A prominent Cambodian businessman has been detained for questioning by an investigating judge following accusations he stole millions of dollars from an investment company.
Kuy Vat, the former chairman of the Cambodian Investors Corporation, was arrested on Aug. 24. The Phnom Penh Municipal Court on Tuesday charged him with “non-compliance with traded instruments.”
The fraud and embezzlement charges follow allegations from several people that Kuy Vat has bounced large checks and otherwise misappropriated money invested in the Cambodian Investors Corporation, or CIC, according to CamboJA News.
CIC collected US$100 million from investors but allegedly hasn’t allowed people to make withdrawals and hasn’t paid out interest, as promised, since August 2023, CamboJA News reported earlier this year.
Kuy Vat is the owner of the Park Cafe chain of restaurants, which has 11 locations across Phnom Penh, the capital.
Among the alleged victims in the case is Kouch Mengly, a Cambodian-American who told Radio Free Asia in April that he lost US$300,000 to the company.
“If justice isn’t sought and this is allowed to continue, the people will lose faith in the government and the justice system, and the government will lose the faith of the international community, which will lead to the destruction of the Cambodian economy,” he said.
CIC board member Som Sambath told RFA that he was unaware of allegations that Kuy Vat had transferred money from CIC to his personal accounts.
“I don’t know what to say until I know the truth – then I can answer your question,” he said. “I don’t know how to answer now.”
RFA was unable to reach a spokesman for Phnom Penh prosecutors, Chhay Chhay Hong, to ask about the charges.
CIC board member Khim Sokheng was also unavailable for comment on Wednesday.
Translated by Sum Sok Ry. Edited by Matt Reed.
