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B.N.G Monthly Law Update

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B.N.G Monthly Law Update B.N.G_ Monthly Law Update CONTENTS I. LAWS & REGULATIONS UPDATE Accounting & Auditing Banking Finance Industry Mine & Energy Investment Land & Properties Military/Police/Weapons Public Administration Transportation II. APPOINTMENTS III. REGISTRATION Prepared by BNG Legal Research & Documentation Department January 2009 If you need back copies or our Cambodian law index please access our website at www.bngkh.com B.N.G- Monthly Law Update Page 2 of 14 I. LAWS & REGULATIONS UPDATE ACCOUNTING & AUDITING Circular No 01 (RGC) of January 20, 2009 on the Strengthening of Internal Audit Function of the Ministries, Institutions and Public Enterprises (Ogs, Year 09, No 06, January 20, 2009) This circular aims to strengthen the internal audit affairs and to find resolutions by avoiding the duplication of work between the internal audit and inspectorate or general inspectorate in the line ministries, institutions and public enterprises, whose duties are to establish the internal audit department in all institutions. In the meantime, all ministries and institutions shall facilitate in assigning roles and responsibilities separately and precisely between the internal audit department and inspectorate or general inspectorate. MEF shall provide the regulatory outline, techniques, expertise training and the lessons-learned sharing related to the internal audit affairs to all ministries and institutions. BANKING Prakas No B.5.09.011 (NBC) of January 19, 2009 on the Determination of Interest Rate on Fixed Deposits, Reserve Requirement, Capital Guarantee as US Dollar (Ogs, Year 09, No 05, January 19, 2009) This Prakas determines the interest rate on fixed deposits, reserve requirement, and capital guarantee on US dollar of the bank and finance institutions, which deposited in the NBC. The rate of reserve requirement will be set at ½ of SIBO referred to the monthly base and the rate of capital guarantee will be set at ¼ of SIBOR referred to 06(six) month basically. This rate shall be determined as the rate of SIBOR (Singapore Inter-Bank Offered Rate). FINANCE Royal Kram NS/1208/020 of December 12, 2008 Promulgating the Law on Finance Management 2009 (Ogs, Year 08, No 91, December 12, 2008). This law aims to determine the general state revenues, including taxes, contributions, excises, income and other revenues. This law also determines the state budget allocation in accordance with its types to ministries, institutions, municipality, and provinces as attached in the table of state operating budget. The RGC has limited the amount of budget, which may be borrowed for management in 2009. This borrowing shall be characterized as a soft loan and repayment with preferential interest. Only the Minister of Economy and Finance has the privilege to borrow. This loan is to the advantage of the general state budget and it includes the privilege to issue treasury bonds in order to meet/handle urgent needs in cash. Other ministries and institutions not entitle to signature in borrowing or contracting to repayment of the debts. No.082 January 2009-Law update-BNG-Eng.doc B.N.G- Monthly Law Update Page 3 of 14 Prakas Nº 068 (MEF) of January 08, 2009 on the Use of Standard Report related to o Cambodian Financials (Ogs, Year 09, N 02, January 08, 2009): In order to manage all types of businesses in Cambodia, the individual medium and large-scale enterprises bounded to follow the MEF regulations shall use the standard report issued by the International Accounting Standard Board. The National Accounting Council takes responsibility for managing and facilitating each international standard with explanation and by progressively updating the standard to the Khmer language. Prakas Nº 094 (MEF) of January 15, 2009 on the Addition the Members to the Financial Development Committee (Ogs, Year 09, No 04, January 15, 2009): This Prakas aims to add 2 members to the Financial Development Committee (FDC) and 4 members to FDC’s Technical Working Group, who are representatives from Cambodia Securities Committee. INVESTMENT Sub-Decree Nº 22 (RGC) of January 21, 2009 on The Establishment of Investors’ Dispute Settlement Committee Outside The Special Economic Zone (Ogs, Year 09, No 06, January 21, 2009): The purpose of this Sub-Decree is to determine the authority to settle all investors’ issues outside the SEZ. This committee is located in the CDC. The committee’s secretariat consists of one secretary, who directs the secretariat with assistants as needed. LAND & PROPERTIES Sub-Decree Nº 08(RGC) of January 09, 2009 on The Transfer of State Permanent Reserve Forestland and Granting of Economic Land Concession to Private Companies for Agro- Industry in Battambang Province (Ogs, Year 09, No 03, January 12, 2009): This Sub-Decree classifies the land to be transferred for development from the State permanent reserve forestland with area of 5, 200 hectares located in Samlot District, Battambang Province. This