A/HRC/42/CRP.3 63. Under the production department, MEHL has 41 factories, including for the production of palm oil, sugar, soap and cement. Some of these factories supply others as part of an integrated production business. For example, the MEHL Kanpauk Oil Palm Estate and Palm Oil Mill Project in Tanintharyi Region produce raw oil for the MEHL Padonma Soap Factory in Mon State.138 The Mission has also identified MEHL subsidiaries under its service and trade departments. MEHL subsidiaries include three beverage and drinking water companies, four companies producing construction materials, three construction businesses, five businesses in finance and insurance, four companies in the food, agriculture and fisheries sectors, two companies in the tourism sector and five trade and logistics firms. In the mining and gems sector, MEHL has 31 companies, including subsidiaries specializing in the extraction of jade and rubies.139 64. MEC subsidiaries are equally diverse but with a greater focus on the production of raw materials, including coal and gas, and manufacturing. Among the subsidiaries, the Mission identified five companies in the finance and insurance sector, eight food production companies, seven companies producing raw materials and six companies in the telecommunications sector. These sectors are consistent with information that the Mission received characterizing MEC as a conglomerate that supplies natural resources to the Tatmadaw and operates factories manufacturing goods for use by the Tatmadaw.140 65. Among their subsidiaries, MEHL and MEC also operate two of Myanmar’s largest private banks.141 Established in 1993, Myawaddy Bank is owned by MEHL. As of March 2016, the International Finance Corporation of the World Bank reported Myawaddy Bank to have Ks 1.3 trillion in total assets (855 million USD), making it the fourth largest private bank in Myanmar.142 Its shares are held by serving and retired military personnel and related organizations such as the Veterans’ Associations.143 According to the German development agency Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, in May 2018, Infosys, an Indian multinational corporation, partnered with Myawaddy Bank to provide it digital banking software.144 Separately, MEC owns Innwa Bank, which was established in 1997.145 GIZ found that Innwa Bank Limited is managed by retired and active military officers of the Tatmadaw, and it acts as a financial vehicle for the affiliates and subsidiaries of MEC.146 138 139 140 141 142 143 144 145 146 Lundsgaard-Hansen LM, Tun NN. 2018. Voices of Land from Southern Myanmar: Kanpauk Oil Palm Estate and Palm Oil Mill Project of Myanmar Economic Holdings Limited. Voices of Land from Southern Myanmar, Working Paper No. 3. Bern, Switzerland: Centre for Development and Environment (CDE), University of Bern. For further information, see Annex III. MEHL jade and ruby mining companies. See Annex II. Myanmar Economic Holdings Limited (MEHL) and Myanmar Economic Corporation (MEC); and Annex III. MEHL jade and ruby mining companies. John Schellhase and Lena Sun, “The Banking Sector in Myanmar: An Assessment of Recent Progress,” Milken Institute, August 2017 (https://assets1c.milkeninstitute.org/assets/Publication/Viewpoint/PDF/083117MyanmarBanking.pdf). Elisa Minischetti, Margarete Biallas, Vanessa Vizcarra “IFC MOBILE MONEY SCOPING COUNTRY REPORT: MYANMAR,” International Finance Corporation, World Bank Group, October 2017 (https://www.ifc.org/wps/wcm/connect/6f852818-47db-4f08-9b88b57209b791c9/Myanmar+Market+Scoping+Report.pdf?MOD=AJPERES) Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, “Myanmar’s Financial Sector A Challenging Environment for Banks,” 3rd edition, 2016 (https://www.giz.de/en/downloads/giz2016-en-Banking_Report.pdf). Infosys Limited, “Myawaddy Bank, Myanmar Selects Infosys Finacle to Power its Digital Transformation,” 3 May 2018 (https://www.prnewswire.com/in/news-releases/myawaddy-bankmyanmar-selects-infosys-finacle-to-power-its-digital-transformation-681600911.html). See Annex V. Foreign companies in commercial partnerships with MEHL and MEC. Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, “Myanmar’s Financial Sector A Challenging Environment for Banks,” 3rd edition, 2016 (https://www.giz.de/en/downloads/giz2016-en-Banking_Report.pdf). Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, “Myanmar’s Financial Sector A Challenging Environment for Banks,” 3rd edition, 2016 (https://www.giz.de/en/downloads/giz2016-en-Banking_Report.pdf). 25

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