The Australian Embassy conceded that problems have plagued the relocation process of about 160 families moved to Trapeang Anhchanh on the outskirts of Phnom Penh last September.

The families were moved for a railway rehabilitation project partially funded by the Australian government’s AusAID.

“We agree on the basis of our own monitoring that there have been issues with resettlement under this project,” the spokesman said.

The Post reported yesterday some families at the site were being kicked off their land by informal lenders after building homes using loaned money they couldn’t afford to repay.

“[But] further advice is part of the rollout of the Expanded Income Restoration Program, for which Australia has contributed US$1 million,” the spokesman said.

“[There was] compensation to enable people to re-build their homes to the standard they had previously. Better facilities including sanitation, electricity and water have been provided.”

To contact the reporter on this story: Shane Worrell at [email protected]