Logo of Phnom Penh Post newspaper Phnom Penh Post - Refugee deal has hidden bonuses: policy analyst

Refugee deal has hidden bonuses: policy analyst

Scott Morrison, the then Australian immigration minister, toasts Interior Minister Sar Kheng after signing the refugee deal in September, 2014. Afp
Scott Morrison, the then Australian immigration minister, toasts Interior Minister Sar Kheng after signing the refugee deal in September, 2014. Afp

Refugee deal has hidden bonuses: policy analyst

While the modest stream of refugees from Nauru to Cambodia expected under the controversial deal with Australia has all but dried up, the aid money has continued to flow.

Only four refugees have taken up the offer of resettlement from the Pacific island to Cambodia – one of whom recently decided to go back home to Myanmar – and just two more have signalled a willingness to join them.

Nonetheless, the Australian government is coming through with its promised cash.

In May 2014 the Australian Government budgeted $A52.4 million to the Cambodia bilateral aid program for the 2014-15 financial year. The budget outcome for the full financial year was $A59.2 million. In 2015-16, Canberra has increased the Cambodia bilateral aid program to $A62.4 million.

The Australians promised the Cambodian government $A40 million in aid over four years as part of the deal but Development Policy Centre associate director Robin Davies, a former AusAid senior executive, believes it has turned out to be worth a lot more than that.

The Australian government slashed its overseas aid allocations in May’s budget with most Southeast Asian countries taking a 40 per cent hit. But Cambodia’s base aid allocation remained untouched.

“Without the resettlement agreement, Cambodia would have lost 40% of its base allocation this year — that’s the percentage cut that was applied in almost all other cases — and would have received the lower base amount in each year for at least the next several years, and of course it would not have the $10m,” Davies said in an email.

Effectively, Australia is locked into giving Cambodia at least $A209.6 million over the four years.

An Australian embassy spokesman said the additional aid money would go towards “demining, agriculture and electoral reform”.

“The Australian Government does not channel this or other development assistance through Cambodian government financial systems – we deliver our aid in partnership with a range of organisations including the United Nations, the World Bank, the Asian Development Bank, Australian non-government organisations, and through managing contractors.”

The spokesman also noted that the Australian Government “has a zero tolerance approach to fraud in the aid program, and the Cambodia aid program has a very low instance of fraud”.

Davies said he had no doubt that the money would be used for standard development purposes.

“I don’t believe there is any risk that it will be provided in a way that creates any additional risk of diversion,” he said. “Clearly it had the character of an inducement when promised but that does not mean that it will be used for other than normal development programs.”

However, he said the deal had a less direct benefit to the Cambodian government, by effectively denying the Australians political leverage.

Australia can now no longer threaten to reduce aid funding in order to pressure Phnom Penh into, for example, improving its performance in regards to human rights.

“With a fixed aid commitment to Cambodia, Australia cannot credibly criticise the very real shortcomings of the Hun Sen government,” Davies noted in a blog on the issue.

“The latter can now be confident of Australia’s silence or even support in the face of the occasional scathing attack on its legitimacy and conduct.

“In other words, the loss of Australian leverage mentioned above might well be a factor in Cambodia’s enthusiasm for the deal.”

MOST VIEWED

  • Joy as Koh Ker Temple registered by UNESCO

    Cambodia's Koh Ker Temple archaeological site has been officially added to UNESCO’s World Heritage List, during the 45th session of the World Heritage Committee held in Riyadh, Saudi Arabia, on September 17. The ancient temple, also known as Lingapura or Chok Gargyar, is located in

  • Ream base allegations must end, urges official

    A senior government official urges an end to the allegations and suspicions surrounding the development of Cambodia’s Ream Naval Base, now that Prime Minister Hun Manet has addressed the issue on the floor of the 78th UN General Assembly (UNGA 78). Jean-Francois Tain, a geopolitical

  • Cambodia set to celebrate Koh Ker UNESCO listing

    To celebrate the inscription of the Koh Ker archaeological site on UNESCO’s World Heritage List, the Ministry of Cults and Religion has appealed to pagodas and places of worship to celebrate the achievement by ringing bells, shaking rattles and banging gongs on September 20. Venerable

  • CP denied registration documents by ministry

    The Ministry of Interior will not reissue registration documents to the Candlelight Party (CP). Following a September 21 meeting between ministry secretary of state Bun Honn and CP representatives, the ministry cited the fact that there is no relevant law which would authorise it to do

  • Cambodian diaspora laud Manet’s UN Assembly visit

    Members of the Cambodian diaspora are rallying in support of Prime Minister Hun Manet’s forthcoming visit to the 78th UN General Assembly (UNGA 78) in the US’ New York City this week. Their move is an apparent response to a recent call by self-exiled former

  • After three deferrals, Capital Gains Tax to take effect Jan 1, 2024

    The General Department of Taxation (GDT) will implement the Capital Gains Tax starting January 1, 2024 to after being deferred three times as industrial players warn that the implementation might have some negative impact on the property market growth, which is down due to the economic downturn.