Crackdown on unlicensed companies

Crackdown on unlicensed companies

2 Cambodia property

The Cambodian Valuers and Estate Agents Association is now ready to take action over any company that has no valid license, because they are causing difficulty in the sector.

The leaders of the association will be discussing the issues to take measures against invalid agencies or businesses without clear licenses; up to now in Cambodia there has been no action related to these issues yet, Cheng Kheng, director of the CPL Real Estate Company and president of the Cambodian Valuers and Estate Agents Association said.

“We are currently discussing with the members of the Association and ministries concerned to issue Prakas, sub-decrees or laws for controlling the agencies and companies that have no rules and order,” he said.

“A country cannot be without laws and all people must also respect the law because when something happens it is often resolved by the law. Currently, the companies with valid licenses are mocked by the rogue businesses, and the number of the dishonest businesses is more than the fair businesses,” he said.

“We do legitimate business, always with ethical standards as well as paying tax to the government but the rogue companies do not do so, specifically from purchasing, selling and renting commission, he said, adding that, “we cannot allow them to make troubles.”

So far, the association has 24 company members.

Sorn Seap, general manager of KEY Real Estate Ltd admits the problems and he said he will urge action from the ministries concerned over invalid companies, comparing those companies to “mosquitoes that come to bite us even they know that biting us makes us die.”

“Those companies have caused many barriers to growth in the real estate sector because they do not respect the laws, professional ethics and do everything arbitrarily. All unlicensed companies should ask for the licenses to give confidence to Cambodian people as well as foreign investors,” he said.

Po Eavkong, the managing director of Asia Real Estate Cambodia agrees, saying that urging them to respect the laws is a very good thing, “because there are many benefits such as providing benefits to the companies with professional standards, and valid licenses to compete with transparency. The government can get revenues bcause the legal companies always declare their income and always pay tax to the government,” he said.

“If the government takes a specific measure for unlicensed companies, it is good. Doing so is making them turn to correct professionalism and reduce the impact of the loss of consumer confidence. Their activities affect the clear and professional companies because some companies defraud the trust of customers, therefore, investors lose confidence in the legal business and for this matter I have also met,” he said.

Ministries have already drafted the law on the management and trading of properties after meeting with the private sectors, Mey Vann, director of Department of Industry and Finance of the Ministry of Economy and Finance said. “The draft will be sent to the cabinet after the next elections, and we expect the law will be declared able to be used at the end of 2013,” he said.

“Even though, we haven’t had the law, the ministry has introduced and asked the public to use the services of legal companies with a license from the Ministry of Economy and Finance, he said. The ministry has also told real estate agencies to report the address of the invalid companies to the ministry for pre-action because now we do not have the law but after the law, we will punish them according to the law,” he said.

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