Students vow to continue anti-war protests as court increases activists' sentences to six years

‘We’re not stopping’, says vice chair of students’ group calling for an end to Rakhine conflict

Soe Hla Naing and Kyaw Thiha Ye Kyaw at the Amarapura township court on October 5 (Khin Hnin Wai/Myanmar Now)

A court in Mandalay’s Amarapura township on Wednesday added a year to the sentences of two student protesters jailed for opposing the Tatmadaw’s war in Rakhine state.

Soe Hla Naing and Kyaw Thiha Ye Kyaw, both members of the All Burma Federation of Student Unions (ABFSU), have now been given a total of six years in prison under various charges for distributing anti-war flyers and stickers. 

The two have been sentenced for violations of the Peaceful Assembly Law as well as laws aimed at curbing the spread of Covid-19 and a section of the penal code that punishes causing “fear or alarm” to incite crimes against “the State or against the public tranquility”.

Three different courts in Mandalay region have already handed them sentences for different offenses this month. Thirteen other members of the ABSFU have also been charged for taking part in the protests. 

 

 

“The people profiting from this internal conflict are oppressing the people who are against it, that’s how I see it,” said Aung Pyae Sone Phyo, first vice chair of the ABFSU.

The group would not be intimidated by the jailing of its members, he told Myanmar Now. “We’re not stopping our protests.”  

 

 

The union’s chair, Thet Maung Maung, is among the other 13, who have been charged under the Peaceful Assembly Law for a protest near the clock tower at Mandalay’s Zay Cho market. 

The group are now also being charged under 505b of the penal code.

The students began distributing leaflets and putting up posters last month with slogans including “Oppose murderous fascism” and “Dictatorships must fail”.

The protests continued into this month in Yangon, Mandalay, Monywa, Meiktila, Pakokku, Magwe, and Sittwe. 

Some 20,000 convicts toil in prison camps across the country, where they face abuse, exploitation and forced labour, a Myanmar Now investigation finds.

Published on Sep 1, 2016

NAUNG CHO TOWNSHIP, Shan State — Under the glare of the midday sun, several dozen men wearing blue outfits, with shackles around their ankles, stood grouped together in a field of shrubs and tall grass.

One man among them, holding a long bamboo cane, started to shout at the thin-looking prisoners and they began to use hoes and spades to clear the thick vegetation. “One, two, three, four!” he yelled rhythmically, setting a quick pace for the work.  

Nearby, a stocky prison warder was looking on with a rifle slung over his shoulder and an umbrella to shield him from the blazing sun.

The convicts were from Kaung Hmu Labour Camp and were seen in June as they cleared a piece of wasteland along the Mandalay-Lashio Road in Shan State for the expansion of a sugarcane plantation.

The man barking orders was a prisoner appointed to be a so-called prison management assistant, who acts as an enforcer and by doing so can avoid labour.

These men — also called “stick-holders” in Burmese — not only use violence to deal with dissent, former prisoners said, but also flog labourers into working harder.  

“The stick-holders would beat us at will. We worked at the front and they beat us from the rear. Even if a tiny plant was left after clearing weeds in the sugarcane plantations we were beaten,” said Zeyar Lin, an ex-convict released from Kaung Hmu Labour Camp in early June.

Harsh working conditions and daily beatings are the norm in Kaung Hmu, he said. Those who just arrived in the camp, located in a mountain town called Naung Cho, suffered most. Prison officers would try to break new prisoners and force them to pay bribes to escape beatings and heavy labour.

“As soon as we entered the main gate, they slapped and kicked us. When I tried to raise my head a bit to be able to breathe, someone ran over and kicked me in the face,” said Zeyar Lin.

A months-long investigation by Myanmar Now into Myanmar’s prison labour system has revealed that thousands of convicts are likely suffering such abuses while they are forced to perform back-breaking manual labour on the orders of prison authorities.

In dozens of interviews, ex-prisoners and former prison officials said authorities employ such practices in many camps in order to exact bribes from prisoners, or to earn profits from their free labour.

The practice continues months after Aung San Suu Kyi’s National League for Democracy came to power. Many NLD members themselves were political prisoners during their struggle against military rule, while Suu Kyi was kept under house arrest for some 15 years.

The sources also allege that prison authorities routinely put convicts at the disposal of private companies in return for payments — a practice that would violate international conventions against forced labour that Myanmar has signed.

However, the Ministry of Home Affairs indicated last week it would not launch an investigation into prison practices such as those uncovered by Myanmar Now, with a deputy minister telling parliament there had been “no legal violations in the prison system.”

A Ministry of Home Affairs spokesperson said the ministry would look into Myanmar Now’s findings but gave no comment ahead of publication of this report.

This is the first in a series of Myanmar Now reports, which will reveal how current and past practices in prison labour camps have resulted in abuses, corruption, exploitation, and the deaths of possibly thousands of convicts.

Military rule

Currently, there are 48 labour camps that hold an estimated 20,000 prisoners, according to the Correctional Department of the Ministry of Home Affairs. It officially refers to the sites as “manufacturing centres” and “agriculture and livestock breeding training careers centres”.

Classified government documents obtained by Myanmar Now show how former military governments, which held power for half a century after the army seized power in 1962, established the current prison labour system and its policies. Deaths were common in the camps in the past as prisoners performed hard labour without sufficient food or medical care, former prisoners and officials recalled. Only political prisoners were exempt from labour.

Food and care in the camps have improved since 2000 and general death rates in prison labor camps have fallen sharply to around 40 annually by 2014, according to government figures. But Myanmar’s recent democratic reforms have bypassed the prison labour system, this investigation has found, while widespread abuses persist and junta-era policies remain in place.

