Gov’t Widens RAC Inquiry

After a cursory look into the fi­nances of Royal Air Cambodge, the Council of Ministers has or­dered a broader investigation, se­nior government officials said Monday.

“We investigated and found a lot of misspending and tax evasion,” government spokesman Khieu Kanharith said. “So now we hope to make a more in-depth investigation.”

The airline was accused last year of mismanagement, and RAC executives acknowledged the company had lost about $24 million since its 1995 founding.

An initial investigation was conducted by a panel set up in De­cember to scrutinize government revenue collection. The Council of Ministers launched a new commission focusing solely on RAC at the end of February.

The 15-member panel comprises aviation and finance officials and Coun­cil of Ministers representatives. Its head, Nhim Vanda, and RAC officials could not be reached for comment Monday.

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