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LOGS and PATRONAGE: SYSTEMATIC ILLEGAL LOGGING and the DESTRUCTION of STATE FORESTS and PROTECTED AREAS in Rattanakiri and Stung Treng Provinces, Cambodia

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LOGS and PATRONAGE: SYSTEMATIC ILLEGAL LOGGING and the DESTRUCTION of STATE FORESTS and PROTECTED AREAS in Rattanakiri and Stung Treng Provinces, Cambodia evTikaénGgÁkarminEmnrdæaPi)al sþIBIkm<úCa The NGO Forum on Cambodia eFIVkarrYmKñaedIm,IPaBRbesIreLIg Working Together for Positive Change LOGS AND PATRONAGE: SYSTEMATIC ILLEGAL LOGGING AND THE DESTRUCTION OF STATE FORESTS AND PROTECTED AREAS in Rattanakiri and Stung Treng Provinces, Cambodia June 2015 Logs and Patronage: Systematic illegal logging and the destruction of state forests and protected areas in Rattanakiri and Stung Treng Provinces, Cambodia Printed Date: June 2015 Published by: The NGO Forum on Cambodia Land and Livelihoods Program Forestry Rights Project All photographs in this report are provided by Investigation Team DISCLAIMER: The views expressed in this report are those solely of the authors and do not necessarily represent the views of The NGO Forum on Cambodia. While the content of this report may be quoted and reproduced, acknowledgement and authorization of the report’s authors and publisher would be appreciated. © The NGO Forum on Cambodia, June 2015 ACKNOWLEDGEMENTS We, a union of NGOs, would like to express our sincere thanks to the individuals from various communities and organizations for their support and assistance. Special thanks must be given to Mr. Thomas Blissendem from the Macquarie University, Sydney, Australia for providing the legal analysis of the Try Pheap Group’s luxury timber business. This research is intended to give new vigour to a forestry reform in Cambodia. This report is dedicated to the late Chutt Wutty and all forest defenders in Cambodia. CONTENTSCONTENTS Contents ............................................................................................................................i Acronyms ..........................................................................................................................iii Executive Summary .......................................................................................................v 1. Introduction ..........................................................................................................1 2. Structure of this report .....................................................................................3 3. Methodology ..........................................................................................................4 4. Deforestation in Rattanakiri province .........................................................4 4.1. Main motives for deforestation ........................................................................... 5 4.2. Further causes of deforestation .......................................................................... 8 5. Price of luxury timber ........................................................................................10 6. Main logging businesses in Rattanakiri ......................................................11 6.1. Luxury timber businesses ..................................................................................... 14 7. Impact of deforestation ....................................................................................15 7.1. Loss of income and sustainability...................................................................... 15 7.2. Loss of self-determination .................................................................................... 19 7.3. Climate change ........................................................................................................... 21 8. The Try Pheap Group’s luxury timber business ........................................21 8.1. Strategy and process ............................................................................................... 21 8.2. Right of Try Pheap Group to collect and purchase timber from economic land concession in Rattanakiri ................................................................................... 22 8.3. Logging, harvesting, stocking and transporting luxury timber ............ 23 9. Export of luxury timber by Try Pheap Group .............................................36 10. Legal analysis of the Try Pheap Group’s luxury timber business .....38 10.1. What is the distinction between legal and illegal logging activities? .............................................................................................................................. 38 10.2. Main conclusions from the Legal analysis of the Try Pheap Group’s luxury timber business ................................................................................................... 39 10.3. Is the licence granted by the Royal Government of Cambodia to the Try Pheap Group, permitting them to purchase all logged timber in Ratanakiri, legal under international law? ............................................................. 41 10.4. Did the Royal Government of Cambodia breach national and international law by failing to adequately consult the public before granting licences to the Try Pheap Group? ...................................................................................................... 42 11. Technical terms explaining luxury timber ...............................................42 i 12. Interviews with relevant stakeholders ......................................................52 13. Recommendations ............................................................................................68 14. Appendices ..........................................................................................................70 Appendix 1: Explanation of the value of timber ............................................................... 70 Appendix 2: Licence plates seen by researchers ............................................................ 72 Appendix 3: Sub Decree on granting a Economic Land Concession with a size of 9709 hectare to Try Pheap Import Export Co Ltd, in Taveng district, inside Virachey National Park, dated 09.02.2011 ............................................................. 73 Appendix 4: Sub Decree to convert a sustainable use zone of 9146 hectares within Virachey National Park into State private Land, dated 09.02.2011 ............. 75 patrons ................................................................................................................................... 77 Appendix 5: Codified list of Try Pheap managers, representatives and timber Appendix 6: Timber codes of logging patrons .................................................................. 80 Appendix 7: Illegal logging areas inside Virachey National Park .............................. 80 Appendix 8: Try Pheap Group and An Mady Depot and sawmill sites ................... 82 Appendix 9: Invoice(s) from Try Pheap Import Export Co.Ltd to a buyer in Hong Kong, the Hong Kong Kin Chung Transportation Co .............................. 84 Appendix 10: Letter from the Ministry of Environment to the Cambodian Prime Minister, requesting permission for the Try Pheap Import Export Co Ltd. and MDS Thmodar S.E.Z. Co. Ltd to export 100.000 cubic metres (m³) of processed wood ................................................................................................................. 93 Appendix 11: Approval by the Council of Ministers to the request of the Ministry of Environment granting permission for the Try Pheap Import Export Co Ltd. and MDS Thmodar S.E.Z. Co. Ltd to export 100.000 qm2 processed wood .. 95 the Cambodian Prime Minister, requesting permission for the Try Pheap Appendix 12: Unofficial translation of the letter from Ministry of Environment to Import Export Co Ltd. and MDS Thmodar S.E.Z. Co. Ltd to export 100.000 qm2 processed wood ....................................................................................................... 96 to the request of the Ministry of Environment granting permission for the Appendix 13: Unofficial translation of the approval by the Council of Ministers Try Pheap Import Export Co Ltd. and MDS Thmodar S.E.Z. Co. Ltd to export 100.000 cubic metres (cm³) of processed wood ................................................. 97 .. 98 Appendix 15: Agreement in Khmer and English between a logging patron and Kok Appendix 14: List of timber species classified according to their timber quality Lak Commune village leaders, in which the logging patron agrees to construct buildings in return for allowing logging in Kok Lak Commune .................... 101 ii Acronyms CAMCONTROL Cambodia Import-Export Inspection and Fraud Repression Department cm³ cubic metres CPA Community protected areas ELC economic land concessions FA Forest Administration FOB freight on board ha hectare HRC Human Rights Committee of the United Nations ICCA Indigenous and Community Conserved Areas ICCPR International Covenant on Civil and Political Rights IUCN International Union for the Conservation of Nature MAFF Ministry of Agriculture, Forests and Fisheries MDK Mondulkiri MoE Minsitry of Environment NGO non-government organisation NTFP non-timber forest products p. person RGC Royal Government of Cambodia RTK Rattanakiri S4S smoothed four sides TPG Try Pheap Group TTR telegraphic transfer reimbursement VNP Virachey National Park VSSPCA Ven Sai Sieam Pang Conservation Area iii EXECUTIVEEXECUTIVE SUMMARYSUMMARY This report presents results of research into the destruction of forests and natural resources in Rattanakiri and Stung Treng Provinces, Cambodia. Over a number of months the researchers collected evidence and legal documentation, often work- ing under dangerous and life-threatening conditions to record the activities of the luxury timber trade. The results of the research presented in this report
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