Editorial | Articles about Cambodia | Khmer

Tuesday, March 03, 2009

Watch Video: Cambodia For Sale

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Video Journalist David O'Shea reports from Cambodia, where locals are now faced with a new peril - rampant land developers literally smashing entire communities, leaving thousands homeless.

TRANSCRIPT

These days, for better or worse, we don't hear all that much about that once basket-case nation even though, as we speak, a leading henchmen of the notorious Pol Pot is on trial in Phnom Phen finally charged with crimes against humanity. As if surviving the Killing Fields wasn't enough, hapless Cambodians are now faced with a new peril - rampant land developers literally smashing entire communities, leaving thousands homeless. And David O'Shea reports that all this is going on with a proverbial wink and a nod from Cambodia's powerful political elites.

REPORTER: David O'Shea

This is a story about power in Cambodia - those who have it and those who don't. It's also about the power of money and what some would call 'progress' in this impoverished land. Right across the country, the poor and powerless are being shoved aside in the rush for so-called development, and it's happening with the complicity of Cambodia's leaders.

The story begins here in Boeung Kak Lake in the heart of the capital, Phnom Penh. Two years ago, a little-known developer signed a 99-year lease with the council for this 133-hectare site. And they're filling 90% of the lake with sand to build a high-rise. The problem for people living around the edge of the lake is, as the sand goes in the water level rises and their houses go under. Since the beginning, there's been a total lack of transparency about the deal. Opposition parliamentarian Sam Rainsy is quite literally wading into the debate.


SAM RAINSY, OPPOSITION PARLIAMENTARIAN: We are here to support the people and to protest against these so-called development projects that cause so many problems for the people living here.

REPORTER: This is a ridiculous situation.

SAM RAINSY: Ridiculous. They don't take into account the environment. They ignore, or they pretend to ignore, that when they fill in lakes, this is going to cause floods. But they don't care - they want to make profits.

REPORTER: Who is this 'they' you're talking about?

SAM RAINSY: They're unscrupulous businessmen who have the support of corrupt political leaders.

People here tell Rainsy they have seen nothing like it in 30 years.

SAM RAINSY: They say this is directly related to the nearby lakes being filled in.

REPORTER: It's not that you've had more rain this year than usual?

SAM RAINSY: No, it is not due to rain.

REPORTER: So it's a pretty miserable existence here at the moment?

SAM RAINSY: Yes, everybody is complaining. Behind their gentle smile you can perceive the anger.

DAN NICHOLSON, CENTRE OF HOUSING RIGHTS AND EVICTIONS: This is the biggest forced relocation of people since Khmer Rouge times - over 4,000 families - and it's happening without proper information, without proper consultation.

Dan Nicholson is with the Centre on Housing Rights and Evictions, headquartered in Geneva. They're campaigning for the 4,000 families set to be evicted from villages around the lake. Families who have lived here for years, including many who settled here immediately after the horrors of the Khmer Rouge period.

DAN NICHOLSON: The whole contract under which it's being done is blatantly illegal but even though we've gone to court, we can't stop it. There's a total lack of involvement of the community and for the benefit for the community. Instead, the urban poor are just being shunted out of town while the elite take over with another badly thought out development.

The community's legal challenge was dismissed by the court on a technicality. And for those residents resisting threats and intimidation to leave, the flooding is making daily life extremely difficult. Nicholson believes the company, Shukaku, may be using it as a strategy to force them out.

DAN NICHOLSON: They've been pumping sand into the lake for the last couple of months, and so when the rains came, all this flooding is much worse than usual at this stage - kind of a way to force the community out, I guess - those who're staying.

REPORTER: You think? So, that could be it?

DAN NICHOLSON: Yeah, well, they've been told either to go now or your houses will be flooded, so...

This enormous development will completely transform this part of Phnom Penh, but finding out anything at all about the company behind it is almost impossible. Shukaku has no office, and they're not even in the phone book. What we do know is that the company director is senator Lao Meng Khin, a close ally of Prime Minister Hun Sen. The senator is also director of Pheapimex, one of the most powerful conglomerates in the country. According to this report released a fortnight ago by the London-based NGO Global Witness, the senator made his millions in logging.

‘NGO GLOBAL WITNESS’: “ In a forest industry dominated by illegal logging and conflict with local people, Pheapmex held the dubious distinction of being notorious amongst the concessionaires for its ruthlessness and the level of destruction inflicted on its concession areas.”

On the other side of Phnom Penh is the community of Dey Krahorm. It's a market area in a great location, and like the residents around the lake, people have lived here legally for decades. Land titles here are still a mess following the upheaval of the Khmer Rouge years, but under a 2001 law, if people can prove that they've occupied land for more than five years, they have possession rights. What's more, Prime Minister Hun Sen specifically earmarked this area as a social concession, to be developed in conjunction with the existing residents. But that promise was broken, and it's clear the government is now supporting the developer. Negotiations for adequate compensation have just hit a wall. And community leader Chan Vichet knows that this is the beginning of the end. Vichet is on the way to City Hall to see if he can salvage the stalled negotiations.

CHAN VICHET, COMMUNITY LEADER (Translation): Here in Cambodia they don’t respect the poor. If there are legal proceedings, we always lose. In court even if you are right you will lose against the rich. We live here legally, but the Council considers us to be illegal residents. They say we are anarchists.

With no-one to stop them, Vichet and the other delegates march straight into the Deputy Governor's office.

CHAN VICHET (Translation): I’m bringing this proposal to you because the people are very worried.

WOMAN (Translation): Please make it short, it affects my business. Do whatever is possible.

DEPUTY GOVERNOR (Translation): Okay, let’s go outside, yes I will do something. Let’s go.

WOMAN (Translation): Thank you very much.

The Deputy Governor says the company's offer stands - $US20,000 per family or a house outside the city at the relocation site. The residents complain that $20,000 is a fraction of the land value for prime real estate in the centre of the city and the relocation site offers inadequate housing too far from their livelihoods.

