Two senior government officials have been summoned over their alleged involvement in a fraudulent land investment scheme that swindled over $200 million from thousands of Cambodians earlier this year.
Sar Thavy, undersecretary of state at the Ministry of National Defense, and Sean Borath, secretary of state at the Ministry of Education, Youth and Sport, are due at Siem Reap provincial court on December 11 and 18. They face questioning over alleged links to Brilliant City World and its owner Leng Channa, who was arrested in March after thousands of families in Siem Reap province lost significant sums in the company’s real estate projects or from its high-dividend investment fund over the past two years.
Many took out microfinance loans to invest in her offerings.
The spokesperson for Siem Reap provincial court declined to confirm case details, citing an ongoing investigation.However, government-aligned Fresh News reported that the pair are being questioned over their involvement in money laundering, aggravated fraud involving organized crime, and violations of payment and financial transaction laws.
Since Channa’s arrest, at least four others have been detained in connection with the scam, and more than 20 have been summoned for questioning.
“I will follow the summons because it is our obligation to appear,” Borath told CamboJA News, declining to comment further on his alleged involvement before hanging up.
Besides holding a senior position at the Education Ministry, Borath also serves as deputy chief of the Anti-Corruption Unit (ACU), according to Soy Chanviceth, a spokesperson at ACU.
“According to the information we have, he has been summoned to testify as a witness in the fraud case. I don’t have further comments due to his personal matter,” Chanvichet said, suggesting Borath is not a perpetrator but a witness who may have knowledge relevant to the investigation.
Sar Thavy also said he plans to comply with the court’s summons.
“It doesn’t matter because I am not involved, and I will appear in court,” he said, declining to comment further.
Before taking a high-ranking position at the Ministry of National Defense, Thavy served as governor of Oddar Meanchey and Preah Vihear provinces.
Transparency International Executive Director Pech Pisey welcomed the steps taken by the government and ACU to thoroughly investigate the investment scam, including the questioning of key government officials involved.
“It’s critical that the government strengthen corporate governance and build confidence in investment,” he said, adding that the law should be enforced equally and indiscriminately, regardless of who is involved in alleged wrongdoing or corruption.
The latest crackdown appears to be part of a government campaign to project an image of good governance amid growing frustration with a tycoon class notorious for land grabbing and money laundering, as noted by international observers at the onset of the case.
Khun Chansavuth, a victim who was defrauded of $18,000 in private loans after investing it in one of the schemes, echoed Mr. Pisey’s view, endorsing the efforts to address the fraud and ensure accountability at all levels.
“I agree with the court summons to question them in order to find a resolution. I also want to know where the money has gone,” he said.
National Defense Ministry spokesperson Maly Socheata and Education Ministry spokesperson Khuon Vicheka could not be reached for comment.
