Recommendations contained on page 1

Chainsaws speak louder than words

A Briefing Document by Global Witness. May 2000 Recommendations

1. RECOMMENDATIONS Stop the practice of granting cutting permits by any authority other than the Department of Forestry and The meeting of the Consultative Group (CG) in Paris in Wildlife. Permits granted in this way to Pheapimex May 2000 is of crucial importance to forestry reform in and Mieng Ly Heng should be withdrawn. Cambodia. The 1999 CG meeting set the pace for forestry reform, but it is the 2000 meeting that can ensure that the Adopt the new forestry law as soon as possible, momentum of reform is continued. The concession review following meaningful public consultation. and the logging crackdown will count for nothing if they Urgently address the issue of domestic timber supply, are not brought to their logical conclusions. as the current system stimulates illegal logging. The Royal Government of Cambodia (RGC) should: Complete an inventory and impound all old logs, and set up a working group to determine the best use of Immediately impose a moratorium on all concession these old logs. activity, until all the recommendations made by the Consider the importance of the proposed Cardamom World Bank funded Forest Policy Reform Project mountain protected area as a reserve of regional and (FPRP) and the Asian Development Bank (ADB) world significance, and impose a moratorium on all funded concession review are implemented. concession activity in the Cardamoms. Terminate all concessions that possess less than ten years of operable forest, and impose a moratorium on Cambodia’s neighbours: all concessions with less than 15 years of operable The governments of Thailand, Laos and Vietnam forest, as described in table 6 of the ADB draft report. should enforce Cambodia’s 31st December 1996 timber Terminate the contracts of all concessions that have export ban, as they have publicly committed to do. committed serious contractual breach, especially with Currently all these countries systematically abuse it. regard to extensive illegal logging. These include Hero The International Community should: Taiwan, Colexim, Casotim, Samling, Mieng Ly Heng, Long Day Machinery, Pheapimex-Fuchan, Lang Song Continue to tie non-humanitarian aid disbursement International, Kingwood Industry, Cambodia to implementation of forestry reform. Chemdar Plywood, Superwood, Silveroad, You Ry Continue to work with the RGC, providing both Sako, Voot Tee Peanich and TPP Cambodia Timber financial and technical assistance in achieving these Product. reforms. Ensure that all remaining concession contracts are Inject at least the additional $2 million into the Forest renegotiated. Crimes Monitoring Unit, on top of the original Redefine concession areas, to ensure that a reduced budget, to increase its capacity to sufficent levels. number of concessions can practice sustainable forestry management in truly viable forest areas. Ensure that all agencies within the Forest Crimes Monitoring Unit are able to operate fully and without Remaining harvest in Cambodia’s concessions. restrictions, according to the FAO Project Document signed by the RGC. Examine a new vision for forestry in Cambodia, and rethink the current concession strategy, to maximise forest revenue from reduced exploitation levels, by focusing on high value added product. Take into account all forest crimes, carried out by concessionaires, that have taken place since the start of their concession contracts, and release pre-1999 government records relating these forest crimes. Enforce Hun Sen’s 25th January 1999, 17 Point Declaration, especially with regard to Clause 4 on the issuance of collection permits. Cancel all concessions on indigenous people’s land and develop alternative more socially responsible forms of timber supply and ensure that indigenous peoples’ rights receive adequate attention. Provide local people with maps clearly delineating concession and current prey coupe boundaries. Local people should be notified as soon as cutting licences are granted.

“In the provincial forestry department the best jobs are given to those who have the money available to give bribes, even if they have less experience and poor technical capability; having money brings power. Those in the community with little money are increasingly upset about the situation as they feel that it is only the poor people who must observe the forest regulations. Oxcarts used to carry firewood and roughly processed timber for building local houses are checked while the concessionaires act as they want to, clearing both large and small trees within their concession. Working within a concession and being prepared to disregard the forest regulations pays; staff currently working with a concession company reportedly earn between $20,000 to $30,000 a year1.” —PROVINCIAL OFFICIAL, DECEMBER 1999.

1 CHAINSAWS SPEAK LOUDER THAN WORDS Summary / Contents

2. SUMMARY CONTENTS Hun Sen’s Declaration No. 1 The 17-point declaration, signed on 25th January 1999, is the 1. RECOMMENDATIONS 1 bedrock of the logging crackdown and the solid foundation of 2. SUMMARY 2 forestry reform. Although several of the 17 clauses are being adhered to, other important clauses are not being enforced. For example, 3. INTRODUCTION 3 concessionaires are not being held responsible for forest crimes committed on concession land, contrary to clause 7, and collection 4. ADB CONCESSION REVIEW 3 permits for old logs are still being issued, contrary to clause 4. & THE FUTURE OF CONCESSIONS Forest Crime Monitoring Unit BOX - HUN SEN’S 17 POINT DECLARATION 4-5 The establishment of the FCMU will, in time, provide MAP - BEFORE. DRAFT (FCMU) INCEPTION REPORT 6 Cambodia with a system that can effectively monitor forest crime, and aid suppression of these crimes. It is a far reaching and precedent MAP - AFTERMAFF. FINALISED (FCMU) 7 setting programme that promotes transparency within the forest INCEPTION REPORT sector. Its first five months of operation have, for the first time, 5. FOREST CRIME MONITORING UNIT 8 begun to see actions taken against specific criminal incidents, although a uniform response to different crimes has yet to be 6. DOMESTIC TIMBER SUPPLY 8 achieved. 7. FOREST CONCESSIONS ON INDIGENOUS 9 ADB Concession Review and the future of concessions PEOPLE’S LAND The draft report of the ADB Concession Review is not only 8. IS LOGGING THE BEST ECONOMIC USE 10-11 damning of the state of the forestry sector, but makes strong OF CAMBODIA’S FORESTS? recommendations for its reform. It is essential that the RGC and the international donor community ensure that the recommendations 9. TIMBER MOVEMENTS 11 are acted upon, to prevent the destruction of the forest resource. 10. THE MILITARY REGIONS 12-27 However, most suspects escape arrest and/or prosecution. The timber industry has returned at total of just $92 million to MILITARY REGION 1 12-19 the RGC since 1994. In future sustainable logging under the present system cannot return more than approximately $30 million per year. Ratanakiri 12-16 Therefore the viability of the system is in doubt, and a new vision Stung Treng 17-19 for forestry needs to be identified to not only preserve the forests, but to generate revenue for the state. Mondulkiri 19

Domestic Timber Supply MILITARY REGION 2 20-22 The current system to supply timber for domestic use relies on the Kratie 20-21 concessionaires providing 20% of their harvest for this purpose. This system promotes illegal logging because the concessionaires are Kompong Cham 21-22 obliged to pass on royalty and production costs to the consumers, rendering the timber unaffordable. Local people have no choice but MILITARY REGION 3 22-23 to obtain timber from other (illegal) sources. Furthermore, as the ADB report has identified that the current concession system is Koh Kong 22-23 unworkable, the 20% quota system is also, de facto, unworkable. Kampot 23

Forestry Concessions on Indigenous Peoples Land MILITARY REGION 4 23-24 Forestry concessions on indigenous peoples land not only abuse the right of these peoples, but also place Cambodia in contravention of Preah Vihear 23-24 numerous international agreements and conventions to which it is a Siem Reap 24 signatory. Such concessions should be terminated. Kompong Thom 24 Economic Value of Cambodia’s Forests Since 1994 Cambodia’s forest have been severely degraded by legal MILITARY REGION 5 25-27 and illegal logging. During this period the RGC has received just Battambang 25 $92 million in timber royalties and tax. It is apparent that the whole concession system and economic uses of Cambodia’s forests need to Pursat 25-27 be reviewed, as it is evident that an industry based purely on industrial logging is not in the interests of the RGC or the country Banteay Meanchey 27 itself. 11. THE ROLE OF CAMBODIA’S NEIGHBOURS 27-32 Legal and illegal logging, and exports to Thailand, Laos and Vietnam Thailand 27-30 Levels of illegal logging are still unacceptably high. Illegal exports to Laos 30 all of Cambodia’s neighbours are continuous, whilst the logging concessionaires illegally log with impunity. Laotian, Thai and Vietnam 31-32 Vietnamese authorities collude in illegal timber imports from 12. CONCLUSION 33 Cambodia on a systematic basis. 13. REFERENCES 33-34

CHAINSAWS SPEAK LOUDER THAN WORDS 2 Introduction / ADB Concession Review and the Future of Concessions

3. INTRODUCTION 4. ADB CONCESSION REVIEW AND Cambodia’s forest sector has undergone incredible changes THE FUTURE OF CONCESSIONS since the imposition of Hun Sen’s January 1999 crackdown, This report has emphasized throughout the urgency of and is already being used as a potential model for forestry establishing sustainable forest management, and existence of reform elsewhere in the world. This is a testament to the a clear enforceable control system to ensure it. The analysis, political will of the RGC, which is still enforcing the conclusions and recommendations made here are primarily crackdown after 17 months, and to the extremely positive and based on this imperative and less so on the existing law and proactive stance taken by the international donor community agreements, whose shortcomings have been discussed in the in not only putting pressure on the RGC, but also assisting to report and also in the Report prepared by White & Case. We develop forestry reforms. The establishment and development are convinced that sustainability issue is alone adequate to of the FCMU, the ADB funded concession review, the justify major re-structuring of the sector. drafting of new forestry related legislation and, over and above Unless all these issues are dealt with and an effective all this, the dramatic decline in illegal logging indicates that SYSTEM is established and maintained the future of the there is some hope for the future of Cambodia’s forests. forest estate of Cambodia will remain bleak, and the However, these improvements follow on the heels of the resource they represent effectively depleted in a few years. uncontrolled deforestation that took place throughout the Cambodian Forest Concession Review Report (draft); 1990s which has resulted in the severe degradation of the forest March 31st 2000. resource; so severe that it is estimated that the forests will be commercially logged out by 2003. If the above reforms had The ADB draft report is, rightly, damning of the record of been delayed any further, then it is possible that they would both the RGC and the concessionaires, which has resulted have been too late: it is far from certain at this stage that they in massive damage to the forest resource and to Cambodia. have arrived in time. The above extracts from the ADB draft report are Had concession activity been suspended in 1996, when the indicative of the severity of the situation, which makes it FPRP was first mooted and when Global Witness first clear that virtually all concession areas are so degraded that recommended it, then the forests would be in much better completion of the initial concession contracts over a 25 year condition than they are, and their economic potential would cycle is not possible, due to the drastically reduced forest be much greater. What is certain is that firm and robust action area. Overall, Cambodia’s forest estate cannot sustain the must be taken now. The ADB concession review is damning current number of concessions. about concessionaires performance. Amongst many problems It is apparent from the draft report that a radical shake the review states that every concession is over-exploiting the up of the concession system is essential in order to prevent resource. It is problems like these that need to be addressed the destruction of the forest resource, probably within the immediately. The concessions return very little to the Ministry next three years. To achieve this shake-up it is essential that of Economics and Finance (MEF), so it still makes sense to a complete moratorium on all concession activity is suspend concession activity until all the companies are able to imposed immediately. follow the Forestry Code of Practice, the new Forestry Law The draft report fails to explore a new vision for the and other recommendations of the World Bank funded FPRP. forestry sector, but such a vision is essential as it is unlikely Currently the companies operate in a sort of legal vacuum, that even a reformed version of the current concession system which allows them to practice unsustainable and/or illegal will achieve the recommendations of the ADB or the World logging, further depleting the already threatened resource. Bank, or deliver the long term benefits required by the RGC. Domestic timber requirements are stimulating many Forest revenue captured by the state totals $92 million instances of illegal logging, and it is this area that could well since 1994, $35 million of which was generated in 1994. become the most significant contributor to the forest crime Since then annual returns have been minimal, especially figures and, possibly, forest depletion. The route of this when compared with the levels of forest exploitation. problem is the requirement that the concessionaires supply 10- Future revenue, based on a maximum sustainable yield of 20% of their harvest for local use, but have to pass on the 500,000m3 per year12 cannot exceed $35-40 million per year. royalty costs and production, rendering the timber The concession review and the meeting of the unaffordable. Consultative Group in May 2000 provide an opportunity to One of the most successful drivers of the forestry reform reform not just the current concession system, but to create process was the linking of aid by the donor community to a more valuable forest industry both in terms of revenue to reforms in the forestry sector. The fact that this strong stance the state, and to create a skilled workforce. For example, was not just applied at the 1999 CG meeting, but is monitored the industry could produce high value added product such throughout the year, is crucial. It is essential that this pressure as quality furniture for the world market, rather than the is maintained at least for the three year duration of the FCMU, comparatively low value plywood industry that currently to ensure the success of the reform process. prevails.

Forest Crimes Conference; January 2000.

3 CHAINSAWS SPEAK LOUDER THAN WORDS Hun Sen’s 17 Point Declaration

Hun Sen’s 25th January 1999, 17 Point given to buy or transport “anarchic” logs are invalid, Declaration whether the activity has not commenced or it is still in The crackdown on illegal logging should follow the 17 clauses progress. All kinds of illegal timber/logs from any of the Hun Sen’s 25th January 1999 Declaration. This section concessions must be recorded and legal procedures briefly analyses the RGC’s compliance with the declaration, instigated. point by point. Global Witness’ comments are in italics. This clause refers to the old ‘collection permit’ system. It The declaration includes the following points: appears that various concessionaires are still obtaining logs While waiting the adoption of a new law on forest from their concessions despite not having permission to cut, production and management, the government on 28 using the excuse that these are old logs. This, in part, has come Oct.98 and on 20 Nov. 98, made statements on new about because the DFW has allowed concessionaires to carry policies which are summarized in the following forward timber quotas that remained uncut from previous declaration. years. This allows the concessionaires to cut even if they do not possess a current cutting permit, which undermines 1. Immediately and completely stop anarchic forest control in concessions and provides a loophole in the law. harvesting and the purchase/sale and transportation of all Illegal exports into Thailand originating from “old felled” forms of illegal timber throughout the country. Only logs in Anlong Veng also contravene this clause. authorized concession holders will carry out timber extraction as directed by DFW. Requirements for timber 5. In order to sustain the forest, which is a valuable and rare for domestic consumption will be supplied by resource, and to maintain a balance to the natural authorized concessions, for which the concession will environment, the granting of new forest concessions is to allocate 10-20% of their annual harvest in compliance cease. Clearing degraded forest lands for agriculture or with DFW procedures and at a reasonable price. industrial use must be approved by government through The RGC’s crackdown has gone a long way to MAFF. MAFF (DFW) must immediately define and mark compliance with their commitment to ‘Immediately and the borders of forest reserve areas and submit them to the completely stop anarchic forest harvesting and the Government for approval. purchase/sale and transportation of…timber…’ However, in As far as Global Witness is aware, not having had access numerous statements the RGC overstates it’s success, often to government records, no new concessions have been quoting a 95% success rate in suppression of illegal logging. awarded. There are numerous reports of clearance of forest This figure is certainly too high and is anyway subjective. Is land, either active, as in Samlot, or potential, or as in the success to be measured by the number of incidents, the total crime report submitted by Global Witness regarding ‘old log’ quantity of timber involved, arrests of perpetrators etc? The exports from Pailin. To fully adhere to this clause’s RGC has, by and large, failed to suppress illegal activities by requirement to sustain the forest some existing concessions timber concessionaires, both in terms of detection and would have to be terminated because there is not enough punitive actions. remaining forest to sustain the current level of concession In the few instances documented by Global Witness, the activity. supply of 10 to 20% of the concessionaires annual harvest for domestic use is proving to be an unworkable system and 6. All forest concession agreements must be reviewed and cannot, therefore, be regarded as successfully achieved. agreements cancelled that are not in compliance or not in Timber supplied by concessionaires has already been subject sufficient compliance based on legal procedures. Cancelled to the RGC’s royalty and tax system, effectively pricing the forest concessions must be reserved as protected areas or wood too high for the bulk of the population. This has classified forests and will not be granted to any future stimulated illegal logging as local businessmen and forestry concession. individuals, often with military backing, seek to supply The RGC did cancel the concessions of nine companies, timber at lower prices. This area requires urgent attention as but this was a cosmetic move carried out against non- this form of illegal logging could well represent a significant operational concessions that, largely, covered heavily percentage of the total. degraded land. The RGC’s commitment to cancel concessions following 2. Supervision and monitoring of forest and non-wood the completion of the ADB concession review will be the real forest products must be under the control of forestry test of compliance with this clause. The RGC should consider competencies at all levels. All levels of local authority, other the cancellation concession agreements where appropriate, technical bodies and powerful people must immediately stop according to this clause, even if the ADB has not interfering in forestry affairs. recommended cancellation of the particular concession under Every incident of illegal logging usually means, de facto, a consideration. contravention of this clause, as military and local officials are often involved in illegal log deals. Global Witness has, as yet, 7. Concessions that are performing satisfactorily, as per not accessed sufficient information to verify whether this clause concession agreements, will be requested to install modern is being complied with. However, it is apparent that in many equipment and machinery to enhance value adding and instances, people in positions of power, and numerous generate employment opportunities for local people. The provincial agencies remain heavily involved in illegal logging, companies will be encouraged to follow forest management with Ratanakiri and Mondulkiri being prominent examples. plans and comply with a code of practice, especially in relation to reforesting logged over and degraded areas. At the 3. Granting permission to transport logs without the same time, in cooperation with local authorities, all forest payment of royalties is to stop. concessions must be responsible for all anarchic forest Every incident of illegal logging usually means, de facto, harvesting in their own areas. Each concession holder must a contravention of this clause, as most log movements are clearly mark the boundaries of his concession. usually accompanied by some form of permission. Less clear is This clause will be hard to adhere to as the ADB which permissions are valid, and which are not. concession review has already determined that all concessions 4. No new licenses are to be given for the collection of “old are in breach of their concession agreements. The latter part of or anarchic cut” timber or logs. Any licenses that have been the clause states ‘…all forest concessions must be responsible for

