The government is examining whether Minister of Posts and Telecommunications So Khun should face disciplinary action because he receives a salary from mobile phone company Mobitel, a government spokesman said Thursday.
So Khun acknowledged earlier this week that he receives a $2,500 monthly allowance from Mobitel as an honorary adviser. So Khun said it is his right to receive the payment, and his work from Mobitel doesn’t conflict or interfere with his duties at MPTC.
Government spokesman Khieu Kanharith said a person who is in charge of an industry cannot receive a salary from a company in that industry.
However, Khieu Kanharith said there are loopholes in the rules, and it is unclear as to whether So Khun did anything legally improper. But “morally speaking, this is not a good thing,” he said.
“It’s difficult to say whether it is wrong or right because of the loopholes,” Khieu Kanharith said. “I think we have to issue a directive to clarify this issue. The prime minister will decide on this.”
So Khun declined to comment Thursday on the possible disciplinary action.
Son Chhay, chairman of the National Assembly’s telecommunications commission that called So Khun to a meeting on Monday, said there is nothing for the government to investigate.
“The minister already admitted he gets money from Mobitel so what is there to investigate?” Son Chhay said. “It’s time to take some action.”
So Khun’s Mobitel allowance highlights a problem found in government regulatory bodies, which operate public ventures that could allow their officials to benefit financially from their own policy making.
For example, MPTC has the dual role of being the regulator and operating a public enterprise venture. MPTC has entered into joint ventures with private phone companies, making MPTC a telephone operator.
The International Monetary Fund, the World Bank and the Asian Development Bank have recommended that the government better define the roles and duties of each body to avoid conflicts of interest.
“The general principle is that the regulatory body is supposed to be separate from the operator,” said David Doran, a legal adviser. “That’s the best way to avoid conflicts of interest.”
Doran also noted there is no public declaration law in Cambodia in which government officials would be required to publicize any interest they have in a private company.
In MPTC’s case, the ministry is a shareholder in most of the private mobile phone companies operating in Cambodia, legally allowing ministry officials to act on company board of directors.
The Cambodia Business & Investment Handbook, published by the Ministry of Commerce, recommends MPTC take over policy making and the Cambodia National Telecommunication Company, which has yet to be created, oversee the public enterprise operations. Other telephone operators have made similar recommendations to the government.
In the energy sector, a royal decree recently gave approval for the establishment of the Electricity Authority, which would take over regulatory duties from the Ministry of Industry, Mines and Energy, which acted as both regulator, policy maker and supplier of electricity in the provinces.
Under the new system, the state-run Electricite du Cambodge remains as the public enterprise supplying electricity, the Electricity Authority will be the regulator and the ministry will be the policy maker.
The move of the state-owned Foreign Trade Bank of Cambodia away from the National Bank of Cambodia is the first step in privatizing the commercial bank and distinguishing it from the regulatory central bank.
A Western businessman said it “all comes down to an issue of good governance.”
“Government officials can use these positions to enrich themselves because they have decision-making abilities,” he said. “It’s a real conflict of interest.”
He also noted that multinational companies that do business here and are aware of international standards, like Mobitel’s joint venture partner Millicom International, should act responsibly and not allow conflict of interest situations to arise.
“Large companies like Millicom are part of the international business club,” he said. “They shouldn’t condone these kinds of relationships.”
(Additional reporting by Kay Kimsong)
