Cambodia condemns US sanctions on prominent tycoon linked to forced labour

CAMBODIA: Cambodia condemned the United States on Sept 13 for imposing sanctions on the country’s top business mogul.

The country’s foreign ministry expressed deep regret over the unjust decision to sanction Ly Yong Phat and hinted that the action could hurt bilateral relations.

Ly Yong Phat is among the wealthiest men in Cambodia. He is also a senator and a leading member of the Cambodian People’s Party, which is the ruling party of Prime Minister Hun Manet.

The United States Treasury Department imposed sanctions on Ly Yong Phat and five of his businesses “for their role in serious human rights abuses related to the treatment of workers subjected to forced labor in online investment scam operations.”

”Victims forced to run virtual currency investment scams and other online schemes are often lured by fraudulent jobs and promises of free housing.

Instead, they find themselves forced to run scam operations for criminal organizations under horrifying working and living conditions,” said the department in a statement.

The move blocks Ly Yong Phat’s assets in the states and bans U.S. entities from doing business with him. Cambodia has been a prime location for cybercrime and cyber scams, including using dating apps to get people to conduct bogus investments.

Cambodia’s foreign ministry claims that the Treasury’s action is based on unconfirmed reports of forced labour linked to online investment scams and is politically motivated.

The foreign ministry also said that the Treasury’s report “fails to provide a balanced and accurate representation of Cambodia’s steadfast commitment to human rights, law enforcement, and its determined efforts to combat human trafficking and forced labor.”

The ministry also praised Ly Yong Phat for his efforts “in advancing Cambodia’s socio-economic development over the decades”

According to a report by the Associated Press in May, a casino run by his business had been raided twice, and people rescued. Those people had been forced to work in call centre scams and conduct illicit activities.

Victims said they were enticed to the O-Smach Resort, owned by the L.Y.P Group, which had advertised employment opportunities. Once there, their phones and passports were confiscated, and they were forced to work on scam operations.

They reported that they had been beaten, electrocuted, made to pay heavy ransom amounts and threatened with being sold to other scam gangs.

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