DEPUTY GOVERNOR (Translation): Vichet, you have to change son. You have to change your attitude. We are not at war, we are educated people. That’s all I can do, the company has offered you $20,000.

WOMAN (Translation): That won’t buy a home.

DEPUTY GOVERNOR (Translation): It’s your decision. We won’t talk further because you don’t act decently. You respond by making faces at me. Very rude! You are very rude. You must excuse me, I regret making time to talk to you.

REPORTER: Mr Deputy Governor, can you guarantee that these people will be safe or are they going to suffer some kind of attack in the next few days?

DEPUTY GOVERNOR (Translation): Have you seen anyone get hurt? Did anyone get even a slap?

CROWD (Translation): No, no, no.

DEPUTY GOVERNOR (Translation): When your husband hits you at home it’s worse than my words to you.

REPORTER: So far nobody hurt. What about tomorrow or the next day?

DEPUTY GOVERNOR (Translation): Tell him I am not the one who makes decisions. He has a right to ask but I have a right not to answer.

Rumours are swirling that tonight is eviction night. I find Vichet at home - a broken man.

CHAN VICHET (Translation): I don’t know what to do now, if they use force to evict us we have to protect our homes. If we can’t defeat them, we just have to watch them do it because we have no power.

At midnight, police set up roadblocks and hundreds of officers move into place. Colour coded T-shirts are handed out to the hundreds of workers the company have trucked in to do their dirty work. At 2am a car pulls up, and axes are handed out to the workers. Around the corner scores of trucks are standing by to haul away the rubble. In the pre-dawn, the colour coordinated workers take up positions and on the dot of 6am, they attack.

MAN (Translation): Get them out, get them out, get the camera out of here.

At every entrance I'm turned back.

REPORTER: So, what's happening? Tell me what's happening. What's happening?

POLICEMAN: I don't know. It's the order. I don't know.

REPORTER: What's the order?

POLICEMAN: I don't know. I'm sorry.

The demolition work is swift. Within a few hours, it's all over.
This is the ruins of Vichet's house. I spoke to him last night at midnight - or just before midnight. He was pretty resigned to losing his place, and here it is, gone.
When the bulldozer driver ploughs through people trying to save their possessions, they strike back. The company's fire extinguishers are used to disperse them. An injured woman is carried out as others salvage what they can.

WOMAN (Translation): We paid money for these blocks, thousand of dollars, look what they have done to us by bulldozing these homes. Some were still asleep, got hurt and were hospitalised.

WOMAN 2 (Translation): My childrens jewellery.. ring, earrings, all gone. Why can’t they let us move without force?

WOMAN (Translation): They won’t let us take anything we had to fight to get our belongings. The owner of that house was unconscious and was taken to hospital.

Human rights workers observing proceedings could point to several laws broken here today.

NALY PILORGE, HUMAN RIGHTS CAMPAIGNER: What the company has done with the complicity of authorities - military police and local police - is illegal. This was designated a social concession and it was sold to a company, which is prohibited. And if you see those buildings behind you, this is next - all these people that have been watching, I'm sure they know they're next. This is a very valuable piece of land. It's a really sad, sad situation, and again, illegal and with the complicity of the authorities.

The workmen on the roof of Australia's new embassy also had a ringside view of the destruction. The building is going up right in the middle of the eviction zone. All around it communities have been forced out or will be shortly - even though they have a strong legal claim to be there.

AUSTRALIAN ANTHEM: Australians all let us rejoice for we are young and free. We've golden soil... Our home is girt by sea...

It's Australia Day at Ambassador Margaret Adamson's residence.

REPORTER: Are you concerned that violent and illegal evictions are going on on the doorstep of the new Australian embassy?

MARGARET ADAMSON, AMBASSADOR TO CAMBODIA: Well, Of course we have concerns about how the Cambodian Government manages the issue of land tenure. It's a long-standing issue in the country and we have concerns which we express to the Cambodian Government on a regular basis.

REPORTER: This was right on the doorstep of the new Australian embassy, so it must be... doubly embarrassing for you at this stage, no?

MARGARET ADAMSON: I'm conscious of the location. .. I don't find it embarrassing, no. I find it a matter as I've said before to you, that is a matter which is played out in different parts of the country, so I don't see find on the doorstep of the Australian embassy any less deserving of our attention than anywhere else in the country.

REPORTER: Under the 2001 law, don't they have residency rights or possession rights?

MARGARET ADAMSON: It's very difficult to prove, though, isn't it? It's very difficult to prove...

REPORTER: If they've been there for longer than five years noticeably without violence... I understand what you say.

MARGARET ADAMSON: Absolutely. Absolutely. No, I understand what the principles are, but it is difficult indeed to actually have the documentation, documentation that is accepted, to enable those claims to be respected.

Together the international community pledged $1 billion last year to the Cambodian Government. The Global Witness report 'Country For Sale' is scathing about the role played by donor countries like Australia.

‘THE GLOBAL WITNESS’: “ Cambodia’s international donor community has consistently failed to bring the government to book for blatant violations of its commitments to protect the human rights of Cambodians, fight corruption and ensure the protection of land and natural resources.”

The land grabbing frenzy is going on right around the country. Of them all, one case stands out for its brazen abuse of power. The village of Kong Yu is in the remote north-east of the country near the Vietnamese border. The indigenous Jarai people here are culturally and ethnically distinct from the Khmers and the Vietnamese. They live in tight-knit communities and practice shifting agriculture on their ancestral lands. But the traditional ways are under serious threat.
With a combination of lies, intimidation and financial incentives, a well connected woman is snapping up their land for a rubber plantation. Her name is Keat Kolney, sister of the Finance Minister and Deputy Prime Minister. Her husband is Secretary Of State at the Ministry of Land Management, which is responsible for registration of indigenous lands. This footage shows the businesswoman in Kong Yu village handing out sarongs and cash.

