Cambodia FLEG Assessment Mission: Preliminary Assessment and Recommendations

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Cambodia FLEG Assessment Mission Preliminary
Assessment and Recommendations

• Presentation for
• meeting organized by the TWG-FE
• Phnom Penh, March 23, 2006

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Mission Objective

• The objective of this mission is to undertake an
  assessment of the RGCs efforts to control
  illegal logging, land encroachment and other
  forest crimes.

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Focus Areas of FLEG Assessment Mission

• Timber Theft Prevention and Forest Security
  Assess the adequacy of efforts by national forest
  management authorities (Forestry Administration
  and Department of Parks and Protected Areas) and
  territorial managers (e.g. park officials), in
  providing security and protection to forest
  resources under their responsibility.
• Independent Monitoring Assess arrangements for
  Independent Monitoring of forest crime reporting,
  review the Case Tracking System, assess the
  Governments utilization of crime reports and
  related data to analyze, prioritize and respond
  to crimes and risks of crimes, and the use of CTS
  data to manage enforcement efforts and strengthen
  law enforcement policy.
• Case Management and Judicial Follow-Up Review
  the procedures and practices for following up
  reports of forest crimes. Consider investigative
  techniques, handling and management of evidence,
  documentation, case filing, charging and results
  of prosecutions. The mission should consider the
  scope for using money laundering, corruption,
  organized crime and asset forfeiture laws to
  investigate and prosecute timber cases.

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Crime Monitoring and Reporting System

• Cambodia set up a unique and innovative FCMR in
  late 1999.
• The CTS is an important component of the system
  to allow for systematic crime analysis and
  strategic decision making.
• An IFM was also considered an integral part of
  FCMR as a means of strengthening the integrity
  and objectivity of the system.

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Achievements to Date

• CTS has input 5,350 cases since 1999, classified
  by types of offences
• Impounded almost 35,000 m3 of sawn timber
• Dismantled and burnt 1,470 illegal sawmills and
  692 illegal wood-based handicraft factories
• Arrested 441 offenders

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Yet Much More Needs to be done

• Between 2004 and 2005, incidents of reported
  forest crimes have gone up from 771 cases to 1153
  cases.
• Need to look into the underlying causes for this
  increase

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Changing Context

• Mission has tried to take a holistic view to the
  control of forest crimes, by
• Using a forest asset security framework to
  identify strengths and weaknesses in the current
  approach.
• Considering the efficiency and effectiveness of
  inter-agency relationships especially the
  judicial and law enforcement agencies to
  investigate and prosecute forest crimes.
• Assessing the potential of relatively new
  approaches such as AML laws and the monitoring of
  suspicious financial transactions to prosecute
  the ring-leaders involved in forest crimes.

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Broader relevance of this assessment

• Using the expanded framework for analysis, the
  mission feels that its assessment will usefully
  inform policymakers, donors and other
  stakeholders in addressing asset security
  concerns not just in the forest sector but also
  to similar problems in the broader NRM sector
  including fisheries and biodiversity.

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Forest Law Enforcement Review

• Timber Theft Prevention
• Forest Security

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Preliminary Findings

• Case Tracking System
• System is sound but is not being used to the best
  advantage
• Not all detected crimes are entered
• Information not centrally stored and accessible
  by all agencies
• No strategic analysis of information
• Not used as an intelligence or planning tool
• Forms not completed correctly in some cases

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Preliminary Findings

• Timber theft prevention
• Crook Catcher Culture- emphasis on apprehending
  offenders
• No analysis of crime trends to develop prevention
  strategies
• Lack of knowledge of-
• Community policing principles
• Crime prevention through environmental design
• Crime prevention strategies techniques
• Investigation tactical policing techniques
• No structured crime prevention strategy

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Preliminary Findings

• Suppression methods
• Uncoordinated
• Ineffective
• Allegedly corrupt
• Unguided or poorly planned (Adhoc)
• Stove piped poorly integrated between
  agencies
• Limited evidence collection to identify offenders

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Preliminary Findings

• Risk Profile (Security perspective)
• High frequency of events
• High likelihood of occurrence
• Areas of impact economy, livelihoods, social
  development (and others)
• Consequences - potentially major
• High vulnerability
• High value
• Minimum countermeasures
• Multiple diverse threat sources