CHAINSAWS SPEAK LOUDER THAN WORDS 4 Hun Sen’s 17 Point Declaration

all anarchic forest harvesting in their own areas’. Since January sawmills and other equipment involved in illegal logging. In 1999 the concessionaires have either not been held responsible cases where forestry personnel request intervention from for their own illegal activities, usually attributing illegal police, armed forces and local authorities, they must assist logging to persons unknown, or have received weak faithfully and effectively in the suppression campaign by reprimands which have proved to be no disincentive to using all kinds of measures including force. continuing these activities. The ADB report notes that 40-80% Overall the crackdown has been relatively effectively of the operable area of the concessions has already been logged enforced by the local authorities and the armed forces out within the last five years, so this is an important issue. The working in conjunction with DFW. However, many illegal RGC have therefore not complied with this clause. activities are carried out by these same authorities working 8. The export of logs and rough sawn timber is banned and together, which makes detection and suppression extremely processed timber must be made from logs felled in annual difficult, and probably only possible using agencies based coups “defined cutting areas” of concession forest. outside any given province. Examples of such collusion Overall, illegal exports are much reduced from 1998 levels, include recent illegal activities in Mondulkiri and Ratanakiri. and the RGC has, in some cases, taken extremely robust action to suppress illegal exports. In others, such as in Ratanakiri, 13. All kinds of unofficial payment requests from legal provincial and military officials have been involved in illegal concessionaires are to immediately and completely stop. exports with no punitive action taken, and the sharp increase in This is very difficult to document, but conversations with exports to Thailand is a major cause for concern. concessionaires suggest they continue to pay between $40-80 3 9. The catching, hunting and transporting of all types of per m in unofficial payments. wildlife must be completely suppressed. Markets where 14. Any individual or entity conducting illegal forestry wildlife is brought or sold are to be demolished. activity, directly or indirectly, i.e. by guarding offenders or Wildlife trading still takes place and suppression activities by transporting or exporting illegal timber or wildlife, do not appear to be sufficient. In particular, in remote areas must be fined or dismissed depending on the level of the the trade is often carried out by the very authorities charged illegal activity; commitment and sentencing to be in with the responsibility of suppressing it. However, current accordance with existing law. Government officials who requirements that villagers refrain from hunting of all species are problematic and should be reviewed. It is therefore succeed in apprehending forestry and fishery offenders will recommended that the status of the development of CITES be granted awards in accordance with MEF guidelines. legislation and the implications it has for the development of The RGC is, by and large, failing to adhere to the laws concerning wildlife be clarified. conditions set out in this clause. Other than the reaction to the exports from Mondulkiri, identification, arrest and 10. The clearing of natural forest land or forest plantations punishment of offenders, whether individuals or entities, is for personal use is banned. All deeds and permits for land virtually non-existent and remains a major flaw in the ownership of forest land are banned until the boundaries of RGC’s crackdown as failure to punish offenders will forests are officially approved. Global Witness has insufficient information to comment undermine forestry reform. on this clause in detail, at this stage. There are numerous press 15. In order to provide an effective legal foundation to the reports, and some instances of forest clearance known to policies outlines above, the government will work Global Witness, that suggests there is significant non- strenuously to redraft the law on forestry protection and compliance with this clause. management (Forestry Law). The law will be adopted by the 11. Reforestation in the areas of degraded forest in all National Assembly as soon as possible. It will be based on provinces and towns is encouraged. Community forestry to the real situation in the forestry sector and will accord with plant trees and protect as much of the existing forest as international law. Prior to this, MAFF must draft a Forestry possible will be used to provide people with firewood and Code of Practice to be implemented by concessionaires. charcoal for local use. People are however, to be encouraged The RGC is adhering to this clause, in that a forestry law to use other energy sources instead of firewood and has been drafted and a Forestry Code of Practice is in charcoal. The Ministry of Economy and Finance (MEF) existence. should provide a planned annual budget for reforestation. The clause states that people should “be encouraged to 16. The Ministry of Agriculture, Forestry and Fisheries use other energy sources instead of firewood and charcoal”: (MAFF) must report to the government on their this is probably unnecessary as Cambodia has lots of land achievements and any constraints they have in applying the that with appropriate resource tenure could have forests that measures detailed above so that government can produce sustainably produce significant quantities of wood for concrete/alternative measures. firewood and charcoal, in a way that is much more MAFF, through the FCMU, provides monthly reports economically productive, beneficial to Cambodians, and that documents its achievements and constraints. environmentally more sound than industrial logging or common-access degraded woodlands. This would involve 17. The Ministry of the Environment (MOE) is to set up a transferring these degrading/degraded forest lands from state mechanism to investigate the implementation of this management to controlled-access under community or declaration as necessary. private management. The Ministry of Environment, with the establishment Global Witness, having conferred with various members of the DI, has established a mechanism to investigate the of the NGO community, is not aware of anything happening implementation of the declaration. However, the DI only as a result of this clause. receives funding through the FCMU to monitor protected 12. All levels of local authority, police and armed forces, areas, and therefore has no funding to fully comply with must assist MAFF (DFW) to crack down on forest and this clause, and so faces various constraints in staff training, wildlife offenders effectively, such as by destroying illegal reporting procedures and methodology.

5 CHAINSAWS SPEAK LOUDER THAN WORDS Map from the draft (FCMU) Inception and Quarterly Situation Report

Before: Map from the draft (FCMU) Inception and Quarterly Situation Report; December 1999. See page 7 for MAFF alterations

CHAINSAWS SPEAK LOUDER THAN WORDS 6 Map from the finalised (FCMU) Inception and Quarterly Situation Report

The ‘AfterMAFF’: Map from the finalised (FCMU) Inception and Quarterly Situation Report; original map altered by MAFF, December 1999

7 CHAINSAWS SPEAK LOUDER THAN WORDS Forest Crime Monitoring Unit / Domestic Timber Supply

5. THE FOREST CRIME MONITORING Overall, the DFW mobile inspection teams appear to be very active and have scored some notable successes, particularly in UNIT (FCMU) Mondulkiri Province. However, they have played down various The FCMU was established following the 1999 CG meeting, to crimes, or failed to notice them at all, as in Ratanakiri in December develop the RGC’s capacity to detect and suppress illegal logging, 1999. The DI reports are less detailed but demonstrate a more and to provide the international community with an independent accurate reflection of the number and location of forest crimes oversight of this process, through the appointment of Global across the country. Other than in Mondulkiri, the identification and Witness as an Independent Monitor. In the short term it will be the arrest of perpetrators of forests crime is virtually non-existent. gauge of the success of the logging crackdown and the progress of In the long term, if it is successful, the FCMU should create an forestry reform. Global Witness’ role is to monitor the monitors. environment whereby it is extremely difficult to commit forest crimes and avoid detection. The FCMU consists of three components. 1. An office in the Department of Forestry and Wildlife (DFW), 6. DOMESTIC TIMBER SUPPLY known as the Forest Crime Monitoring Office (FCMO). This will monitor forest crimes in production forests. “Requirements for timber for domestic consumption will be supplied by authorized concessions, for which the concession 2. An office in the Ministry of Environment, known as the will allocate 10-20% of their annual harvest in compliance Department of Inspection (DI). This will monitor forest crimes with DFW procedures and at a reasonable price.” in protected areas. —EXCERPT FROM CLAUSE NO.1 OF HUN SEN’S 25TH JANUARY 1999, 17 POINT DECLARATION. 3. An independent monitor. Global Witness’ role is to The above clause requires that all timber for domestic use in independently monitor the performance of the above agencies. Cambodia is supplied by the concessionaires. Whilst the intention was doubtless to ensure that the timber supply was subject to the The two government offices will operate parallel information same controls that theoretically apply to other areas of concession tracking systems. Their provincial and district offices will feed activity, the system is proving to be unworkable in practice. information, on a monthly basis, into the monitoring units. This The main problem is that the concessionaires have to pay inform ation will be inputted into a computerised case tracking royalties on the 10-20% quota and this as well as their production system, resulting in a series of ‘open’ cases. The RGC has costs is passed on to local people. This takes the price of the timber committed to, and is bound to take action on these cases, and these to in excess of $100-200 per m3, which local people cannot afford. actions will be reported both to the Council of Ministers and to the Hero for example charges $130 per m3. Local people have no option quarterly meetings of the donors. RGC action or inaction will be but to either cut the timber themselves or buy from sources other amongst the criteria used by the donors in determining their future than the concessionaires; the imposition of the concession system aid disbursements. has made both these practices illegal. Global Witness will continue to obtain information from its As it stands the concession system has made criminals out of own networks, which will also generate new cases, and monitor the people who were previously permitted to cut timber for local use. It RGC’s performance in maintaining and taking action on its own is likely that the bulk of forest crimes, in terms of numbers, are of case records. For the first time, the RGC will be obligated to enforce this sort. This could potentially, by sheer weight of numbers, its own laws or face a tangible and structured response. The fact that hamper the FCMO and DI their efforts to tackle large-scale illegal the RGC has signed up to this deal is an indication that they are activities of concessionaires, the RCAF or powerful provincial really attempting reform. businessmen. Progress So Far The situation in Ratanakiri where there is widespread illegal logging to provide timber for local use, with the collusion of local The creation of the FCMU has already begun to change the dynamic authorities, could well be typical. In one instance Global Witness of forest crimes in Cambodia. Global Witness mid-term progress observed logs being rough processed by chainsaw deep in the forest. report dated 29th February provides a detailed evaluation of the The logger worked for Mr Riud, a well-known local businessman achievements of the DFW and DI. This should be available from the who supplies timber for between $70-$90 per m3. This is still FCMU in Phnom Penh and is posted on Global Witness’ website. expensive but undercuts the official rate. The only sawmill in Ban The FCMU, initially a three year project, is still very young and Lung other than Hero’s concession facility, Pal Seng processes some it is too early to say whether it will be a success in the long-term. of the illegally felled timber. Hero has been unable to sell the 10- Early indications are that the Ministries of Agriculture and 20% quota locally and, in theory, utilises 100% of its quota whilst Environment are working hard to make the FCMU a success. there is unregulated exploitation of the forest to supply local needs, There are some teething problems, which will hopefully be both inside and outside the Hero concession area. eliminated in time. In other instances, for example Pheapimex’ Stung Treng There are some early trends that could be indicative of the operation, the company has made no attempt to supply domestic problems that face the FCMU. Illegal logging is still primarily in the timber demands, so once again the local population have no hands of powerful elites, and it is beyond the power of civil servants, alternative but to obtain timber from illegal sources. even though they have a powerful mandate and Hun Sen’s personal Problems could also arise if the concessionaire is not granted a backing, to confront such people. Illegal activities are often not cutting licence or there simply is not a concession nearby. reported by provincial officials either because to do so they would Part of the solution is to speed up the establishment of be at risk from physical intimidation, threats to their careers or community forests but although this might satisfy much of the local because they are involved in illegal activities themselves. The DFW demand, more work has to be carried out to find ways satisfy itself has reported an incident in Koh Kong Province when the demand at a national level without encouraging illegal exports. military denied them access to a logging site. Although such Further research into a credible solution, could be carried out by a incidents are unacceptable, they are unfortunately a reality. commission comprising representatives from the DFW, the MEF, In Phnom Penh the DFW has had relations over many years the Ministry of Rural Development, key IOs and NGOs in the with timber concessionaires, and some personnel within the forest sector and community representatives. department almost certainly benefit from the $40-$80 per m3 that In Kompong Thom, following discussions between The the concessionaires make in unofficial payments. A combination of Provincial Environment Department and GTZ, agreement has been these reasons probably contribute to the fact that some forest crimes reached to set up a community forestry commission sponsored by reported by Global Witness, especially regarding illegal logging by GTZ with the aim of contributing to the effort on forest timber concessionaires, are denied, or suppressed. preservation and the reduction of deforestation1.

CHAINSAWS SPEAK LOUDER THAN WORDS 8 Forestry Concessions on Indigenous People’s Land

7. FORESTRY CONCESSIONS ON Old growth forests are kept as reserves and they are integrally tied with highland people’s belief systems; spirits INDIGENOUS PEOPLE’S LAND reside in forests, particularly old growth forests. These The granting of concessions is contrary to Cambodia’s forests have been retained to accommodate spirits and to international obligations and fundamentally unsuitable on offer sanctuary and breeding grounds to wildlife. indigenous people’s land. The RGC has allocated the land It is these old growth forests and the spiritual beliefs of without consultation or the consent of indigenous people. the indigenous people that are being abused by the All indigenous people in Ratanakiri spoken to by Global concessionaires with, in many cases, the complicity of the Witness complained about their mistreatment at the hands DFW. Concessionaires and their contractors not only of the concessionaire and the adverse effect that concession oppress people directly, as is the case with Hero in activity has had on their livelihoods and areas of spiritual Ratanakiri, but are continuing to desecrate the spiritual base importance. They have been intimidated and cheated, of indigenous people. logging has taken place in spirit forests and resin trees have been cut down and the wildlife upon which they depend has Indigenous Rights: The obligations disappeared. The indigenous people in Cambodia’s northeast remain strongly opposed to forest concessions. Article 31 of the Cambodian Constitution recognises and respects all human rights stipulated in covenants and Cambodia’s Indigenous People conventions related to human rights. Therefore all Most highlanders in northeast Cambodia subsist on a branches of the RGC must respect and implement these rotational agriculture system supplemented by hunting, provisions. fishing and gathering forest products. Contrary to many The provisions of the International Covenant on Civil earlier, out-dated beliefs, this rotational, or “swidden” and Political Rights (ICCPR) and International Labour agriculture system in the region is recognised as being highly Organisation (ILO) Convention No 169 contain much in sustainable. It requires little or no outside inputs, and relation to indigenous people and are binding on Cambodia. usually requiring felling of old-growth forest only if outside Article 7 of ILO Convention 169 states that resource extraction and land acquisition necessitate it. indigenous people have the right to decide their own Indigenous priorities for the process of development as it affects their people’s crops lives, beliefs, institutions and spiritual well-being and the destroyed: Hero lands they occupy or otherwise use. The Convention calls Taiwan pushes for special measures to be taken “as appropriate for log road through chamkar; Svay safeguarding the persons, institutions, property, labour, Village, cultures and environment of the Peoples concerned.” Ratanakiri, Articles 14.2 and 14.3 of ILO Convention 169 states January 2000. that governments must guarantee the rights of ownership and possession of indigenous people and establish adequate procedures to resolve land claims by the peoples concerned. The ICCPR states that “ethnic... minorities.... shall not be denied the right ... to enjoy their own culture.” Article 2 guarantees that “all peoples may, for their own ends dispose of their natural wealth and resources”.

Svay Village, Ratanakiri; January 2000.

9 CHAINSAWS SPEAK LOUDER THAN WORDS Is Logging the Best Economic Use of Cambodia’s Forests?

8. IS LOGGING THE BEST ECONOMIC - Ecological functions such as watershed protection and carbon storage USE OF CAMBODIA’S FORESTS? - So-called non-use or preservation values Economic Value of Cambodia’s Forests In order to carry out a proper appraisal of forestry policy in Cambodia, it is essential to attempt to estimate the true Different stakeholders will have different views about the economic costs and benefits of each option. To date, the appropriate uses of forests. Logging companies, local national authorities have largely ignored the non-timber communities and indigenous groups, the national government, benefits of Cambodia’s forests. A thorough analysis of the conservationists and the world as a whole are likely to view the potential for sustainable forest management of both timber and functions of the forest differently. Whereas a private logger non-timber products and services is badly needed. Below we may only look at the financial costs and benefits of logging, the briefly highlight some of the issues that need to be addressed. state should consider all options and their economic value. Economic analyses need to include the value of timber and non- Non-timber Forest Products timber products and services; and the role of forests in watershed protection, biodiversity, and as a carbon sink. Non timber forest products (NTFP) are a very important and often overlooked aspect of what forests provide. A recent Ecological and economic functions of forests include 4 provision of timber and non-timber products, habitat for study of the tropical forest land use options in Ratanakiri biological diversity and regulators of local, regional and global province demonstrates the importance of NTFP in the environment. Historically costs and benefits of logging have Cambodian context. The study compared the economic been measured as the financial returns to logging with little or benefits of using forestland for the traditional collection of no consideration of the ecological impact. Financial returns non-timber forest products by ethnic communities with the may be relevant to the logging company but they are benefits of commercial timber harvesting. The NTFP included inappropriate to assess the true costs of logging to Cambodia as fuel wood, rattan, bamboo, malva nuts, construction materials a whole. A true economic assessment must consider the and wildlife. It is shown that the present value of NTFP may ecological as well as the financial costs and benefits. Shadow be as high as US$3,922 per hectare of forest compared with no prices must be calculated that reflect the true opportunity cost more than US$1,697 per hectare if logged for timber. of the forest, including the environmental and social The main conclusions are that NTFP are very important, externalities. The indirect and cumulative impacts of forest particularly to the poorest sectors of society and any land use exploitation need to be included in the analysis. Thus, it is planning process that ignores these products would lead to loss necessary to consider the impact of forest development on local of economic value for Cambodia and also to increased security people, on soil erosion and flood control and on biodiversity. problems and conflicts in the area. The results of this study In addition, there are impacts that emanate from the rest of the suggest that NTFPs alone represent the best use of forest land world - use values such as eco-tourism and carbon storage - and thus support the case for conservation and sustainable and non-use values such as preservation, existence or bequest management. values of the forests. It is not always possible to assign However, a word of caution, other studies have estimated economic values to all these impacts. widely differing values for the extractive values of non-timber On a purely financial returns calculation, it can be expected products in other parts of the world and it will be important to that logging will look more profitable than sustainable forest examine whether these results can be generalised to cover other management programmes. A recent review of 29 separate regions and larger areas of Cambodia’s forests. 3 empirical studies draws the general conclusion that sustainable Eco-tourism forest management is less profitable than “liquidation forestry” on a purely private financial cost benefit calculation. However, Eco-tourism is a potential alternative use that Cambodia’s many of these calculations do not provide a complete picture forests could provide. Eco-tourism is conservation-led and because many of the sustainable management programs have aims to take small groups of people to natural or protected not been in place long enough to get an accurate picture of their areas with a minimum impact on the physical, social and 6 financial returns and because the long term costs of logging, in cultural environments . There are a number of areas of great terms of soil and biomass damage for example, are not properly natural beauty, ecological interest and cultural importance in accounted for. Cambodia, such as Bokor National Park and the Cardamom The options for forested land can be characterised in the Mountains. There is potential for good hiking and for following way: arranging visits to minority ethnic group villages within the forested areas. By their nature, these types of initiatives would Outright protection – often not possible because of the need to be small scale in order to protect the environment and needs of local communities not to disturb the local people significantly. Eco-tourism, if properly implemented, can help both Conventional logging – unsustainable harvesting of timber conservation and rural development. The economic impact can for short term profits, usually leading to conversion of land be measured: tourism revenues provide jobs and markets for to non-forest uses such as agriculture (long term locally produced goods. However, there is often a lack of skills sustainability of which depends on soil conditions) or agro- and infrastructure at the local level where the development is industries (such as biomass plantations of fast growing trees taking place and leakages are usually high. Much of the revenue or other tree-crop plantations such as palm oil or rubber, does not stay locally,: it is captured by the tour operator and which are unlikely to benefit local inhabitants) many of the goods used by the tourist are imported from other Reduced impact logging and sustainable timber countries. So mechanisms must be put in place to try to keep management – forest management for sustained timber revenues locally or at least in the country, through user and yields concession fees (often differentially set for foreigners and domestic residents) and tax policy. For example, the hotel tax in Sustainable forest management – aim to maintain the forest Siem Reap, is an effective and unobtrusive way of collecting and biodiversity while yielding a sustainable flow of timber revenues from tourists visiting Angkor Wat6. and non-timber products and services from the forest. We are not aware of any studies that have been conducted Non-timber benefits could include: explicitly to measure the possible economic benefits of eco- - Non-timber forest products such as nuts and bamboo tourism in Cambodia and its forests. A number of studies have - Eco-tourism attempted to measure the eco-tourism values of forests in

CHAINSAWS SPEAK LOUDER THAN WORDS 10 Is Logging the Best Economic Use of Cambodia’s Forests?