DAN KING, COMMUNITY LEGAL EDUCATION CENTRE: The villagers in their mind on that particular day, they were not clear whether this was a donation by a rich state party official or whether this was, in fact, money for the purpose of selling the land, so in their minds they were clear. They were donating from the small, grassy hill called the Dombok, and it's approximately 50 hectares. Subsequently more has been cleared and Keat Kolney now claims 450 hectares of land.

Dan King is an Australian lawyer advising a team of Cambodian lawyers who've taken on the villagers' case. He says Cambodian law clearly states that indigenous land cannot be sold.

DAN KING: It's basically an open-and-shut case in terms of the documentation and the evidence. It's about the court having the courage to make a very difficult decision against a very high powered, connected individual to make sure that justice is done.

The villagers of Kong Yu have told their version of events on video. An American filmmaker helped them with the technology, but the villagers acted all the parts and filmed it themselves. The first scene shows the arrival of the company's brokers who want some land. The villagers declined, but were told that Prime Minister Hun Sen needed the land to house disabled soldiers, and if they didn't sell, it would be taken from them anyway. This was a blatant lie, but the villagers felt powerless to resist and agreed to hand over approximately 50 hectares. Then there's the party scene. The villagers killed a pig and the company supplied the beer, and in the middle of the festivities, out comes the inkpad again.
Men from the company even went around the village in the middle of the night waking people up to get their thumb prints. The villagers only realised what it all meant later.

WOMAN 3 (Translation): After we agreed to give the land to them, some time later the company came with trucks and bulldozers and started to clear the land beyond the boundary hill. They damaged our rubber trees and the villagers went to stop them from clearing the land. All of us, young and old, went to the boundary to stop them.

But they failed, and the authorities accused them of disturbing the peace and locked up seven people. I approached plantation owner Keat Kolney through her lawyer to request an interview, but was told she was too busy. And at Kolney's plantation office near Kong Yu village, I get a frosty reception.

GUARD (Translation): Didn’t you see the sign? Unauthorised entry prohibited. See? The sign is over here. Unauthorised entry prohibited.

Back in the village, the lawyers are discovering that the community is now divided - into those who want to sell more land and those who want to get the land they lost back.

DAN KING: For the first time that we have been working with the villagers, for the first time they are thinking about selling a large piece of land - the whole community, not just a few families, but half the community - wants to sell the land. That is a serious situation. We won't have a case. There won't be a Kong Yu case if they sell their land.

Crucially, the village chief has turned.

VILLAGE CHIEF (Translation): The company authorised me to sort out the land issue and the villagers gave me the authority to do that as well.

DAN KING: The current village chief was then appointed because he was one of the strongest and most vocal advocates for fighting the case and to be getting the land back. Since then I think he has not seen the case move forward in the courts. As I said, he's obviously been talking to the company and his position has changed. He no longer supports the case. He is advocating the sale of land, and it is very sad to watch.

While the lawyers try to get him to stay the course and fight the case, he's now a staunch supporter of the company.

VILLAGE CHIEF (Translation): I am afraid we will lose the case in court because the company is rich and we are poor. We have accepted their money, how can we win? The whole village has accepted the money by making a thumbprint.

Some of the villagers are suspicious as to why he changed his mind.

WOMAN 3 (Translation): In fact, the district and the village authorities do not support the people since there is nothing in it for them, I think that they support the company because they gain from it. The villagers have nothing, all they have is the land.

But the company is stepping up its efforts to get the community to sell their remaining land, and now the local authorities are offering them more cash and even a school if they agree to sell. Like their compatriots right around this country, the villagers are quickly learning the ways of the modern world - where money talks.


Reporter/Camera
DAVID O’SHEA

Fixer
SUY SE

Editor
WAYNE LOVE

Producer
ASHLEY SMITH

Subtitling
PHINY UNG
SABOUPHARY TUY

Original Music composed by
VICKI HANSEN

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Saturday, February 07, 2009

Corrupt elite threaten Cambodia's development

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Corrupt elite threaten Cambodia's development


Gavin Hayman, director of Global Witness
February 6, 2009
ABC Radio Australia

The anti-corruption ngo Global Witness says "a corrupt elite" in Cambodia is taking over the nation's emerging oil and mineral sectors, while international donors turn a blind eye.

In a report titled 'Country for Sale', Global Witness says Cambodia's future is being jeopardised by high-level corruption, nepotism and patronage in the management of public assets. This, it says, threatens Cambodia's potential to wean itself of foreign development aid.

Presenter: Sen Lam
Speaker: Gavin Hayman, director of Global Witness

Listen to the audio program in English

HAYMAN: We've been working in Cambodia for the last 15 years looking at how illegal logging was being operating in the country and were able to show that it directly benefitted the ruling military and political elite. And our new report has showed that the self same people whose names are in our previous report as being involved in illegal logging have now effectively taken over the mining and also have oversight over the emerging oil industry in the country. And that's disastrous news for Cambodia because the money from oil and mining, which could actually really help Cambodia's development and lift Cambodia's citizens out of poverty, appears to instead be in severe danger of being wasted.

LAM: But you also say that international donors are turning a blind eye. What would you like donor countries to do?

HAYMAN: Well donor countries need to really get the Cambodian government to behave itself. They need to effectively declare a moratorium until there's basic governance and transparency framework in place to actually have oversight over what's going on. At the moment we've discovered that effectively the government doesn't have any way of giving out concessions, apart from patronage. So a particular kind of senators for example in the ruling party appear to have a beneficial possession of the mines, and they also needs to do a proper audit as to exactly how all those concessions be given out and whether they're equal and whether in fact the money is in the national budget. And there's about 60 or 70 different companies operating now, and we've written to all of them, also to ask about their behaviour, and we haven't had many responses back. What we did get was from BHP Billiton, the huge Australian mining company, and they actually told us they paid about a million dollar signature bonus to the government to explore for bauxite near the Vietnamese border. Now we congratulate BHP on being transparent about that. We're worried about the 79 companies that haven't been transparent, but also disturbingly we can't find information about that million dollars in the Cambodian budget. And that's very worrying, so where is this money in Cambodia's financial system? That's very concerning.

