Residents in southern Cambodia who invested in a company that advertised regular returns said they believe they are victims of a scam and are urging government officials to intervene.
More than 100 investors submitted a petition at Svay Rieng Provincial Hall on Monday asking Prime Minister Hun Manet to help them recover their money.
Several people have told Radio Free Asia that the investors were deceived by the Phum Khmer Group, which had promised that its duck farms, animal feed factories, restaurants and real estate holdings would generate a monthly 4% payment for investors.
Some invested between US$40,000 and US$120,000 in 2021, they told RFA, speaking on condition of anonymity for security reasons.
An investor told RFA that he has never received any interest or dividend payments, as promised in the signed contract. He said he filed a court complaint more than a year ago, but hasn’t received any response.
Many investors took out bank loans to invest with the Phum Khmer Group, according to another investor, Meak Somara. After her investment of US$15,000, the company made regular payments for a few months and then stopped.
Phum Khmer’s chief executive, Som Sothea, no longer responds to messages, she said.
“We need to find him. We cannot find him. He has blocked us on Facebook,” she said. “But more importantly, I want the country’s leaders to help find a way for Som Sothea to come and discuss our case.”
Top government officials ought to help find Som Sothea, or seize any remaining funds from Phum Khmer so that investors can at least be partially reimbursed, Meak Somara said.
‘Embarrassed and afraid’
Som Sothea is believed to be a close friend of Duong Dara, a personal assistant to Senate President Hun Sen, the former prime minister who is Hun Manet’s father and the president of the ruling Cambodian People’s Party.
Som Sothea advertised his relationship with Duong Dara when he pitched the company to potential investors, several investors told RFA.
Several investors also told RFA that Duong Dara and his younger brother, Duong Virath, all have shares in the Phum Khmer Group. They said the company also pays a monthly operating fee to the Svay Rieng provincial administration.
Duong Dara said on his Facebook page last week that – other than joining company workers in distributing food to the poor on one occasion – he has no involvement with the Phum Khmer Group’s business interests.
RFA was unable to reach Duong Dara and Duong Virath for comment on Tuesday. RFA also couldn’t reach Som Sothea for comment on the investors’ complaints.
The widespread suspicion that there are powerful officials with ties to the Phum Khmer Group is enough for the government to open an investigation, according to Ros Sotha, president of the Cambodian Human Rights Action Committee, or CHRAC.
“Many victims will come forward to file complaints if the government has a mechanism to accept those complaints,” he said. “Right now people feel embarrassed and afraid of the officials behind those companies. They are afraid he will be imprisoned and lose all the money.”
Monday’s petition was the second one sent to government officials, a third investor told RFA.
After the previous petition was submitted in 2022, Svay Rieng officials told investors they did nothing because there were too few complaints about the matter, the third investor said.
“I don’t have hope that the provincial level can resolve the complaint becauset the owner has someone powerful behind him,” he said. “Only the top government officials can resolve this.”
Svay Rieng Provincial Hall spokesman Ros Sopharith didn’t respond to a message on Tuesday seeking more information on the petition.
Translated by Yun Samean. Edited by Matt Reed.