Mexico, Costa Rica and Malaysia. The results vary markedly There is an increasing realisation worldwide that global with much higher values being assigned to forests with rare warming is accelerating and that the consumption of fossil ecosystems, such as the Monteverde cloud forest in Costa Rica. fuels must be reduced to stop the accumulation of CO2 in the These values are very location-specific and some forests may atmosphere. Many high-energy consumers and countries have attract little or no tourist value. A recent review of the argued in favour of carbon trading, whereby high levels of 7 literature suggests possible values of US$5-10/hectare might be emissions are offset by an activity that absorbs CO2. In this appropriate for “conventional” tropical forest but local view, forests have a key role to play as carbon storage or conditions need to be taken into account. Vast tracts of forested carbon sinks. Carbon is stored in existing forests and further land may hold no tourist value at all. carbon is fixed by planting new trees. Several studies have Several factors may militate against substantial eco-tourism attempted to incorporate the carbon values of forests for revenues from Cambodia’s forests in the foreseeable future. trading in addition to the timber values and have found them Security issues, the international press coverage of the political to be substantial10. situation and reports of tourist hold-ups and no-travel zones The sink role for forests has been recognised in the 1997 may discourage potential tourists from visiting Cambodia. Kyoto Protocol on climate change and the resulting Clean Development Mechanism aims to provide the incentive for Ecological Functions better managed more equitable forests and forestry policy. There are a large number of ecological functions that the However, many environmental scientists are sceptical of the Cambodian forests play which need to be considered and their proposed carbon offset and carbon trading programs value included in the economic benefits of the forests for the proposed11. They argue that there is no consensus on how country as a whole. much carbon moves in and out of forests, and that it is The watershed protection function of forests is particularly impossible to quantify the effectiveness of each carbon sink in important because of the central role of the Tonle Sap in the compensating for a given amount of industrial emissions. There country’s agriculture and the considerable damage that has are a huge number of social and economic issues involved in already been caused by logging. In addition, the fishing the type of schemes proposed which have yet to be addressed industry is greatly affected by the increase in sediment load in by the proponents. the rivers threatening Cambodia’s hydrological functions. Biodiversity protection is also a key function of forests Towards a More Comprehensive Assessment of which is not valued by the individual logging company but the Value of Cambodia’s Forests which can be of significant importance. Cambodia’s forests have We have highlighted here some of the potential non-timber a number of indigenous flora and fauna that have been benefits that Cambodia’s forests could provide. We believe endangered by the rampant deforestation to date. For instance a that it is necessary to assess and include all potential benefits survey of the Cardamom Mountains, undertaken by Flora and that the forests could provide in order to move towards Fauna International (FFI), the MAFF Wildlife Protection sustainable forest management. Though some benefits are Office (WPO) and the MoE Nature Conservation and difficult to measure and to quantify, forestry policy and Protection Department (NCPD) between February and April management needs to be based on a more comprehensive 2000, led to the discovery of the Siamese crocodile; a species understanding of the benefits than the short term financial thought to be extinct in the wild. The team also found six returns from logging. The stakeholders involved range from species of amphibians and several species of small mammal new villagers to the global community and all who have an interest to science, in addition to evidence of threatened Asian mammals in the resource must be involved in and benefit from the such as tiger, elephant, gaur, banteng and the khting vor8,9. chosen forestry policy. 9. TIMBER MOVEMENTS Illegal log stockpiles and exports November 1999-April 2000 The following figures are minimum known quantities of illegally felled timber, either stockpiled, being transported within country or exported, based on direct observation and eye-witness testimony. Where we have heard about the existence of a sawmill, or unknown quantities of logs or sawn timber, we have not attempted to attribute a figure to these reports. Therefore the actual quantities of illegally felled timber in trade will probably be at least double the figures shown here. The total figure of 129,841 m3 represents a loss to the treasury, based on the $54 per m3 royalty rate, of $7.01 million for this six-month period. PROVINCE STOCKPILES & INTERNAL TRANSPORT EXPORTS TO: LAOS THAILAND VIETNAM Banteay Meanchey 1100 1300 Battambang 125 9250 13000 (old logs) Koh Kong 25550 Kompong Cham 1550 Kompong Thom 15 5050 (old logs) Kratie 1228 20650 Mondulkiri 20 24400 Preah Vihear 1600 Pursat 200 400 Ratanakiri 2190 2250 Siem Reap 4000 (old logs) 2000 Stung Treng 1013 11250 1750 (old logs) Thailand 7000 (TOTAL) 32841 11250 38650 47300 129841

11 CHAINSAWS SPEAK LOUDER THAN WORDS The Military Regions / Military Region 1

perpetration of illegal logging activities that were ‘legitimised’ by locally issued permits. The local office of MoE was alone in identifying specific incidents of illegal activity, the veracity of which Global Witness confirmed on its subsequent investigation. At the meeting virtually every other departmental head publicly rubbished the Environment Director’s findings; not surprisingly as many of those present were responsible for carrying out the activities that he cited. The majority of the information in this section was obtained during Global Witness’ field investigations in Ratanakiri, January 2000. The logging crackdown in Ratanakiri has had minimal effect. Although the mass log exports to Vietnam that took place in 1997 and 1998 have not been repeated on this scale, the illegal activities of the Hero Taiwan Company are equally destructive. In addition numerous illegal permits to collect ‘old felled’ timber are being issued by the civilian and military provincial authorities. Hero Taiwan Company The Hero Company typifies concession activity in Cambodia, and the scale of their systematic illegal logging operations is breathtaking, even by the standards of Cambodian forestry. The company has no experience in running a forest concession, they are simply the operators of a sawmill, producing processed timber for furniture manufacture in Taiwan. The 10. THE MILITARY REGIONS company’s Taiwanese director, Mr Chou, admits that he has rarely visited the forest, and stated that Hero’s illegal logging is Global Witness carried out nine investigations throughout the result of its lack of experience. Hero has hired Cambodia between November 1999 and March 2000 and one subcontractors to carry out forestry operations, and these also along the Thai/Cambodia border in April 2000. In general display either a similar lack of experience12 or a complete forest crimes are much reduced compared to the same time disregard for the law. According to Clause 7 of Hun Sen’s 25th period in recent years, but small-scale illegal logging is still January 1999 Declaration, the concessionaire is responsible ‘for widespread and the illegal activities of the concessionaires all anarchic forest harvesting in their own areas’. remain a concern. The coordinates given in the early reports are latitude/longitude those in the more recent reports are UTM coordinates. Military Region 1 Ratanakiri, Stung Treng & Mondulkiri Key Players: Ratanakiri: Kam Khoeun (Governor, Ratanakiri); Mr Chou (Director, Hero Taiwan Company); Seng Huq (subcontractor, Hero Taiwan Company); Mr ? (Director, Malay Company); Mr Pal Seng (businessman); Mr Kon (subcontractor, Hero Taiwan Company); Heng Bunthan (Governor, Veun Sai district); Mr Nuon Cha Na (provincial military); Mr Riud (businessman); Tao Chhin (Commander, Military Police, Ratanakiri); Seng Louv (Border Police); Mr Tan (Vietnamese businessman); Mr Ka On (Chief, Border Police, Ratanakiri). Stung Treng: Tra Chiek Veng (businessman); General Soey Keo (Senate member, ex- Commander, MR1); General Tao Kong (Commander, MR1); Yeap Kha Hero sawmill, Ratanakiri; January 2000. (Pheapimex subcontractor); Chhea Sam Kong (Pheapimex subcontractor); Kim Khorn (Pheapimex subcontractor); Mr Pros (Financial Officer, The DFW have, through MAFF, issued a warning letter to Thalabarivath district); Nat In Song (MR1); Mr Lom; Kiun Chet (Chief MR1 Economic Unit, Kingwood subcontractor). Mondulkiri: Chhaom Bunkhan Hero relating to 139 logs illegally felled in October 1999, but it (Governor, Mondulkiri); Veng Samang (Khmer Construction Company); has ignored subsequent illegal activities despite the fact that Treng Sakhon (RCAF Provincial Operation Zone); Mr Nam Hav (Police Chief, these activities are easily detectable. For example, log roads O’Raing); Mr Pean (Vietnamese businessman); Thang Rethy (RCAF officer). bulldozed off the main Ban Lung to Veunsai road to areas Ratanakiri outside the permitted coupe, are within a 45-minute drive from the provincial forestry office but have not been investigated. Illegal logging is taking place throughout Ratanakiri much of it Furthermore DFW was provided with reliable and accurate stimulated by the lack of affordable timber for local use. Global reports of these activities in late November 1999, which were Witness spent several days in the Hero concession in January not acted upon, and Global Witness’ 1st February crime report 2000 documenting the numerous instances of illegal logging by covering the same issues did not result in any firm action by the the concessionaire. Little has been done by the DFW to punish authorities, the DFW in particular. Hero despite frequent reports from Global Witness and other The provincial and district authorities appear to work on reliable sources in Ratanakiri. the false assumption that possession of a concession entitles the Global Witness was invited by the Governor of Ratanakiri company to log over the whole concession area, rather than Kam Khoeun to take part in a provincial meeting to review the following a cutting cycle. logging crackdown on 21st January 2000. At this meeting it In 1999 Hero employed two sub-contractors; Seng Huq was evident that the governor’s office, the provincial offices of and The Malay Company. These sub-contractors effectively MAFF and DFW, and all provincial RCAF units including the cover all the logistics and costs of operating the concession, and Police, Military Police and Border Police were colluding in the sell their timber to Hero for $55 per m3. A third sub-contractor,

CHAINSAWS SPEAK LOUDER THAN WORDS 12 Military Region 1 a Mr Kon from Stung Treng was, according to Seng Huq and On 31st March 1999 the provincial governor, Kam Hero, sacked for illegally felling the 139 logs that earned the Khoeun, wrote to the governors of Veun Sai, Ta Veng and O company a warning letter from the DFW12. According to Mr Chhum districts asking them to cooperate with the DFW in Pal Seng, who runs a local sawmill, Mr Kon left because he was pursuit of their duties in regard to the Hero concession15. not earning enough13. The fact remains that Mr Kon left, and Although there is nothing wrong in this in theory, the districts are illegal logging continued. outside coupe 1, the permitted coupe for 1999. The Malay Company The governor of Veun Sai district, Heng Bunthan, then wrote to the commune chiefs of Ka’Chon, Ban Pong, Koh Hero’s concession is divided into three compartments these are 16 divided into coupes, which are in turn divided into blocks. The Peak, Phnom Kok and Koh Pong on 11th November 1999 . permitted cutting area in 1999 was Compartment 1, coupe 1: The Malay company were awarded blocks 4,5 & 6. This company has carried out the bulk of illegal logging in the Hero concession. In addition to their legitimate blocks they cut extensively in Compartment 1, coupes 5,6&7, and in Compartment 2, coupes 3,4&6. The company not only cut illegally in these areas, but in every case abused the rights of the local people. In the villages Kalai 1, 2 and 3, and in Ka’Chon commune, the first the villagers knew of the existence of the loggers was when they heard chain saws in action, both outside and within their spirit forests14. Even if this logging had taken place in the permitted coupe, the cutting in forests of spiritual importance is contrary to Hero’s concession agreement. In all the above cases the villagers protested but were presented with paperwork that the company said legitimised the logging. In Ka’ Chon the company promised to compensate the villagers with a buffalo and timber to build a spirit house. Each of the Kalai villages was promised a three- room primary school for the “mistake” of cutting in the spirit forest. At a later date the promise of schools became dependent Heng Bunthan orders commune on logging in another spirit forest; the villagers refused and the chiefs to assist schools have not been built14. Hero; November The permission letters used by the Malay Company 1999. illustrate that they and Hero colluded with the provincial authorities to fool the villagers into thinking that they were The letter ordered the commune chiefs to assist Hero in their permitted to log in their area. operations, as the company had RGC permission to operate. None of the communes, or even Veun Sai district are in coupe 1. Extensive logging then took place in an area far from the 1999 prey coupe, authorised by illegally issued local permissions14. The Malay Company carried out illegal logging in three main areas outside Compartment 1 (C1), coupe 1 (Cp1) the legal coupe for 1999. These crimes were reported to the FCMU in the Global Witness Crime Report dated 1st February 2000.

Phnom Doh Spirit Forest Kalai 2, Hero con- cession, Ratanakiri; January 2000

1. The company bulldozed a road at 0710345/1531139 off the main Ban Lung to Veunsai road, at Kalai no.2. The road runs Governor Kam Khoeun asks district governors to coperate with the DFW and Hero in their districts:all districts are outside the permitted coupe; through C2, Cp3, and through the Phnom Doh spirit forest March 2000. (0711686/1535357), on the borders of C2, coupes 3 and 4. The

13 CHAINSAWS SPEAK LOUDER THAN WORDS Military Region 1

Although some trees were marked in coupe 1, Hero admitted that 80% of logs entering their sawmill were unmarked. This accords with the fact that some trees in coupe 1 were unmarked, as was every tree felled outside coupe 1. Hero also had a problem with the plastic tags falling off previously marked trees during transportation12.

Illegal Hero log road remains unnoticed by provincial foresters. Picture taken from the Ban Lung to Veunsai road; Ratanakiri; January 2000. company felled significant numbers of Sakrom trees along the entire road. Global Witness observed numerous stumps (between the high tens/low hundreds) of trees felled during November and December 1999, but did not explore many of the snig tracks (tracks from log roads that lead to merchantable trees) that left the main log road. The road continues across the extreme southern border of C1, Cp1 (the legal coupe for 1999) and then heads in a westerly direction through C2, Cp4, where illegal cutting has also taken place. 2. At 0709041/1532913 another log road leaves the Ban Lung to Veunsai road. At 0709013/1533099 there is a log rest area that was emptied in November/December 1999. The road runs through C2, Cp4 eventually joining a major log road; cutting of sakrom trees has taken place along the length of the road during the latter half of 1999, right up until the end of December. 3. At 0705888/1535754 a major log road leaves the Ban Lung to Veunsai road, along which very heavy logging has taken place. There are numerous tracks leading off from this road, Illegally felled logs in Phnom Pan Keo Spirit Forest, Hero concession, only some of which Global Witness explored. On a sample Ratanakiri; January 2000. one- kilometre stretch of road there were 40 fresh stumps. All of this cutting took place in C1, Cp6 during November and Seng Huq December 1999. The other sub-contractor, Seng Huq, is a former Hun Sen 4. The above road runs north towards Ka’Chon commune bodyguard and also used to work for Teng Bunma, who is through the Phnom Pan Keo forest area, which comprises both rumoured to have close connections with Hero. Again, Seng spirit and non-spirit forest, both of which were extensively Huq has absolutely no experience in running a timber logged in December 1999. In January two stockpiles were still concession. He was awarded blocks 1,2 & 3 in coupe 1; there is visible, comprising a total of 38 logs from a very small area of less evidence of him logging outside the coupe, but numerous forest, which had been devastated. examples of poor forestry techniques within the coupe. These Global Witness interviewed The Malay Company’s local include extensive forest damage and the blocking of streams manager, who refused to give his name, at its office in Ban through poor road building. Seng Huq claimed to have Lung. The company’s senior staff, like that of Hero, spend very authority to ensure that only Hero transported timber along little time in the forest and do not seem to have a clear idea of Route 19, to Vietnam18. As he is ostensibly a private how to run a concession. They claimed they cut trees marked businessman, the source of this authority is unclear, but he by the DFW, and relied on local people to guide them to seemed to hold some kind of power over Hero and within the logging sites17. region.

