PHNOM PENH – The Kampong Speu deputy governor and his two associates have been arrested and charged in connection with a fraudulent mining license scheme that allegedly defrauded Chinese investors of $1.2 million. The suspects—Deputy Governor Tith Vuthy, Major Hiav Khan (acting as a courier), and Chinese translator Ing Saroeun—were apprehended on March 9.

The provincial court has charged the three with forgery, using forged public documents, conspiracy, and abuse of power under Articles 626, 627, 628, 629, and 630 of the Criminal Code, as well as Article 35 of the Anti-Corruption Law.

According to Anti-Corruption Unit (ACU) spokesperson Soy Chanvichet, the investigation was launched following reports from local news outlets.

“Before filing the case, the ACU began investigating after reports accused Tith Vuthy, Hiav Khan, and Ing Saroeun of extorting $400,000 from a total of $800,000 from a Chinese investor, Li Minchang, in exchange for fraudulent copper mining licenses in Pailin province,” Chanvichet stated.

The scheme allegedly required investors to pay in two instalments—50 percent upfront and the remaining 50 percent before beginning mining operations.

Despite the accusations, the suspects deny any involvement. “The three accused deny the wrongdoings,” said Chanvichet. However, the ACU claims to have substantial evidence of forgery and abuse of power.

“The three individuals continue to deny their involvement even when confronted with evidence,” Chanvichet stated. “They falsified a mining map in Pailin, used the deputy governor’s position to intervene in mining activities, and forged licenses from the Minister of Mines and Energy, as well as exploration permits from the Minister of Environment.”

A Carefully Orchestrated Fraud

The fraud was meticulously planned and executed to deceive investors.

Li Minchang, a Chinese businessman eager to invest in copper mining, was handed a forged map indicating a 103.81-square-kilometer mining site in Pailin province. The original owner’s name had been removed, making it appear as though the land was available for development.

To further convince Li of the operation’s legitimacy, Tith Vuthy personally arranged site visits, using his position as deputy governor to add credibility to the scheme.

At first, everything seemed to be in order, and Li proceeded with the initial payment. However, as weeks passed, he became increasingly suspicious when the promised licenses failed to materialize. His doubts grew as communication with the officials became more evasive. When he started asking questions and demanding answers, the tone of the conversations shifted. Instead of reassurances, Li was met with threats—he was given a strict deadline to pay the remaining amount or risk losing the entire investment. Fearful yet wary, he hesitated, which ultimately led to the exposure of the fraudulent scheme.

To maintain the illusion, the three suspects went further by forging Li Minchang’s mining license request for the 103.81-square-kilometer area, despite the fact that the Ministry of Mines and Energy had already issued a legitimate license to another party.

They then spent $5,000 to hire someone to fabricate a mine exploration plan and another $200 to create a presentation for the Mines Ministry. However, the ministry outright rejected the request, as the site had already been licensed to a different entity.

“They told the Chinese investor that the ministry would not give the license as he failed to send the team to secure the project request and pay the other $400,000,” said ACU’s Chanvichet.

The suspects are also accused of defrauding another Chinese investor, Pan Yijun, using a similar scheme.

“Using a fake map, they took another $800,000 from Pan Yijun, who was a friend of the first investor and also helped transfer the initial $400,000 to the translator in the first Pailin case,” said Chanvichet.

This second fraud case, labeled “Pailin 2” by the ACU, resulted in Hiav Khan personally receiving $100,000, bringing his total gain from both incidents to $140,000.

Additionally, the three suspects were allegedly involved in a separate $5 million gold mining license scam in Preah Vihear province.

“Before the Pailin 2 incident, the three individuals orchestrated a $5 million gold mine license scam in Preah Vihear, where Pan Yijun was misled into investing $300,000 to drill three wells, with a promise to deposit another $1.5 million upon completion of drilling,” said Chanvichet. However, no payments had been made at the time of the arrests.

Crackdown on Corruption

The arrests are part of Cambodia’s broader anti-corruption crackdown.

Earlier this year, a military police deputy chief and another officer in Takeo province were arrested for accepting bribes related to drug trafficking and illegal gambling.

Additionally, late last year, Ly Samet, a former adviser to Senate President Hun Sen, was arrested for using the former prime minister’s name to deceive individuals into paying money for government positions and royal titles.

The provincial court has ordered the suspects to remain in custody for further investigation and interrogation.