Logo of Phnom Penh Post newspaper Phnom Penh Post - Factory land sale contested



Factory land sale contested

Workers from the shuttered Chung Fai Knitwear factory block National Road 2 yesterday to protest the fact that the sale of the company’s assets will not be enough to pay their back wages. Photo supplied
Workers from the shuttered Chung Fai Knitwear factory block National Road 2 yesterday to protest the fact that the sale of the company’s assets will not be enough to pay their back wages. Photo supplied

Factory land sale contested

Days after Kandal Provincial Court allowed the sale of the shuttered Great Honor garment factory’s assets, including the land, a Cambodian businessman has filed a complaint saying the land belongs to him and was only being rented to the firm.

Last week, the court issued a directive to sell the factory’s equipment and land in order to pay the more than 900 workers waiting for their back wages.

However, Chan Hoeun, a lawyer for Charm Shine Import Export, asked the court on Friday to block the sale of land, which was on a 10-year lease.

“We have the land title and rental letter for the factory’s land. So, this land does not belong to Great Honor and it is not part of its assets,” he said yesterday.

The owner, Sung Chung Kwan, leased the land from 2011 to 2021 for $40,000 per year to Great Honor, and workers and authorities had mistakenly included the land as part of the sale, he added.

Ty Samnang, the provincial court judge who issued the order, said he had received Chung Kwan’s complaint and was looking into the case.

While the sale was expected to yield close to $3 million, the National Union Alliance Chamber’s Kandal representative, Noy Rotha, said the exclusion of the land would bring down this estimate.

Separately, 100 workers from the capital’s Chung Fai Knitwear factory – whose owner fled in June – blocked National Road 2 yesterday, unhappy that the sale of the factory’s assets would not be enough to pay all the workers.

“The factory’s property, such as the machinery, will probably get $200,000, but the company owes workers and office staff more than $500,000,” said factory worker Chhoun Kiri.

MOST VIEWED

  • Phnom Penh placed in two-week lockdown

    The government has decided to place Phnom Penh in lockdown for two weeks, effective April 14 midnight through April 28, as Cambodia continues to grapple with the ongoing community outbreak of Covid-19, which has seen no sign of subsiding. According to a directive signed by Prime Minister

  • Cambodia on the verge of national tragedy, WHO warns

    The World Health Organisation (WHO) in Cambodia warned that the country had reached another critical point amid a sudden, huge surge in community transmission cases and deaths. “We stand on the brink of a national tragedy because of Covid-19. Despite our best efforts, we are

  • Hun Sen: Stay where you are, or else

    Prime Minister Hun Sen warned that the two-week lockdown of Phnom Penh and adjacent Kandal provincial town Takmao could be extended if people are not cooperative by staying home. “Now let me make this clear: stay in your home, village, and district and remain where

  • Businesses in capital told to get travel permit amid lockdown through One Window Service

    The Phnom Penh Municipal Administration has issued guidelines on how to get travel permission for priority groups during the lockdown of Phnom Penh, directing private institutions to apply through the municipality's One Window Service and limit their staff to a mere two per cent. In

  • Vaccination open to foreigners in Cambodia

    The Ministry of Health on April 8 issued an announcement on Covid-19 vaccination for foreigners residing and working in Cambodia, directing the Ministry of Labour and Vocational Training and local authorities to register them. Health minister Mam Bun Heng, who is also head of the inter-ministerial

  • Ministry names types of business permitted amid lockdown

    The Ministry of Labour and Vocational Training singled out 11 types of business that are permitted to operate during the lockdown of Phnom Penh and Takmao town, which run through April 28. Those include (1) food-processing enterprises and slaughterhouses; (2) providers of public services such as firefighting, utility and