Microfinance Investor 'Oikocredit' Sued in Cambodia over Human Rights

[CEOCambodiaNews]

Three human rights groups file suit against microfinancer
Chea Sokny | Publication date 14 December 2022 | 22:13 ICT

Three human rights groups – LICADHO, Equitable Cambodia (EC) and Germany-based FIAN – have filed a joint complaint with the government of the Netherlands against Oikocredit, which invested in microfinance in Cambodia.

In the complaint, the three organisations asked the Dutch government to take action against Oikocredit over its negative impact on microfinance in Cambodia since 2017, according to a December 12 joint statement.

The statement read that Oikocredit made a huge investment in microfinance in Cambodia from 2017 to 2022. A lot of evidence showed its involvement in heavy debt creation and a negative impact on society, based on reports released by local NGOs, journalists, international NGOs and Oikocredit itself.

The statement said that despite this evidence, the company had increased its investment in microfinance in Cambodia. The investment had increased to €50 million ($53.2 million) in 2017 to over €67 million as of December 2022. The investment made Cambodia the company’s second-largest investment.

It added that the investment had contributed to creating a human rights crisis because of the problem of debt in Cambodia. The crisis had caused forced land sales, food insecurity and cost people their livelihoods.

EC executive director Eang Vuthy said the three organisations had filed the complaint because they believe that Oikocredit had failed to carry out due diligence on its investments in the Kingdom.

He added that having filed the complaint, he hopes that Oikocredit will carry out an assessment of the situation and the three microfinance institutions – PRASAC, LOLC Cambodia and Amret – that it had invested in.

“If Oikocredit continues to invest in these three microfinance institutions without closer inspection, they are directly contributing to the human rights issues and other problems related to the financial sector in Cambodia,” he continued.

Sok Voeurn, the CEO of LOLC, said he had just been made aware of the complaint. He was yet to receive detailed information about the complaint, so he could not comment on the exact reasons for the complaint.
https://www.phnompenhpost.com/national/ ... rofinancer

[Jerry Atrick]

Three human rights groups file suit against microfinancer
Chea Sokny | Publication date 14 December 2022 | 22:13 ICT

Three human rights groups – LICADHO, Equitable Cambodia (EC) and Germany-based FIAN – have filed a joint complaint with the government of the Netherlands against Oikocredit, which invested in microfinance in Cambodia.

In the complaint, the three organisations asked the Dutch government to take action against Oikocredit over its negative impact on microfinance in Cambodia since 2017, according to a December 12 joint statement.

The statement read that Oikocredit made a huge investment in microfinance in Cambodia from 2017 to 2022. A lot of evidence showed its involvement in heavy debt creation and a negative impact on society, based on reports released by local NGOs, journalists, international NGOs and Oikocredit itself.

The statement said that despite this evidence, the company had increased its investment in microfinance in Cambodia. The investment had increased to €50 million ($53.2 million) in 2017 to over €67 million as of December 2022. The investment made Cambodia the company’s second-largest investment.

It added that the investment had contributed to creating a human rights crisis because of the problem of debt in Cambodia. The crisis had caused forced land sales, food insecurity and cost people their livelihoods.

EC executive director Eang Vuthy said the three organisations had filed the complaint because they believe that Oikocredit had failed to carry out due diligence on its investments in the Kingdom.

He added that having filed the complaint, he hopes that Oikocredit will carry out an assessment of the situation and the three microfinance institutions – PRASAC, LOLC Cambodia and Amret – that it had invested in.

“If Oikocredit continues to invest in these three microfinance institutions without closer inspection, they are directly contributing to the human rights issues and other problems related to the financial sector in Cambodia,” he continued.

Sok Voeurn, the CEO of LOLC, said he had just been made aware of the complaint. He was yet to receive detailed information about the complaint, so he could not comment on the exact reasons for the complaint.
https://www.phnompenhpost.com/national/ ... rofinancer

Doubt this case goes anywhere