LAM: Indeed, it must be quite hard though, to extricate the ruling elite from these lucrative contracts. So what do you think can be done to change this culture, this culture of corruption?

HAYMAN: Well I think at the moment Cambodia's depends on foreign aid for about half its budget, and the donors have a very limited window of opportunity to use that influence on the Cambodian government to get a moratorium in place and a proper audit and future management provisions in place. To actually assure transparency, and that the money actually flows into the national budget and is properly spent. So they've got to use their leverage now and effectively really they shouldn't be lending into corruption and actually compensating a corrupt government that's stealing money that should be spent on development by actually putting taxpayer's money into development projects. So effectively they've got to play hard ball with the Cambodian government and get it to actually be fully transparent.

LAM: And just very briefly, can the Cambodian government itself do more or is the government itself the problem?

HAYMAN: The government itself as currently constituted by the ruling elite is the problem. So, as I said the military and political figures in Cambodia are direct beneficiaries and owners of some of these mines. And they may not actually own it on paper but if you turn up at the gate, which is one of the things we've done, the people guarding the mine they all know who's in power and they'll tell you who's actually in charge and who's the owner. Effectively, the donors have been very soft, some might even say spineless about addressing corruption in Cambodia for the last sort of 14 or 15 years. And to give you an example, Cambodia still hasn't passed an anti-corruption law despite the donors pushing for that for the last 14, 15 years.

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Wednesday, June 25, 2008

Development Leaves Cambodians Homeless

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Development Leaves Cambodians Homeless

June 25, 2008
By Gaffar Peang-Meth (guampdn.com)

My June 11 column referenced The Guardian's Adrian Levy and Cathy Scott-Clark's "Country for Sale," which stated that "almost half of Cambodia has been sold to foreign speculators in the past 18 months." It also referred to Business Week's Susan Postlewaite's "Real Estate Boom in Cambodia's capital," in which she observed this boom "has led to widespread evictions of people" from their homes and land to accommodate development projects.

If you Google "land-grabbing in Cambodia" you'll see volumes written on the topic, from newspaper articles to columns and reports by human rights groups. Watch videos and listen to the voices of Cambodian evictees, even on YouTube.

They reveal how the poor, the underprivileged in Cambodia suffer unspeakable pain and hardship. After all, what's life anywhere when a person's home and land are dismantled and bulldozed without discussion, and one is beaten and kicked and faces jail for not moving out?

Radio Free Asia's "China's Growing Presence in Cambodia," published on its Web site May 28, takes the issue of land-grabbing to a higher level, alleging high officials' involvement. The Web site also recorded 29 land-grabbing cases in January and February alone.

Amnesty International's "Forced Evictions in Cambodia: Homes Razed, Lives in Ruins," published Feb. 11, states "forced evictions are one of the most widespread human rights violations affecting Cambodians in both rural and urban areas." It asserts, "At least 150,000 Cambodians across the country are known to live at risk of being forcibly evicted in the wake of land disputes, land grabbing and development projects."

"In sharp contrast to the rhetoric of the (Cambodian) government's pro-poor policies and in breach of international human rights laws and standards," the Amnesty International article states, "thousands of people, particularly those living in poverty, have been forcibly evicted from their homes and lands."

On June 12, a Hong Kong-based regional non-governmental organization that monitors and lobbies human rights issues in Asia, The Asian Human Rights Commission, posted an online petition, "End Land Grabbing in Cambodia," and urges "the public to join" the petition, which can be read at http://campaigns.ahrchk.net/landgrabbing.

The online petition is addressed to Cambodia's Prime Minister Hun Sen. It expresses signers' deep concerns "about the suffering of the hundreds of thousands of Cambodian people who have been, and who are known to live in fear of being evicted as a result of development projects, land disputes and land-grabbing." It asks the premier to "immediately end the suffering and fears ... by halting all evictions, ... and by suspending all land concessions for development projects that affect people's homes and lands."

I don't know if the petition will move the 55-year-old Cambodian ruler to comply, nor do I know if it will incite the world community to help the Cambodian poor and end the land-grabbing.

Action needed

I used to recite to my students at the University of Guam Edmund Burke's words: "All that is needed for the triumph of evil is for good men to do nothing." And I write often in this space that unless one takes action, one cannot expect anything to happen the way one wishes. I have discussed the problem of "free riders" who expected "others" to act for the common good.

So I added my name on the AHRC petition, and my computer screen showed that it was sent electronically to the prime minister's cabinet.

Six days before the AHRC's petition, the Cambodian League for the Promotion and Defense of Human Rights (Licadho) put online, complete with photos, "Two Years After their Eviction from the Center of Phnom Penh, Villagers are Still Living in Squalor." It was about the June 6, 2006, eviction of more than 1,000 families from their homes in Sambok Chap village in inner-city Phnom Penh by "police and military police armed with guns, tear gas, batons and riot shields."

"The residents were forced onto trucks and taken to be dumped in an open field at Andong, 22 kilometers from central Phnom Penh -- their new 'home'," reads the text. "There was no shelter, electricity, running water, schools, health services or readily available employment nearby."

June 6, 2008, marked the two-year anniversary of the eviction.

"The site of their former homes in Sambok Chap -- slated for commercial development by a private company -- remains bare and unused, while the evictees continue to live in squalor at the Andong relocation site," Licadho stated.

Licadho refers to Sambok Chap as "just one case in a wider pattern of rapid, unregulated and often illegal development across Cambodia. ... It is exacerbated by a culture of corruption and impunity and, all too often, by an international donor community which turns a blind eye to such abuses."

Yet, in less than four weeks this international donor community can be expected to congratulate the region's longest-serving premier for his forthcoming July 27 election victory, to continue his reign, which Agence France Presse says he vowed publicly to keep until he turns 90.

