Injunction delayed for Phnom Penh Post

Khy Sovuthy / Khmer Times No Comments Share:
The paper was sued for wrongful dismissal. KT/Chor Sokunthea

Phnom Penh Municipal Court has extended the deadline for an injunction issued against the Phnom Penh Post that instructed it to pay $260,000 in compensation to its former CEO Chris Dawe, who sued the newspaper over wrongful dismissal.

The court on April 5 issued an injunction instructing the paper to pay $260,000 in compensation to Mr Dawe or face seizure of property.

Deputy prosecutor Kham Sophary said yesterday that the deadline has been extended indefinitely, for now.

“We will discuss with court officials to set a new date to visit their office again,” he said, noting a new deadline has yet to be set.

Kay Kimsong, editor-in-chief of the paper, declined to comment yesterday.

Earlier this month, court spokesman Ly Sophanna said that the court was implementing a verdict of the Appeal Court, which upheld a municipal court ruling in favour of Mr Dawe.

In a statement released on April 5, the paper’s current CEO Marcus Holmes said that the case was still in the appeal process as the paper has brought it to the Supreme Court.

Meanwhile, the paper has also been undergoing a tax audit, which apparently shows that it owes about $3.9 million in taxes, according to a report by AEC News Today last month.

The AEC report said the Post would need a massive cash injection within the next 60 days, noting that it was hit with a tax penalty of $3.9 million and could possibly close down.

However, Mr Holmes said that the paper was undergoing a “routine” tax audit by Cambodia’s General Department of Taxation.

“The Post is not at risk of closure, as some inaccurate media reports have suggested,” Mr Holmes said following the AEC report.

“Tax audits are a normal part of doing business, and the GDT has audited many other businesses in Cambodia in the same way,” he added. “The exact figures involved are confidential.”

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