CHAINSAWS SPEAK LOUDER THAN WORDS 14 Military Region 1

Amongst illegal activities committed by Seng Huq’s Hero - Almost broke? organisation was: According to some reports, and an interview with a creditor, 1. The illegal felling of a Beng tree (luxury wood) in C2, Cp519. Hero owes money to several local businessmen, and to the governor21. The company premises are relatively run-down and, according to the ADB concession review, have failed to invest the amount required by their contract, which is $17 million. The Malay Company is using six new or nearly new bulldozers, which they claim cost $60,000 each, but they drive around in a very old Vietnamese jeep22. Hero claims its sale prices are $450 per m3 for No. 1 timber, and $420 per m3 for No. 2. Based on their total exports for 1999, their revenue would be a maximum $432,900. Given that its costs, according to Mr Chou, are $330 per m3 (which presumably includes the $55 per m3 they pay their sub- contractors for logs, employing over 100 workers, the use of at least $360,000 of logging machinery and running a sawmill), it does not seem to be a financially viable operation, yielding a maximum profit of just over $100,000 for 1999. This profit was based on logging primarily outside their permitted coupe. Were they confined to their coupe, the concession would undoubtedly be unviable. Based on the 2,493.097m3 of logs felled in 1999, the sub- contractors generated $137,115 between them. Again, this does not appear to be economically viable. There were reports of The Malay Company also owing money locally21. Hero mentioned they now had Khmer partners, which had made the business environment easier. It is not known who these partners are, but presuming they are in powerful positions, it may explain why Hero remains relatively unscathed despite its extensive illegal activities. Other Illegal Activities Many of the illegal activities below supply domestic timber needs. This illustrates the failure of the 20% quota system. Hero charges $130 per m3 to sell timber for local consumption, whereas illegal operators charge $90 per m3.21 There are widespread illegal logging activities throughout the province, many of which have (illegally issued) provincial authorisation, using the ‘old felled logs’ dodge. It is worth pointing out that the first three of the following examples were found in three consecutive visits over a three day period to the area concerned, so although these individual activities appear to be small scale, it is likely that their frequency makes this a Illegally felled Beng Tree, Ratanakiri; January 2000. significant problem. Examples include: 2. Numerous stumps in coupe 1 were unmarked. It is On 29th November therefore unclear whether these trees had been legally the tag 19 1999 Kam Khoeun issued a having subsequently fallen off or illegally felled . permit allowing Mr Nuon 3. Cutting operations commence from 0713955/1538512, a Chan Na, working for the point on their access road where it crosses the Okapa stream, in Provincial Military Sub- C2, Cp5. Logging had taken place from this point all the way Operation zone, to process into coupe 119. 20m3 of old round logs. By issuing such a permit, Kam In February 2000 a log road 0706666/1535401 off the road Khoeun was acting in direct from Ban Lung to Veunsai had been blocked by a bulldozer contravention of Hun Sen’s pushing earth and trees up over the track. The road passes declaration that the across coupe 6 and into coupe 7. In the region of fifty logs were collection of old logs was seen between the start of the road, on the Veunsai road, and forbidden. The letter limited point 0707609/1536442. There were fresh chalk numbers on the ‘collection’ period to the logs and they had been branded recently using a log brand three weeks but five Riev identical to that used by a DFW inspection forester. The brand trucks had transported logs had “RK” in Khmer script above “63” inside a circle. All the in this region week logs had been cut in situ, and stumps could be seen in coupes 6 commencing 10th January and 7 where there was no permission to cut in 1999 or 2000. 2000. The permit was issued Logs were also numbered in chalk 1-27, but not branded, following protests by local on a track to the north of Vye village 0704460/1543627. The villagers who complained to logs were found at: 0704512/1542225; 0704669/1542241; the District Governor. He 0704959/1542211; 0705489/1542217; 0705436/1541926. then consulted Kam The logs were located in coupes 5 and 6 where there was no Governor Kam Khoeun condemns forest Khoeun who issued the 20 permission to cut in 1999 or 2000 . crimes, Ratanakiri; January 2000. letter.

15 CHAINSAWS SPEAK LOUDER THAN WORDS Military Region 1

the domestic market. The worker stated he was from Kompong Thom and had been working for Mr Riud for several months, and admitted felling and processing around five to six trees. The worker is paid $20 per m3 processed. On 30th November 1999 the Commander of the Military Police in Ratanakiri, Tao Chhin, issued letter No 107/99 to the governors of O’Chhum and Kon Mum Districts allowing the Military Police to transport 20 logs for processing in the Phal Seng sawmill in Ban Lung. The reason given was that materials were needed to construct a military base, an often-used (bogus) excuse for the RCAF to obtain timber. The military police cut the timber near Ba Mun Tang village (0693960/1509973) on Phnom Yeo. They cut luxury species including Beng and Neang Nuon, demonstrating that it is highly unlikely that the timber would be used for base construction. In any event, the issuance of the permit and the subsequent activities are illegal. The timber was transported in December 1999, in three jeeps, each carrying four slabs of 3 Kam Khoeun issues permission letter to process old logs, in direct Neang Nuon, two trucks carrying 3-4m of Beng each and one contravention of Hun Sen’s Declaration; November 1999. truck carrying Koki14. There are numerous reports that Vietnamese Riev trucks Nuon Chan Na further broke the law because only five of are exporting logs across a border crossing to Vietnam, known the 30 logs he collected were old. The remainder were illegally as No 729, in Yatong Commune, O Ya Dao District, with the cut in December 1999 in an area around 0698145/1513873 and cooperation of the border police, headed by Seng Louv. This included luxury species including Beng14. unit charges $400 per m3 for the timber, which is cut into At the 21st January conference on illegal logging Ha Hong, 2.2metre lengths exports were active in January 2000. One of the Director of the Environment Department, referred to 20m3 the Vietnamese involved is a Mr Tan. The logs are felled by the of logs contained in the Phal Seng sawmill, and noted that there Vietnamese and allowed across the border, with the were illegally felled luxury grade logs stored behind a fence at cooperation of the border police. the mill. He was publicly rebuked by Kam Khoeun, who stated Furthermore, there are unverified reports that Military that he had given permission for the use of this timber and that units 705 & 709 led by Mr Ka On, head of the Border Police, it was therefore OK. are squaring off logs in the Dragon’s Tail. There were reports On 23rd January 2000 Global Witness found a Che’etil tree that 30 loaded trucks exported the timber to Vietnam, via being rough processed by chain saw, deep in the forest O’Kaya crossing. (0697292/1514645) by a worker employed by a Mr Riud. He is well known in Ban Lung for supplying illegally felled timber to O Ya Dao and Borkeo area On the way to Kreang Village (0749925/1525265) there was in Illegal rough processing of Che’etil Tree for Mr Ruid, Ratanakiri; January 2000. mid-February 2000 evidence of extensive and very wasteful illegal logging centred around point 0747019/1524473. The logging involved rough processing by chainsaw in the forest and export of the timber to Vietnam. Villagers at Kreang said that this stopped in December 1999 and that the district governor was responsible for the destruction20.

Letter: Tao Chhin (Commander Ratanakiri Military Police) authorises illegal log transportation to Phal Seng sawmill; November 1999.

Tao Chhin reviews logging crackdown; January 2000.

CHAINSAWS SPEAK LOUDER THAN WORDS 16 Military Region 1

Stung Treng 15'24. These operations are controlled by MR1 and Stung Treng In late December 1999 and early January 2000 illegal logging soldiers, together with local businessmen and financed by a Lao was being carried out throughout the province - in the main by timber boss from Sithandon province. the military but also by private individuals with close In late November 1999, 15 log trucks were moved from connections to the military based in the province. The timber Stung Treng town to Phnom Ngu Loeurng, the source of the was being cut for local use but also for export to Laos through O’Ten Hiang stream, by MR1 and provincial military. These the numerous unofficial border- crossing points particularly in logging teams were actively logging in December 1999 and Siem Pang and Thalabarivath districts. exporting both freshly cut luxury timber, such as Nean Nuon 3 3 One of the main businessmen involved in the illegal logging and Thung ($300 per m and $200 per m respectively) and old in Stung Treng is Tra Chiek Veng (Long Ear) who, in December logs across the border into Laos. The logs were transported 1999, was operating in Siem Bok and Stung Treng districts, Tra further into Laos by trucks, possibly owned by the Lao 1 Chiek Veng had a good working relationship with General Seuy American company, waiting at the border . The loggers in Keo formerly the commander of MR1 but now promoted to Cambodia employed Kham Phouk villagers as lookouts in the Senate despite a long history of involvement in illegal order to give them time to hide their equipment; sometimes 1 logging deals. General Seuy Keo has maintained ties with Stung crossing into Laos to avoid detection . Treng through his replacement as commander of MR1, General There were no border police at Siem Pang. However, there Tao Kong. Like his predecessor, Toa Kong is involved in illegal were at least four unofficial border crossing points into Laos logging and it is through him that Tra Chiek has been able to through which logs have been brought out: Kham Phouk, operate with impunity in such as the forests surrounding O’Koy, Phoun Sa Ath and Se Pean. Luxury wood was O’Chra lang (N 13° 21' E 106° 6') and O’Pong Moan villages. exported through all of these crossing points, except Se Pean, in 1 In December 1999 a sawmill belonging to Tra Cheik Veng November and December 1999 . was operating in km3 village on route 13. Two large sawing In mid November 1999 MR1 set up a border checkpoint engines and one small engine were found at the mill together on Koh Russsei, near Ban San Keo (N14° 19' E 106° 3') run by with a large quantity of freshly sawn timber, stockpiled and for 20 soldiers under the command of Run Rim. Run Rim has sale in the mill yard23. Although local officials suggested that already allowed Lao people to fish and hunt wild animals on the mill was operating with government approval it only the Sekong River in Cambodia, which has angered local people operated during the night with logs arriving by truck in the particularly because of their destructive methods including the early evening from the above-mentioned areas. The timber is use of cyanide. As yet, the forest in this area near the 26 sold locally or, if the Mekong is high enough, to Phnom Penh. checkpoint has remained uncut . Tra Chiek Veng also operates a portable mill in the forest Concessionaires: surrounding O’Chra lang village24. The sawn timber from this Pheapimex Fuchan: Global Witness investigations in December mill is hidden in his workers’ houses to avoid detection by local 1999 and March 2000 found that as in other provinces, foresters thereby reducing the amount of bribes that he has to Pheapimex hires subcontractors and local people to cut timber pay24. Although it was not possible to locate, it is possible that a both inside and outside its concession and within the track showing evidence of fresh truck tyre prints, 2km behind concession outside the permitted prey coupe. Unmarked trees O’Chra Lang, leads to the mill23. have been cut and log transportation has destroyed local roads; In December 1999, in Stung Treng town, log trucks could in March 2000 this was particularly evident in the concessions be seen parked at the homes of many high-ranking military on the west bank of the Mekong. officials including one belonging to Kham Sup, a commander in the provincial military. There were also five furniture shops East Bank Concession in the town using Neang Nuon25, Beng and Thnung bought This concession area lying between Sesan and Sekong rivers from Tra Cheik Veng and MR1 and provincial soldiers; since had not started operating by March 2000 but there were signs MR1 is based in Stung Treng town, logging is almost of block demarcation in preparation for cutting. exclusively controlled by the army - the police being less However, small-scale cutting of luxury wood by the involved than in other provinces. provincial MP in collaboration with Sdao villagers was reported In Siem Pang district, illegal logging is taking place in areas to be taking place around the position of 1509168/0627789. bordering Laos particularly in Prek Meas commune, O’Koy Luxury wood planks were found on the banks of the Sekong and Phnom Lai and the areas surrounding N 14° 23' E 106° river close to Sdao village in March 200027.

Illegal rough processed luxury timber (Neang Nuon) Sdao village, Sesan District, Stung Treng; March 2000.

17 CHAINSAWS SPEAK LOUDER THAN WORDS Military Region 1

West Bank Concession There are two sawmills in Thalabarivath under the indirect control of Pheapimex, one managed by Chhea Sam Kong the other by Kim Khorn. The mill run by Kim Khorn was built on the Pros temple site, which is reportedly older than Angkor Wat. In the course of the building, part of the temple base formed of skilfully arranged red brick was bulldozed away. In December 1999 neither mill was operating. It is rumoured that this inactivity is because the $5000 per mill per month demanded by Hun Sen is too high for the owners to make a profit28. Newly processed timber was found at the mill run by Kim Khorn but no fresh mill waste was found so it is possible that the timber came from a portable mill that Kim Khorn had set up in the forest. Pheapimex has not provided 20% of their timber for local use, as Illegally cut by Chhea Sam Kong, 1517759/0584746, Chvaing village, Thalabarivath district, Stung Treng; March 2000. it is required to do under the concession agreement24. Instead, the logs have in the past been to Thalabarivath district capital, and then moved by boat down stockpiled along the bank of the Mekong in Thalabarivath Mekong river in late February and the first week of March 2000. district for export to Laos or for floating down the Mekong Transportation took place day and night for about ten days. The during the wet season. logs were not stockpiled at the riverbank as in previous years One of Pheapimex’s log rest areas, under the control of but were almost immediately floated down the Mekong by Chea Sam Kong, is located in Pong Toek on the west bank of rafts30. By mid March 67 of these illegally cut, unstamped logs the Mekong a few kilometres north of Krang Cham village (N were found remaining on the road at: 1517813/0585067 (eight), 13° 26' E 105° 53'). Two large freshly cut logs were found at 1517772/0584769 (four), 1517759/0584746 (41), and 200m north this rest area in December 1999. Neither of these logs, which of 1517759/0584746 (ten). had been transported from Kes and Doung villages, was Eleven new unmarked logs were later found in the grove marked or stamped in any way. Global Witness was told that behind the processing factory in Thalabarivath capital. Chhea Sam Kong had hired people from Pong Toek and On March 14th 2000 five log rafts were being formed on O’Run villages to mark trees prior to cutting for which they Mekong river at the log rest area (1471647/0599440) in Siem were paid 5,000 riel per tree; apparently foresters were not Bok district. It was not possible to count the partially involved as they should have been28. submerged logs but those that could be seen were neither According to Stung Treng DoE report No.33 dated 25th marked nor stamped. It is not known who owned the logs or February 2000 Pheapimex are currently cutting in: Anlung Phe who controlled the departure at night of the rafts. (coupes 11 and 1), Chamkar Leu (coupe 5), Kaing Cham At 1487256/0595918 a pile of cut wood processed by (coupes 4 and 3) and Chvaing (coupes 16, 17 and 21) chainsaw and five freshly felled logs were found in the rest area communes29. Several log rest areas and cutting areas were of Mr Lom. It was reported that the logs were cut in the Kes discovered near Chvaing village and along road 126. and Doung cutting areas (coupe 3 and on the boundary of There is a rest area containing old logs at 1514432/0592883, Pheapimex and Everbright concession areas)31. about 500 metres from Sam Ang Illegally cut logs stockpiled in Siembok District, Stung Treng (1471952/0599430); March 2000. village. About 700 logs stockpiled in this rest area were transported to the riverbank at Thalabarivath capital in the first week of February 2000. This was organised by Nat In Song, a military commander and a Mr Pros Financial Officer of Thalabarivath district under the control of Chea Sam Kong30 Newly felled logs collected from around the same area (from coupes 18,19, 20) were transported to rest areas along Mekong riverbank during the first week of March. The logs were not stamped30. It was reported that thousands of cubic metres of freshly cut logs stockpiled along road 126 between Thnot Thmey (1517379/0588978) and Chvaing (1517591/0583989) were transported from the rest areas

