The Asian Development Bank said Tuesday that the bank would not approve new loans to Cambodia without the National Assembly’s approval, but said ongoing operations would continue throughout the political stalemate.
The statement was made in response to a letter written Monday by opposition leader Sam Rainsy, that urged the ADB not to approve new loans with no functioning Assembly and called on the bank to revise its development strategy in Cambodia.
Sam Rainsy accused the ADB of not addressing “fundamental problems,” including “rampant corruption,” “tragic and unabated deforestation” and “a feudalistic type of land distribution.”
“Governments come and go, but policy that is established and agreements that are reached, whether they be reform or lending projects, must be adhered to,” said ADB country director Urooj Malik. “We have trust and confidence in the interim government and any new government that comes in, that all agreements will be fully respected.” Malik also defended the bank’s strategy regarding Cambodia’s development.
On corruption, he said the ADB has helped establish the National Audit Authority to scrutinize the national budget and has helped conduct internal ministry audits.
“A good, functioning audit body…is a vital first step to ensure transparency in the use of public funds,” Malik said. He called on the government to disclose the audits to the public, which it is currently not required to do.
Government spokesman Khieu Kanharith said Tuesday that internal ministry audits and the 2002 budget audit will be made public once presented to the Assembly.
Malik said the ADB, donors and NGOs are working on a forest sector review that will set standards for future logging permits and that the ADB helped draft the land law, which includes a provision to distribute land to the poor.
