Cambodia’s Supreme Court has not shown leniency in the case of a labor union leader who organized one of the longest-running strikes against the country’s biggest casino, with the detainee, Chhim Sithar, alleging that NagaWorld laid off workers illegally and attempted to bust the union’s efforts to fight back.

No Reprieve for Determined Union Labor Leader

The Supreme Court found Sithar, president of the Labor Right Supports Union of Khmer Employees of NagaWorld, to have acted against the law, upholding his two-year prison sentence originally meted out in May 2023. Sithar was brought up on charges of incitement to commit a felony, and the court has now upheld the sentence, meaning that Sithar will have to serve out his sentence.

Sithar was the driving force behind the protests that erupted in December 2021, protesting mass layoffs at the NagaWorld Casino in the country’s capital, Phnom Penh and was finally arrested in January 2022, after refusing to back down and tell union workers to go home. NagaCorp has since recovered, demonstrating strong growth.

NagaWorld fired 373 employees as the casino faced the financial pinch of the pandemic and lack of tourists, which significantly depressed operational results and brought business to a standstill. Despite Sithar’s arrest, though, many of the fired workers continue to rally and protest both her incarceration and sentence, as well as the way NagaWorld and Cambodia’s legal system have treated the case.

Yet, some have opted out of settlements with the company, and some 200 ex-workers have already accepted settlements. Yet, others have not been so lucky. Sithar may have been dubbed a “ringleader” by the court, but she is not alone, as eight of her fellow union workers have also been handed down 18-month prison sentences as well.

Illegal Detention and Human Rights Champion

Sithar though is unlikely to be released earlier. She will end her sentence term later this year. She is also the recipient of the US Department of State Human Rights Defender Award and this distinction comes at a time when the United States has warned that doing business in Cambodia could pose significant risk to investors, alleging that corruption ran deep in the state.

Cambodia has vehemently denied these accusations.  Yet, the fate of Sithar is no way to assuage concerns about underhand practices that favor powerful businesses over citizens. NagaWorld began operations in 1994 and the casino is owned by the powerful Malaysian billionaire Chen Lip Keong and his family.

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A staggering number of journalists, 192 in total, have stepped forward to address the Cambodian Ministry of Information regarding allegations of extortion from the Top Diamand Casino situated in Takeo Province. The venue claims that 828 individuals claiming to be journalists had abused their position to secure free food and monetary gifts, prompting an official investigation.

The Government Vowed to Take Action

Minister of Information Neth Pheaktra warned the journalists implicated in the bribery, mandating their appearance before the Ministry within a month to elucidate the situation and cooperate with the inquiry. Presently, 192 representatives from 107 media outlets have appeared, signifying their readiness to discuss the allegations made by the casino.

Tep Asnarith, Information Ministry spokesman, emphasized that journalists and media outlets who failed to verify their names would face legal action. Article 7/11 of the Law on the Press prohibits journalists from accepting bribes or extortion for publishing or withholding information, giving the government the means to pursue the alleged offenders.

Top Diamand Casino has pledged to cooperate with authorities, clarifying that its initial statements regarded individuals rather than media units or companies. Several high-profile media organizations have also stepped forward, denying any involvement in the scandal. This incident has gained significant momentum in the country and threatens to damage the reputation of journalists in Cambodia. 

Media Integrity Remains a Priority for the Ministry

Initial investigations revealed that many names on the list were not affiliated with any official media and likely faked their credentials to receive free offerings. However, Nop Vy, Executive Director of the Cambodian Journalist Alliance (CamboJA), noted that this case should serve as a lesson to the broader media industry.

The preventive measures are to educate, strengthen the understanding of media, and provide professional training to journalists with the collective participation of all stakeholders.

Nop Vy, CamboJA Executive Director

Speaking for The Khmer Times, Vy noted that improved educational campaigns would help journalists better adhere to ethical practices and perform their work professionally and without conflicts of interest. He added that strict adherence to these principles was the only way to improve the public perception of media representatives and dispel doubts regarding their integrity.

This recent case highlights Cambodia’s ongoing battle with corruption. Although the country left the FATF Grey List in February 2023, it still struggles with issues like illegal gambling and money laundering. The Ministry of Information remains committed to addressing the observed ethical breaches and ensuring that journalism in Cambodia adheres to lawful and professional standards.

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A total of 1,241 people were arrested in various operations over the period. The news was confirmed by National Police spokesperson Lieutenant General Chhay Kim Khoeun who outlined the work of authorities during the half-year.

Cambodia Keeps the Heat on Illegal Gambling

Out of the people arrested, 782 people were instructed and “educated” not to gamble any more, but in the cases of 459 people, their offenses were considered serious enough to merit court proceedings.

