I was just sifting through the news story “Taking stock: Cambodia’s exchange” published September 15.
I would like to draw attention to a few other facts regarding the forthcoming Cambodian stock exchange.
First, the country lacks a professional financial-reporting system. There is no agency in the government, or no independent agency, to check accountability.
Furthermore, there is no qualified institution in the country to certify auditing and accounting professionals. Cambodia also lacks any agency that can function as a credit-rating firm.
Company secretaries and chartered/certified public accountants are also unheard of, except for the few professionals who have come to Cambodia to try their luck.
While the Kingdom does have a few high-end financial professionals, such as Ernst and Young and KPMG, it remains to be seen whether they are equipped to maintain the requirements of a fully fledged financial market, or bourse, such as the planned Cambodian exchange.
If the government moves ahead with its plan for a stock exchange in the absence of basic parameters as outlined above, the country will witness rampant manipulation of stocks, and the public will suffer as a result.
This, in turn, would damage the image and credibility of the government as well.
Send letters to: [email protected] or PO?Box 146, Phnom Penh, Cambodia. The Post reserves the right to edit letters to a shorter length. The views expressed above are solely the authors’ and do not reflect any positions taken by The Phnom Penh Post.