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Pheapimex Fuchan Cambodia Co Recommendations contained on page 1 ISBN 0 9527593 8 1 Published by Global Witness Ltd, P O Box 6042, London N19 5WP, United Kingdom Telephone: + 44 (0)20 7272 6731 Fax: + 44 (0)20 7272 9425 e-mail: [email protected] http://www.oneworld.org/globalwitness/ Evergreen / Mixed Forest by Annual Coupe (1997 data) Concessionaires 1 GAT International Co. Ltd. 2 Colexim Enterprise 7 11 3 Casotim Co. Ltd. 12 7 4 Samling/SL International Ltd. 9 19 16 5 Mieng Ly Heng Investment Co. Ltd. 6 Long Day Machinery- Industry Co. Ltd. 10 7 Pheapimex Fuchan Cambodia Co. Ltd. 8 8 Lang Song International Co. Ltd. 2 5 13 9 Hero Taiwan Co. 10 Kingwood Industry Pte. Ltd. 18 7 11 Cambodia Cherndar Plywood Mfg. Co. Ltd. 18 1 4 The Untouchables 3 12 Sam Rong Wood Industry Pte. Ltd. 16 13 Everbright CIG Wood Co. Ltd. 1 14 19 14 Super Wood IPEP Ltd. Forest crimes and the concessionaires— 15 Talam Resources Sdn Bhd 17 (NOTE: The ADB Concession Review team could can Cambodia afford to keep them? 4 find no trace of Talam, late 1999) 1 75-100% 16 Timas Resources Ltd. 50-74% 17 15 17 Silveroad Wood Products Ltd. 20 25-49% 18 You Ry Sako Company 6 0-25% 21 19 TPP Cambodia Timber Product Pty Ltd. A Briefing Document by Global Witness. December 1999 Recently or soon to be harvested 20 Voot Tee Peanich Import Export Co. Ltd. 21 Cambodia Timber Product Pty Ltd. Recommendations 1. RECOMMENDATIONS G Exert pressure on the ADB to ensure that the review achieves the purpose for which it was intended; The ADB-funded concession review (compliance even if this means extending the review period. assessment) should: G Exert pressure on the ADB to recommend G termination of those concessions whose continued Fully review every concession, both legally and operations threaten Cambodia’s forest resource. through site inspections (currently only concessions with exploitation permits for 1999 are being inspected). The RGC should: G Investigate the past records of illegal activities of all G Suspend all concession activity until the concession existing concessionaires, both before and after the start review has been completed and its findings acted upon, date of their contracts, utilising information from the and until concessionaires are competent to manage RGC and other sources. their concession. G Expand site inspections to review concessionaires’ G Utilise all available historical information relating to activity outside their 1999 and 2000 coupes (permitted concession activity, and use it in their determination of cutting areas), and their activities in other companies’ which concessions should be terminated. concessions. G Terminate concessions with poor compliance records G Take these records into account when determining and/or a history of consistent illegal activity. These whether concessionaires have been in compliance with include Pheapimex-Fuchan, Samling, Everbright, their contractual obligations. Superwood, Long Day Machinery, Lang Song G Report the results of the historical review in their International, Hero Taiwan, Kingwood, Voot Tee final report to the Ministry of Agriculture. Peanich, Mieng Ly Heng, You Ry Sako and Colexim. G Recommend contract termination of any concession G Terminate concessions which are so degraded that contract where the concessionaires and/or their they are no longer viable. These include Sam Rong representatives have demonstrated a poor compliance Wood Industry, Lang Song International and Long Day record or have been in serious breach of contract. Machinery. Serious breaches include intimidation and violence, G Only re-award concession areas consistent with an purchasing timber from the RCAF and exporting logs. up-to-date forest inventory, to ensure sustainable forest Such companies include: Pheapimex-Fuchan, Samling, management is possible. Everbright, Superwood, Long Day Machinery, Lang G Song International, Hero Taiwan, Kingwood, Voot Tee Reduce Annual Allowable Cuts to sustainable levels Peanich, Mieng Ly Heng, You Ry Sako and Colexim. consistent with an up-to-date forest inventory. G G Recommend termination of concessions which are Only issue new concession contracts to companies no longer viable. that can demonstrate a track record of professionally managed sustainable forestry practices, and full The international community should: compliance with relevant national legislation. G G Reduce timber-processing capacity in Cambodia so Insist that the ADB take into account the above 3 factors as an integral part of the concession review it does not exceed 500,000m , the maximum sustainable process. yield of the forests. Untouchable in Cambodia: Pheapimex headquarters, Phnom Penh, June 1999. 