‘Illegal loans void, do not repay them’: Cambodian Minister

He delivered his remarks during the closing ceremony of the interior ministry’s annual review meeting, on February 13.

The meeting reviewed the ministry's work in 2024 and planned its direction for the coming year. 

According to a social media post by the minister, he ordered national-level officials to “Stop interfering with the transfer of civil servants to suit your purposes”.

He noted that local authorities have the right to appoint personnel within their jurisdictions, but the government-level officials assigned to assist local authorities do not.

Sokha reminded local officials that they do not have to agree with transfer requests made by national-level officials, or members of government working groups.

He also reiterated that the authorities have prohibited illegal online lending, encouraging all ministry officials to continue to suppress such lending practices, noting that illegal loans often exploit borrowers.

“I urged the ministry officials to tell the public that if the lending group is illegal – especially if it is foreigners providing the online loan – then our citizens should not repay the loan. If there are any issues, they should report it to the authorities,” he added, via his social media.

He made a clear distinction between licensed microfinance lending and personal loans between individuals, noting that all parties concerned should follow all agreed terms and the law.

In the recent past, the National Bank of Cambodia and the National Police have specifically prohibited online loans which require borrowers to provide their National ID Cards or other legal papers. It noted that such loans have previously led to violence.

Niem Chheng

The Phnom Penh Post

Asia News Network