Saturday, April 24, 2010

Rebellious Mood Takes Root in Rural Thailand

Red-shirted protesters in Bangkok on Friday. Farmers who say they were never interested in politics are donating large sums to the red-shirt movement. (Agnes Dherbeys for The New York Times)
The widow of Praison Tiplom, a protester killed in Bangkok, held a picture of her husband during his funeral last Saturday. (Thomas Fuller/The International Herald Tribune)
The red shirts have a core of support in Khon Kaen. (The New York Times)

April 23, 2010
By THOMAS FULLER
The New York Times

KHON KAEN, Thailand — Six weeks of demonstrations by red-shirted protesters turned violent this week in Bangkok, but the capital is not the only place with a whiff of insurrection in the air.

On this poor and rugged plateau in Thailand’s hinterland, farmers who say they were never interested in politics are donating hundreds of thousands of dollars to the red shirt movement. In at least three northeastern cities, red shirts are holding nightly rallies, sometimes drawing thousands of people.

This week, Red Station Radio, an antigovernment FM station based here in Khon Kaen, about 280 miles north of Bangkok, broadcast a warning that a train was heading to Bangkok carrying military vehicles. In no time, hundreds of red shirt supporters, who have followed the protests daily with the broadcasts, mobilized to block it.

Indeed, this rural region — home to a third of Thailand’s population — forms much of the core of the red shirt movement, demonstrating the magnitude of the challenge facing Prime Minister Abhisit Vejjajiva, whom the protesters are pressuring to step down and call new elections.

On Friday, protest leaders in Bangkok offered to negotiate an end to the standoff if Mr. Abhisit would dissolve Parliament within one month, instead of immediately. The gesture eased tensions slightly a day after one person was killed and scores were wounded when grenades exploded near red shirt barricades in the capital.

But the anger here in the countryside will not be easily dissipated after simmering for more than three years since the military coup that overthrew Thaksin Shinawatra, the billionaire tycoon turned prime minister, who is seen as the first politician to have seriously addressed the concerns of the poor.

Mr. Thaksin’s wealth and patronage network remain important drivers of the protests, but the movement also appears to be taking on a grass-roots character, with farmers and villagers finding common cause and demonstrating a new assertiveness.

The people of this northeastern plateau, known as Isaan, speak dialects similar to the Lao and Cambodian languages and generally work as farmers, manual laborers and factory workers.

The red shirts have railed against the “double standards” in Thai society — the wealthy, the Bangkok elite and the top military brass break laws with impunity, the protest leaders say, while the poor are held to account.

Radio stations like Red Station Radio have played a crucial role in spreading that message in the countryside. Red Station Radio, which operates from an unmarked office, has rapidly expanded since it started operating in November, and now has six affiliates in and around this city.

Its disc jockeys urge supporters to disrupt visits by senior government officials. One D.J. is even a full-time police officer, who uses the on-air name Noi Tamrung to protect his identity and, he says, avoid being fired. Many other police officers also back the movement, its supporters say.

“Don’t come here — that’s the message,” said Noi Tamrung. “We reject anyone from this government.”

Government supporters have called for the stations to be shut down, and the government has already banned some Web sites of the red-shirt movement, including the site of Red Station Radio. But the red shirts here have vowed to physically block any attempt to close the station, such is its support among farmers.

One farmer, Takum Srihangkod, listens constantly to broadcasts of protests in Bangkok with a cheap Chinese-made radio that he tucks into his waistband, next to his slingshot.

“Abhisit doesn’t want anything to do with poor people,” Mr. Takum said of the prime minister as he tended his cattle. His radio even stayed tuned to the protests as he muscled out a newborn calf in a difficult birth.

Supporters of the government often portray the red shirts as a mob for hire, mercenary protesters who receive a daily stipend. In a country with a long tradition of vote buying, that may be true for some.

But villagers bristle when asked if they are being paid to protest. Local officials and police officers describe a widespread fund-raising effort to support the demonstrators in Bangkok.

“We help each other,” said Triem Tongkod, a farmer who grows sticky rice in a village outside Khon Kaen. Pickup trucks with loudspeakers travel through his village periodically asking for donations. “You give what you can afford,” Mr. Triem said.

Last Saturday, at a Buddhist temple about 35 miles outside Khon Kaen, Mr. Triem was one of thousands of people who attended the funeral of Praison Tiplom, a protester killed in the April 10 crackdown on the red shirt protests in Bangkok. A total of 25 people died, including five soldiers, in circumstances that remain under investigation.

The deaths of protesters have become an opportunity to rally support and gather donations. At the funeral last Saturday, organizers collected about $9,400 for Mr. Praison’s widow, according to Num Chaiya, a D.J. at Red Station Radio who helped organize the funeral.

It was far from a typical somber ceremony, the crowd cheering loudly as Mr. Praison’s coffin, draped with the Thai flag, was carried around the crematorium three times. “Give a big hand to a warrior of the people!” Mr. Num exhorted the crowd. Almost all wore red.

Organizers of the red shirts have begun selling DVDs eulogizing the dead protesters and showing scenes of the April 10 crackdown. Along the highway, one DVD salesman, Pornchai Nanthaphothi, operates a stall festooned with red flags and other red shirt paraphernalia. A bandanna he sells is embossed with the words, “I’m not scared of you.”

“This area is nearly 100 percent red,” Mr. Pornchai said.

Successive Thai governments, including the current one, have tried to develop the Isaan region, but persistent income inequality and the need for more doctors, universities and jobs have fueled the protest movement, said Krasae Chanawongse, a medical doctor by training who has worked as a minister in four previous governments.