A. Gaffar Peang-Meth, Ph.D., is retired from the University of Guam, where he taught political science for 13 years. Write him at peangmeth@yahoo.com.

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Wednesday, April 30, 2008

Cambodia - Country for Sale

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Almost half of Cambodia has been sold to foreign speculators in the past 18 months - and hundreds of thousands who fled the Khmer Rouge are homeless once more. Adrian Levy and Cathy Scott-Clark report


Source: guardian.co.uk
# Adrian Levy and Cathy Scott-Clark
# The Guardian, Saturday April 26 2008


Sang Run, his hair stiff with sea salt, chugs out into the Gulf of Kompong Som in his weather-beaten turquoise boat, looking for blackling. He scours the shallow, blue water, waiting for a shoal to appear, before skimming his net across the water. He does the same every day, taking his catch to auction on Independence Beach in Cambodia's southern port city of Sihanoukville.

It looks like a scene Sang Run was born into. But 20 years ago the beach was deserted, and he was a schoolteacher in Mondulkiri, a forested province hundreds of miles away in the east of the country. Back then, he could talk all day about palm sugar and betel nuts. He was something of an amateur botanist, but had never seen the sea - nor had any of the group who today gather around his silvery haul flapping in the sand on Independence Beach. Former nurse Srey Pov, who runs a Khmer restaurant along the beach, also came from a province many miles away. She still cannot swim, she says, shrugging. Heads nod around her. Cambodia is a nation that would drown if their boat tipped over; it is also a country whose citizens mostly do not belong to the places where they have ended up.

The Khmer Rouge saw to that, eviscerating the kingdom after coming to power. It was a movement that drew inspiration from Mao's Cultural Revolution, collectivising all the land; but it grew to love terror more than ideology. The ferocity of the regime sent more than 300,000 rushing into exile. At least two million urban Cambodians were route-marched into the paddy fields to near certain death. Worst hit was the Eastern Zone, bordering Vietnam, where Sang Run came from. Its people were derided as "duck's arses with chicken's heads" as the Khmer Rouge grew to mistrust the Vietnamese and accused Mondulkiri people of being disloyal - too sympathetic to their neighbours across the border. Their names were added to those who were to be purged; the catalogue of "crimes" became so long, so general, that anyone could stand accused. The wave of random violence and retribution that scythed through the countryside for three years, eight months and 21 days killed one in five of the population.

Sang Run's family all vanished, but he survived, hiding in the forests, living off what he could pluck and hunt. When the Vietnamese invaded in 1978 - overthrowing the Khmer Rouge a year later - Sang Run found his way, like thousands of others, to Cambodia's 300-mile long shoreline. Stretching between Thailand and Vietnam, the region had been a Khmer Rouge stronghold, controlled by Pol Pot's notorious commander, Ta Mok, who was known as The Butcher. In the 80s, when the fishing shacks and noodle stores went up along the Sihanoukville coast, there was no development plan. There had never been a tradition of thriving fishing communities along the coast - few Cambodians lived there except in the old French colonial towns. The shoreline had been empty - miles of palm-fringed beach front interspersed with the few port towns, including Kep, Sihanoukville and Ream.

Survivors began to build new lives there, learning to love the sea. Some took boats to a nearby archipelago of 22 coral-fringed, uninhabited islands, building up clusters of villages on atolls with names such as Rabbit, Snake and Turtle. Within 10 years, the whole coastline had been patchily settled by newcomers, among them a former farmer, Soch Tith, a stocky man with corncob hands, who was sick every time he got in a boat, but still found his way to faraway Koh Rong, the largest of the islands - 7,800 hectares of jungle. There he cleared small patches to grow fruit.

By 2006, these communities had schools, political representation, and many householders even had papers, stamped by the Sihanoukville governor, Say Hak, which guaranteed them the permanent right to stay under the 2001 Cambodian Land Law. The central government in Phnom Penh had in the 90s designated the entire coast and its islands as State Public Land that could not be bartered or developed.

Then, during the past couple of years, a disturbing wave of rumours swept the coastal communities. Sang Run says that in September 2006 he heard that Snake Island, half a mile out to sea, had been secretly sold to Russians. He did not check. Cambodians ask little from their government; a wariness of authority is a legacy of years of blood-letting under Pol Pot. In any case, it was a familiar story. Shortly after Hun Sen, Cambodia's prime minister, came to power in 1985, frenzied landgrabbing began: influential political allies and wealthy business associates raced to claim land that the Khmer Rouge had seized, gobbling up such large chunks of the cities, forests and paddy fields that Cambodians used to say the rich were eating the country. By 2006, the World Bank estimated that 40,000 had been made homeless in Phnom Penh alone. But, until now, no one had bothered with the coast. Sang Run paid no particular attention to the Snake Island rumour. He should have - it signalled a radical new course for the Cambodian government.

Three months later, Sang Run was out in his boat at 7am when disaster struck his village. He arrived back at 11am to find bulldozers had flattened his home and those of the 229 families who lived beside him. He heard from neighbours that it had happened in an instant. Uniformed men, sent in by governor Say Hak, used electric batons to chase terrified residents from the burning ruins; three of Sang Run's neighbours were knocked unconscious. Village Number One - a mundane name that failed to capture the beauty of its uninterrupted sea views and vegetable gardens that ran to the beach - had been erased. Sang Run heard that a hotel was planned, although no information was given to the people evicted from their homes for a further 18 months.

Nurse-turned-restaurateur Srey Pov tells us that, by early 2007, rumours were buzzing around Sihanoukville's covered market that virtually every island in the region was up for sale. Over the following months, Koh Russei and Koh Ta Kiev, Koh Bong and Koh Ouen, Koh Preus, Koh Krabei and Koh Tres were all snapped up by foreigners, who then started negotiating for mainland sites, too, among them public beaches with names such as Serendipity, Occheuteal and Otres. In February, 47-year-old Srey Pov was evicted, too, her Independence Beach restaurant shut down to make way for another rumoured hotel. "All I've got left is the chairs and tables," she says - they're stacked up in the cramped living room of her Sihanoukville home. Former farmer Soch Tith, on Koh Rong, was the last to hear that last month his island had been sold, too, to a British developer.

