Logo of Phnom Penh Post newspaper Phnom Penh Post - Mfone staff paid final wages

Mfone staff paid final wages

A motorbike passes the boarded-up office of Mfone in Phnom Penh
A motorbike passes the boarded-up office of Mfone in Phnom Penh last year. Heng Chivoan

Mfone staff paid final wages

Bankrupt telecommunications company Mfone yesterday handed out the final instalments of unpaid wages to former employees.

More than 1,000 former Mfone staffers received the remaining 30 per cent of their unpaid wages after the telecommunications firm filed for bankruptcy in February 2013. Since then, workers have received a total of $4.4 million in compensation.

Khan Sereyvuthy, senior legal adviser to Mfone’s administrator, told the Post that yesterday’s compensation was the final payment owed to workers.

“It is the remaining 30 per cent of our payment to more than 1,000 workers. We already paid them 70 per cent, this means that we have paid it all,” he said.

Mfone administrators made the first outstanding wage payment in July 2013, promising to pay the remainder by November at the latest.

Sereyvuthy said Mfone paid the wage bill after the sale of the company’s $9.9 million worth of telecommunications infrastructure was finalised.

Mfone sold its assets for bottom dollar to Chinese-owned Khmer Unified Network, a relatively unknown newcomer to the industry.

With the leftover funds and the sale of the company's remaining assets, Sereyvuthy said Mfone will commence paying back its remaining debts to creditors such as Chinese technology firm Huawei, which is reportedly owed upwards of $65 million.

“Our ex-employees have been the priority of our payments while other creditors are second,” he said.

Sereyvuthy called on debtors, including Viettel, owner of Cambodia’s largest telco operator Metfone, among others to pay up an estimated $690,000 in owed funds.

Bun Thoun, a former sales representative for Mfone, said he has been paid $3,000 in total. Thoun praised the now-defunct operator for keeping its word, despite nearly a year having passed since the first wage payment.

“It is what the company promised to pay us,” he said.

A previous version of this article incorrectly cited an earlier estimate of Mfone assets and incorrectly reported that there were still assets to be sold. Mfone administrators said the remaining funds left over after paying employees from the $9.9 million sale of infrastructure will be used to pay other creditors.

MOST VIEWED

  • Without shoes or a helmet, a young cyclist steals the show

    Pech Theara gripped the curved handlebars of his rusty old bike, planted his bare feet on its pedals and stormed as fast as he could towards the finish line. The odds were against him as the 13-year-old faced off against kids with nicer bikes at

  • Phnom Penh-Sihanoukville expressway on schedule

    The construction of the more than $1.9 billion Phnom Penh-Sihanoukville Expressway has not been delayed despite the Covid-19 pandemic, with more than 26 per cent of the project completed and expected to finish in about two years, according to Ministry of Public Works and Transport secretary of

  • Over 110 garment factories close

    A government official said on November 22 that at least 110 garment factories had closed in the first nine months of the year and left more than 55,000 workers without jobs – but union leaders worry those numbers could be much higher. Ministry of Labour and Vocational Training undersecretary

  • Singapore group seeks $14M in damages from PPSP over ‘breach of contract’

    Singapore-based Asiatic Group (Holdings) Ltd is seeking a minimum of $14.4 million relief from Cambodia Securities Exchange (CSX)-listed Phnom Penh Special Economic Zone Plc (PPSP) for allegedly breaching a power plant joint venture (JV) agreement. Asiatic Group’s wholly-owned Colben System Pte Ltd and 95 per

  • PM vows to protect Hun family

    Prime Minister Hun Sen has vowed to continue his fight against opposition politicians who he said intend to smash the Hun family. Without naming the politicians but apparently referring to former leaders of the Supreme Court-dissolved Cambodia National Rescue Party (CNRP), Hun Sen said there

  • Cambodia lauded for fight against Covid-19

    Cambodia has drawn global accolades for its handling of the Covid-19 pandemic, with a new report finding that the Kingdom has controlled the pandemic better than any other country in Asia. Dr Takeshi Kasai, director of the World Health Organisation’s (WHO) Western Pacific region,