sub decree also aims to transfer the state public property to the state private property. The MAFF is entitled to grant this economic land concession to Roth Sambath’s company in strict conformity with the RGC principles and regulations. Sub-Decree Nº 28(RGC) of January 30, 2009 on The Transfer of State Public Property to State Private Property (Ogs, Year 09, No 08, January 30, 2009): This Sub-Decree aims to transfer the state public property to state private property of some land lots administered by MPWT, MLMUPC, Battambang and Kampot halls, and list down the new property from bartering into the state inventory under the continuing procedures of MEF, MoI, MLMUPC, MPWT, MOEYS, Battambang hall, Kampot hall and departments concerned in strict conformity with RGC principles on privatization. No.082 January 2009-Law update-BNG-Eng.doc B.N.G- Monthly Law Update Page 4 of 14 INDUSTRY MINE & ENERGY Sub-Decree Nº 02 (RGC) of January 08, 2009 on The Promotion of the Office of Mines Exploitation, Quarrying and Construction Equipments to the Department of Mine and Construction in the General Department of Mines Resources, Ministry of Industry, Mines and Energy (Ogs, Year 09, No 02, January 08, 2009): This department shall prepare any principles related to research and construction mining, analyze and evaluate the potential sources of construction mines, monitor and manage the construction mining, manage and control the environmental impact, as well as statistics on construction mining. MILITARY/POLICE/WEAPONS Decision Nº 01 (RGC) of January 08, 2009 on The Establishment of Board of Inquiry for Illegal armed forces and Explosive/Munitions Deployment (Ogs, Year 09, No 02, January 08, 2009): This board of inquiry was established to monitor, search, investigate on activities on illegal armed forces, and explosive deployment related to the accused, Mr. Sam Ek, chief of resistance movement. The board of inquiry also collect data and evidence related to the above activities, and report to the Minister of Interior and Prime Minister. The member of the board may use their subordinates, if necessary. Circular Nº 02 (RGC) of January 12, 2009 on The Recruitment of Soldiers (Ogs, Year 09, No3,January 12, 2009): This circular provides authority to the MND to recruit 2,000 soldiers to the Intervention Brigade No 9, which is subordinate to the Intervention Division No 3. Decision No 05 (RGC) of January 16, 2009 on the Establishment of GPOI PKO CAPSTONE 2010 (Ogs, Year 09, No 05, January 16, 2009): This Sub-Decree aims to establish the GPOI PKO CAPSTONE 2010 (“GPOI-10 Commission”) and also establish sub-commissions as needed. This commission determines the name of the trainings, countries participation, construction plans, compositions to attend the FTX and PCX. This commission is led directly by the Minister of National Defense and uses the national special budget package. NATIONALIZATION Royal Decree NS/1208/020 of December 27, 2008 on the Granting of Cambodian Nationality by Naturalization to Mr. YOO JAE CHUN, Korean Origin, Korean National, Born in Kseng Kido City, Republic of Korea (Ogs, Year 09, No 01, December 27, 2008). Royal Decree NS/1208/1415 of December 27,2008 on the Granting of Cambodian Nationality by Naturalization to Mrs. CHU YUET WAH Chinese Origin, Chinese National, Born in Hong Kong City, Republic of Chinese (Ogs, Year 09, No 01, December 27, 2009). No.082 January 2009-Law update-BNG-Eng.doc B.N.G- Monthly Law Update Page 5 of 14 Royal Decree NS/0109/040 of January 13, 2009 on the Granting of Cambodian Nationality by Naturalization to Mr. KIM JUNG SUNG, Korean Origin, Korean National, Born in Sea Dacmun-ga, Seoul City, Republic of Korea (Ogs, Year 09, No 06, January 23, 2009). PUBLIC ADMINISTRATION Sub-Decree Nº 18 (RGC) of January 12, 2009 on The Determination of the Number of councilors for Phnom Penh Capital, Province, Municipality, District and Khan in the First Mandate (Ogs, Year 09, No 04, January 12, 2009) This Sub-Decree aims to determine the numbers of councilors for PP Capital, Provinces, Municipalities, Districts and Khan, which range from 9 to 21 councilors for Capital and provincial level and range from 7 to 19 councilors for Municipal/district/Khan level in accordance with its size. Sub-Decree No 03 (RGC) of January 09,2009 on the Establishment of Khan SEN SOK, Phnom Penh Capital (Ogs, Year 09, No 03, January 09, 2009): This Sub-Decree aims to establish the new Khan Sen Sok by cutting out 03 Sangkat, Phnom Penh Thmei, Toek Thla and Khmuoy, from Khan Russey Keo. The organization and administrative management system is in accordance with the Law of Administrative Management of Capital, Province, Municipal, District and Khan. Sub-Decree No 04 (RGC) of January 09, 2009 on the Establishment of ROKHA KIRI District, Battambang Province (Ogs, Year 09, No 03, January 09, 2009): This Sub-Decree aims to establish the new district, Rokha Kiri, Battambang Province by cutting out two communes, Prek Tralach and Prek Chik, from Mong Russey District.
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