What none of these people knew was that the troubled kingdom of Cambodia, a precarious debtor-nation underpinned by more than £500m of hand-outs from the international community, had suddenly found itself a refuge for cash and speculators fleeing paralysed western financial markets. As London and New York, overcome by the US sub-prime crisis, began grinding to a halt last year, many in the City had moved on, transferring liquid assets to the east.

Foreign fund managers had started pitching up in Phnom Penh wearing linen shirts and khaki drip-dry jungle wear, alerted by the country's unexpected boom in tourism that in 2006 had seen one-and-a-half million visitors overcome the west's collective memories of Cambodia's recent past to travel to the temples of Angkor Wat. Enticed also by indicators that suggested the feeble economy was turning a corner, super-rich, predominately British, French and Swiss speculators, fuelled by a high-risk machismo, came hunting for profits of 30% or more. Their interest was land speculation: buying up large sites in developing countries that they would then sit on in the hope that, with the influx of tourists, land values would soar.

Hun Sen and his ruling Cambodian People's Party (CPP) have, in effect, put the country up for sale. Crucially, they permit investors to form 100% foreign-owned companies in Cambodia that can buy land and real estate outright - or at least on 99-year plus 99-year leases. No other country in the world countenances such a deal. Even in Thailand and Vietnam, where similar land speculation and profiteering are under way, foreigners can be only minority shareholders.

There were other inducements. Many foreign funds - hedge funds, property funds, private equity funds - operating on the outer margins of the financial world thrive on complexity, risk and maximising profit. In Phnom Penh, they found an ideal partner in the prime minister, who has created a unique business environment. Since the mid-90s, Hun Sen and the CPP have declined to enforce money-laundering legislation and have concerned themselves little with the probity of investors. Foreign businessmen were offered nine-year tax holidays, and were allowed to hold their cash in US dollars in banks outside the country.

"Only recently, no one would touch us," Brett Sciaroni, a Phnom Penh-based US lawyer who acts for many new western investors, tells us. "We were dirt. And suddenly we were gold." John Brinsden, a British banker, now vice chairman of Cambodia's national Acleda Bank, agrees: "In 2001, only 200 people came to the government's investment conference. At our most recent, we ran out of chairs."

In July 2007, Hun Sen, gambling on his people's tenuous connection with the land, changed the designation of the southern islands so they could be sold. The forests, lakes, beaches and reefs - and the lives of the thousands of residents - were quietly transferred into the hands of private western developers. Arguing that Cambodia could become a tourist magnet to challenge Thailand, the prime minister began a fire sale of mainland beaches. By March this year, virtually all Cambodia's accessible and sandy coast was in private hands, either Cambodian or foreign. Those who lived or worked there were turfed out - some jailed, others beaten, virtually all denied meaningful compensation. The deals went unannounced; no tenders or plans were ever officially published. All that was known was that more than £1,000m in foreign finance found its way into the country in 2007, a 1,500% increase over the previous four years. It was as if Alistair Darling, the British chancellor, had decided to raise some extra cash by trading the Isles of Wight, Man and the Hebrides, throwing in Formby Sands, the entire Cornish coastline and Brighton seafront - before trousering the proceeds.

It was abundantly clear to observers, including the World Bank and Amnesty International, that by making these private deals, Hun Sen was denying prosperity to most of his people, causing the country's social fabric to unwind like thread from a bobbin. Today, more than 150,000 people are threatened with eviction. Forty-five per cent of the country's entire landmass has been sold off - from the land ringing Angkor Wat to the colonial buildings of Phnom Penh to the south-western islands. Professor Yash Ghai, the UN human rights emissary to Cambodia, warned, "One does not need expertise in human rights to recognise that many policies of the government have... deprived people of their economic resources and means of livelihood, and denied them their dignity." He added, "I believe that the deliberate rejection of the concept of a state governed by the rule of law has been central to the ruling party's hold on power."

It was Hun Sen who, as early as 1989, realised the power of land. Rhodri Williams, a researcher for the Geneva-based Centre on Housing Rights and Evictions, points out that, as Hun Sen privatised the land, "he simultaneously cut off the rights of 360,000 exiled Cambodians, awarding prime slices to political allies and friends." The exiles were Cambodians who had fled the Khmer Rouge into Thailand and beyond in 1975; they had titles to the land, but this counted for nothing when they returned to claim it. Hun Sen said Cambodia should start again.

Although he bathes his speeches in socialist values, even his closest aides told us that Hun Sen was more often than not a pragmatist. He joined the Communist party in the 60s and enlisted in the Khmer Rouge in the 70s, before defecting to the Vietnamese-backed government in the 80s. In the 90s, he embraced the free market. Tourism was not a promising prospect in the early days - the remnants of Khmer Rouge, violently hostile to outsiders, were too much of a risk. When western travellers did begin to explore, they were taking their lives in their hands. In 1994, Briton Mark Slater, Frenchman Jean-Michel Braquet and Australian David Wilson were kidnapped while riding a train through Sihanoukville, and all of them executed. Two years later, Christopher Howes, a British de-mining expert, together with a Cambodian colleague, were murdered as they worked 10 miles north of Angkor Wat.

By 2006, the country seemed safer, and was finally becoming a tourist destination. That September, the CPP received its first foreign offer in the coastal area: a Russian investor living in Phnom Penh wanted to buy an island. This deal would become the template for every developer to come. Alexander Trofimov created a Cambodian shell company to buy Koh Puos, or Snake Island. With cash apparently no object, he proposed to stunned government officials that he would link the island to a mainland beach - known as Hawaii - with a 900-metre suspension bridge. "He also asked to buy Hawaii beach," the official who oversaw that meeting told us. "And we gave it to him." No figures were published. The official claimed he didn't know them.

