Pacific Governments Acknowledge Threats from Cambodia’s Prince Group Investments

Taiwan and Palau governments have been warned about the Prince Group’s investments, which may threaten their sovereignty and security. The Hawaiian think tank Pacific Economics raised concerns about the conglomerate’s links to transnational crime, suggesting its activities could facilitate China’s influence abroad. Ongoing investigations highlight potential illicit connections and substantial financial stakes in Palau’s economy, underscoring the need for enhanced scrutiny of foreign investments.

Governments in Taiwan and Palau have been cautioned by the Hawaii-based think tank, Pacific Economics, regarding investment offers from the Cambodian conglomerate, Prince Group. The organization asserts that the Prince Group engages in activities linked to transnational crime and could be a means for Beijing to extend its influence. These warnings followed a six-month investigation into foreign investments in Palau, funded by the U.S. government.

Jarod Baker, founder of Pacific Economics, emphasized the troubling influx of wealth into Palau, noting potential criminal ties among investors, thus presenting the Prince Group as a case study of questionable investments. In a recent statement, the Prince Group deemed these findings as “defamatory,” asserting it does not invest in Palau, despite evidence stating that its chairman, Chen Zhi, holds significant ownership in Palau-registered entities.

Investigations have alleged the Prince Group is entangled in serious misconduct such as money laundering and human trafficking. Pacific Economics reported three large hotel and resort projects in Palau linked to the group, valued around $1 billion, significantly surpassing the nation’s annual economy. A notable investment involves a lengthy lease on an uninhabited island, raising issues regarding land ownership and economic development in Palau.

Officials from Palau acknowledged the challenges in vetting foreign investors, emphasizing a commitment to forming authentic business partnerships while simultaneously fortifying scrutiny to protect against illicit activities. Collaborators of the Prince Group, including Rose Wang, have raised concerns, especially given her previous designation as an “undesirable alien” in Palau due to her relations with controversial individuals.

Wang has denied any association with illegal ventures involving the Prince Group, maintaining she is a legitimate businessperson. However, concerns persist regarding her influence tied to the Chinese government through associations with cultural organizations promoting the Chinese Communist Party’s agenda, particularly in nations like Palau that recognize Taiwan.

Baker, while not directly linking Prince Group to these efforts, recognizes the historical context in which China has utilized criminal organizations to pursue its interests. Allegations have even surfaced regarding Prince’s involvement in a plot to abduct a dissident from Taiwan, which the group has denied. Despite this, the Prince Group persists in its operational pursuits in Taiwan, enjoying favorable visibility due to its classification as a foreign investor, which circumvents restrictions on Chinese capital.

In conclusion, the Prince Group’s investment activities in Palau raise significant concerns regarding national security and sovereignty for both Palau and Taiwan. The connections to transnational criminal activity and potential influence from China necessitate a thorough examination of foreign investments in vulnerable regions. continuous scrutiny and careful vetting processes are essential to uphold legitimate business practices and safeguard against exploitation inspired by external powers.

Original Source: islandsbusiness.com