New commercial mediators have been accredited by the internationally recognized mediation and alternative dispute resolution body – the Center for Effective Dispute Resolution (CEDR) after a training program on March 09. SUPPLIED
The Centre for Effective Dispute Resolution (CEDR), a London-headquartered mediation and alternative dispute resolution body, recently accredited 16 new Cambodia-based commercial mediators, according to a joint statement on March 9.
The mediators underwent “a training programme and are ready to provide mediation services to businesses in dispute”, said the statement, issued by World Bank Group private sector arm International Finance Corp (IFC) and Phnom Penh-based non-profit commercial dispute resolution institution National Commercial Arbitration Centre (NCAC).
“A neutral and independent third person, the mediator uses a wide variety of techniques to guide the process of discussion, eventually helping the business parties to arrive at an agreed solution, saving them lengthy and costly court proceedings.
“To help improve Cambodia’s investment climate while supporting businesses to recover from the impacts of Covid-19 and continue job creation, IFC and [NCAC] are promoting mediation to resolve business disputes and build investors’ trust in commercial litigation.
“Given the economic challenges of a global pandemic, like in many other markets, it has been difficult for Cambodian businesses – especially small and medium enterprises [SME] – to maintain operations.
“Against this backdrop, availability of flexible out-of-court dispute resolution alternatives such as commercial mediation will help boost entrepreneurship, free company funds otherwise tied up in disputes, and create a conducive environment for investors, SMEs and entrepreneurs,” it said.
IFC resident representative for Cambodia Asad Yaqub said in the statement: “At IFC, our experience shows that during crises, a robust commercial mediation mechanism is critical to promote faster commercial or debt-related dispute resolution.
“As the Cambodian economy recovers from the pandemic and continues to grow, efficient alternative dispute resolution options will give the private sector more confidence to engage in business transactions, encouraging investment and promoting economic growth in the country,” said Yaqub.
NCAC president Bun Youdy added: “Even though mediation is a long-standing tradition in the Cambodian society, structured commercial mediation is a relatively new concept for business community here.
“I believe a strengthened alternative dispute resolution mechanism along with capable mediators will encourage more businesses in the country to adopt commercial mediation, a way to help resolve their disputes in a fast, cost-effective, and efficient manner.
“An internationally recognised accreditation to the 16 trainees is a remarkable milestone,” he was quoted as saying.
Citing International Chamber of Commerce (ICC) records, the statement added: “An average mediation process lasts four months from the date the request for mediation is filed to the end of the proceeding. However, the actual meetings with the mediator last just one to two days.”
On January 21 last year, Minister of Justice Koeut Rith signed legislation establishing the Commercial Court Organising Committee.
And on June 24, the Ministry of Justice, Cambodia Chamber of Commerce (CCC) and other relevant stakeholders held a virtual consultation session looking to speed up the process of setting up the court.
CCC vice-president Lim Heng told The Post on June 30 that the justice ministry was preparing to set up commercial courts in three initial locations – in Phnom Penh and the provinces of Siem Reap and Preah Sihanouk. He expected the three to be established by early 2022.
And on August 5, Ministry of Commerce secretary of state Cham Nimul revealed that investors to date had submitted 27 complaints regarding trade disputes to the NCAC.
