Logo of Phnom Penh Post newspaper Phnom Penh Post - Mfone staffers paid another 30 per cent

Mfone staffers paid another 30 per cent

Mfone staffers paid another 30 per cent

Former Mfone employees yesterday received a second payment of the total $4.4 million they have been demanding in compensation after their previous telecom employer filed for bankruptcy in January.

Khan Sereyvuthy, senior legal advisor to Mfone’s court appointed administrator Ouk Ry, said yesterday that the staff received 30 per cent of the outstanding $4 million, “as we already promised them that they are the first priority whenever our assets are sold”.

More than 1,000 staffers already received 10 per cent, or $440,000, of their outstanding salaries in July.

Sereyvuthy said the pay-off was a result of selling Mfone’s core network assets – the mobile towers – to Chinese-owned Khmer Unity Network Communicate Co Ltd, without revealing how much the sales were worth.

“Under the deal, they will pay us step by step – this means that our compensation to employers will also follow this.”

Ry said last month that deals had been made on many of the failed telecom’s assets, including highly valued cellphone towers, but that it would take time to transfer them.

“With the left-over money, we will pay to our [other] creditors,” Sereyvuthy said yesterday, adding that the Chinese company has delayed their payments several times.

“We already informed them many times, but no reply from them. We hope that they will pay us soon.”

Pang Vuthy, a worker’s representative, confirmed the second payment by Mfone yesterday.

“We really appreciate with Mfone’s administrator who kept their promise despite delayed payments.”

It is estimated that Mfone accrued more than $160 million in debt before it went bankrupt. Corporate creditors include Norwegian-owned electronics firm Eltek Valere and Chinese telecommunications equipment provider Huawei Technologies.

Kouy Thunna, a lawyer for Huawei, said so far he has not received any payment from Mfone.

MOST VIEWED

  • Ethnic group ‘disappointed’ to be denied French visas to attend court

    Eleven people at the centre of a case involving seven indigenous Bunong villages in Mondulkiri province pursuing legal action in France have expressed disappointment after the French embassy in Phnom Penh denied their visa applications to attend court. A press release said the 11 included a

  • Cambodia nabs 12th place in best retirement destinations

    Cambodia is an expatriate hotspot for those dreaming of living a more luxurious lifestyle at an affordable cost, according to International Living’s Annual Global Retirement Index 2019. For the fourth year in a row, Cambodia took the top spot in the Cost of Living category.

  • EU starts EBA withdrawal

    The EU on Monday announced that it has begun the 18-month process of withdrawing the Kingdom’s access to its preferential Everything But Arms (EBA) agreement over “a deterioration of democracy [and] respect for human rights”. However, the Garment Manufacturers Association of Cambodia (GMAC) said

  • PM: War result of foreign meddling

    Prime Minister Hun Sen said on Sunday that Cambodia’s recent history of conflict was caused by foreign interference. “The wars that happened were caused by provocation, incitement, support, smearing and interference from foreign powers, and the group of ignorant people who pushed Cambodia to