Locals who used the beach and island were kept in the dark. No one quizzed Trofimov. He produced a book of cut-and-paste designs that he said would encompass a £150m resort consisting of 900 tightly packed villas, a dolphin aquarium, two hotels, a shopping centre and a marina - all crammed into an egg cup-sized island. It was enticing stuff for the CPP, although the project faltered when Trofimov was accused of having sex with underage girls, and jailed this year. However, two more Russian businessmen seamlessly emerged to take up the reins, representing a Cypriot-holding company that, it later transpired, had owned the Koh Puos project from the off.

Arnaud Darc was quick off the mark, too. A quietly spoken and likeable French businessman, Darc had arrived in Cambodia in the 90s, building a hotel and restaurant business in Phnom Penh. In 2006, after hearing from a French colleague working at Sihanoukville's provincial airport that the runway was likely to be extended, he identified two massive beach-front sites totalling more than 220 hectares that he liked the look of. He brought in Jean-Louis Charon, a Parisian real estate tycoon, whose Nexity company is the largest in France, and whose name brought in "40 French high-net worths", as Darc described them; they raised £12.5m to be held by City Star, a foreign-owned investment company. "The maths was easy, and the returns potentially fantastic," Darc said. City Star's land values quadrupled as soon as the Cambodian government confirmed the airport rumours, a spokesman for the Sihanoukville governor's office told us.

The investors could have sold up and come away rich. But this was development with a difference. City Star investors wanted more, but did not want to go to the trouble of constructing anything. They were speculating on the future value of the land, believing that by adding only modest infrastructure, perhaps attaching big-name hoteliers, they would reap vast profits in seven to 10 years. Darc's group continued buying, snapping up 333 hectares on Koh Russei and Koh Ta Kiev, two islands off Ream. Such was the appetite for easy money that City Star raised a further £30m in a matter of days from a second group of French high rollers last July, this time to buy in Phnom Penh.

Darc's model appealed to British investors behind LimeTree Capital, a Hong Kong-based private equity group that in 2007 bought up chunks of beach front near Ream; sites it planned to leave idle for many years until prices peaked. This spring, a third entrepreneur, Frenchman Alain Dupuis, through his Cambodian company LBL International, bought Koh Sramaoch. Soon after, Koh Tonsay, or Rabbit Island, was auctioned off to Chinese investors; 14 fishing families were evicted to make way for a casino and a golf course.

On the mainland, Sang Run returned to the beach to find his village in Sihanoukville destroyed to make way, supposedly, for a hotel. A few hotels have been built, but generally the sites remain empty. The Cambodian economy has grown by more than 24% over 18 months and land values have in some cases risen by more than 100%, so there are fortunes to be made from doing nothing but wait.

Australians Rory and Mel Hunter were the only investors who made an attempt to incorporate into their plans the people whose land they were buying. An advertising executive, Rory had come to Cambodia to work for an agency in Phnom Penh. During a week-long vacation in 2006, he and his wife, Mel, had set out on a diving trip around the Koh Rong archipelago and fell in love with the twin islands of Koh Bong and Koh Ouen, attached to one another by a coral reef and cupped in a shallow strait - they were known collectively as the Sweethearts. "We dreamed of a beautiful resort where people could immerse themselves in a new part of Asia," Mel said. They began negotiations with two village men to buy their houses and those owned by 60 other families. "They thought we were nuts," Rory said. "The two head guys wanted £7,500 each. We agreed and signed the contract in a boat out in the strait. We helped take down their tin shacks, and slowly relocated all the families and their homes to Koh Rong, across the strait." They worked for weeks to clear 20 years of debris, while beginning negotiations with the government to buy the islands themselves.

The Hunters drummed up backing from a handful of British speculators, including a currency broker who (preferring we didn't use his name) tells us why he leapt at the opportunity. "I loved the deal from the start. Let's be honest, who wants 6%? I wanted a deal that would wake me up in the night, sweating. We could make good money," he says over drinks in Phnom Penh, his City suit exchanged for shorts and a T-shirt. "There was a buzz about Cambodia you don't get elsewhere. It's Cambodia, the killing fields and all that stuff. Something different to show your mates back home. I show them the visa in my passport. I have something they don't."

But the Hunters' enterprise would soon be challenged by a cascade of deals involving neighbouring islands. While they worked on retraining local fishermen on neighbouring Koh Rong, British property developer Marty Kaye bought the ground from under their feet. Kaye, who had spent much of his career working on construction in Hong Kong, had spotted the island while planning an £800m luxury tourist development on a nearby Vietnamese island, Phu Quoc. He told us: "I was walking down the beach on Phu Quoc, seeing where we were going to put the golf course, and I spotted another island. No one knew what it was. We looked on Google Earth and it seemed to be Koh Rong, in adjacent Cambodia. I said, 'Let's see if we can get anywhere on Koh Rong, too.'"

Kaye, who runs Millennium property fund, began negotiating. "Here was a chance to buy an undeveloped island almost as long as Hong Kong," he said. "Nowhere else in the world could you create your own kingdom from scratch - unlike the car-crash planning of Thai islands like Koh Samui." The Cambodian government gave him 18 months to produce more details, and he worked on an outline plan whose initial development would cost £100m. When the government signed the deal, it made no mention of the census it had just carried out recording how many thousands of people (the government won't reveal the figures) live on the 7,800-hectare island.

Kaye is not worried: "Two guys and a lawyer will see everyone. But what most of them don't understand is that even if they have papers, they are not worth anything. All of them are registered only locally, not in Phnom Penh, so they will have absolutely no case. Others are just squatters with no papers at all." It helped that Kaye's Cambodian partner was tycoon Kith Meng, a multi-millionaire with interests in banking, mobile phones and real estate - and a close friend of the prime minister, Hun Sen.

"Kith Meng wants everything done yesterday," Kaye said. "We are going to move as fast as we can. It's fantastically exciting, the opportunity to zone the whole island, to see where the luxury exclusive villa plots will be, for the Brad Pitts, etc." It is an investment that gives the present residents of Koh Rong just over a year to make a solid case for keeping their homes or finding new ones.