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Preliminary Findings

• Risk Profile (offenders perspective)
• Low risk
• High reward
• Minimum effort
• Low cost
• Too many excuses available to evade prosecution

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Integrated Security Program
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The Way Forward

• Timber Theft
• Conduct a risk assessment of each critical area
  in the country
• Prioritize each location for action
• Develop an integrated security management plan
  unique to each location
• Incorporate community policing concepts
• Develop prioritize action plans
• Monitor implementation and results

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The Way Forward

• Land Encroachment
• Prioritize at risk areas
• Complete demarcation as high priority
• Settle land ownership as high priority
• Develop community based programs
• Screen local officials
• Develop security program from risk assessment
• Monitor implementation results

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Strategic Objectives
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Objectives

• Increase the perceived risk
• Increase the perceived effort
• Decrease the perceived reward
• Decrease excuses

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Areas of Impact
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Case Tracking System

• Case Tracking System (CTS)
• Findings
• Reporting protocols appear to be well understood
  and followed
• Suggestions
• Appropriate funding necessary (of course) to
  continue the work of the FCMRO in FA (and
  equivalent office in DNCP/MoE)
• Greater emphasis on strategic data analysis
• Need to ensure timely input of reports into CTS
• Training of field-level officers (judicial
  police, judges and prosecutors), including good
  knowledge about the new forest law.

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Independent Monitor Renamed Forest Practices and
Crime Monitor

• Mission is of the view that an independent
  monitor is necessary to strengthen the overall
  credibility of the FCMR system, as well as to
  make improvement in the CTS.
• Mission suggests a name change to, Forest
  Practices and Crime Monitor (FPCM).
• In order to maximize its effectiveness, the role
  and responsibilities of the FPCM need to be
  carefully redefined. In todays changed context,
  inter alia, some aspects that the monitor may be
  tasked to undertake include
• Inspection of land-titling and land encroachment
  issues and their potential impacts on illegal
  logging and forest crimes
• Establish working relationships with operational
  and policy level officials among the police,
  gendarmerie and prosecutors
• Provide strategic and operational advice based on
  its analysis of information obtained from CTS,
  media reports, NGO intelligence and other
  information sources related to illegal forest
  practices and crimes

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Preliminary Recommendations Regarding Money
Laundering and Related Issues
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What is Money Laundering?

• Money Laundering - Process by which the proceeds
  of crime are disguised in an effort to conceal
  their illicit origins and legitimize their future
  use.
• Money is laundered through placement, layering
  and integration.

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Examples of Placement Related to Forestry Crimes

• Cash or checks from illegal logging or
  corruption are deposited into local bank
  accounts
• Cash or checks from illegal logging or
  corruption are used to buy life insurance.

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Examples of Layering Related to Forestry Crimes

• Transfer of payments for illegal logs or bribes
  to several accounts abroad
• Proceeds from marked up or illegal transfer
  pricing related to legal forestry businesses are
  transferred to several accounts abroad
• Cash from illegal logging or corruption are used
  to buy trucks, which are later sold to receive
  legal cash
• Cash from illegal logging or corruption are
  invested in share portfolios or converted to
  foreign money
• Selling illegal logs using legal timber
  transportation documents.

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Examples of Integration Related to Forestry
Crimes

• A legal forestry company processes illegal logs
  to produce wood-based products such as pulp and
  plywood
• Cash from illegal logging or corruption are
  invested in resort businesses
• Cash from illegal logging or corruption that is
  already placed in financial institutions is
  invested in a transportation business or oil palm
  plantation.

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Recommendations 1-3

1. Cambodia should enact FATF compliant money
   laundering legislation, issue the Prakas drafted
   by the NBC, use existing powers under the Banking
   (Art. 51) and the Drug Control (Art. 23-28)
   Krams.
2. Enact and implement FATF 40 compliant asset
   forfeiture legislation.
3. Create an Forest Crime Asset Forfeiture Fund and
   dedicate a portion of the seized assets for
   financial resources to fight forest crime.

