Caught in the fallout from U.S. and U.K. sanctions labeling Prince Holding Group a transnational criminal organization are students benefiting from the conglomerate’s scholarship program, a philanthropic effort critics say whitewashes its alleged online scam operations.
Local academics are urging Cambodia’s Ministry of Education, Youth and Sport (MoEYS) to end its partnership with the program, but warn any move must not punish the students.
The Prince Foundation, the group’s philanthropic arm, runs several initiatives including a scholarship program named after chairman Chen Zhi, whom Washington alleges masterminded some of Cambodia’s largest scam centers and charged with wire fraud after seizing $15 billion in Bitcoin linked to the firm.
The foundation says it has launched more than 280 charity programs, helped over 1.5 million people, and donated more than $18 million in total.
Launched in 2021 under a MoU with MoEYS, the Chen Zhi Scholarship Program offers full tuition, stipends, internships and career development opportunities at Prince Group and its Sihanoukville mega-resort Bay of Lights.
After the U.S. and U.K. targeted 146 entities linked to Prince last week and accused it of running scam networks built on modern slavery, questions remain over the source of the $2 million funding students’ schooling.
“It’s a strategy to create popularity under the guise of corporate social responsibility,” said Pa Chanroeun, president of the Cambodian Institute for Democracy, referring to the Prince Foundation.
“They use money to build fame and glory for their company, but behind the scenes, they commit serious transnational crimes,” he added.
Since signing the MoU, the Chen Zhi Scholarship has supported four cohorts of university students, selecting 100 scholars each year. This year alone, the program attracted more than 2,500 applicants.
Chanroeun added that Cambodia, as a developing country, needs aid in many areas, particularly education, but must ensure that funding sources are clean and ethical.
Cambodia’s education sector remains precariously funded, ranking lowest in ASEAN and 120th out of 203 countries globally, according to the World Population Review.
“If the funds provided in the form of scholarships are not of integrity, the Ministry of Education should stop receiving the funds,” he said. “But we must also find other funding sources to continue supporting students who rely on the Prince Group’s scholarships.”
CamboJA News was unable to independently verify whether the scholarship funds go to the ministry before being distributed to students and their universities.
Chanroeun added that continuing to cooperate with a company accused of transnational crimes could undermine the credibility of the education sector and harm students’ futures.
Kin Phea, director of the International Relations Institute at the Royal Academy of Cambodia, said the responsibility should not fall solely on MoEYS, noting that other oversight bodies should also verify the integrity of private companies contributing to the education sector.
Phea said the ministry should immediately terminate the program once “clear evidence” emerges that the funds are illicit, but emphasized that recipients should not be stigmatized.
Under U.S. blacklisting rules, anyone continuing to do business with Prince and its subsidiaries may face sanctions.
A student who recently received the Chen Zhi Scholarship told CamboJA News she learned about the opportunity through Facebook, applied, and was later awarded a full four-year scholarship along with a $50 monthly stipend. She requested anonymity for personal security reasons.
The student said she had researched the program but was unaware of Prince Group’s alleged transnational criminal operations until the sanctions.
“I started wondering whether the money funding my scholarship is dirty money,” she said.
While concerned that the scholarship could be revoked in light of the blacklisting, she said she still intends to use the sponsorship to pay for her schooling.
The program team has reassured recipients that their studies will continue as planned, including full-tuition coverage and monthly stipends, she added.
When contacted via Telegram about whether the ministry would end its MoU with Prince Foundation, MoEYS spokesperson Khuon Vicheka read the questions but did not respond.