If they are evicted, places in the area to make a new home are becoming scarce. With all the big islands sold, even smaller outcrops have gone, too, including a clump of rocks known as Nail Island, bought by Ukrainian entrepreneur Nickolai Doroshenko, who has transformed it into a James Bond-style lair, complete with a giant fibre-glass shark that soars over the fortress-like construction. He already owns Victory Beach, in Sihanoukville, a restaurant stuffed with live snakes and a bar that advertises "swimming girls".

The sale of the century continued with the mainland beaches. At the end of January, the Sokha Hotel Group, run by Sok Kong, a Cambodian oligarch and Hun Sen ally, was confirmed as the new owner of the lion's share of Occheuteal Beach, the largest and most popular public dune in the region, which was closed off to make way for a 1,000-room hotel and golf course. The deal was originally negotiated in June 2006 when, local fisherman told us, bulldozers and 10 trucks of armed men demolished 71 homes and 40 local restaurants.

Not wanting to be left out, Say Hak, Sihanoukville's governor, acquired a small island for himself, on which he built a villa and jetty; while Sbaung Sarath, the wife of his deputy, bought half of Sihanoukville's public Independence Beach in February 2008, evicting scores of families in the process. Among them was Srey Pov. She travelled to Phnom Penh with 27 other families to protest, but returned with nothing. "The developer issued a warning," she says. "They threatened to pay the city authorities to get rid of us. We knew what that meant." Independence Beach now languishes behind high fencing, as Srey Pov feared, waiting for the five-star tourists who will enjoy exclusive access to the powder-white sand.

Days later, Sbaung Sarath struck again, securing part of Sihanoukville's Otres Beach, one of the last public dunes, where Queenco, a London-listed casino company, also announced in February that it had bought 56 hectares. Queenco declined to comment on its Sihanoukville project, but it has already had consequences - 100 fishing families have been evicted. They have built a row of makeshift bamboo shacks, held together with plastic sheeting and whatever rubbish they could recycle, along a 200-yard stretch of a nearby main road. On the day we visited, they were drying out from an overnight storm that had filled their ramshackle homes with rainwater.

Aom Heat, 63, used to have a wonderful view over Otres beach and the gulf beyond. She was forced off her land last April. Now all she can see are the hubcaps and exhaust pipes of lorries that tear by. She and many of her neighbours had arrived on Otres Beach after fleeing the Khmer Rouge in the early 80s, building a fishing village they christened Spean Ches, or Burning Bridge. "When the eviction notices were served on us in September 2006, we were determined to fight," she says. She could not bear to lose everything again. "We lodged a complaint with the Senate Committee on Human Rights that ruled it was a matter for the courts." But the Sihanoukville governor's men did not wait for a court order. They turned up at the seaside village in April last year, Aom Heat says, and, "they burned down 26 houses and bulldozed 86 more, destroying all the pots and pans, clothes and food supplies. We were in a blind panic." Thirteen injured men were arrested and jailed, including one of Aom Heat's sons. Although made homeless, they were charged with "wrongful damage of property", and nine of them found guilty without witnesses or evidence produced. Despite having served their time while waiting for the case to be heard, the men were thrown back into jail pending an appeal from the prosecution, who complained they had been dealt with too leniently.

No one can agree what impact the foreign land sales will have on the Cambodian economy because so little information is made public. Although Cambodia is nominally a democracy that has held three general elections to date, and has a nominal opposition party, the CPP parliamentarians and cabinet are remote and dismissive of their people. They are not required to report on their interests or assets, making it impossible to deduce how much Hun Sen and his cabinet have personally benefited - although the World Bank reported last year that corruption, coupled with a lack of transparency, was "choking economic growth".

Since the land sell-offs, members of the government and its allies have been splashing huge sums around. A Korean developer told us that when he marketed Phnom Penh's first skyscraper, the 42-storey Gold Tower project in February, all two dozen £750,000 penthouse suites were bought within 24 hours by "an honour roll of the CPP and its friends in the military". There are other telltale signs, such as the canary yellow Hummers and hi-spec Range Rovers with blacked-out windows that rumble around Phnom Penh, in a country where the average annual income is less than £150.

Simon Taylor, the director of Global Witness, an international NGO that was forced to leave the country last year, having accused the CPP of running a logging racket, paints a depressing picture: "A shadow state has grown up, a government that misappropriates public assets, extorts from businesses and manages an extensive illicit economy. It is administered by senior ministers who are fluent in the jargon of good governance and sustainable development." One of Hun Sen's closest advisers, who requested anonymity, disagrees, telling us: "Hun Sen believes that liberal democracy is unsuited to a country whose skills have been drained and demographics wildly skewed by the Khmer Rouge."

Everything comes down to how much money you have in your pocket, according to Doug Clayton, from Leopard Asia, a fund of Swiss and British bankers that is about to invest £25m in Cambodia. "This kind of money opens any door," he says. How does Clayton pitch the Hun Sen brand back home? "Candidly? In investment circles, no one knows anything about this place. It's off the radar. In our pitch I talk up the new economic figures. I talk up stability." Clayton adds: "When the dust settles, the government here will probably end up looking something like the one in Singapore." There, Lee Kuan Yew served as prime minister from 1959 to 1990. Cambodian pollsters, looking to the general election that will run this July, predict a clear CPP victory, putting Hun Sen at the helm for many more years, too.

What will this mean for people such as Sang Run, who is now surviving in a makeshift home behind Independence Beach? Has the legacy of the Khmer Rouge been purged? Naly Pilorge, director of Licadho, a local human rights NGO, thinks not: "Everyone claims Cambodia has come through the period of barbarism, but the sadism is still bubbling beneath the surface. Extreme violence, greed and disregard for the most basic human rights - of giving people a place to live - are still with us daily. The methods of the past are being used to dictate our future."

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