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Recommendation 4 5

• 4. Initiate properly predicated criminal
  investigations and prosecutions targeting
  significant timber crimes involving corruption
  involving government officials and companies.
• 5. Seizure and confiscation of assets/
  instrumentalities of crime should be used to the
  fullest extent possible.

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Recommendations 6-7

• 6. Using the draft Money Laundering Law (Art. 26
  - Internal Coordination) create an interagency
  committee which includes the Department of
  Forestry, the Ministries of Environment and
  Internal Affairs and the Gendarmerie.
• 7. Participate in the World Bank Ad-Hoc Experts
  Group working on identifying red flags involving
  timber related financial transactions.

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Recommendation 8

• 8. Sign, ratify and domesticate into national
  legislation the Convention on Transnational
  Organized Crime.

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Recommendation 9 Enact Legislation to Create
Special Procedures for Forfeiture Involving
Timber Crime

• Presently it is difficult to get timely orders
  from the court for the forfeiture of illegal
  timber, transport vehicles and other
  instrumentalities.
• A new law should create presumptions regarding
  cars and timber seized by police. A fast track
  procedure should be established for handling
  these cases.
• The proceeds from the sale of cars and other
  forfeited property should go into the Timber
  Crime Forfeiture fund.

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Recommendation 10 Establish A Forest Crime Task
Force (FCTF)

• Establish a small operational interagency Forest
  Crime Task Force to include FA, MOE, police,
  gendarmerie, prosecutors, NBC FIU.
• To be successful the Prime Minister should
  provide political and budget support for the Task
  Force.
• Members should be vetted and provided
  additional salary.
• FCTF should be tasked to handle a small number of
  significant forest crime cases focused on
  Ringleaders.

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Task Force (contd)

• FCTF needs independent operational and
  prosecutorial authority including the authority
  to use all legal investigative techniques, have
  access to intelligence, law enforcement
  information and government databases.
• FCTF must have agreed objectives and benchmarks
  for success.

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Recommendation 11 Create A Forest Crime Fusion
Group

• In order for the Forest Crime Task Force to be
  successful it must be proactive. It will need
  actionable intelligence so that it can prioritize
  its targets.
• Forest crime intelligence information is
  collected on a random basis using a stovepipe
  approach. There does not appear to be a mechanism
  for sharing information among and between
  agencies.
• Create a Forest Crime Fusion Group (FGFC.)

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Fusion Group (contd)

• The FG could be created under the umbrella of the
  Prime Minister or Council of Ministers.
• Access to the information created by the FG
  should be available only to investigators
  working on forest crime and corruption
  prosecutions. Leaking or tipping off should be
  made a criminal offense.
• CTS, investigative, intelligence, NGO and other
  information should be analysed for the purpose of
  creating an overall national law enforcement
  strategy and to develop tactical intelligence for
  operational use.

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Examples of Fusion Group Data Collection
Analysis

• Collect, analyze and disseminate information on
  a routine basis to the government FCTF and other
  agencies based on information from the CTS,
  informant information, NGOs, media and other
  government agencies related, for example to
  transportation, harvesting and road permits
  coups and social and environmental impact
  statements.

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Capacity Building For Police, Prosecutors and
Judges

• Financial investigative skills.
• Asset identification.
• Asset forfeiture.
• Developing strategies for international
  cooperation.
• Develop a list of best practices in the
  investigation and prosecution of forest crime
  cases.
• Discuss necessity of creating a fast track
  process for handling forest crime cases.
• Authority for government to conduct interlocutory
  sales to sell perishable and decaying property
  prior to conviction.
• Authority to declare illegally cut logs as
  contraband, which are per forfeitable.

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Capacity Building

• Conduct familiarization sessions for lawmakers,
  police, prosecutors, judges, public.
• Develop manual of investigation for forest
  crimes.
• Produce a shirt pocket reference guide of forest
  and related laws.

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Thank You.

• Ted Greenberg
• tgreenberg_at_worldbank.org
• 1-202-458-5108
• Nalin Kishor
• nkishor_at_worldbank.org
• 1-202-473-8672
• Mike Dyson
• mdyson_at_dysoncorp.com.au
• 61-3-62314407