CHAINSAWS SPEAK LOUDER THAN WORDS 18 Military Region 1

Kingwood in Duk Lac province had refused to release the export license One of Kingwood’s subcontractors Kiun Chet, Chief of MR1’s documents during a weeklong visit by a three-person Economic Unit was ill in December 1999, but still wielding Cambodian delegation. The delegation also was refused a influence over Kingwood and its subcontractors. Kingwood meeting with two Vietnamese timber companies who has log rest areas 3 kilometres from O’Chra village containing purchased logs33. thousands of cubic metres of logs and guarded by MR1’s In Senmonorom provincial soldiers were involved in the Regiment 4123. sale of sawn timber, bought in Puloong and Dak Dam villages1. Conversion to agricultural land In December 1999 two piles of sawn timber were seen in the Puloong area (N 12° 30' 14.4" E 107° 16' 02.3") and logs had The RGC granted a 4,700ha of forest in Thalabarivath district been left on the banks of Busra waterfall (N 12° 34' 01" E 107° close to Laos to the Taiwanese-owned Keo Vuthy company in 25' 06")23. late 1999. The intention was to convert the forest land to a Timber exports from Chneng on the Kratie/Mondulkiri cassava plantation. The company had begun preparing the land border through the Ten Tieng (Vietnamese - Khmer Chhey by clear cutting the forest near Voen Kham crossing point. It is Khlaing) checkpoint are controlled by Thang Rethy; he has not known what will happen to the timber23. also sold logs to Samling from Snoul Wildlife Sanctuary. The Mondulkiri wood is cut into slabs by handsaw to kill the noise and then 3 Illegal logging was taking place throughout Mondulkiri in exported by oxcart each carrying 1-2m of wood. Throughout December 1999 particularly in Pich Chenda district, O’Raing 1999, 15-20 carts were crossing the border between 10pm and and Koh Nhaek. Mondulkiri is also where the RGC has taken 4am each night. By December the traffic had increased to 90- the strongest measures against illegal loggers since the 100 carts per day. Each cart pays $100 per trip to cross border. 3 crackdown has been in force. No1 wood sells at $260m in Vietnam and $380 in HCMCm3. 3 Global Witness obtained the following information on a Neang Nuon and Beng were selling for $400m at the border, 3 3 20 major deal to export logs to Vietnam in December 1999. In late $800m in Vietnam and $1200m in Ho Chi Minh City . March 1999 the Governor of Mondulkiri, Chhaom Bunkhan, In December 1999 Global Witness was told of plans to 3 signed a deal with the Khmer Construction Company to export 5,000m of logs to Vietnam through the Ten Tieng pass export logs to Vietnam. The Khmer Construction Company involving not only Thang Rethy but also MR2 Commander was to export the logs under the direction of Veng Samang the Brigadier General Chhoeurn Sovanthat, MR2 Vice company boss. The log exports were signed by the Governor Commander Uy Sarin and Lieutenant Colonel Kong Sary. It of Mondulkiri, the Chief of Police, the Chief of Military Police was alleged that MR2 had collected logs cut in 1998 together and Treng Sakhon of the RCAF Provincial Operation Zone20. with newly felled logs at O’Koi, Veal Phloes, Kbal Hang and The logging was to take place in Bu Sra, O’Phlay and O’Por; the last two areas located in Snoul Wildlife Sanctuary. Pichrada and the logs to be exported by truck between 8pm Some of the logs were cut in late 1999 by Thang Rethy and and 4am at points where there are various unofficial passes east Lieutenant Hor Lieng in the Snoul Wildlife Sanctuary, close to of Dak Dam. In December 1999 there were 100 cut trees Chneng. When soldiers from provincial unit 2, under the awaiting export. A further 10,000m3 had been marked for command of Mr Samvarth, heard rumours of this deal they cutting by the Dak Dam village chief and the police chief of the requested 20 days leave so that they could help. It is not known 1 administration office. There were also 30-40 logs at the Khmer if the export took place . Sathapana factory20. In early December 1999, 13 empty Conversion to agricultural land Vietnamese log trucks were seen entering Cambodia. It is MR1 plans to convert 8,000ha of forest land in Pich Chenda possible that these trucks going to transport logs from the area district to a plantation with the investment of an unknown around O’Phlay and Dak Dam villages23. Taiwanese company. According to provincial officials in Following the submission of a crime report by Global December 1999 the deal had already been signed by Hun Sen, Witness Hun Sen ordered an investigation. The resultant report and Chief of the General Staff Ke Kim Yan. by the military task force sent to Mondulkiri said that about 380 truckloads of timber had Bicycle used for transporting luxury timber to Vietnam siezed at Ten Tieng checkpoint, Kratie; December 1999. been transported across the border in to Vietnam in November and December 1999. It also accused the province’s governor, Chhaom Bunkhan, police and military police chiefs of “conspiring with crooked businessmen” to log the area, rich in high quality wood. Hun Sen wrote in the margin of this report that the investigation “must dig into the roots, with no one being spared with any mercy.” “They must be met with disciplinary measures, fired, demoted or sued in a court of law.”32 In March Khim Cheat Sophoan, deputy director general of the inspections department at the Ministry of Parliamentary Relations and Inspection was reported as saying that Vietnamese officials

19 CHAINSAWS SPEAK LOUDER THAN WORDS Military Region 2

Military Region 2 Yoeurn Yean, as well as several small shops along the Mekong 35 Kratie, Kompong Cham, Prey Veng & Svay Rieng run by ethnic Vietnamese . These shops were using luxury wood from the above-mentioned sites. Key Players: Kratie: Mr Nhien (Commander, Breakaway KR Unit 5); Mr Khut (Vice MR2 Lieutenant Colonel Kong Sary and soldiers under the Commander, Breakaway KR Unit 5); Mr Sok Hor command of Yim Horm and Hor Lieng were cutting luxury (businessman); Lieutenant Colonel Kong Sary timber in Snoul Wildlife Sanctuary in late 1999. The logs were (MR2); Mr Tuy Meng (Breakaway KR Unit 4); Mr Kuon Phyrun aka Mr Touch (Casotim rough processed and transported at night by pickup truck, each subcontractor); Eng Soknay (Everbright carrying 1-2m3, to Vietnam via Chan Muol and Dong 7 Doem subcontractor). Kompong Cham: Hun Chouch situated in Memot-Po Nhea Krek district in Kompong Cham. (businessman, cousin of Prime Minister Hun Global Witness discovered a similar operation run by Tuy Sen); Hor Lieng (RCAF Lieutenant). Meng, a commander of BKR Unit 4, cutting luxury timber in Kratie Chhlong and Snoul districts before exporting it to Vietnam The situation in Kratie is typical of many provinces in across the border at Chan Muol. Division 4 soldiers stationed at Cambodia where the illegal logging is carried out by the armed km79 on the Samling road were also said to be involved. Chan 34 forces. Most of this is small scale but there are many operations Muol and Dong 7 Doem are controlled by MR2 soldiers . particularly involving the cutting of luxury timber for export to Eleven freshly cut luxury square logs belonging to soldiers Vietnam. An average of five bicycles and three oxcarts were under the control of Tuy Meng were found in a rubber crossing in to Vietnam each day in late 1999 through each of plantation (N12° 05' 21.6" E 106° 23' 56.2"). His log rest near the 20 or so official and unofficial crossing points between Snoul town (N 12° 08' 07.5" E 106° 26' 17") held at least 3 Valeu, and Lapake in Keo Sema district. The border police 1,000m of round logs in December 1999. However it is not under the control of Srei Chorn were charging $5 for three clear if the logs belonged to Mr Meng or to Samling, who he 35 bikes to make one trip in a day20. has carried out contract work for . In December 1999 Breakaway Khmer Rouge (BKR) Army A similar pile of luxury timber amounting to 20 squared Unit 5 was running illegal logging operations and providing logs belonging to Mr Thear, Chief of the Militia in Snoul protection for other illegal loggers. This unit has logged in the district, was found at Khsoem village (N12° 10' 21.2" E 106° 35 areas above Yeav and Romuol on the west bank of the Mekong 27' 42.6") in December 1999 . A further 15 pieces of squared probably near Phnom Chhy on the Kratie/Kompong Thom off luxury timber belonging to Mr Thy, a soldier under the border. The logs and processed luxury wood planks (called command of Hor Lieng, were found at N 12° 10' 19.7" E 106° locally Chhoe Phae) are then transported to Yeav and Romuol 27' 46.6". This timber was to be exported via an unofficial pass where Unit 5’s headquarters are located. From here, timber is about 2km south of Valeu checkpoint were Global Witness transported for sale in Prek Pour, Srey Santhor district investigators later saw two motorbike carts carrying luxury Kompong Cham, and to Phnom Penh and Neak Loeurng town wood. Two ox-carts were seen travelling to Sre Thmei village to through the Tonle Touch tributary of the Mekong. Unit 5 collect luxury timber for Mr Heang (a former member of the 35 charged $75 per m3 when escorting the rafts34. No.1 and No.2 Snoul police and son-in-law of the police chief in Snoul) . logs cost $25 per m3, Neang Nuon $110 per m3 and Beng $70-80 A sawmill in Snoul town, owned by the Rubber Plantation per m3. On average, one boat per week left the above areas in Company processes logs bought from Samling to make late 1999 carrying 5-7 m3 semi-processed luxury wood planks. packing cases. However it also processes timber for Kong Sary Mr Nhien and Mr Khut, Commander and Vice Commander and Hor Lieng; the No1 and No2 timber being sold for local of BKR Unit 5 respectively, have controlled forested areas of use and the luxury timber sold at Chan Moul. Freshly sawn Phnom Chhy in Kompong Thom up to Sambo district for a luxury wood planks belonging to Hor Lieng and Kong Sary 20 long time. They operate two sawmills in Sambo district; one in were seen at the mill in early December 1999 . Tonsoung Thleak village and another in O’Krut village. Concessionaires Logging has also taken place 20 kilometers from Chhroy Banteay village, opposite Kratie town by Prek Prasop, Casotim involving district soldiers and local businessmen including Mr Casotim’s concession is managed Kuon Phyrun otherwise Sok Hor20. The logs were stored at Chhroy Banteay and then know as Mr Touch. Mr Touch hired Provincial Army Unit 1 moved by rafts to Thmor Kre village. under the command of Ben Sokhoeurn and Vice Commander In December 1999 there were six furniture shops in Kratie Chhun Ny, to control the concession area, and local people in town said to be backed by provincial military commander Mr the area to log it35. In December 1999 several freshly cut unmarked logs were found on the bank of the Mekong at Kagn Illegally cut by Huon Phyro: unmarked logs stored in Kagn Chhor village, Chhlong district, Kratie; December 2000. Chhor village where Mr Touch’s log rest area is located (N 12° 19' 51.2" E 106° 03' 01 4"). Logging equipment has been moved further into the forest and the area being cut in December 1999 was at O’Agn Chargn about 40 km east of the rest area and areas west of Phnom Prampoan (N 12° 18' E 106° 17')35. Between 30 and 40 unmarked logs were found at the sawmill (N 12° 19' 31.6" E 106° 02' 52.7") at Prek Cham Lak village belonging to Mr Touch but managed by his elder brother Huon Phyro. Most of the logs were freshly felled. The No1 and No2 logs were processed for domestic consumption and the timber was sold for between $90 and $120 per m3.35 Casotim has been permitted only two sawmills by the government, one run by Mrs Chhun in Chhlong and the other by Mr Sok Hor in

CHAINSAWS SPEAK LOUDER THAN WORDS 20 Military Region 2

Illegal sawmill belonging to Pheapimex and run by Mrs. Chhea Han (sub-contractor), Yeau Village, Sambo district, Kratie; December 1999.

Russei Char village. The sawmill run by Mr Phyro is not on the Everbright government list34. One of Everbright’s subcontractors Eng Soknay has hired Mr Sok Hor’s sawmill at Russei Char village was also BKR Unit 5 to control the concession. Loggers are paid $2 per processing logs for Casotim. He has also bought illegally felled m3 and cut about 30 cubic metres each day36. In December 1999 logs from the armed forces at Chhroy Banteay, Yeav and 12 newly cut unmarked logs were found at his rest area in Romuol villages (BKR Unit 5)24. Wood purchased from these Romuol, Sambo district (N 12° 54' 29.9" E 105° 57' 21") on the illegal loggers at $25 per m3 for No1 and No2 quality timber is bank of Mekong. Global Witness was told that there were cheaper than that bought from Casotim. The mill was only thousands of cubic metres of logs left in concession area, cut in operational at night. the 1999 dry season and that little amounts were stockpiled in Pheapimex Fuchan rest areas in Phnom Sambok and Dei Krahorm37. Sub-contractors were preparing to log in Yeav and Kruot, Prey Kompong Cham Prasop in December 199935. In December 1999 several undersized and unmarked logs were found in Yeav (N 12° 46' 32" E 105° 56' Most of the information on Kompong Cham was obtained 05") at a recently established sawmill where one of Pheapimex’ during field investigations carried out in February 2000. A rest areas is located. The mill and the rest area are were being run continuing feature of forest crimes in Kompong Cham has by Mrs Chhea Han. Local people were angry with Mrs Han for been the level of collaboration between concessionaires and destroying both the trees and the roads in this area. local businessmen; and MR2 soldiers and forestry officials. The Pheapimex has hired several subcontractors to run the small-scale export to Vietnam of luxury grade wood has concession operations; the subcontractors in turn hire local continued via a range of border passes in Memot and Ponhear workers particularly those with trucks and tractors. There are Krek districts. Illegally sawn timber processed by local five subcontractors between Yeav and Romoul with rest areas businessmen has remained on sale in Kompong Cham in at Krout (N 12° 49' 57.5" E 105° 55' 48.7"), at positions N 12° defiance of the government’s attempted crackdown. 51' 51.2" E 105° 55' 48.7" and N 12° 51' 47" E 105° 55' 48.7" Semi-processed luxury wood planks (Beng and Neang (Mr Dany) and another run by Mr Chok Sam Eng nearby. Nuon) have been smuggled to Vietnam via Ta Am village Both Mr Dany and Chok Sam Eng are provincial soldiers. (N 11° 39' E 105° 51') and other small crossing points near Trucks were seen at the Krout site in December 199924, 35. Chan Moul and Doung 7 Daem, however the exact level and frequency of these activities is not known20. The continuing trickle of high-grade log exports through these border crossings was confirmed to Global Witness by a provincial official, who alleged that Ministry of Interior border police were often complicit in the smuggling38. In 1999 much of the wood passing through these border points originated from Snoul and Chhlong districts in Kratie39. Chan Moul (0635691/1296724), an unofficial checkpoint, was the reported exit point for approximately 100 truckloads of logs and sawn timber per day from the end of 1999 through to February this year when these exports ceased40. The perpetrators have not been identified. Local sources allege that luxury-grade logs concealed amidst truckloads of cassava have also been moved through Chan Moul. No exports of logs or sawn timber via Doung 7 Daem (unofficial) border checkpoint (0617967/1302360) or Trapang Phlong official border Freshly cut unmarked logs in Eng Soknay’s rest area; Romoul checkpoint (0606706/1290285) have been reported this year. village, Sambo ditrict, Kratie; December 1999.

21 CHAINSAWS SPEAK LOUDER THAN WORDS Military Region 2 / Military Region 3

Logs cut on the borders of Kompong Thom and Preah Mr Po’s sawmill is not unknown to forestry officials, who have Vihear provinces are transported to stockpiles in Stung Trang visited the site on several occasions, where it is alleged that they district capital, Kompong Cham province, where they are have been bribed by Mr Po to turn a blind eye to his activities20. assembled into rafts, before continuing their journey down In Kompong Cham town there are 17 furniture shops and Mekong to a variety of destinations. two depots selling sawn timber, some trading quite openly and Residents of Kompong Cham town sighted at least five log others operating less conspicuously from small yards located rafts belonging to Mieng Ly Heng during February, together behind houses in the town. Local sources claim that these with other unidentified illegal logs rafts. MR2 soldiers were shops are supported, protected and supplied with luxury involved in escorting the rafts and processing their transportation woods by high-ranking MR2 personnel and provincial soldiers. licences, reportedly charging 30 US$ per m3 for facilitating the Forestry officials have not been able to close these operations, movement of legal and illegal logs from source to destination41. but have succeeded in extracting bribes from their owners40. Licenses permit the movement of consignments of up to In addition to the shops in Kompong Cham town, there is 500 logs, a restriction those transporting the wood circumvent another furniture shop in Stung Trang district capital, which by slinging additional logs onto the underside of the rafts. These reportedly enjoys the support of Kompong Cham Governor Pan suspended logs can be quickly detached and then retrieved at a Chhoem and Mr Khchao, the Chief of Police in Stung Trang. later date in the event of Forest Crime Monitoring authorities becoming aware of the deception. Such practises are employed Concessionaires by Mieng Ly Heng, Chernda Plywood, Pheapimex and other Mieng Ly Heng companies transporting logs down the Mekong and are In February 2000 Global Witness investigators observed more bolstered by the collusion of corrupt forestry officials38. than 100 freshly felled logs, belonging to Mieng Ly Heng, On Feb 22, Mieng Ly Heng received two log rafts (about stockpiled on the bank of Mekong in Stung Trang district 200 logs) from Stung Trang rest area destined for their Tonle capital, each one bearing a stamp which was illegible. Mieng Ly Bet plywood factory. Global Witness investigators observed Heng’s principal sub-contractor in the Stung Trang area is Hun that most of these logs bore no stamps. Moreover, according to Chouch (Hun Sen’s cousin), who in turn farms out work to provincial authorities, the logs did not appear to be properly members of his family and operators such as Mr Phal and licensed. Reports from provincial officials have suggested that Taphouk. Hun Chouch himself concentrates on arranging forestry officials have in some instances been stamping cut documentation for the cutting and transportation of logs with wood stored in rest areas along the Mekong, rather than going high-ranking forestry officials in Phnom Penh42. Loggers in the into company concession areas to mark trees prior to Stung Trang area reported that in addition to his work for My harvesting as required by concession regulations38. Forestry Ly Heng, Hun Chouch was also employed by Pheapimex, officials are also alleged to have engaged in negotiations with who have a rest area in Stung Trang district capital. businessmen based in Neak Loeurng, on whose behalf they In late February Mieng Ly Heng’s rest area on the Mekong were handling the movement of logs40. contained about eight rafts comprising logs from Bak Snar in Portable Sawmills and Furniture Shops Kompong Thom and other areas. These were awaiting a licence There is a sawmill in Prek Svay village, Ro Ang commune, permitting them to be taken to its Tonle Bet plywood factory. Kampong Siem district, (0551721/1329505), run by Mr. Po and Pheapimex Fuchan his wife Mrs. Hoy, with the cooperation of provincial forestry Pheapimex’s sub-contractor, Hun Chouch, has been engaged in officials and possibly MR2 soldiers as well. Local sources collecting logs from the company’s concession area near report that the sawmill is illegal. The sawmill processes large Phnom Chhie and stockpiling them in Stung Trang district capital. These logs are due to transported in the form of rafts to the Pheapimex factory at Dey Et in Kandal province. Military Region 3 Koh Kong, Kampot & Kompong Speu Key Players: Mai Voot Tee (owner Voot Tee Peanich); Hok Lundy (National Police Chief); You Ry Sako (company). Koh Kong The January 1999 crackdown is preventing large-scale overt illegal logging activity in Koh Kong, but military units are still controlling illegal operations in remote areas. One of the most tangible results of the crackdown was Illegal sawmill belonging to Mr. Po in Suay Village, Ro Ang commune, the cessation of sawn timber exports to Thailand by sea. Since Kampong Cham; February 2000. late 1999 these illegal exports have resumed and, although on a pieces of timber into planks, which are transported by horse- far smaller scale than the approximately 700,000m3 per year drawn cart to be sold in Boeng Kok village, Kompong Cham that Global Witness documented between 1995 and 1998, the town. The source of Mr Po’s timber is said to be approximately exports are increasing. On average, between 20-50 boats per 100 illegal logs he purchased during the rainy season and day export approximately 5m3 of sawn timber each43. concealed underwater in the Mekong River using anchors and Sawn Wood (Mai Tap) Exports mooring ropes. Mr Po has been moving two logs per week to Since the crackdown Thai businessmen have increased the price the sawmill, where they are cut with chainsaws, before being they will pay for sawn timber to encourage timber smuggling. further processed by hired workers with handsaws into pieces Typically timber that was worth 3,000 – 5,000 Baht ($78–$130) suitable for use as construction materials. In addition to the per m3 in Thailand now fetches up to 7,500 Baht ($197) per m3. stored logs, villagers reported that Mr Po was taking delivery of The cost in Koh Kong remains at approximately 2,500 Baht 3 consignments of sawn timber, each amounting to 25-30 m , ($65) per m3. The exports are facilitated by the navy, the police, which were arriving from Kratie or other areas up-river military police and the army, who raise a levy of 200–300 Baht roughly four times a month by boat. This wood was then ($5-8) per checkpoint44. conveyed to the sawmill by horse-drawn cart. The existence of

