A/HRC/42/CRP.3 1. Background 50. Myanmar Economic Holding Limited (MEHL), formerly known as the Union of Myanmar Economic Holding Limited (UMEHL), was the first private company established in Myanmar following the 1988 military coup, during the rule of the military junta, first known as the State Law and Order Restoration Council (SLORC) and later the State Peace and Development Council (SPDC). MEHL has at least four declared objectives: the welfare of military personnel and their dependents, the welfare of war veterans and their dependents,99 the welfare of the general public, and contributing to the economic development of Myanmar.100 Since its establishment, MEHL has also served to secure control and generate profit for the Tatmadaw and its senior leadership.101 Today, MEHL is a holding company with businesses in various industries, including gem production, banking, tourism and transport.102 MEHL owns the Myawaddy Bank.103 51. Myanmar Economic Corporation (MEC) was established in 1997, with the declared objectives of contributing to Myanmar’s economy, fulfilling the needs of the Tatmadaw, reducing defence spending and ensuring the welfare of military personnel.104 Today, MEC is a holding company with businesses in the mining, manufacturing, and telecommunications sectors, as well as companies that supply natural resources to the Tatmadaw, 105 and operate factories producing goods for use by the Tatmadaw.106 The MEC owns the Innwa Bank.107 2. Governance 52. Current and former high-ranking Tatmadaw officials, including those accused of some of the gravest crimes under international law, have apparent significant control and influence over the two holding companies and therefore over their subsidiaries. 108 The corporate structure of both MEHL and MEC is highly opaque, however, the Mission was able to identify the composition of MEHL’s Patron Group. Commander-in-Chief Senior General Min Aung Hlaing and Deputy Commander-in-Chief Vice Senior General Soe Win lead the 99 100 101 102 103 104 105 106 107 108 The Ministry of Information, 24 August 2015, “Furthermore, [the Senior-General] explained the following regarding the economic enterprises of Tatmadaw, Myanmar Economic Holdings Limited and Myanmar Economic Corporation (MEC): in other countries, there are economic enterprises backing the militaries, even though their operations are different, these enterprises fulfil the needs of their Tatmadaw; Myanmar Economic Holdings Limited is operating with an aim to help ease the needs of family members of Tatmadaw-men, veterans, citizens, and to support the economy of the Union.” (https://www.moi.gov.mm/?q=news/24/08/2015/id-8254) Maung Aung Myoe, Building the Tatmadaw: Myanmar Armed Forces since 1948 (Institute of Southeast Asian Studies, Singapore, 2009). Digital records 1999, 2000, 2001 See Annex II. Myanmar Economic Holdings Limited (MEHL) and Myanmar Economic Corporation (MEC) See Annex II. Myanmar Economic Holdings Limited (MEHL) and Myanmar Economic Corporation (MEC) The Ministry of Information, 24 August 2015, “Furthermore, [the Senior-General] explained the following regarding the economic enterprises of Tatmadaw, Myanmar Economic Holdings Limited and Myanmar Economic Corporation (MEC):... the enterprises of MEC save the budget of Tatmadaw, manufacture goods to support the Tatmadaw, these enterprises pay taxes to the Union in full, contribute to the "Easing the Tatmadaw" fund, including by supporting the soldiers injured from battles, building houses of the veterans, with the profits from the enterprises; MEC has returned all the shares of the Union; the private holdings have been gradually decreased, with an view to making them public, such as shares owned by the families of Tatmadaw-men, veterans, military units, and others who can participate...” (https://www.moi.gov.mm/?q=news/24/08/2015/id-8254). “Doing business in Myanmar,” Fourth Edition, PricewaterhouseCoopers, May 2016, pg. 15 (https://www.pwc.de/de/internationale-maerkte/assets/doing-business-in-myanmar-2016.pdf). See Annex II. Myanmar Economic Holdings Limited (MEHL) and Myanmar Economic Corporation (MEC). See Annex II. Myanmar Economic Holdings Limited (MEHL) and Myanmar Economic Corporation (MEC). See Figure 1: Governance Structure of MEHL and MEC. 19