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Some 850 victims of Piphub Deimeas Company gathered in front of Phnom Penh Municipal Court on November 24, demanding the re-arrest of company owner Hy Kimhong, having waited for a solution for more than two years and incurring serious debt problems.
Seng Han, 44, a representative of the victims, said the protest comprised 1,426 affected families who nominated him to represent them. However, he said, there were many other families who did not participate because they were seeking alternative resolutions.
The protest was organized to urge the court to expedite the case against Piphub Deimeas in August 2023 as well as arrest Kimhong and his allies again, as they not only failed to pay compensation, but threatened those who dared to protest.
“The people want Hy Kimhong and his allies, who are out on bail, to be arrested immediately as they are threatening [people] and filing lawsuits against those who protest. The company owner has got his workers to threaten people. They are suing [people], issuing threats on Telegram and Facebook, and even at their homes at night,” said Han.
The protesters also asked the court to immediately seize Kimhong’s assets because they heard that he owns three houses but some of his assets have been transferred to his relatives.
In addition, they sought the court’s help to ask financial institutions to delay the repayment of debts as they are saddled with loans valued over thousands of dollars. Some had to sell their assets; a few have also committed suicide as they could not cope with the financial burden.
“Some people have lost their homes, while families have broken up due to quarrels and divorce. There have also been 32 deaths so far due to bank debts. Some became ill but didn’t have money to seek treatment, which caused them to commit suicide,” he added.
Han said Kimhong had repeatedly promised to solve the investors’ financial problems, but failed to keep it. Instead, his company withdrew the original contracts, saying they would re-offer a new one, but they were fake.
He said almost all victims owe financial institutions between $15,000 and $400,000 after being allegedly cheated by Piphub Deimeas. He, too, owes $110,000.
Hong Chheang from Kampong Cham province said he was “defrauded” of $60,000 by Piphub Deimeas beginning 2023, which was a loan he took out from ABA Bank.
The investment scam affected his relationship, leading him and his fiancée to break up, as well as forcing him to look for various jobs to earn money to pay the bank interest.
Although he received no interest on his investment, he is required to pay his bank loan or risk legal action. The bank sent him a legal letter, giving him until the end of November to pay. He has also been summoned by the bank’s legal team to the commune hall three times.
“They came to threaten me at home, saying that if I don’t pay, legal action will be taken. They threaten to sue me, with their lawyer sending me a legal letter to pay up.”
Chheang said credit officers regularly survey the land where his house in Bathay district, Kampong Cham province, is located and asked his sister who the guarantor was.
Due to the pressure, the 34-year-old asked the government and court to arrest Kimhong and his allies again, and seize their assets to solve their debt problem.
Y Rin, spokesperson of the Phnom Penh Municipal Court, said the complaint filed by the victims has been expedited by the court, but “they still have other requests”.
“We are carrying out the procedures of the Phnom Penh Municipal Court quickly, but they still have other requests,” said Rin.
When he came out to meet the protesters, Phnom Penh Municipal Court deputy president Tith Sothi Borachat said that the court agreed to accept their requests to continue the legal procedure.
“The court accepts your requests and promises to continue the procedure according to the law. You have to wait for the results,” he said.
Am Sam Ath, operations director of rights group Licadho, said the problem has been around for many years and could worsen the lives of people.
He warned that the protests could grow if the relevant authorities do not expedite the resolution. “The authorities should find an amicable solution for the people, so that they don’t suffer more.”
Sam Ath also asked the authorities and the court to seize the owner’s assets to protect the interests of the victims, as they are concerned that he has transferred the assets to his relatives.
Kimhong was stripped of his honorary Oknha title by the King on April 11, 2024, after hundreds of people accused him of aggravated fraud.
He was arrested and detained by Phnom Penh authorities in August 2023 for allegedly defrauding more than 700 families in Kampot province, who invested millions of dollars in his real estate scheme.
In November 2023, he was released on bail, although the case was not yet resolved. At the time, a spokesperson for the Court of Appeal of Phnom Penh said it was granted at the request of the victims and plaintiffs.
