A/HRC/42/CRP.3
in the jade sector.160 The Mission notes, however, the recent announcement by the
Government that the “Other Accounts” of the extractive industry State-owned economic
enterprises will be abolished and all their income will be transferred to the Union
Government.161
D.
Tatmadaw-linked private Myanmar companies and conglomerates
75.
In 1998 the State Law and Order Restoration Council (SLORC) seized control of
government operations, commencing a new period of Tatmadaw rule and partial
liberalization of Myanmar’s economy.162 This came in response to widespread antigovernment protests against human rights violations, high levels of corruption and economic
mismanagement by the Burma Socialist Programme Party regime of Senior General Ne Win.
During this period of partial economic liberalization, the SLORC fostered a political and
economic system where connections with political leadership, rather than productivity and
competitiveness, led to the success of private enterprises. This, in turn, gave rise to corruption
and the inequitable distribution of public resources, promoting the growth of a number of
private companies and conglomerates that profited from preferential treatment by the ruling
military junta in exchange for political loyalty, and thus became known as “crony
companies.”163
76.
Today, despite the changes in the political and economic landscape in Myanmar, the
Tatmadaw, its conglomerates MEHL and MEC, and a number of crony companies remain
closely linked through economic, commercial, familial, political and operational
relationships that directly or indirectly benefit the Tatmadaw and its leadership. The Mission
regards the following conglomerates as among the largest crony companies in Myanmar:
Asia World Group, Eden Group, First Myanmar Group of Companies, Htoo Group, IBTC,
IGE Group, Kanbawza Group (KBZ Group), Loi Hein, Max Myanmar, Shwe Taung, and
Shwe Than Lwin Group.164 Many but not all of these crony companies contributed financial
support to the Tatmadaw in the form of donations solicited by the senior Tatmadaw
leadership to support its operations in northern Rakhine, following the commencement of the
“clearance operations” against the Rohingya in northern Rakhine on 25 August 2017. 165
77.
Mining operations provide a clear illustration of the strong business interests of
MEHL, MEC and its subsidiaries in crony companies. For example, according to Myanmar
EITI and corporate records, MEHL entered into an arrangement whereby it is allocated 20
per cent of the production of the Jing Hpaw Aung Jade mine in Kantee, Sagaing Region,
which is licensed to the KBZ Group.166
160
161
162
163
164
165
166
28
Daniel Pye, “The dark shadow of Myanmar’s jade trade,” 26 September 2016, Financial Times
(https://www.ft.com/content/cf46e086-6909-11e6-a0b1-d87a9fea034f).
The Republic of the Union of Myanmar, President Office, “President U Win Myint addresses Finance
Commission meeting 3/2019,” 18 June 2019 (http://www.president-office.gov.mm/en/?q=briefingroom/news/2019/06/18/id-9397).
For further details, see A/HRC/39/CRP.2, paragraphs 73-75. D. Steinberg, Myanmar: The Anomalies
Of Politics And Economics, The Asia Foundation Working Paper Series - Working Paper #5 (1997).
For more information, see Aung Min and Toshihiro Kudo, “Business Conglomerates in the Context of
Myanmar’s Economic Reforms.”; Michael Peel, “Myanmar: The Military-Commercial Complex,”
Financial Times, 2 February 2017 (https://www.ft.com/content/c6fe7dce-d26a-11e6-b06b680c49b4b4c0).
For more information, see Aung Min and Toshihiro Kudo, “Business Conglomerates in the Context of
Myanmar’s Economic Reforms”; Michael Peel, “Myanmar: The Military-Commercial Complex,”
Financial Times, 2 February 2017 (https://www.ft.com/content/c6fe7dce-d26a-11e6-b06b680c49b4b4c0); “Tracking the Tycoons,” The Irrawaddy, September 2008
(https://www2.irrawaddy.com/article.php?art_id=14151&page=1).
See Annex IV. List of donors and details of donations solicited by the Tatmadaw in September 2017.
Myanmar Extractive Industries Transparency Initiative (MEITI): The Fourth Myanmar EITI Report
For the Period 1 April 2016 to 31 March 2017 (FY 2016-2017), Oil and Gas, Gems and Jade, Other
Minerals and Pearl, 30 March 2019
(https://myanmareiti.org/sites/myanmareiti.org/files/publication_docs/4th_meiti_report_30_march_20
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