CHAINSAWS SPEAK LOUDER THAN WORDS 22 Military Region 3 / Military Region 4

Illegal logging and exports have resumed in the vicinity of Kampot Koh Kong town and in other areas such as Chiephat, Thmor Illegal logging in Bokor National Park has decreased, in part Bang district and Andong Toek in Kirisakor. because of the presence of provincial military and police As of late 1999, RCAF Division 44 was facilitating illegal stationed at Sala Khmoa to enforce the crackdown. Their loggers in Sre Ambel and Kampong Seila districts. To avoid presence has caused some concern to the park authorities due detection, loggers are rough-processing timber deep inside the the fact they eat the park’s wildlife. forests with chainsaws, rather than sawmills. Some of this Illegal logging continues to the west of Bokor mountain, in timber is used locally or sent to Phnom Penh, but the majority the park, primarily to satisfy domestic demand stimulated by 44 is exported by boat, at night, to Thailand . increased timber prices. Due to the crackdown timber prices, Concessions: recorded in December 1999, were $78 per m3 for No. 2 wood, and between $130-$160 for luxury timber.24 SL International As a result, local people travel as much as 25 miles to SL International has not operated in Koh Kong since the illegally fell trees, offering beer and food to the local authorities timber royalty rate was increased. Construction of its Sre to turn a blind eye to these activities. There is a feeling amongst Ambel facility is not yet complete. In early 1999 Samling the villagers that they are hardest hit by the crackdown, whilst suffered various kidnappings, which also served to prevent people with the backing of high-ranking officials have been them from operating. able to operate with impunity.24 Voot Tee Peanich In January 1999 Global Witness notified the DFW that Voot Military Region 4 Tee Peanich had two barges loaded with logs ready for export, Preah Vihear, Siem Reap & Kompong Thom moored by the sawmill in Koh Kong. The logs (500m3) were Key Players: Hun Chouch (businessman, cousin of confiscated and are included in the DFW statistics for logs Prime Minister Hun Sen); Kok Lon; Pul Kham Nare (Director, Kompong Thom Forestry Department) confiscated. However, no action has been taken against the concessionaire who denied all knowledge of the logs, stating Over the past few years, Kompong that he had hired the barges to the RCAF (and he couldn’t Thom and Preah Vihear have been remember the individuals involved). Reports suggest that these heavily logged by both legal exports take place every three months, and direct observations concessionaires and illegal loggers. The confirm that in November 1999 Voot Tee again exported logs local forestry department is corrupt and this seems to be borne by barge45. out by the fact that director, Pul Kham Nare, owns several

Voot Tee log barge illegally exporting logs. Koh Kong; August 1999. Non-timber forest product: Pul Khan Nare’s hotel, Kompong Thom provincial town; November 1999. The company’s owner, Mai Voot Tee, is an official adviser to Heng Samrin. Furthermore, as reported by Global Witness houses and is building a 2-star hotel near the Stung Sen Bridge in June 1999, it is rumoured that Mai Voot Tee possesses some in Kompong Thom town. His eldest son, a forestry graduate of form of secret authority from Hun Sen and Hok Lundy. These Pre Lap Institute, reputedly made $80,000 over three years latter connections are not confirmed. Voot Tee has been from cooperating with local logging operations44. illegally logging in Koh Kong for several years and not only has he not been prosecuted for this, he has, instead, been granted a Preah Vihear legal concession. This level of reward and impunity does indeed Cambodia Cherndar Plywood suggest that he has friends in high places. In December 1999 Cherndar Plywood was involved in illegal Silveroad Wood Products activities including logging outside permitted coupes and Silveroad have not yet commenced operations, but have failure to stamp trees after felling. Incidence of these activities received warnings from the DFW for illegally clearing was extensive and there was no evidence of any law forestland to build a processing facility. enforcement by the relevant authorities. You Ry Sako The forest crimes outlined below were set out in the Global Witness crime report of 16th February 1999. This report was You Ry Sako have built a main log road running from Koh followed up by a DFW inspection team. The DFW team found Kong Town to O’Soum commune, towards their Pursat no evidence of any forest crimes at any of the sites mentioned concession. Large trees have been selectively logged from below. numerous skid tracks off this road as far back as 2km. This is During the rainy season in 1999 hundreds of logs were illegal, and may relate to the situation regarding You Ry Sako, floated down the Stung Sen river on log rafts, escorted by Hun described in the section on Thailand44.

23 CHAINSAWS SPEAK LOUDER THAN WORDS Military Region 4

who refused it. Hun Chhouch intervened by calling the Provincial Governor and the truck were released after a few hours1. The DFW inspection team found no evidence of this. Prey Domnab Svay is a big illegal rest area (N 12° 56' 31.1" E 105° 19' 47.6"). More than 200 newly cut logs, 4 Reivs, 4 small cottages and 20 workers were found there. The illegally cut logs had been felled in this area and did not have stamps. The logs were due to be transported to the company’s factory at Kompong Cham23. Siem Reap Illegal logs recently felled by Chernda Plywood; O’Pe’s, Prey Prak Roka, Global Witness did not visit Siem Reap between November 1999 Preah Vihear; December 1999. and March 2000 however limited information about activities in the Chouch’s armed forces24. The logs were felled in Chhe’eb district, province was ascertained in Kompong Thom in December 1999. Preah Vihear. Chhe’b district covers Compartment 2 of Cherndar 1,700 logs have been left standing in the Brolaiy commune, Chhi Plywood’s concession. The company’s 1999 cutting permit applied khreng district. There has also been some encroachment and illegal to Compartment 1, coupe 1, meaning that these logs were illegally logging activity in ChhiKre’k district a part of the Beng Per Wildlife felled and transported. Sanctuary by provincial military and district government officials1, 24. According to the DFW inspection team the logs in question were Kompong Thom cut in Compartment 1, coupe 1. In December 1999 Cherndar Plywood mounted a significant Information on the situation in Kompong Thom was obtained on transport operation to move logs felled in 1999 prior to the 31st two investigations carried out in December 1999. There was little December 1999 expiration of its cutting permit, granted for logging activity; in Beng Per Wildlife Sanctuary for example, illegal Compartment 1, coupe 146. There is very strong evidence that logging had almost completely stopped. DFW foresters are however Cherndar Plywood has been illegally logging in Compartment 1, employed by concessionaires, and some illegal activity was taking coupe 7 and in Compartment 2, and has been stamping felled trees place on concession land. The transportation of illegal logs has been at rest areas post-cutting, which is also illegal23. responsible for the deterioration of National Road 6, which was At Krang Dong village (N13° 37' 17.2" E 105° 01' 46.9") there repaired in July 1999 with Japanese funds. However in October is a new main log road leading to a large rest area, which is 1999, at least 10 log trucks a day were using the road between reportedly located at O’Pen, near Por Teib village, Chhe’b district. Kompong Thom, Kompong Cham and Kandal and this traffic has Trucks hired by the company from Kompong Cham and Stung destroyed the repairs..Some illegal logging was also being carried out Treng were to transport logs from the forest from the end of by local people to provide firewood and timber to construct houses. December 199920. In December 1999 there were about 100 logs remaining at the About 15km from Por Thom village a large rest area named Balang sawmill but Global Witness could not determine who the 23 Prey O’Pe’s was found (N 13° 50' 46.1" E 105° 04' 04.8") in coupe owners were . Another log pile consisting of more than 100 logs 1 of the Cherndar Plywood concession, the permitted exploitation was found about 12 km east of the Balang mill in Phanachi village on area. The rest area contained approximately 1,500 logs. Although the bank of the Stung Sen river; 500 metres from route 6. It is Global Witness investigators were not permitted to stop in the rest reported that this log pile has been there since 1998 and it is 24 area, they noted that many logs bore were unmarked, in suspected that some logs have been stolen from it in recent months . contravention of legislation. photos Two men in military uniform During the water festival, a boat racing ceremony takes place were taking stamps from a plastic bag and attaching them to these Some of the boats, thought to come from the provinces of Kratie, logs. A logger confirmed these activities were carried out by Stung Treng and Kompong Thom, were found loaded with luxury 1 Cherndar Plywood’s subcontractor, Hun Chouch47. A log camp sawn and were confiscated by the DFW at Kilo N 6, Phnom Penh . was found about 2km from this rest area at Kbal O’Pe’s (N13° 50' Talek village is situated on road 64 in the Beng Per Wildlife 02.7" E 105° 05' 24.1") containing approximately 50 newly felled Sanctuary. About 20 old illegally felled logs were found in the 23 logs. This camp is right on the border of coupes 1 and 7. village being used by monks to build a wat . Ta Preing, 15-20 km According to the DFW inspection team all the logs that were east of the village is the site of a stockpile of about a hundred old being relabelled because the labels that had been attached prior to illegally cut logs. This area in Beng Per has been severely degraded cutting in the permitted prey coupe had fallen off. Mr Thai Hang by illegal logging activities due to the opening of road 64 from Meng, Cherndar Plywood’s representative, claimed that Hun Kompong Thom to Preavihear. The provincial authorities cleared Chouch was not the company’s subcontractor. The subcontractor 100 meters of forest on both sides of the road and sold the logs to was in fact Mr Sok Seang a relative and business partner of Hun the Lang Song factory. In areas such as Ta Preing, there is a pile of Chouch’s wife Seng Kieng. Mr Thai was unaware of any about 800 logs cut by the KR living in the forest at the time of the arrangements that Mr Sok may have made. road construction. About 1000 old logs remain in the Ottamean 24 Global Witness investigators followed an empty log truck along area . There has also been clearing of the forest in the buffer zone 1 a log road and saw freshly felled logs at O’Prey Prak Roka (N13° around Beng Per to create a large cashew plantation . 50' 13.0" E 105° 07' 23.3") an active logging area in coupe 7, which GAT International is illegal. There is a further logging area at 510595/153170, also in There is a certain amount of resentment amongst the local people of coupe 7. GAT activities in the area particularly because of limited access to According to the DFW inspection team these logs had been cut the forest. In the recent past timber was readily available and the by local people to make a racing boat requested by the municipality forest was rich in non-timber forest products and wildlife. The of Phnom Penh and approved by Mr Lim Mao head of the forestry arrival of GAT without prior consultation with local people office in Preah Vihear. This would, in any event be illegal, it is also changed this. Now they are now restricted to within 100-200 unlikely. meters either side of the log road and are limited to collecting dead Hun Chouch has asked local people to collect the ‘Pok’ of the branches for firewood. If they cut fresh branches they risk having Beng tree, part of the tree suitable for production of high quality materials and oxcarts confiscated and destroyed or being fined in furniture24. He has been purchasing the Poks for almost two years, cash by the company24. in various provinces24. Around October/November 1999 Hun The faster the logs are delivered from the prey coupe to the Chouch’s operation transported two trucks fully loaded with Pok factory, the higher the payment that the log truck drivers will which were seized by the anti-logging mixed commission (ALMC). receive. This has resulted in several deaths of both villagers and The smugglers offered a bribe of 300,000 riel ($85) to the ALMC domestic animals since the GAT log road was built24.

CHAINSAWS SPEAK LOUDER THAN WORDS 24 Military Region 5

Military Region 5 Old Logs Battambang, Pursat & Banteay Meanchey Old logs were found throughout Battambang. There were Key Players: General Chim Pheouy (Chief, 2,000 old Beng logs at O’Ro village (N12° 55' 43.1" E 102° 29' Military Division 18); E Chien (Governor, Pailin). 55.9") and about 3-4,000 old Beng logs stockpiled at Prouv village (N 12° 55' 33.8" E 102° 30' 52.2"). Both piles were well Battambang ordered and had been numbered49. Illegal logging in Battambang early in These stockpiles exist on land that has been awarded as a 2000 was small scale but widespread. The 35,000ha agricultural concession, to a “multinational” company majority of the logging, including known as IMMO international. The concession spans numerous instances of exports of luxury timber to Thailand approximately 10 kilometres either side of the east/west road was controlled by the military and the BKR. Global Witness that runs from Pailin to the Thai border, from the river found no evidence of illegal activity by the concessionaire You approximately 4 kilometres west of Pailin up to the border53. Ry Sako; the concession, was being guarded by soldiers from A representative of IMMO, Dr. Rudi Demargeau told MR5 but at the time of the investigation in February 2000 the Global Witness that the he did not realise the land was covered concession was not active. The existence of several large in old logs as they were hidden by grass and behind bushes53. stockpiles of old logs and the potential for export to Thailand Dr Demargeau estimated that there was about 300,000 m3 on are also a concern. the concession, which roughly equates to 100,000 logs; these In Pailin town there are more than 10 sawmills and portable figures are almost certainly exaggerated. Independent observers mills processing timber, from Samlot, Prey O’ Chrouv claimed that the logs were clearly visible. mountain and Prey Thom, for local construction and to produce furniture for export to Thailand. There are a further three portable mills at the 400 and Sen Choav border passes49. An inter-ministerial monitoring committee team inspected forest areas in the Samlot district during February 2000. The team visited the main border checkpoints between Samlot district and Thailand including Sen Choav (Borlang), 400 pass, Peam Tang and Ting Mong. The team found that small-scale exports of Beng timber to Thailand via remote unofficial border passes, using oxcarts and pickup trucks, were taking place50. Global Witness saw trucks fully laden with luxury timber crossing the border into Thailand in April 2000 confirming the earlier reports. Illegal exports of sawn Beng timber from Pailin, Ta Sagn Approximately 2000 old Beng logs:; O’Roal village, Battambang; February 2000. Commune and Kamrieng district were also taking place in February 2000. General Chim Dr. Demargeau told Global Witness in January that he Pheouy, the chief of Military Division 18, has been one of wanted to sell the logs, in a transparent manner and to donate several high ranking officials who have arranged illegal exports the proceedings to the development of Pailin. However there through the Pheim Tang and Veil Rolim border passes, assisted are reasonable grounds to suspect that some logs from the by the military staff located there50. Sawn timber was crossing concession have already been sold to Thailand, or that the into Thailand across the Ban Leam border pass, in Kamrieng. intention to do so exists. Dr Demargeau said that he had The main cutting area, controlled by businessmen in approached two Thai companies that were willing to process cooperation with provincial soldiers, in Kamrieng district is the timber in Pailin for $36 and $38 per m3 respectively. He known as Prey Thom (N 12° 58' 43.0" E 102° 50' 48.1") five then gave three company names: Prime Systems, Chantaburi kilometres from Pa dak village50. Agricultural and Chin Thai53. In January 2000 provincial foresters held five trucks loaded Satellite data has shown that the 35,000ha. concession with luxury sawn timber and escorted by soldiers from contains both deciduous and evergreen forest, and that Military Division 18 at Ratanak Mondoul. Following orders previously deforested areas are now experiencing secondary radioed from Pailin the trucks were released. It is believed that growth54. What will happen to this forest, and to the people the timber was taken to be sold in Battambang, but it is not who currently farm this land is not clear. known what, if any, action followed this incident50. Pursat Conversion to agricultural land In November 1999 illegal logging in Pursat was much reduced. The conversion of forest to farmland is a considerable source of Of the three concessions in the province only Superwood was deforestation in the province. In Chom Long Kouy conversion active. It had requested permission to harvest 30,000m3 in 1999, to farmland was undertaken by soldiers from Military Division however sawmill figures indicated that only about 3,000m3 of 1751. Conversion of forest to farmland has also occurred in Sen timber had been processed, partly because of the bad weather. Choav, Kam Rieng Phnom Prek and Som Pouve Loun52. The However Global Witness found evidence of the widespread Wildlife Sanctuary at Roneim Daun Som has also been destruction of dry deciduous forest through conversion to encroached upon, because the boundaries of newly established agricultural land. Hundreds of charcoal burners throughout districts overlap significantly with the sanctuary50. Pursat also threaten this dry deciduous forest.

25 CHAINSAWS SPEAK LOUDER THAN WORDS Military Region 5

Illegal sawmill operations The government crackdown of January 1999 has resulted in the withdrawal of permits for a range of small-scale timber operations in Pursat, however mobile illegal sawmills brought in from neighbouring provinces remained in remote forested areas. The provincial Forestry Department lacked the resources to suppress these operations, which enjoy a degree of protection from police and local military in the form of advance warning of any imminent action against them39. Global Witness investigations suggested that the Governor of Pursat, Ong Samy had made little effort to move against illegal sawmill operations. Typically, illegally cut wood was being transported by oxcart to stockpiles where it was picked up by truck. Much of the wood was being used locally. In at least one instance of illegally harvested luxury timber being confiscated by local authorities, the timber concerned was subsequently sold within about two weeks of its seizure39. Conversion to agricultural land In addition to illegal sawmill operations, dry deciduous forest areas in Pursat are increasingly under threat from agricultural projects initiated by companies and an “NGO”. Illegal charcoal burners are also a serious threat; there were in the region of 1,000 of these burners in Pursat in November 199939. Charcoal Burner near Trab mountain, Pursat; November 1999.

