How a chance meeting on a night bus brought down FDA chief

Acting on a tip-off from a fellow passenger, a crusading MP exposed allegations that a top official had skimmed public money to build houses for himself

Food and Drug Administration (FDA) director general retired major Dr Than Htut in Mandalay regional court (Photos by Khin Hnin Wai/ Myanmar Now)

During the work week, Myanmar’s members of parliament spend their evenings housed in bland dormitories in Naypyitaw. So for many MPs, Friday night is travel night.

Some board buses for long, bumpy journeys to their hometowns in far flung corners of the country. Others take shorter trips to closer cities like Mandalay or Yangon for some weekend respite from the capital city.

It was on one of these overnight trips in August last year, speeding along the poorly-lit highway from Naypyitaw to Yangon, that a chance encounter led one MP to a discovery that would help crack open the highest-level corruption case since the NLD came to power in 2016.

Dr Than Htut, the former director general of the Food and Drug Administration (FDA), was removed from his post after being arrested in April under section 56 of the anti-corruption law, which carries a maximum prison sentence of 10 years.

 

 

The Anti-Corruption Commission (ACC) has accused the former director general of demanding favours from a construction company in exchange for building contracts.

The commission alleged the director general had the company carry out more than K150 million (roughly $100,000) worth of private construction work that included building him a swimming pool and kitting his houses out with electronic goods.

 

 

Dr Than Htut has said on several occasions that he has been wrongly accused.

President U Win Myint took office in March promising to make tackling corruption a key feature of his tenure. But this case may never have come to light were it not for one crusading MP.

Dr Khun Win Thaung, a 62-year-old former veterinarian who was elected to Kachin State’s eleventh constituency on an NLD ticket in 2016, was on his way to see friends in Yangon last August when he struck up a conversation with the man in the seat next to him.

The MP loved to talk corruption and human rights, and his fellow passenger was an employee at a construction company that had been working on government contracts.

Swimming pools and TVs

This, it turned out, would make for interesting conversation as travellers around them dozed beneath their blankets.

The passenger, Nay Myo Aung, lived in Yangon and worked for the Cairo Construction Company, which he said had secured a contract to build laboratories and other buildings for the FDA, which operates under the Ministry of Health.

This reminded Dr Khun Win Thaung of a parliamentary discussion he had taken part in about the low quality of government hospital buildings.

He asked Nay Myo Aung if, now that the government had allocated more money to healthcare, the extra cash was really benefiting the people.

“What do you think?” he responded.

The employee went on to allege that his company had been skimming money off the budget for the FDA projects in order to build houses for the agency’s director general.

In one case, he said, Cairo built a house with a swimming pool in Ywar Thit, Naypyitaw, on nine acres of land owned by the director general.

They fitted this and other houses out with furniture, kitchenware, wide screen televisions and minibars, all with public money, the employee said.

The company also built a house in the Naypyitaw’s Shwe Kyar Pin ward for the director general, he said.

To find the money for all these houses, he said, the company had to cut corners building the FDA facilities.

‘Holes in the roof’

In January, four months after their conversation on the highway bus, Dr Khun Win Thaung and Nay Myo Aung met again in Naypyitaw for a discreet visit to one of these offices.

“He told me the zinc plates for the roof weren’t up to standard,” Dr Khun Win Thaung recalled. “They were very thin. The number of rain diverters installed was less than the number in the plan.”

The Cairo employee also told him that “there will be holes in the roof after two years, and they will ask for money from the government to do major repairs,” Dr Khun Win Thaung said.

The MP recorded the conversation and in February sent the file to the Anti-Corruption Commission, which has been criticised since its formation in 2014 for failing to target higher-ranking officials.

After receiving the MP’s complaint, the ACC questioned 18 people, including officials from Cairo and the FDA, and the whistleblowing employee.

“There are many cases worse than this” that haven’t yet been exposed, Dr Khun Win Thaung told Myanmar Now. “What I am trying to say is they are still stealing while the country is still recovering.”

Before the scandal broke, Dr Than Htut was seen as a rising star, and tipped for a top ministerial position, Dr Khun Win Thaung said.

“Top officials had considered making him deputy minister of health,” he said.

‘Wrongly accused’

Dr Than Htut is the highest ranking official to be charged by the Anti-Corruption Commission, followed by ousted Yangon Region Advocate General U Han Htoo, who was charged in September for corruption relating to the murder case of comedian and actor Aung Ye Htwe.

Last month Dr Khun Win Thaung testified at Dr Than Htut’s trial at a courthouse in Mandalay.

Dr Than Htut was brought to the court from Mandalay’s O Bo prison in handcuffs. After the hearing he told a crowd of reporters that he was innocent.

