Cambodia condemns US sanctions against its tycoon

On September 13, 2024, news from Phnom Penh. Cambodia has condemned the new sanctions imposed by the United States on one of the country's top tycoons, Ly Yong Phat. The US Treasury Department on Thursday imposed sanctions on Ly Yong Phat and his five enterprises on the grounds that he is suspected of serious human rights violations such as forced labor and human trafficking in online investment fraud activities.

The Cambodian Ministry of Foreign Affairs deeply regrets this "unjust decision", suggesting that this move may damage bilateral relations. Ly Yong Phat is one of the richest people in Cambodia and also a senator and a major member of the Cambodian People's Party. Washington's move blocks Ly Yong Phat's assets in the United States and prohibits US entities from doing business with him, reflecting concerns about cybercrime. Cambodia has always been a place where cyber fraud occurs.

The statement of the Cambodian Ministry of Foreign Affairs said that the Treasury Department's action is based on unsubstantiated reports of forced labor and is politically motivated, which goes against the spirit of strengthening bilateral cooperation and mutual trust. For a long time, Cambodian-US relations have been tense due to Washington's criticism of the Cambodian government and Cambodia's close relationship with China. In June this year, the US Secretary of Defense visited Phnom Penh, and there seemed to be signs of a thaw in bilateral relations. The statement also praised Ly Yong Phat's role in promoting Cambodia's social and economic development through his enterprises.

Although Ly Yong Phat himself is not facing charges of human trafficking, casinos operated by his enterprises have been raided, and people forced to engage in fraud activities have been rescued. Victims said that after being attracted by false job opportunities to his resorts, their mobile phones and passports were confiscated, they were forced to commit fraud, and they were also threatened with beatings, electric shocks and other abuses.