Khmer Community Development (KCD) Khmer Community Development is a Cambodian “NGO” run by Mr Lamuth Sarphorn, who was previously Deputy Directory of the Provincial Land Agency. KCD was interested in developing land in Pursat for the cultivation of rice and cassava and wrote to the Ministry of Agriculture, Forestry and Fisheries in late 1999, requesting permission to use 2800ha of land in the vicinity of Trab Mountain, 10 km south east of Pursat town56. The letter neglected to give any account of the kind of land KCD proposed to develop, neither did it mention the fact that at the time of writing, KCD had already initiated the illegal clearance of approximately 1000 ha of land around Trab mountain20. Trab Mountain has been described by local environmentalists as a vital watershed controlling the run-off from monsoon rains and an area rich in rare trees and wildlife. According to the Forestry Office it is a forested area unsuitable for an agricultural concession. KCD has now receivedofficial approval for their development from the Governor and the Director of the Department of Agriculture, Forestry and Fisheries. It has been alleged that the letter was not initially intended for the Forestry Department who signed the letter last and that other officials only signed it after they had seen the signature of the Governor.39 Interviews with people clearing the land for the KCD project suggest that the NGO had been encouraging people to clear the forest with the promise that it will purchase whatever rice and cassava they subsequently produce. The trees cut in the course of the clearance are predominantly small, characteristic of the kind of dry deciduous forest found in this region of Pursat. Local sources reported that some of the felled wood was being transported by train to Phnom Penh20. (cont)

CHAINSAWS SPEAK LOUDER THAN WORDS 26 Military Region 5 / The Role of Cambodia’s Neighbours -Thailand

Phnom Trorp Co. Ltd Phnom Trorp, who operate from an office in Phnom Penh, approached the Minstry of Agriculture, Forestry and Fisheries in late 1999 with plans for the agricultural and industrial development of 4,000ha of land around Prey Omal village, Orleap commune, Sampoav Meas district, Pursat, a site which encompasses Trab Mountain57. The application was approved by Governor of Pursat Ong Samy in the face of protests by the Department of Forestry that the site was forested and not suitable for development. Not wanting such objections to cause disquiet amongst any of the other departments scrutinising their proposal, Phnom Trorp took the precaution of obtaining all other requisite signatures, except for that of the governor, before approaching the Forestry Department39. The Company submitted another proposal in late 1999 to the Ministry of Agriculture, Forestry and Fisheries for the development of 10,000ha of land in Prongil commune, Kravang district, Pursat, for the cultivation and processing (in two on-site factories) of rice and cassava. This document claims that the area in question is land formerly used for rice fields and plantations under the Sihanouk and Khmer Rouge regimes58. Visits to the site revealed it to be an area of dry deciduous forest. Phnom Trorp’s application has been refused approval by the Forestry Department and is awaiting a decision by Pursat Governor Ong Samy and the Director of Agriculture, Forestry and Fisheries Department39. Cam Chi International Agriculture Development Co. Ltd Cam Chi is another company seeking to develop agricultural and industrial interests on land in Pursat. They have written to the Ministry of Agriculture, Forestry and Fisheries requesting a 90-year lease of 103.680ha in Kra Kor, Kra Vang and Vel Vang districts. Cam Chi’s proposal has so far received 18 signatures of approval for the project from 19 official bodies approached. The only department to have refused permission is the Department for Forestry, which has unhelpfully drawn attention to the fact that the land concerned is in fact forested. In November 1999 the company was awaiting decisions from the Governor and the Department of Environment39.

Banteay Meanchey In February 2000 luxury Beng timber was being exported in pickup trucks through unofficial border passes, such as Prasat Banteay Chhma. The logging was carried out by the military and the local police. There are few large trees left in the area. Another illegal pass at Khla Ngap (Death Tiger), in Malai district is used to export sawn timber, taken from mills in Malai town, Samlot district and from Siem Reap. A truck fully laden with freshly cut logs was seen at a sawmill in Poipet district49. Conversion to agricultural land As in many other provinces this is also a major problem in Banteay Meanchey. 6000ha forest land has been converted by Military Division 12 under the command of Mr Meas Soroen. Soldiers within the division have requested title to the converted land49. Illegal timber imports: Kalapangha Harbour, Trat; February 2000. 11. THE ROLE OF CAMBODIA’S that it is possible that eastern Thailand derives virtually all its timber requirements from Cambodia43. A similar NEIGHBOURS situation exists in the northeast, although large-scale importation of wood from Laos is also a factor. The Thai Thailand Foreign Ministry takes the public stance that the import of Key Players: Companies: Voot Tee Peanich; Tang Seng Hong: Thangboon all sawn timber from Cambodia is legal. This stance is a Prasert; Petcharit Mounkit; You Ry Sako; Thong Pha Phum; Pipat Forestry; deliberate misunderstanding of Cambodia’s laws, which Wooden Supply Company; Chantaburi Romphoorow, The Maka Centre state that exports of processed timber by legitimate Company. Individuals: Siri Letanskul (owner Wooden Supply Company); concessionaires from a designated prey coupe with a Oud Socheat (businessman); Mr Khi (logging company owner) current cutting licence and upon which tax has been paid, is Despite the Cambodian crackdown, the flow of sawn legal. None of the imports into Thailand fall into this timber into Thailand is extremely widespread, so much so category.

27 CHAINSAWS SPEAK LOUDER THAN WORDS The Role of Cambodia’s Neighbours -Thailand

Imports by sea The January 1999 crackdown virtually halted the massive imports of sawn timber from Koh Kong province, the first time this trade had been stopped since Global Witness began reporting it in January 1995. Towards the end of 1999 this trade began to increase and currently between 20-50 fishing boats per day, each import approximately 5m3 of sawn timber into Kalapangha port, in Thailand’s Trat province43, 60. At this rate, over a nine-month period when weather permits the imports to take place, imports would total over 45,000m3, or 9% of Cambodia’s maximum annual sustainable yield. As before, this illegal trade is carried out under the noses of the Thai authorities. Log exports carried out by Voot Tee Peanich (previously documented by Global Witness in January 1999) continue, with loaded log barges observed on the Kun Keun river in November 199945. Reports suggest that the sawn-wood trade Confiscated timber (subsequently released), Thailand; February 2000. into Kalapangha is also controlled by Voot Tee45. Petcharat Mounkit claims the road is being built to access a Imports by Land planned tourist resort43. Given the discrepancy in these stories and Mr Mounkit’s involvement in illegal logging, it would be Trat Province worth the RGC monitoring whether this road enters The Thai government has opened 30 border passes between Cambodia. Trat province and Cambodia51. Three companies (Tang Seng Near 0235408/1391130 sawn timber is imported every Hong, Chan Thangboon Prasert and Petcharit Muonkit) night along a dirt track near the town of Bo Rai. On 17th/18th import sawn timber every night across two of these, Chong February 2000 the Thai authorities confiscated three trucks Khao Lan (0259199/1322823) and Chong Ta Nuk which had been illegally importing sawn timber through Ban (0265904/1307276)45. Khao Plu and Chong Dan Chumpol passes. After holding a There are unverified reports that Cambodian logging press conference demonstrating the strong policy of the Thai concessionaire You Ry Sako, long known in Koh Kong government, the trucks and their cargoes were released after province for illegal logging, is constructing a road on behalf of suitable payments had been made45. the RGC, between Koh Kong and Pailin, parallel to the Thai Chantaburi Province border. In return for this the company has permission to fell trees up to 100 metres either side of the road. The timber is A café worker in Pong Nam Ron stated that two loaded log being imported into Thailand by two Thai logging companies, trucks per day headed south down Highway 317 towards Wooden Supply Import/Export and Chantaburi Chantaburi. A timber company worker claimed that as many Romphoorow, across Ban Chamrak and Ban Khao Pho as five trucks per day made this journey, crossing into Thailand checkpoints45. Both of these companies were beneficiaries of at either Ban Laem (0223178/1447867) or Suan Som the 1996 ‘million metre deal’, which resulted in the loss of IMF (0214246/1459586), but didn’t travel when the Thai Economic support to the RGC52. The owner of Wooden Supply, Siri Police erected tax raising checkpoints. Letanskul, also owns a jetty at Kalapangha port which imports The main timber imports into Chantaburi province enter sawn timber by sea. If these reports are verified, both the Thailand at Suan Som, also know as the ‘furniture village’. This logging and export activities are illegal according to Cambodian is opposite the Cambodia village of Um Laut, previously law. Furthermore, if the road does exist it must traverse the identified by Global Witness as a major sawn timber export Phnom Samkos Wildlife Sanctuary. You Ry Sako has route. The village contains over 100 shops, almost exclusively constructed a large road from Koh Kong town, through the selling furniture constructed from luxury timber, primarily Cardamom mountains into their Pursat concession; it also Beng (Mai Maka). One shop alone has stock with a retail value traverses the sanctuary. This road will provide easy access of over $100,000, making the stock in the village worth as much between the concession and the coast, thereby potentially as $10 million. Imports take place two to three times per providing an illegal log export route: this would accord with month, using 20-30 ‘Kra Teng’ tractor/trucks. The timber is You Ry Sako’s past record. It is also possible that the border transported from Pailin and Samlot. Given that many road referred to above is, in fact, this existing road. checkpoint guards along the border told Global Witness that It is possible that the construction of this road has Suan Som ‘furniture village’, Chantaburi Province, Thailand; April 2000. political implications, and is perhaps a move by the RGC to extend its control right up to its borders, sidelining former KR control. Whilst the RGC has every right to build roads, to contract logging companies to build roads outside their concession, and through wildlife sanctuaries in return for logging rights, contravenes RGC law and the spirit of forestry reform. At 0265063/1308807 a new road is being constructed from the main north-south Trat/Klong Yai road, heading east towards the Cambodian border. The builder of the road is Petcharat Mounkit, a former foreman of the Suan Pha Siam logging company, also a beneficiary of the ‘million metre deal’, now an illegal importer of sawn timber from Cambodia in his own right43. A soldier in command of a Thai army base along this road claims the road is being constructed purely to supply the base, although the road carries on beyond the base. Global Witness were prevented from following this road. Mr

CHAINSAWS SPEAK LOUDER THAN WORDS 28 The Role of Cambodia’s Neighbours - Thailand

Luxury timber smuggling opposite Phnom Preuk (Battambang Province), Thailand; April 2000. the border is closed to timber imports, it is strange that this very overt furniture business escapes any official control on either side of the border43. Other checkpoints with records of illegal exports are Ban Chnang (0224351/1442126) and Din Dang (0224573/1438910). At 0212609/1471375 a road cuts through the mountain range into Cambodia, near Phnom Preuk, site of a border dispute in April 2000. Guards at the Thai checkpoint stated that the road did not enter Cambodia, but was a Thai military road that went to the town of Aranyaprathet. However, Global Witness observed a truck loaded with 2m3 luxury timber crossing this checkpoint a few minutes after interviewing the guards, demonstrating that the road does enter Cambodia, and that illegal imports take place with military complicity43. In the vicinity of Nong Pru, just south of Aranyaprathet, numerous villagers obtained their local timber needs on a Truck belonging to Tong Pha Pum Co. (same as TTP Cambodia Timber supply and demand basis from Cambodia, importing both Product?): Thailand; April 2000. construction grade and luxury timbers. Furniture is imported from Phnom Malai, where there are at least three to four timber stockpiles. There is a substantial and modern flooring factory (approx 0222265/1501784) on Cambodian soil, but approximately only 100 metres from the Thai road network, which exports wooden flooring into Thailand43. Near the Ban Trakun border pass north of Aranyaprathet there is a Cambodian village called Charra Tamet which has a 50-100m3 stockpile of sawn timber, which is imported into Thailand, probably at Ban Trakun, by night43. Surin Province There is a large log stockpile in O’Smach, across the border form the Chong Chom border pass. The logs are currently felled in the Samrong region, trucked to the border for processing, and are imported as sawn timber by four to six trucks every Saturday (this pass is only open Friday- Sunday). The timber is destined for Bangkok and Suplaburi. Interestingly Thai Customs at this pass deny the imports take place, despite raising 30% duty on them. This trade is Imports from Anlong Veng, Ban Kay Oun; April 2000. controlled by RCAF Division 15, commanded by Van Hoi43. In addition furniture imports, in the form of 80 massive Sisaket Province turned wood (Thnong) stools per weekend (derived from The Tong Pha Phum company carried out extensive approximating 10 trees) enter Thailand. This trade is imports of sawn timber from Preah Vihear in February controlled by Oud Socheat, who charges between $18-26 per 2000, through the Chong Sa’Ngam checkpoint, south of the stool, depending on size. Disturbingly, 10 tonnes per week of Thai town of Khukan. The company’s vehicles are marked aromatic wood (Yang Bong–similar to Sandalwood) are TPP (for Tong Pha Phum), a similar acronym to TPP imported by truck, packed into 30-40kg sacks. The wood Cambodia Timber Products, a legitimate concessionaire in fetches 6 Baht per kilo in Cambodia, and12 Baht per kilo in Cambodia, that has concession land in Preah Vihear Thailand. The scale of this trade is alarming and must be province. It is recommended that the DFW check whether having a serious effect of the future commercial viability of these companies are linked. If they are, then there is this species. Two trucks of rattan per week also cross the definitive proof that the concessionaire has carried out pass, as do 40 assorted animal skins for the wildlife trade. 43 illegal exports, which should result in termination of their These include tiger . concession.

29 CHAINSAWS SPEAK LOUDER THAN WORDS The Role of Cambodia’s Neighbours - Thailand - Laos

The imports comprise approximately 2,000m3 of timber The Thai Logging Industry including Beng, Thnong and Mai Pradu (Thai name). Of this 300- In 1995 and 1996 the Thai logging industry purchased and 400m3 are stored in Ban Kay Oun village, in an area illegally imported vast quantities of logs from the Khmer (0399619/1611710) signposted “wood has been legally imported Rouge, at that time occupying western and northern from Cambodia by Tong Pha Phum Company with the approval Cambodia, bordering Thailand. The 31st December 1996 log of Thai Customs”. The timber probably originates from the large export ban largely brought this industry to a halt. In April 2000 log stockpiles stranded in Anlong Veng by the December 1996 Global Witness revisited the sites of many of these logging log export ban, although some of the timber is possibly fresh cut. companies to ascertain their current status. There are reports that 2000m3 of the timber has been sold to the Only six of the original 18 companies are either capable of Ko Van sawmill in Pathum Thani province, and comprises only or are actually in operation. As discussed, Wooden Supply and part of a planned 6–8,000m3 export from, Cambodia43, 60. Chantaburi Romphoorow are actively involved in sawn timber In the nearby town of Khunhan there are signs of logging importation. The TSD company still occupies its truck repair activity, in that recently used log trucks are parked on the shop (0241031/1358119), but this contains one log truck and roadside43. In Khukan the old sawmill of the Khukan one bulldozer in an advanced state of disrepair. Workers at the Aroonsawat Company, part owned by KR general Ta Mok, site said the company had not been active for two years, but has been sold, but still produces furniture under new that the RGC had told the company that if they build a road ownership. This timber originates from Cambodia43. across the border they can bring timber out. It is not known Ubon Ratchathani whether these reports are true, but if the reports regarding You Ry Sako are verified, then such a move by the RGC is not Lao border without precedent. The workers claimed that the company There is a significant log stockpile in Laos approximately one cannot afford to build the road, and that the bulk of its kilometre from the Chong Mek border crossing, consisting of equipment is stranded on the Cambodia side of the border43. luxury (Beng) and No. 2 (Che’etil) logs . The logs were marked The Maka Centre Company (0204841/1428189) at Pong with Laotian stamps, and the Che’etil also had painted Nam Ron in Chantaburi Province still employs a caretaker at identification numbers, whilst the Beng did not. There is another its run-down (but not derelict) offices and yard. The company stockpile 30 km from the border. Logs from this latter stockpile are imported a significant quantity of logs in August 1999, and is imported daily by truck, each truck making one journey per day. currently negotiating with the Cambodia authorities to import Judging from past reports, it is likely that Cambodian logs are sawn timber from Pailin. It is now known whether these laundered as being of Laotian origin, and imported by this route43. negotiations are with the RGC, or directly with the provincial Global Witness has previously documented the role of Thai logging authorities43. company Pipat Forestry in brokering a 100,000m3 log export deal A former logging company owned by a Mr Khi (near from Cambodia into Laos, for onward export to Thailand. Pipat 0207000/1428831) now farms Tapioca, but the company retains has a medium-scale sawmill (0504859/1600425) near the An Mah all its logging equipment which is stored under cover and is pass and, according to workers there, sawmills in other areas43. possibly well maintained43. No timber is currently crossing at the An Mah pass, Chao Praya Akanay’s old log rest area still exists, but it and previously a major log export point, but a Thai company inspected the company’s buildings are derelict, although it appears that old log stockpiles in Cambodia in late March with a view to one person, perhaps a caretaker, is in occupation43. exporting them. However, the logs were apparently too degraded Aftermath. TSD Co. log truck, Bo Rai, Thailand; April 2000. to be of commercial value. BLP Import/Export, the logging company that previously used this pass, is reportedly defunct, its equipment stranded in Cambodia, and probably unusable43. Wildlife Trade The Preah Vihear temple on the Thai/Cambodia border is not only a very popular tourist destination, but a significant centre for the wildlife trade. In late April, 7-8 Cambodian-run stalls were selling a variety of skins including leopard, clouded leopard, fishing cat and badger, bear and porcupine galls, bear paw and the tusks of 10-15 elephants. Products originated over wide areas of Cambodia, and some of the stallholders travelled from Phnom Penh to sell their goods to Thai tourists. This site would be easy to control and it is recommended that the MoE urgently clamps down on this trade43. Clouded Leopard skin sold in the wildlife trade, Preah Vihear Temple (Cambodia); April 2000. Laos Global Witness has not carried out recent investigations in Laos. However, there are numerous reports detailing exports of logs to Laos (see Stung Treng section p17-19 and Thailand section p27-30). Many of these relate to the 100,000m3 export deal documented by Global Witness in “Crackdown or Pause”, in February 1999. Logs are exported from Siem Pang district in Stung Treng, and via route 13. Efforts by the RCAF to suppress these activities have been unsuccessful. Cambodian logs are laundered through Laos and some enter Thailand at the Chong Mek border pass as ‘Laotian’ logs. There is a large log stockpile 1 km inside the border, comprising Beng and Che’etil (luxury and No.2 timber); the logs bear Lao stamps. Logs are imported to Thailand daily, from another stockpile 30km inside the border. The country of origin of these logs is not known.