On his way out of the court on the same day he said he was wrongly accused and will resolve the accusations in the courtroom.

The next hearing will take place on January 18th.

An ex-convict businessman says that he gave the State Counsellor more than $550,000 in cash when ‘there was no one around.’ 

Published on Mar 18, 2021
Maung Weik (first from left) is pictured near State Counsellor Aung San Suu Kyi at the opening ceremony of a government housing built by his Say Paing Company. (Maung Weik/ Facebook)

The military council announced on March 17 that it would attempt to charge State Counsellor Daw Aung San Suu Kyi, who has been detained since Myanmar’s February 1 coup, with corruption.

The junta’s move is linked to new allegations against Aung San Suu Kyi by businessman Maung Weik. The owner of the Say Paing construction and development company, Maung Weik was formerly imprisoned on drug charges and is known to have close relationships with members of the military’s inner circle.  

Military-run media aired a recorded statement made by Maung Weik alleging that he had given Aung San Suu Kyi more than US$550,000 in cash-filled envelopes on the four occasions he met her between 2018 and 2020. 

“There was no one around when I gave her the money,” he said in the video statement. 

Under Myanmar’s earlier military regime, Maung Weik maintained ties to several generals, including former intelligence chief Khin Nyunt.

He was sentenced to 15 years in prison on drug charges in 2008, but was released in 2014 while the country was led by the military-backed Union Solidarity and Development Party.  

Upon his release, Maung Weik founded Say Paing–a construction company–and ran various business ventures through his connections to military officials.  

Maung Weik’s wife is also the niece of military-appointed Vice President Myint Swe, who was also the former chief minister of Yangon under the former military administration. 

The coup council announced on March 11 that the now-ousted National League for Democracy’s (NLD) Yangon Region chief minister Phyo Min Thein had given Aung San Suu Kyi $600,000 and more than 11 kilograms of gold. The announcement provided no reason as to why the money and gold were allegedly given to the State Counsellor by the chief minister. 

A top NLD figure told Myanmar Now that the funds in question were donations to build a pagoda. 

“They’re trying to fabricate this and ruin [Aung San Suu Kyi’s] reputation, but the public already clearly knows it’s not true. There’s no need to say anything else,” the official said. 

The junta has also accused the Daw Khin Kyi Foundation and an affiliated project, the La Yaung Taw Academy, of losing public funds. The foundation was founded by Aung San Suu Kyi and named after her late mother. 

According to the military council, the land lease for the Daw Khin Kyi Foundation’s headquarters, located on Yangon’s University Avenue, is not commensurate with the market price for land in the area. It argues that the country had lost more than 1 billion kyat (more than $700,000) in public funds as a result.

The junta declared that from 2013 to 2021, more than $7.9 million in donations from foreign NGOs, INGOs, companies and individual international donors flowed into the foundation’s three foreign currency accounts.

Also under investigation by the junta is the La Yaung Taw Academy in Naypyitaw, which trains young people in environmental conservation and horticulture in association with the Daw Khin Kyi Foundation. The military said the rate at which the land for the project was purchased came at a discount of at least 18 billion kyat (more than $12.7 million), which was subsequently a loss to the state. 

It also reportedly included some plans—such as the construction of a museum—that used funds in a way that strayed from the project’s, and the Daw Khin Kyi Foundation’s, original aims.

“The construction of a building with finance from the foundation for the chair of the foundation has deviated from the foundation’s objective,” the March 17 announcement in the military-run newspaper said. 

Prior to the corruption allegations, the military council had hit Aung San Suu Kyi with four charges at the Zabuthiri Township court in Naypyitaw.

She has been accused of violating Section 505(b) of the Penal Code for incitement, which carries a sentence of two years in prison; Article 67 of the communications law for possession of unauthorized items; an import-export charge for owning walkie-talkie devices; and a charge under the Natural Disaster Management Law for not following Covid-19 measures during the 2020 election campaign period.

The military council has not allowed Aung San Suu Kyi to meet with her legal team. 

“I’ll most likely see her via video conferencing on March 24 for the next hearing,” lawyer Min Min Soe told Myanmar Now. 

The military council has only allowed lawyers Yu Ya Chit and Min Min Soe to take on Aung San Suu Kyi’s case, ignoring the requests of more established legal experts, including Khin Maung Zaw and Kyi Win, to be granted power of attorney.

 

 

Myanmar Now is an independent news service providing free, accurate and unbiased news to the people of Myanmar in Burmese and English.

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A month and a half after the military seized power, most banks in Myanmar are barely operating

Published on Mar 18, 2021
People queue in front of a KBZ Bank branch in Yangon on March 17. (Supplied) 

Banking in Myanmar has come almost to standstill in the more than six weeks since the February 1 coup, with only basic services still available at a limited number of locations.

