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The Land Management Ministry has ordered a freeze on real estate assets belonging to tycoon Leng Navatra and his company, Galaxy Navatra Group, amid a long-running dispute with buyers of one of the group’s unfinished boreys, Navatra said in a Facebook post on Tuesday.
A letter Navatra shared from the Ministry of Land Management, Urban Planning and Construction, dated last month, said it would take over construction of the project – known as Borey Leng Navatra 6A, a gated residential community on the outskirts of Phnom Penh – and would examine and freeze assets owned by the group, Navatra and his business partners.
More than 100 buyers of units at Borey Leng Navatra 6A demonstrated earlier this year, urging the ministry to intervene after more than five years of construction delays. Around 1,500 houses remained unfinished, ministry official Som Monorom said in January, when he also suggested authorities may freeze Navatra’s assets.
The Land Management Ministry did not immediately respond to a request for comment.
Navatra, who has donated millions of dollars to the government, said the project has been a “severe financial loss” and acknowledged the delays and debts buyers face.
“I sold the 6A project for a total of $185 million, but so far I have spent $221 million on it, with an estimated $20 million to $30 million more potentially needed for completion,” he said.
He claimed he offered all of his family’s assets – including land, vehicles and properties – to authorities, though some are tied up in debt and may not be sellable to repay buyers or complete the project.
He also said he asked that his and his siblings “Oknha” and “Neak Oknha” titles – honorifics awarded to individuals who donate at least $500,000 to the government – be revoked, adding that he was prepared to accept legal punishment over his company’s failure to complete the project.
Some buyers have reported progress in resolving their cases. Lay Hengtong said he received his home in the borey from the ministry in February after several years’ delay, but the title is still being processed.
Hengtong said he still intends to seek compensation from Navatra’s company for failing to honor its 2021 contract, which he said promised to complete construction within two years and to pay $200 a month for every month past the agreed completion date. He is demanding $2,200 in compensation.
“He has to respond and provide compensation,” Hengtong said. “He cannot avoid responsibility simply by issuing an announcement. If he ignores us, we will take the matter to court.”
