Another reason stated for 
not joining was his fear for safety and security at the 
concert.  At another point, he said reference to the loss of 
new schools or lack of salary raises due to the corruption 
would "cause hatred among the people."  The use of artists is 
very dangerous, he noted.  If artists say or do anything 
wrong they could face either the public (NOTE: presumably mob 
violence. END  NOTE), or they could face legal action. 
 
¶8.  (C) Noting the surprise of himself and Prime Minister Hun 
Sen at the Ambassador,s remarks on coruption, Om Yentieng 
stated the Prime Minister viewed the Ambassador as a "very 
nice and good person," but they didn,t know why the concert 
took place as it did.  Acknowledging that opposition parties 
would say corruption was even greater than $500 million, Om 
Yentieng noted that as the opposition they should be able to 
say this.  But as an official ambassador, he continued, we do 
not think this is freedom of speech, because it affects the 
government,s reputation.  He later said the only loser would 
be Cambodia from this event.  Admonishing the Ambassador to 
listen to public opinion polls (showing only 14 percent of 
Cambodians believed corruption was increasing), he urged that 
this episode have a "silent ending" because the government 
"cannot accept your remarks." 
 
NGO Under Scrutiny 
------------------ 
 
¶9.  (C) Continuing his lament against Pact Cambodia, Om 
Yentieng complained that when he invited a senior Cambodian 
staff member at Pact, Sek Barisoth, to meet with him only 
junior staff came.  He had asked for the content of Pact,s 
six anti-corruption songs but was never provided the 
information.  Yet Pact invited Om Yentieng to give a speech 
which would make it look like Pact and the government were 
 
PHNOM PENH 00000394  003 OF 003 
 
 
working together, he continued, when in fact he would only be 
made to act like a puppet.  The Pact staff told Om Yentieng 
that only some of the performers would not sing the six 
anti-corruption songs.  In fact, none of the performers would 
sing the songs Pact prepared, he said, implying they were all 
anti-government songs.  Om Yentieng noted he had still not 
received copies of the songs, but said that it did not matter 
because more government activities would continue with the 
performers (unspecified, but presumably official interviews 
or the taking of testimony).  Om Yentieng also showed the 
Ambassador a contract that Pact had signed with the Phnom 
Penh Municipality clearly promising that the event would not 
have any images or content that "attacked the government." 
When the Ambassador noted that the "Clean Hands" concert went 
very smoothly and the singers performed only romantic songs, 
Om Yentieng acknowledged the sentimental song program but 
cited the case of a Cambodian performer in front of a 
Cambodian-American crowd at a  U.S. location who by "just a 
few words" had provoked an angry mob reaction; that performer 
was now afraid to travel to the U.S., he said.  Noting that a 
2009 survey by Pact showed that 45-47 percent of Cambodians 
believed that corruption was lower than before,  Om Yentieng 
asked rhetorically why Pact did not take into account its own 
survey in preparing the concert. 
 
Draft Penal Code, Anti-Corruption Law;  MFA Action 
--------------------------------------------- ----- 
 
¶10.  (C) Om Yentieng also indicated that the Penal Code, 
which had 20 articles related to anti-corruption, was already 
under consideration at the Council of Ministers.  Once the 
Penal Code was approved by the National Assembly, the 
Anti-Corruption Law would follow he said.  While looking at 
the draft Anti-Corruption Law recently, Om Yentieng was 
sorely disappointed that, even though poll survey results 
showed a reduction in corruption, the "Clean Hands" concert 
had painted a different picture.  While the Anti-Corruption 
Unit could present a technical response to the situation, the 
MFA would have an additional response, he said.  (NOTE: 
Known by its full name as the Ministry of Foreign Affairs and 
International Cooperation, the MFA has responsibility for the 
registration and approval of all foreign NGOs. END NOTE.) 
 
COMMENT 
------- 
 
¶11.  (C) Om Yentieng,s image as CPP,s lead anti-corruption 
crusader overseeing a claimed downturn in corruption has been 
harmed by the Ambassador,s high-profile speech noting 
continued endemic corruption.  We do not discount his 
personal stake in this issue and note that his long history 
as a party propagandist only highlights his emotional 
involvement.  While not presenting an entirely linear 
argument, Om Yentieng has certainly conveyed his sense of 
mistrust and betrayal at the hands of an uncommunicative NGO 
that, at least according to Om Yentieng, may not have been as 
cooperative as it could have been.  That said, Om Yentieng 
never indicated he had been promised control of the concert 
or the contents of its presentations.  The head of the 
Anti-Corruption Unit similarly appears to want to control all 
messages about the extent of corruption in Cambodia.  We 
doubt that he is flabbergasted when confronted with the 
reality: corruption stares Cambodians in the face on a 
regular basis and they do not need the government to tell 
them how much it does or does not cost -- they are the ones 
who pay.  As to the depth of the Cambodian official reaction: 
we view Hun Sen,s absence (while in Korea) as one cause for 
multiple RGC actors trying to assert a role in taming the 
westerner speaking an inconvenient truth.  It may be that 
high-level, ongoing Cambodian business deals in Korea were 
tarnished by the highly public reference to corruption and 
that RGC officials felt frustrated at not being able to 
"manage" their image problem.  In the meantime, we are 
internally reviewing Pact,s performance and its level of 
coordination. 
RODLEY