Logo of Phnom Penh Post newspaper Phnom Penh Post - Court auctions factories

Court auctions factories

Content image - Phnom Penh Post
Dignity Knitter Limited and Eco Best Factory in Takhmao town’s Sitbou commune in Kandal province will be auctioned on December 29, according to a court notification on December 14. Hean Rangsey

Court auctions factories

The Kandal Provincial Court has put two factories up for auction with proceeds from the sales set to compensate workers who have gone unpaid.

Dignity Knitter Limited and Eco Best Factory in Takhmao town’s Sitbou commune in Kandal province will be auctioned on December 29, according to a court notification on December 14. Paper and verbal bids will be accepted in a hearing at the courthouse with bidding starting at $1,777,000.

“During this time, members of the public may view detailed documents of movable property contained in the facilities and valuation reports. They may also make on-site inspections from the date of this public announcement up to three days before the date of auction,” the notification said.

Court spokesman So Sarin explained that the court had decided to confiscate and sell the properties after ruling in favour of an unspecified number of plaintiffs. Court records indicate that complaints were filed by garment workers who alleged that they had not been paid wages for several months. The court determined they were unpaid creditors of the businesses.

“After receiving money from this auction, [the court] will pay it back to creditors,” he said.

Sarin said he did not have details of this case at hand, but many such cases are being brought before the courts.

“Workers cannot file court complaints resulting in the confiscation of property if their case is without merit. Regarding this case, the property is being put up for sale in accordance with legal procedures. The provincial court and relevant authorities joined these workers to resolve this problem,” he said.

Collective Union of Movement of Workers president Pav Sina said the managers of these two factories may have fled without paying wages and other benefits to workers.

He noted that the provincial court decided its course of action after the employers failed to come forward to take responsibility for the matter and offer compensation to workers.

Sina did not know precisely how many workers were affected or for how long they had gone unpaid.

He said addressing the issue by auctioning confiscated property would help alleviate the workers’ grievances, but it cannot guarantee that they will receive sufficient payments to fully compensate them for lost benefits.

“[The court] has decided to put the properties up for auction, but it is conceivable that other factory owners might follow this example. [In this case, employers] evaded their responsibilities and ran away, leaving the court to decide the case.

“This is not a good precedent. If cases like this continue to occur, workers stand to lose the most,” he said.

MOST VIEWED

  • Five-year-old Hanuman dances his way into hearts of Cambodia

    A young talent from a new-established settlement has emerged, captivating the online world with his mesmerising performances of the traditional Cambodian monkey dance. Roeun Kakada is a five-year-old prodigy who has taken the social media sphere by storm with his exceptional dance skills and dedication

  • Fresh Covid warnings as Thai hospital fills

    A senior health official reminds the public to remain vigilant, as neighbouring countries experience an increase in Covid-19 cases, with the latest surge appearing to be a result of the Omicron XBB.1.5 sub-variant. Or Vandine, secretary of state and spokeswoman for the Ministry of Health,

  • Honda shutters Siem Reap football club

    Japanese football legend Keisuke Honda, the owner of Siem Reap football club Soltilo Angkor FC, has been forced to shut the club down, after it failed to attract sponsorship for the upcoming season. Honda, the former manager of the Cambodia men's national football team, said

  • Hun Sen warns of regional tensions

    ASIA is becoming a dangerous geopolitical hotspot, with several countries announcing that they intend to send naval vessels towards Southeast Asia and on to the South China Sea, warned Prime Minister Hun Sen. “Heated geopolitical issues can easily escalate, namely to war. I am not

  • PM declares ASEAN Para Games open

    The 12th ASEAN Para Games officially kicked off on the evening of June 3 at Morodok Techo National Stadium in Phnom Penh, with a spectacular opening ceremony featuring fireworks and performances by some of the Kingdom’s most accomplished talents. Tens of thousands of sports fans

  • Waterway job still pending for Kampot tourism port’s opening

    The search is still on for a contractor to expand and deepen the Kampot International Tourism Port’s waterway and deliver additional enhancements allowing safe access for larger vessels, nearly a year after the main construction work on the 4.25ha site was completed on June 30, 2022.