Friday, 13 December 2024

Awards to the wealthy and criminally connected stir controversy in Laos, Cambodia


Residents say the decisions devalue the awards and legitimize bad behavior.

Casino operator Zhao Wei a Chinese national who operates in Laos, is interview by a local Lao television reporter, Feb. 4, 2018.
Casino operator Zhao Wei, a Chinese national who operates in Laos, is interview by a local Lao television reporter, Feb. 4, 2018. (Citizen Photo)

The governments of Laos and Cambodia have stirred controversy after announcing awards for a casino magnate blacklisted by the U.S. for criminal activity and a scion of the country’s first family known for flaunting their wealth.

Residents told RFA that they fear awarding the two men will legitimize their bad behavior and lead to further problems for both countries.

On Dec. 6, Viengsavanh Siphandone, the governor of Laos' Luang Namtha province, bestowed a national award on Zhao Wei, the head of the Golden Triangle Special Economic Zone, which lies along the Mekong River in Bokeo province.

The governor presented Zhao, the Chinese founder of the Hong Kong-registered Kings Romans Group, with the “Third Class Development Medal” at an award ceremony inside his economic zone for donating materials and funds worth 1.3 billion kip (US$60,000) to the Luang Namtha police headquarters.

The award drew criticism from members of the public, who told RFA Lao that the government had no business celebrating an entrepreneur who is known for supporting criminal enterprises.

“Zhao Wei ... opens loopholes for [gangs involved in] human trafficking and money scams,” one resident of the capital Vientiane said, speaking on condition of anonymity citing fear of reprisal. “He is not only notorious locally for his involvement in transnational crimes, but internationally as well.”

Kings Roman Group operates the Kings Romans Casino in the Golden Triangle SEZ, which Zhao is said to hold de facto control of, and which caters mainly to Chinese tourists.

The Blue Shield casino, operated by the Kings Romans Group, stands in the Golden Triangle special economic zone on the banks of the Mekong river in Laos, March 2, 2016.
The Blue Shield casino, operated by the Kings Romans Group, stands in the Golden Triangle Special Economic Zone on the banks of the Mekong River in Laos, March 2, 2016. (Jorge Silva/Reuters)

In 2018, the U.S. Treasury Department declared the Zhao Wei network a “transnational criminal organization,” or TCO, and imposed sanctions on Zhao and three other individuals and three companies across Laos, Thailand and Hong Kong.

 

“Based in Laos within the Golden Triangle Special Economic Zone (GTSEZ), the Zhao Wei TCO exploits this region by engaging in drug trafficking, human trafficking, money laundering, bribery, and wildlife trafficking, much of which is facilitated through the Kings Romans Casino located within the GTSEZ,” said a Treasury Department statement announcing the sanctions.

Legitimizing criminal activities

On Aug. 9 and 12, Lao and Chinese police raided and arrested more than 2,000 people on charges of committing crimes in the SEZ, where thousands have been lured through trafficking networks and forced to work as online scammers.

Many of the women lured to the SEZ have also been forced to become sex workers.

An official who took part in the rescue of three victims from the SEZ earlier this year told RFA he is worried that the award will legitimize Zhao’s activities and lead to more human trafficking there.

“By deciding to award Zhao Wei the medal, the government has opened more opportunities for him to trick women into prostitution,” he said.

Police raid a restaurant suspected of providing sex services to customers in Vientiane, capital of Laos, Jan.2022.
Police raid a restaurant suspected of providing sex services to customers in Vientiane, Laos, Jan. 2022. (Police Photo)

This is the second time the Lao government has bestowed an award on Zhao. In 2022, the Bokeo Military Command presented him with a medal courage, saying it recognized his contributions to national defense and public security within the Golden Triangle SEZ.

The Lao government says it is cracking down on the cyber-scamming industry, which a United States Institute of Peace report earlier this year said could be worth as much as 40% of the country’s formal economy.

The think tank estimated that criminal gangs could be holding as many as 85,000 workers in slave-like conditions in compounds such as those in the Golden Triangle SEZ.

Hun family scion receives medal of honor

In Cambodia, King Norodom Sihamoni conferred the Royal Order of Monisaraphon to Hun Panhaboth — the grandson of Senate President Hun Sen’s elder brother — per the request of the Interior Ministry and Prime Minister Hun Manet, according to a royal decree dated Oct. 9.

The award is generally given to Cambodians who contribute to or support the fields of education, arts, literacy, science or social affairs.

Hun Panhaboth is the son of Hun Chanthou, who is the daughter of Hun Sen’s late elder brother Hun Neng. According to a report by Global Witness, Hun Chanthou and Hun Neng’s four other children own around 40 major companies.

Hun Panhaboth is known in Cambodia for flaunting his wealth both at home and abroad, and even for boasting about his illegal activities, such as selling weapons to private citizens, on his Facebook and Instagram pages.

Cambodia's Senate President Hun Sen walks past an honor guard in Phnom Penh on April 3, 2024.
Cambodia's Senate President Hun Sen walks past an honor guard in Phnom Penh on April 3, 2024. (Tang Chhin Sothy/AFP)

He owns luxury vehicles including a McLaren worth nearly US$1 million, a Bentley and an Audi worth more than US$200,000 each, and a private Airbus 72 helicopter. He is known to have given his girlfriend gifts worth nearly US$100,000 for her birthday and shuttled her on a private plane from Australia to Cambodia.

Hun Panhaboth‘s lavish lifestyle has also been widely reported in the foreign press, including by Thai newspaper MRG Online, which claimed that he has used his family ties to procure contracts for large development projects.

After facing criticism in the media, Hun Panhaboth assumed the role of a philanthropist, distributing gifts to the poor and posting the acts on social media.

Philanthropy dwarfed by negative impact

Sok Ey San, spokesperson for the ruling Cambodian People’s Party, told RFA that the government only confers the medal of honor on those who have “shown great achievements and contributions to the nation and the people,” although he refused to elaborate on what achievements or contributions Hun Panhaboth had made.

Sok Ey San also dismissed concerns about Hun Panhaboth writing posts to Facebook about selling firearms, saying he was “a minor [at the time] and not mature enough to think seriously.”

“He just posted that for fun — nobody thinks what he did on Facebook was serious,“ he told RFA.

Youth group leaders RFA Khmer spoke with said they believe the government awarded Hun Panhaboth the national medal of honor for his acts of philanthropy, but suggested that they were dwarfed by those that have had a negative impact on society.

Mat Vanny, chairman of the board of the South Korea-based Democratic Movement for National Unification, said that given Hun Panhaboth’s involvement in illegal activity and his penchant for flaunting his wealth, he is unqualified to receive such an honor.

He added that the conferment will “devalue the award,” as well as the reputations of the government and king who gave it to him.

Em Bunnarith, president of the Australia-based Global Cambodian Youth Network, said that in a country with a dynastic and corrupt leadership, such as Cambodia, decisions to award a medal of honor don’t go through proper assessment.

“What the government has done will make our youth feel hopeless,” he said. “It means that if they have no connections ... they will have no opportunity to contribute to the nation.”

Regardless of what Hun Panhaboth has done, Em Bunnarith said, the Hun family will likely elevate his position within the armed forces to help protect the family name.

Translated by Ounkeo Souksavanh and Sovannarith Keo. Edited by Joshua Lipes and Malcolm Foster.

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