CHAINSAWS SPEAK LOUDER THAN WORDS 30 The Role of Cambodia’s Neighbours - Vietnam / Vietnamese Garden Furniture

Vietnam company representative told Global Witness that the company no longer uses Cambodian timber but conceded that it does Exports to Vietnam in 1999 were lower than in previous years and subcontract to factories in areas such as Qui Nhon where in the main limited to sawn timber rather than logs. One notable Cambodian timber is still being used64. Scansia was in the process of exception was the export from Mondulkiri in December 1999 establishing chain of custody (CoC) in the Scanviwood factory; it involving 380 truckloads of round logs (see Mondulkiri section does not have CoC operating in factories that it subcontracts to. p19). The submission of a crime report by Global Witness, lead to The additional 1,400 containers a year manufactured by the the most decisive action that the RGC has taken to date, on the subcontractors are produced under the Mekong Line name. suppression of forest crimes. In excess of 20 high-ranking Scanviwood exports to Europe, Australia, New Zealand and South provincial officials were arrested in January 2000 but the Africa, and its customers include major French supermarkets64. investigation appears to have been hampered by a lack of cooperation from Vietnamese officials. The ultimate use of the Koda Koda is a Singapore- timber involved in this deal is not known. However the Vietnamese officials authorise use of manufacture of garden furniture destined for the European market based company with Cambodian timber; January 2000. flourishes in Vietnam and investigations in April 2000 showed that factories in China, Cambodian timber was still being used in the factories. Malaysia and One of the main log dealers in Loc Ninh district, Song Bé Vietnam, with a province in Vietnam, is Mr Vang Chrong. He has collected all representative office, kinds of wood imported from Cambodia through Valeu, Ten Zenith Asia, in the Tieng and Lapake crossing points. Global Witness was told in UK. Customers December 1999 that Mr Chrong had spent $50,000 on log- include the French export permission for a future deal on 5,000m3 of timber. MR2, supermarket giant MAFF and provincial levels of Kratie government were Carrefour in involved in brokering the deal.35 Singapore, and Agorama in the Vietnamese garden furniture. Netherlands. Richard Cattie Asia Chia, Chief of Koda’s Cattie Asia was established in 1993 by a Frenchman Alain Representative Office Gauthier in association with the Ton Nu family, which is part in Vietnam told of the royal family in Vietnam and as such has access to forests Global Witness that and timber. The Ton Nu family provides most companies in the company could Vietnam with timber and the head office, staffed almost entirely produce fake by members of the extended family, is located in a Vietnamese Tay Nguyen company manufacturing on behalf of KODA, Buon Ma army building. The President of the Vietnamese Chamber of Thot, Vietnam; March 2000. Commerce in Hanoi also has a stake in the company. Based in Danang Cattie Asia, currently run or buy from 36 factories most of which manufacture garden furniture. Cattie Europa a closely related company is also run by Alain Gauthier and based in Andorra for tax reasons, according to Commercial Director Jackie Hughes. The operation in Andorra requires a “prete-nom” which in this case is one of Andorra’s leading lawyers who has a 15% stake in the company. Jackie Hughes pointed out that other companies such as ScanCom had been having trouble with timber supply whereas Cattie Asia in contrast had had no problems. It sources timber from Cambodia, Laos and Vietnam63. Cattie supply Brico International and Bauers a catalogue company in Germany amongst others. Scanviwood Scanviwood, run by Scansia, produces in the region of 600 containers of garden furniture, under the Thames Line name, each year and is growing at between 20 and 30 % per annum. A Tay Nguyen factory processing Cambodian timber, Buon Ma Thot, Management of Tay Nguyen Company (Director second from right), Buon Vietnam; March 2000. Ma Thot, Vietnam; March 2000.

31 CHAINSAWS SPEAK LOUDER THAN WORDS The Role of Cambodia’s Neighbours / Vietnamese Garden Furniture certificates of sustainable harvesting if required65. He also said that Koda was importing Keruing and Rubber wood from Cambodia in conjunction with a Cambodia-based Taiwanese businessman. The Tay Nguyen Forestry Industrial Company produces furniture for Koda. Mr Ty the factory manager told Global Witness in March 2000 that the company was using Keruing recently cut in Cambodia66. The provincial Vietnamese authorities authorised the use of 850m3 of Cambodian timber in a document dated 31st January 2000. Truong Thanh Truong Thanh has a large factory in Daklak and has plans to open Duc Cuong company sawing old Cambodian Paduk (harvested in 1997) for Truong Thanh, Pleiku, Vietnam; another in association with Tropic March 2000 Dane. It currently produces 30 containers of garden furniture a month for Tropic Dane, Cattie Asia, and Beechrow. Mrs Thu, wife of the director Vo Truong Thanh, explained that the company had no problem ensuring a constant timber supply not least as it was able to obtain timber from Cambodia. In March 1999 Global Witness saw two-year old Paduk from Cambodia being processed at the Duc Cuong factory for Truong Thanh under the supervision of a Truong Thanh employee. Lam Truong Dak Mil Lam Truong Dak Mil has a small sawmill and a medium-sized timber yard located in Dak Mil on the road which runs west to Cambodia. The yard functions as a repository for Cambodian timber, the supply of which is brokered by Dak Lak provincial authorities, who conduct transactions on the Cambodian border67. In March 2000 the yard contained approximately 200 logs, which according to a spokesman for Lam Truong Dak Mil had been harvested at the end of 1999 and transported from Cambodia in early 2000. The spokesman explained that any Cambodian documentation accompanying the logs is discarded at the border. The logs are then given Vietnamese certificates of origin. This process is overseen by The Chief of the Provincial People’s Committee. The logs are subsequently sold on to garden furniture manufacturers including Tay Nguyen68. Hoang Anh Hoang Anh supply Cattie Asia, ScanViet , Beechrow, Proteam in the UK, Timbermade in Germany, and Vanson Group in the USA. Hoang Anh employees told Global Witness in March 2000 that the company used Cambodian timber69. Giakexim Giakexim export garden furniture to Japan. The Deputy Manager admitted that wood being used in their factory in March 2000 was from Cambodia. Wife of the Director (Truong Thanh company) 30/4 Gialai showing a Tropic Dane chair with a tag claiming it is Both 30/4 Gialai’s director, Mr Nguyen Sinh, ‘Environment Friendly’ Vietnam; March 2000. and the Accounting Manager, Mr Khang, informed Global Witness that the company were importing Gialai are currently selling two year old Cambodian wood from Cambodia, in spite of the fact that the wood Paduk71. One of Gialai’s customers is the company Phu cost considerably more than timber imported from Laos; Cuong, who manufacture garden furniture for ScanCom. $90 per m3 as against 60 per m3. Mr Sinh clarified this According to Phu Cuong, while ScanCom thoroughly apparent paradox, pointing out that each consignment of check wood provenance, no company ask for certificates of wood from Cambodia in reality exceeded the quantity sustainable logging72. It is not known if ScanCom use detailed on the contract; and paid for by 30/4 Gialai. 30/4 Paduk.

CHAINSAWS SPEAK LOUDER THAN WORDS 32 Conclusion / References

13. CONCLUSION REFERENCES

The last eighteen months have seen great progress in 1. Global Witness, interviews with provincial officials; December 1999 forestry reform. The continued success of the January 1999 2. Forest Policy Reform Project; 1998 crackdown has surprised many by its longevity, but there 3. Pearce, D., Putt, F., & Vanclay, J. (1999) A Sustainable Forest Future, CSERGE Working Paper GEC 99- are signs that the momentum behind reform is wavering. 15, University College London The crackdown began by hitting ‘soft’ targets; small 4. Bann, C. (1997) An Economic Analysis of Tropical Forest Land Use Options, Ratanakiri Province, Cambodia, EEPSEA Research Report Series, Economy and Environment Program for Southeast Asia, and medium scale illegal logging and milling operations. Singapore The task of tackling the concessionaires and military 5. For a description of the key characteristics of ecotourism see, for example, Wearing, S. & Neil, J. (1999) involvement in logging was always going to be difficult, Ecotourism: Impacts, Potentials and Possibilities, Butterworth-Heinemann, Oxford or Goodwin, H., Kent, I., Parker, K. & Walpole, M. (1998) Tourism, Conservation and Sustainable Development. Case because this means hitting Cambodia’s chief power Studies from Asia and Africa, Wildlife and Development Series No. 11, International Institute for brokers, those who have backed the winning political side Environment and Development, London and expect to enjoy the rewards that they bargained for. 6. Sherman, P. and Dixon, J. (1997) The Economics of Nature Tourism: Determining if it Pays, in France, L. (ed.), The Earthscan Reader in Sustainable Tourism, Earthscan, London The pace of reform is such that these areas need to be tackled now; if they are not then the reform process and 7. Pearce et al (1999) op. cit. the future of Cambodia’s forests may be fatally threatened. 8. Phnom Penh Post; 18th February - 2nd March 2000 To really reform the forestry sector and to achieve true 9. The New York Times: 8th April 2000. long-term political stability and credibility, the RGC has to 10. see, for example, Solberg, B. (1997) Forest biomass as carbon sink - economic value and forest management/policy implications, Critical Reviews in Environmental Science and Technology, 27:S323- maintain the momentum. In this it will face resistance from 333 senior political, military and business figures. The 11. see, for example, Lohmann, L. (1999) The Carbon Shop: Planting New Problems, Briefing Paper - Plantations Campaign, World Rainforest Movement. Downloaded on 6/4/2000 from international community must support the RGC at this http://www.wrm.org.uy/english/plantations/material/carbonshop.htm time, both through financial and technical support for 12. January Global Witness, interview with management of Hero Taiwan Co.; 22nd January 2000. reforms, but also by continuing to relate non-humanitarian aid disbursements to continued reform in the forestry sector. 13. Global Witness, interview with Mr Pal Seng; 23rd January 2000 The ADB funded concession review has shown, 14. Global Witness, interviews with local villagers; January 2000 unequivocally, that the current state of affairs cannot be 15. Letter from Ratanakiri governor Kam Khoeurn to governors of Veun Sai, Ta Veng and 0 Chhum districts; 31st March 1999 allowed to continue. The forest sector is in a shambles and 16. Letter from governor of Veun Sai district, Heng Bunthan to commune chiefs of Kon Mom, Ban Pong, will remain so until all of the recommendations made by the Koh Peak, Phnom Kok, Koh Pong; 11th November 1999 World Bank funded Forest Policy Reform Project and the 17. Global Witness, interview with management of Malay Company; 21st January 2000 ADB are actually implemented. It is obvious that the only 18. Global Witness, interview with Seng Huq; 21st January 2000 sensible course in the short-term is to impose a complete 19. Global Witness investigations; January 2000 moratorium on concession activity. If this is not done, then those companies and government agencies responsible for 20. Anonymous provincial source the uncontrolled destruction of Cambodia’s forest resource 21. Global Witness, interview with local businessman January 2000 will remain operational in the diminishing remnants of the 22. Global Witness, interview with timber company employee; 18th .January 2000 forest estate. The results of this are obvious. 23. Global Witness investigations; December 1999

Pheaphimex Banner, Phnom Penh; January 2000. Progress...

33 CHAINSAWS SPEAK LOUDER THAN WORDS References

24. Global Witness, interviews with local villagers; December 1999 25. Global Witness, interview with shopkeeper; December 1999 26. Global Witness, interviews with local villagers and fishermen; December 1999 27. Global Witness, interviews with local villagers and former KR soldier employed by timber company; March 2000 28 Global Witness, interviews with timber company employees; December 1999 29. Stung Treng DoE report no 33, 25th February 2000 Global Witness is a British based non-governmental organisation 30. Global Witness, interviews with local villagers; March 2000 which focuses on the links between environmental and human 31. Global Witness, interviews with local truck drivers March 2000 rights abuses, especially the impacts of natural resource exploitation upon countries and their people. Using pioneering 32. Associated Press; 10th January 2000 investigative techniques Global Witness compiles information and 33. Cambodia Daily; 28th March 2000 evidence to be used in lobbying and to raise awareness. Global 34. Global Witness, interview with provincial official; November 1999 Witness’ information is used to brief governments, inter- 35. Global Witness investigations; November-December 1999 governmental organisations, NGOs and the media. Global Witness 36. Global Witness, interview with logger; December 1999 has no political affiliation. 37. Global Witness, interview with truck driver; December 1999 Global Witness’ previous publications 38. Global Witness, interviews with provincial officials; February 2000 also available on our website: http://www.oneworld.org/globalwitness/ 39. Global Witness investigations; November 1999 “Timber Takeaway — Japanese Over-comsumption — the Forgotten Campaign 40. Global Witness, interviews with local villagers; February 2000 published March 2000 41. Global Witness, interview with provincial Police official; February 2000 “The Untouchables — Forest crimes and the concessionaires—can Cambodia afford to keep them?” 42. Global Witness, interviews with loggers in Slilng Trang: February 2000 published December 1999 43. Global Witness investigations; Thailand. 8th-18th April 2000 “A Crude Awakening — 44. Global Witness investigations; Cambodia; 1999 The Role of the Oil and Banking Industries in Angola’s Civil War and the Plundering of State Assets” 45. Pers comm. Anon, Thailand, April 2000 published December 1999 46. Report by Seing Kim Sron, Head of General Management, Chernda Plywood Co. Ltd “Made in Vietnam — Cut in Cambodia How the garden furniture trade is destroying rainforests” 47. Global Witness, interview with logger; December 1999 published April 1999 48. Cambodia Daily; 13th October 1999 “Crackdown or Pause — 49. Global Witness investigations; February 2000 A Chance for Forestry Reform in Cambodia?” published February 1999 50. Global Witness, interviews with provincial officials; February 2000 “A Rough Trade — 51. Global Witness, interviews with local villagers; February 2000 The Role of Companies and Governments in the Angolan Conflict” 52. Global Witness, interviews with provincial officials and RCAF soldier; February 2000 published December 1998 “Going Places — Cambodia’s Future on the Move” 53. Global Witness, interview with Dr Rudi Demargeau; January 2000. published March 1998 54. GIS Unit, DFW Map; 1999 “Just Deserts for Cambodia — 55. Global Witness, interviews with provincial officials; November 1999 Deforestation & the Co-Prime Ministers’ Legacy to the Country” published June 1997 56. Letter from KCD to the Ministry of Agriculture, Forestry and Fisheries “A Tug of War — the Struggle to Protect Cambodia’s Forests” 57. Letter from Phnom Trorp Co. Ltd to Ministry of Agriculture, Forestry and Fisheries published March 1997 58. Letter from Phnom Trorp Co. Ltd to Ministry of Agriculture, Forestry and Fisheries “Cambodia, Where Money Grows on Trees — Continuing Abuses of Cambodia’s Forest Policy” 59. Letter from Cam Chi International Agricultural Development Co. Ltd to Ministry of Agriculture, Forestry and Fisheries published October 1996 60. Forest Crime Monitoring and Reporting Unit, letter to the DFW; 30th March 2000 “RGC Forest Policy & Practice — the Case for Positive Conditionality” published May 1996 61. Official Thai document to celebrate the opening of the border passes; 1999. “Corruption, War & Forest Policy — 62. Global Witness investigations; 1996 the Unsustainable Exploitation of Cambodia’s Forests” published February 1996 63. Global Witness, interview with Jackie Hughes, Commercial Director, Cattie Asia; March 2000 “Thai-Khmer Rouge Links & the Illegal Trade in Cambodia’s Timber” 64. Global Witness, interview with Simon Pierre Ragonneau, Vice-Manager, Scanviwood; March 2000 published July 1995 65. Global Witness, interview with Richard Chia, Chief, Koda Vietnam Representative Office; March “Forests, Famine & War — the Key to Cambodia’s Future” 2000 published March 1995 66. Global Witness, interview with Tay Nguyen Forestry Industrial Company factory manager; March 2000 ACKNOWLEDGEMENTS 67. Global Witness, interview with Mrs Thu, wife of Truong Thanh director; March 2000 Global Witness would like to thank all its volunteers, and friends in Cambodia without whom this report would not have been possible. 68. Global Witness, interview with spokesman f or Lam Truong Dak Mil; March 2000 This report is the copyright of Global Witness, and may not be reproduced in any 69. Global Witness, interview with Hoang Anh factory workers; March 2000 form without the written permission of the organisation, except by those who wish 70. Global Witness, interview with Deputy Manager Giakexim; March 2000 to use it to further the protection of human rights and the environment. Design by Dean Bond ([email protected]). 71. Global Witness, interview with Mr Nguyen Sinh, Director and Mr Khang, Accounting Manager, Gialai; March 2000 All photographs copyright © Global Witness. 72. Global Witness, interview with Pham Minh Tan, Factory Director and Nguyen Quoc Bao, Deputy Front cover photo: Hero Taiwan concession, Ratanakiri, Cambodia. Director, Phu Cuong; March 2000 Back cover: Burning log, Hero Taiwan concession, Ratanakiri, Cambodia. Printed on 100% unbleached recycled paper.

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CHAINSAWS SPEAK LOUDER THAN WORDS 34 “[The military task force] must dig into the roots, with no one being spared with any mercy.” “They must be met with disciplinary measures, fired, demoted or sued in a court of law.” PRIME MINISTER HUN SEN ON ILLEGAL LOG EXPORT DEAL FROM MONDULKIRI TO VIETNAM, JANUARY 2000.

ISBN 1 903304 02 4 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/