Tycoon Ly Yong Phat has expressed regret over being sanctioned by the US Treasury for alleged human rights abuses, stating that the company he had been involved with has since ceased operations.

On September 12, the US Treasury announced sanctions on Yong Phat, his conglomerate L.Y.P. Group, and O-Smach Resort, citing their alleged involvement in human rights abuses related to forced labour in online scam centres.

Yong Phat, who assumed the role of President of Cambodia Oknha Association in 2023 and owns or controls Garden City Hotel and Phnom Penh Hotel, has also seen these businesses placed under US sanctions.

In an email interview with OCCRP (Organised Crime and Corruption Reporting Project), Yong Phat expressed his company's regret over the US Treasury sanctions and stated they have hired lawyers. He acknowledged his involvement in a failed real estate venture with the alleged crime figures.

“The individuals mentioned were interested in purchasing land for the purpose of condominium development, but this transaction did not take place because of deteriorating market conditions,” OCCRP quoted Yong Phat as saying.

“The company related to these individuals was then closed. Since the closure, our company does not have any knowledge of the company or individuals mentioned,” he added.

OCCRP is a global network of investigative journalists, specialising in organised crime and corruption since 2006. It publishes stories through local media and its website in English and Russian.

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Citing Cambodian documents, OCCRP said in its reporting that Yong Phat has deeper underworld ties than previously revealed. He co-directed a real estate firm with Su Yongcan, wanted for a $2.2 billion money laundering case and subject to an Interpol Red Notice.

Yongcan, like other suspects in the Singapore investigation, is originally from China but now holds Cambodian citizenship, OCCRP reported.

It added that Cambodian corporate records indicate that Yong Phat chaired Xin Yong An Property Co Ltd, where Yongcan served as a co-director alongside Zhongjian. Zhongjian, another Chinese national granted Cambodian citizenship, has a history of involvement in controversial businesses and partnerships.

Xin Yong An Property, where Yong Phat, Zhongjian and Yongcan served as directors, was established in 2019 and later dissolved, according to the CCRP. The company was registered at the headquarters of Yong Phat's main firm, L.Y.P Group.

Cambodia's Ministry of Foreign Affairs and the ruling Cambodian People's Party have criticised the US sanctions against Yong Phat. They argue that the sanctions are based on unverified reports and misrepresent Cambodia's efforts to combat human trafficking and forced labour.

They also highlighted Ly's positive contributions to the Kingdom's development and claimed that the sanctions violate both Cambodia's sovereignty and Yong Phat's human rights.

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