Minister Criticizes Tycoon

Residents of the iconic White Building attend a meeting yesterday to discuss their options. KT/Mai Vireak

Ongoing land disputes between the Ministry of Land Management and the owner of development firm Phanimex are influencing White Building residents’ decision on whether to relocate or stay, according to Land Management Minister Chea Sophara.

Speaking to about 500 people at the ministry yesterday, he said development of the White Building requires clear solutions and transparency between the company and citizens.

If not, problems will occur like with the developments of Borei Keila and Boeung Kak.

“Our situation faces difficulties. If there is an unclear solution, it will become like the case of [Phanimex owner] Ms. Saphan’s handling of Borei Keila and Boeung Kak, which makes people lose faith and protest,” he said.

“Ms. Suy Saphan is very clever. She cheated first when I was Phnom Penh governor. She is very clever, she is good at speaking,” he added.
 

Mr. Sophara said Ms. Saphan was involved in more than 100 land disputes with citizens, which the ministry is now having to resolve. He said residents at the center of the disputes claim she has failed to live up to promises made to the government during the developments.

In response, Ms. Saphan rejected the accusations and stressed that development in Borei Keila was done in accordance with the desires of 1,261 families and housing has been built for them.

She called on the ministry to investigate residents’ claims for themselves.

“The buildings were constructed in accordance with the rules and procedures and we have already constructed the buildings for residents,” she said.

“And related to the land disputes, I bought the land legally. I bought the land in the Veal Sbov and Prek Kdam areas between 1993 and 1994 and have legal land titles.

“Now, I want [Mr. Sophara] to confirm this clearly because this problem relates to land borders, not land disputes.”

In 2003, the government gave more than 14 hectares of land in Borei Keila to Phanimex to construct 10 buildings for the more than 1,700 families being relocated, but the company has only built eight, resulting in protests.

Such examples have resulted in 554 families at the White Buildings being reluctant to accept an offer for their property to be redeveloped rather than taking a $70,000 payout.

White Building resident Kong Ratana said the development proposal sounded good, but expressed her fear that it will not be done successfully and she will lose her home, as has happened elsewhere.

“The people worry because we know about the Boeung Kak and Borei Keila cases. We are worried about this problem, but we will continue to discuss amongst ourselves whether to take the money or stay,” she said.

Citizen representative Dy Sophanaramany said that according to an initial survey of the 554 families, more than 90 percent want a payout over relocation for three years and the development of their existing property.

In his address yesterday, Mr. Sophara said that residents’ wishes would be respected, but urged them to consider the development offer. He stressed the development would be a success and the value of their properties would likely rise.

He also pledged to ensure that development would be clear and transparent, unlike that in Borei Keila and Boeung Kak, and that Japanese development company Arakawa was prepared to comply.

According to the Land Ministry, development of the White Building will cost up to $80 million. The top 12 floors of the 21-story building will be sold privately, with three floors of parking. White Building residents will get five floors of accommodation, while one floor will be set aside for commercial units.

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