Chhay reaffirmed the police force’s commitment to cracking down on illegal gambling operations across the board and follows a government-wide effort to uproot the practice from the country. Prime Minister Hun Sen vowed to clean his country from illegal gambling back in September 2022 and has directed the police to do his bidding.

This commitment enabled the country to get off the Financial Action Task Force list, which features countries with dubious AML laws and a proliferation of illicit practices which is bad for foreign investors. Gambling in Cambodia has also been linked to human trafficking and kidnappings, putting the country in an even worse light with international partners.

Getting the Results That Matter

The prime minister enacted his will by replacing local and district governors in order to signal to the rest that he values progress against illegal gambling very highly. “I would like to inform you that it is no longer possible to tolerate anarchic situations in the casino. We must be strict,” Hun Sen told at the time he launched his war on the illicit gambling sector.

Cambodia has been under pressure from China, an important trade and economic partner, to rein in the gambling industry. This led to the government’s decision to stop issuing new licenses for online gambling operations in 2019.

The news of the latest crackdown is the first big news coming out of the country vis-à-vis illegal gambling in recent months which demonstrates the success Cambodia has had in tackling the larger issue. Regardless, the number of arrests indicates that there is a vibrant scene built around illicit gambling.

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Moving forward, though, the FATF would not consider Cambodia a high-risk jurisdiction, albeit the country will most certainly have to maintain its unfaltering commitment towards cracking down on illegal gambling and eliminating any doubt that it may be allowing human trafficking to happen on its watch.

Cambodia Finally Makes It Off the FATF’s List

Both Cambodia and Morocco have been removed from the list, with the FATF citing the two countries’ sustained efforts in improving AML and CFT regulation and enforcing rules. In a statement published on Friday during a plenary meeting, the regulator said:

Each country has addressed its technical deficiencies to meet the commitments of its action plan on strategic deficiencies that the FATF identified in February 2019 and 2021 respectively.

FATF

This does not mean that there are no issues to be tackled still. Cambodia has not quite cleared all the hurdles it faces, but it has been actively trying to, which is what FATF considers a qualifying factor to be taken off its list.

The country has been in hot water with international regulators since 2019 as it lacked a clear strategy to address AML/CFT issues it faced at the time. This prompted the US Department of State and the FATF to both criticize the country’s lack of action and recommend not doing business in Cambodia.

Much Effort and Time Expended to Achieve This Goal

In the meantime, Cambodia has made significant efforts to plug one of the biggest holes in its AML and CFT standards – the gambling industry. The country’s officials have cajoled licensed and upstanding operators, encouraging them to pay due taxes.

There is a fair degree of involvement from China, a neighbour who has been advocating for a tougher stance on illegal casinos in the country for a very long while. Recently, China said that it’s looking to work together with Cambodia on addressing trans-border crime, including gambling, drugs, and human trafficking among other illicit activities.

Yet, the true driver of change has come from within the government and police authorities which have pushed against the illegal gambling sector and cracked down on it heavily.

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China in particular has been very keen to eliminate cross-border gambling, expending a considerable effort to this end over the past years, arresting thousands of suspects, shuttering gambling sites, operations, and more.

All the while, the country has been trying to elicit the same level of commitment from neighbors such as the Philippines and Cambodia to whom China is an important trading partner and can therefore exercise its charm offensive.

China Continues to Work with Cambodia on Restricting Illegal Gambling

But now, the two Asian countries have come to an agreement to strengthen their bilateral ties insofar as cracking down on illegal online gambling and cross-border gambling is concerned. A press briefing of the Chinese ambassador to Cambodia Wang Wentian paid particular attention to illegal gambling that was emanating from or being facilitated by illegitimate organizations in Cambodia.

The Khmer Times cited the ambassador as saying that China is prepared to work with Cambodian authorities and that transnational crime, such as drug and human trafficking, illegal online gambling and other illicit activities, should be dealt swiftly with. Part of this effort would require the continued sharing of information between law enforcement in the two countries.

China has already had success in projecting its ambitions to crack down on illegal gambling in Asia. The country convinced Cambodia to stop issuing new online gambling licenses and the government further decided to suspend licenses for online gambling properties which were deemed void on January 1, 2020.

Fighting Illegal Gambling Has Already Begun in Cambodia

Cambodia has also since tried targeting some of the hot spots in the country connected to illegal gambling activities, such as Sihanoukville, a coastal town that has raised media headlines with repeated reports of human trafficking which have tarnished Cambodia’s international reputation.

In January, the country said that it had shut down more than 200 illegal gambling businesses between September 15 and December 27. These efforts are continuing into 2023. As to licensed gambling operations in the country, Cambodia has urged them to pay their due tax, amid a larger overhaul of the casino’s taxation system in the country.

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