Thailand’s centralized political system has engendered a “colonial attitude of governors” posted here, he said. “They are more or less dictating, not consulting,” he said.

Some analysts question the durability of the red shirts, because of their close affiliation with Mr. Thaksin, but supporters here in the northeast say the movement has taken on larger goals.

In a country that has seen more than a dozen coups over the past eight decades, Chaisawat Weangwong, a 42-year old rice farmer, said the crisis had opened his eyes to the influence of the military in Thai politics and the need for a system where “the majority chooses the winner.”

“This is not for Thaksin,” he said. “This is for democracy.”

Thursday, April 22, 2010

BHP faces investigation into $2.7m Cambodia graft claim

April 22, 2010
Matt Chambers and Matthew Stevens
The Australian

BHP Billiton yesterday joined Rio Tinto in battling graft allegations, saying it had uncovered evidence of possible corruption by employees on an overseas project.

The Australian understands the conduct, now under investigation by the powerful Securities and Exchange Commission in the US, relates to a bauxite exploration project in Cambodia.

BHP has admitted making a $US2.5 million ($2.7m) payment to the community near the bauxite project, in the northeastern Cambodian province of Mondulkiri, near the Vietnamese border.

A Cambodian government minister described the payment as "tea money", a local term for unofficial payments to government officials.

BHP has rejected this, saying the money was put into a development fund investing in local social welfare programs. The company said it had paid $US1m in September 2006 to the Cambodia government for bauxite exploration rights.

BHP yesterday declined to reveal where the alleged corruption occurred, stressing only that it was not China. It would not comment on what the behaviour involved and whether employees had stood down or been fired but it said the activities involved mineral exploration, not marketing its products.

Last month, Rio sacked four workers, including Australian Stern Hu, after they were convicted of bribery and stealing commercial secrets related to deals to sell iron ore to Chinese steel mills. Rio has introduced sweeping changes to its Chinese operation and is conducting a review to avoid a repeat of the scandal.

Yesterday, BHP said the alleged corruption was uncovered after the SEC queried it during an investigation into mineral exploration projects.

"The company has disclosed to relevant authorities evidence it has uncovered regarding possible violations of applicable anti-corruption laws involving interactions with government officials," BHP said yesterday in a statement.

According to a report in The Cambodia Daily in July 2007, the nation's National Assembly was told BHP had paid $US2.5m to the government to secure exploration rights to a bauxite deposit in Mondulkiri with Japanese industrial giant Mitsubishi.

The claim was made by the then water minister, who described the payment as "tea money".

The minister's comments informed a report into Cambodian corruption by the non-government organisation Global Witness. The report, Country for Sale, details the claims and BHP's rejection of them.

Global Witness wrote to BHP in October 2008 requesting details of any and all payments made to the Cambodian government.

BHP responded saying it had put $US2.5m into a development fund and it had paid $US1m in September 2006 to the government for bauxite exploration.

"BHP Billiton has never made a payment to a Cambodian government official or representative, and we reject any assertion that the payment under the minerals exploration agreement is, or amounts contributed to the Social Development Projects Fund are, `tea money'," the miner said.

While Global Witness did not draw any negative conclusions about the management of the development fund, it did identify an issue with the $US1m payment to government, although one outside the control of BHP.

Wednesday, April 21, 2010

Tech giant EMC seeks to take advantage of emerging opportunity

Wednesday, 21 April 2010 15:01
The Phnom Penh Post
Ellie Dyer

MULTI-NATIONAL technology infrastructure firm EMC hopes to invest in Cambodia in order to make the most of emerging market opportunities, the company’s Asia Pacific president said Tuesday.

Steven Leonard told the Post, via phone from Singapore, that the US-based business has put US$2 billion aside to invest in the Asia-Pacific region by 2014.

He said the company, which competes with brands such as IBM and HP, is now looking to Cambodia for potential opportunities.

A group representative added via email that the Kingdom “has been identified as one of EMC’s fast-emerging growth markets across the Southeast Asian region”.

“We need to be in Cambodia and we want to do that in a more meaningful and substantial way,” said Leonard on Tuesday.

He added that EMC is working with a number of Cambodian telcos, which he declined to name.

"We need to be in cambodia and want to do that in a more meaningful way."


EMC provides businesses with both hardware and software to secure or encrypt data such as billing records, bank systems and archives. It has 43,000 employees across the world and earned $14 billion in revenue in 2009. Around 12 percent of revenue is currently derived from the Asia-Pacific region.

On Sunday, 400 representatives of the company completed a two-day event detailing their achievements in Siem Reap. Leonard, who returned from the Kingdom to Singapore days ago, has carried out several fact-finding missions to see where potential opportunities may lie and has met with government officials.

He added that EMC as yet has no permanent presence in the Kingdom, an issue they are currently considering.

“Cambodia is at a real transition intersection. There are so many opportunities. The country is rising up from a difficult past.

“A lot of companies have been here since the 1990s, but in terms of multi-nationals there is still an opportunity to get in early. I hope we can be a part of Cambodian growth,” said Leonard, before adding that software provision is “at the ground floor” of development in Cambodia.

The president added that, to his knowledge, no similar firms yet have a presence in the Kingdom. He said he believes that multinational entry into Cambodia has “an important part to play” in creating a diverse business community.

“It’s a foundation for Cambodia, or any other country, to continue to develop IT to help give opportunities to citizens,” he said, citing the benefits for education and knowledge expansion that technology can bring.

He was unable to say how much money EMC is set to invest in the Kingdom.

EMC has already announced investment in India, where it is expanding infrastructure at the India Center of Excellence, and Singapore, where it is opening its first technology development lab outside of North America. It has also sought out investment opportunities in China.