In the commercial capital Yangon, only a handful of branches of two of the biggest domestic banks, KBZ and AYA, remain open, according to customers.

As of Wednesday afternoon, every bank in the city’s Yankin, Tamwe, Bahan, Thingangyun and South Okkalapa townships appeared to be closed, Myanmar Now found in an effort to confirm these reports.

However, a customer who had used the AYA Bank branch on Sayarsan road in Yankin said it was still open for withdrawals.

Meanwhile, services in other cities were even more restricted.  In Mawlamyine, the capital of Mon state, local sources said there was only one KBZ Bank branch still in operation on Wednesday, while all banks were reportedly closed in Bago. 

While some banks continue to fill ATMs with cash, few other services are available, bank employees said. 

Unhappy customers

Large crowds have been reported at some of the few branches in Yangon that are still dispensing cash, occasionally resulting in tensions between staff and customers.

“At the KBZ Bank headquarters on Pyay road, they were writing down people’s names and phone numbers as the crowd got bigger. They said they would get back to us,” said Aye Aye Phway, a customer who was seeking to withdraw money.

KBZ Bank came under fire on Tuesday when four of its customers were arrested following a dispute with bank staff. 

On Wednesday, the bank released a statement denying that it had called the police, as alleged by some who criticized its handling of the incident. It also said that it would assist the customers who had been detained.

According to the junta-controlled broadcaster MRTV, the customers were arrested for pressuring bank staff to take part in the Civil Disobedience Movement (CDM) against military rule.   

Pressure from above

A month after many of their employees joined the CDM, privately-owned banks have come under growing pressure from the junta to reopen for business.   

Banks that haven’t reopened have been instructed to turn over all of their customers’ information to the state-owned Myanma Economic Bank or one of two military-owned banks, Innwa Bank or Myawady Bank. 

The Central Bank of Myanmar would not be responsible for the consequences if banks failed to abide by this demand, the regime warned.

The regime originally issued this order, through the Central Bank, on March 8, to no avail. Despite repeating it again on Wednesday, the situation remains unchanged.

Currently, private banks are required to allow regular customers to withdraw 500,000 kyat per day from ATMs or 2,000,000 kyat per week if they appear at the bank in person. 

Companies are permitted to withdraw 20 million kyat at a time, according to Central Bank instructions issued on March 1.

Myanmar has 27 private banks and 17 branches of foreign-owned banks.

Editor's note: This article has been edited to include KBZ Bank's statement on the arrest of four of its customers on Tuesday and the state-owned broadcaster MRTV's claims about the incident.

Myanmar Now is an independent news service providing free, accurate and unbiased news to the people of Myanmar in Burmese and English.

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Some of those released were made to sign a statement confirming military allegations of electoral fraud in their respective townships, an official said.

Published on Mar 18, 2021
An election official shows a ballot for verification in Yangon’s Kyauktada Township on November 8 (Myanmar Now)

The military regime on Wednesday released all election sub-commission members who were detained following last month’s coup, state and township level election officials said.

The coup regime detained the state, regional and township-level sub-commission members on February 11, ten days after it seized power, and tried to justify the move with unsubstantiated claims of fraud during Myanmar’s 2020 general election. 

They members were released on Wednesday morning, confirming rumours on Tuesday that they would be freed.

State and regional commission members were detained at divisional military headquarters, while township level members were detained at guest quarters inside battalion bases.

Some members of township-level sub-commissions were made to sign a statement before their release confirming the military’s findings about voting irregularities in their areas during the November 8 poll, said a chair of a state-level sub-commission who asked not to be named.

But one member of a township sub-commission denied that they had to sign such a statement.

Kyi Myint, chair of the Yangon Region sub-commission, said that the military didn’t ask him to sign anything and there was no interrogation. 

“We were summoned and asked to take a rest,” Kyi Myint said.

He added that he didn’t know why the military had allowed them to go home. Nor did he know the situation of members of the union-level commission who were also detained.

Kin Khanh Pawng, chair of the township sub-commission in Kale, Sagaing, was detained in mid-February and was among those released on Wednesday. He said he was called in to help with data and paperwork.

“I had to help them find the data they wanted to see,” he said.

A new union election commission body was formed a day after the military seized state power and arrested civilian leaders on February 1.

The new commission met with 53 political parties on February 26 and officially annulled the results of the 2020 general election.

Another 38 registered parties did not attend that meeting. They include the Shan National League for Democracy, the Democratic Party for a New Society, and the People's Party.

 

 

 

Myanmar Now is an independent news service providing free, accurate and unbiased news to the people of Myanmar in Burmese and English.

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