Full disclosure, I have not seen this movie but I heard its really funny.
If this story is true (maybe its a spoof piece), the people who made Borat are pretty cold...and greedy. Apparently the villagers who were used in the movie didn't understand that they would be portrayed as a backward group of rapists, abortionists and prostitutes, who happily engage in casual incest when they agreed to participate in the film. They did get paid a few bucks, but it sounds like they are really pissed off. Here's the link:
http://www.dailymail.co.uk/pages/live/articles/news/news.html?in_article_id=415871&in_page_id=1770