Opposition Cautions Investors Not to Sign Contracts Yet ContractsJustYet

Cambodia’s political opposition on Tuesday urged foreign inves-tors to wait for the new government to be formed, warning that contracts signed with the current administration could be canceled.

The joint statement signed by Funcinpec President Prince No­ro­dom Ranariddh and Sam Rain­sy, president of his self-named party, warned investors that any contract signed following the July 1997 factional fighting that led to the prince’s ouster does not comply with laws and regulations.

“We advise all investors or potential investors to ensure that they consider carefully the legal ramifications of entering into contracts with the present illegal Phnom Penh government,” the two opposition politicians stated.

“Any contract signed between foreign investors and the current Cambodian authorities after July 6, 1997 and before the formation of a legal government under the Constitution of Cambodia following elections in 1998 is subject to revision and possible annulment.”

Prak Sokhonn, a senior adviser to Second Prime Minister Hun Sen countered that “this government is approved by the National Assem­bly so it is legal.”

He also asked why the two men, who say they want to develop Cam­­bo­dia, would try to frighten investors.

While investment has dropped significantly since July 1997, several large investors arrived in 1998, including the German tele­communications and electronics giant Siemens and the Swiss-based food company Nes­tle.

Siemens Managing Director Wolfgang Kitz said he believes the warning would have little impact and that his company is happy with its decision to invest in Cambodia: “We believed in the country before the elections and we believe in it now.”

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