Prime Minister Hun Manet says scam networks are destroying Cambodia’s honest economy and tarnishing its global reputation, harming tourism and investment

BRUSSELS: Prime Minister Hun Manet has declared that scam centres are “destroying” Cambodia’s economy and giving the nation a bad name.

In a rare interview, he pushed back on allegations of government connivance with the multibillion-dollar cyber-fraud industry.

“The scam network, what we call the black economy, is destroying our honest economy. It has put a bad reputation on Cambodia,” Hun Manet told AFP.

He stated this reputation damage is harming vital tourism and investment sectors, providing the impetus for a major clean-up operation.

A government clampdown has resulted in thousands of arrests and the recent extradition to China of a former adviser to Cambodia’s leaders.

Some industry experts have questioned the authenticity of such efforts, pointing to alleged links between officials and cyberscam networks.

Hun Manet conceded the crime had indirectly boosted some business activities like real estate and provided jobs.

He firmly denied, however, that Cambodia’s government had profited from the illicit industry.

“Yes, the scam centre may produce some direct result to real estate, to some investment, the building, the buying,” he said.

“But most of the proceeds do not go into the government of Cambodia,” the prime minister added.

Experts say Cambodia hosts dozens of scam centres with an estimated 100,000 people, many victims of human trafficking, perpetrating online fraud.

A 2024 report estimated the return on cyberscamming in Cambodia exceeds $12.5 billion annually, about half the country’s formal GDP.

Hun Manet strongly denied the nation was economically dependent on these scams.

“A lot of people were saying that the GDP of Cambodia relies on the scam. No. We rely on pure economies such as tourism, manufacturing, and others,” he said.

The push against scam networks netted its biggest player so far in January with the arrest and extradition of Chinese-born tycoon Chen Zhi.

Chen, indicted by US authorities, had served as an adviser to both Hun Manet and his father, former prime minister Hun Sen.

“We did not know that he was the kingpin,” Hun Manet told AFP in Brussels during a diplomatic trip.

He said a background check did not raise red flags, noting Chen’s Prince Group conglomerate had a legitimate presence in many countries.

US prosecutors allege the group was a cover for a sprawling cyber-fraud empire operating across more than 30 countries.

To Phnom Penh authorities, before the allegations emerged, Chen was “just a businessman, contributing to the economy”.

“Whatever the activities, we (did) not know,” Hun Manet said, adding action was taken when they learnt of the alleged wrongdoing.

US prosecutors say Chen directed operations of forced labour compounds where trafficked workers were held in prison-like facilities.

Hun Manet said his former advisor was extradited to China rather than the US due to his citizenship.

Chen was stripped of his Cambodian nationality after it emerged he used a fake document to obtain it.

That left him with “only Chinese nationality,” compelling Cambodian authorities to send him to his home country.

 The Sun Malaysia