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

Select target paragraph3

Connect to a paragraph
Connect to an entity
Disable highlights
Add to table of contents