1 THE UNTOUCHABLES Contents / Preface / Summary 2. PREFACE THIS DOCUMENT IS INTENDED TO ALERT INTERESTED THE UNTOUCHABLES is both an historical record of PARTIES TO THE POTENTIAL SHORTCOMINGS IN THE concessionaire activity in Cambodia since 1995, and a ADB-FUNDED CONCESSION REVIEW BEING CARRIED critique of the ADB-funded concession review carried out OUT IN LATE 1999. IN PARTICULAR, THE LOGISTICAL by consultants Fraser Thomas. Global Witness would like to CONSTRAINTS AND THE MANDATE OF THE REVIEW acknowledge that the ADB encouraged dialogue with TEAM PRECLUDE ANY CONSIDERATION OF Fraser Thomas’ concession review team. Fraser Thomas and the Department of Forestry and Wildlife were extremely CONCESSIONAIRES’ PAST RECORDS IN CAMBODIA, open and cooperative in answering questions regarding the ESSENTIAL IN GAUGING COMPLIANCE WITH review, and in enabling Global Witness staff to accompany CONTRACTUAL OBLIGATIONS. them on site inspections to various concessions. The THIS REPORT INTENDS TO REDRESS THIS BALANCE. criticisms contained in this document are based on an understanding of the review process that may not have been possible without this cooperation. This cooperation is indicative of greater transparency in the forestry sector, which is to be welcomed. The fact that this transparency CONTENTS enables constructive criticism and debate is a new and positive step in this sector. 1. RECOMMENDATIONS 1 3. SUMMARY 2. PREFACE 2 G This report details the illegal activities of 12 3. SUMMARY 2 concessionaires, and the fact that three further concessions are almost certainly no longer viable in the 4. INTRODUCTION 3 short term. G No concession in Cambodia is viable in the medium 5. THE CONCESSION REVIEW— term. The review team has reported that the FATALLY FLAWED BY THE ADB? 3-4 concessionaires will exhaust their concessions in five to seven years and that current cutting levels cannot be 6. WHY CONCESSIONAIRES’ PAST RECORDS ARE sustained. INTEGRAL TO THE CONCESSION REVIEW 4 G According to the review, every concessionaire has breached its contract for failing to achieve the required 7. CONCESSION REVIEW—THE LIMITATIONS 5 investment targets. G The ADB-funded concession review, a crucial 8. THE LAW, THE LOOPHOLES & THE EXCUSES 6 element of forest policy reform, will not achieve its aims and objectives because of crippling time and financial TABLES 7 constraints. G Table 1: List of Concessions Cancelled 7 Due to poor planning, site inspections of concessions took place in the wet season. Consequently the review Table 2: Current Concessions List 7 team did not witness any harvesting operations or log movements. Furthermore, access to the concessions was Table 3: Forest Crimes 7 affected by bad road conditions limiting the time available to carry out the inspections. 9. THE COMPANIES 8-17 G The site inspectors spent one day in each concession, Pheapimex–Fuchan 8-10 including travelling time to the coupes to be inspected, meaning actual inspections lasted approximately eight Samling/SL International 10-11 hours maximum. Concession sizes range from Everbright CIG Wood Co Ltd 12 60,000–766,000ha. G Only year 1999 and 2000 coupes were inspected. Superwood IPEP Ltd 12 Thus the vast majority of concession areas were not Long Day Machinery 12 inspected. G Concessionaires’ forest management practices were Lang Song International 13 judged purely on the basis of the one-day inspections. Therefore compliance with contracts, a crucial part of Hero Taiwan 14-15 the review, was also judged on the basis of a snapshot Kingwood 15 one-day visit. G Concessionaires’ historical records including illegal Voot Tee Peanich 15-16 activity and poor forest management are not being taken Mieng Ly Heng 16 into account by the review. Therefore concessionaires who have severely depleted their own and other You Ry Sako 17 concessions are likely to enjoy impunity for their actions. G Colexim 17 It is likely that the review’s recommendations will err on the side of caution, therefore preventing 10. CONCLUSION 17 termination of non-compliant concessions, meaning that these companies will be entrusted with a future 11. REFERENCES 18 responsibility for Cambodia’s decreasing forest resource which they are almost certain to abuse. THE UNTOUCHABLES 2 Introduction / The Concession Review 4. INTRODUCTION It is Global Witness’ contention that the FPRP not only intended that the concessionaires’ past performance was an IN 1995 the Royal Government of Cambodia (RGC) integral factor in the concession review, but that the review awarded 30 companies forest concessions, which covered will not further forest policy reform unless historical virtually all of Cambodia’s remaining forest area. These factors are taken into account. concessions were awarded secretly, the contracts were legally This view is not based on retribution, but upon the premise weak and, by and large, the companies did not possess
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