Human rights activists and others with knowledge of the system urged the government to introduce reforms urgently.

“Personally, I think the new government should work towards shutting down all these prison labour camps as a political priority,” said Khin Maung Myint, a former Chief Jailor who retired in 2002 after 25 years at the Correctional Department who has since become a legal consultant on Myanmar’s penal system.

“Prisoners at these camps are being punished in a way that violates existing laws,” he said, adding that prisoners receive inadequate food and healthcare while prison authorities “are trying to extract all their labour in all sorts of ways.”

Beatings, bribery and privileges

Among the 48 labour camps, 30 sites are dubbed “agriculture and livestock breeding career training centres” where prisoners work on plantations run by the Correctional Department, or are put to work at private plantations and local farms.

At 18 sites, located mostly in Mon States in southeastern Myanmar, thousands of convicts are deployed in rock quarries — officially called “manufacturing centres” — where they break granite and limestone boulders and crush them into gravel with sledgehammers.

The gravel is sold to government agencies or private companies for infrastructure and construction projects, while these sales bring in millions of dollars in revenues for prison authorities, according to production documents seen by Myanmar Now.

Myanmar Now reporter made observations at nine prison labour camps in Shan and Mon states, and in Mandalay and Sagaing Region, and obtained photo and video evidence of harsh labour practices.

In interviews, ex-inmates from camps in Shan State’s Naung Cho Township and Sagaing Region’s Kalay Township consistently described being forced to pay bribes to avoid abuse and hard labour.

Kaung Hmu Labour Camp is one of five camps in the mountains around Naung Cho, at an altitude of around 1,000 metres where the nights are cold and the days are hot.

Some 200 men are held in Kaung Hmu and work six days a week on the camp’s 140-acre sugarcane plantation, or in private sugarcane- and corn-fields and rice paddies that dot the green, fertile valleys.

Zeyar Lin, 25, arrived at Kaung Hmu in early 2015; he was a former policeman from Bago Region who was serving a two-year sentence for fighting with his superintendent.

On his way to the camp, warders put iron shackles on his feet to prevent him from running away, he said, and upon arrival prison officers quickly began to increase pressure on him through beatings and a crushing workload.

“I was accused of being slow at work, so my back was beaten, my buttocks were beaten — at least 30 strokes every day,” he said. “I told the management once that I was sick and could not work. There and then, two prison officers beat me with their bamboo sticks.”

After a month, he realised his suffering would only stop if he bribed officials and his mother paid around US$500 to the camp’s Deputy Chief Jailor. He was then assigned to boil water and prepare tea or coffee for prison officials, a task he performed until his release.

‘We were all slaves’

Zeyar Lin said the poorest prisoners had no such options, and some resorted to offering sex or other services to wealthy convicts or the “stick-holders” in order to seek protection.

“You will bribe to get a better task, you will sacrifice your body, or you will toil as an animal. You had no other options — we were all slaves,” he said.

Khin Maung Myint, the former Chief Jailor, said the prison labour system encourages abuse and corruption because it gives prison authorities full powers to assign convicts labour tasks and enforce corporal punishment.

“You can bribe officials for what kind of iron shackles you want to be put on: lighter ones or heavier ones,” he said. “Or you have to bribe more if you want to have the shackles taken off. Some who can’t afford it will have to wear them until they are released.”

According to current prison rules, an inmate cannot be kept shackled longer than two months after he has arrived at a camp.

Aung Soe, 51, served a total of 17 years in Myanmar’s prisons and was released from Hokho Labour Camp in Naung Cho in 2014.

“The reason why prisoners are beaten is to make everyone fear the prison staff. When prisoners lose all hope, they will bribe officials,” he said, adding that those who pay $1,000 might become a clerk, while someone who can raise $700 can become a “stick-holder”.

He said some convicts with money actually prefer labour camps to prisons, as they can bribe their way to privileges and enjoy the freedom to move around outdoors without being confined to a cell.

During a brief visit to a camp in Naung Cho, this reporter was able to exchange a few sentences with a prisoner convicted for murder. The man, 37, was lanky and his skin was darkened by daily toil in the field, which had been forced to do for the past year and a half, he said.

“I was beaten just yesterday,” he said pointing at scars on his legs. “If I could get 300,000 kyats (about $250), I can buy the position of water boiler (to escape labour), but none of my family members has ever visited me.”

“You can clear the weeds for one acre, then the next day you are asked to do two acres — I can’t stand it anymore,” he said with tears welling up in his eyes. “I try to control myself so that I don’t I fight back.”

Forced labour

According to current and former prison officials, authorities in charge of labour camps also have dealings with private sector companies to generate revenues for the camps. The practice comes from a Correctional Department directive stating that camps must generate enough funds to cover their running costs.

Rock quarries supply construction firms with thousands of tons of gravel per day. Agricultural camps sell the produce from state-owned plantations and hire out convicts to private plantations and local farms, officials and former inmates said.

Zaw Win, a Myanmar Human Rights Commission member and director-general of the Correctional Department from 2004 to 2012, said prison authorities of camps in Naung Cho had a joint venture agreement with Ngwe Ye Pale Sugarcane Factory, which obliged the camps to supply prison labour and government land for the company’s 800-acre sugarcane plantation.

Myanmar Now made several attempts to reach officials at the Ngwe Ye Pale Sugarcane Factory for comment, but received no response.

Zaw Win, who is tasked with investigating prison abuses for the government-appointed commission, defended the arrangement, saying: “This is just to make sure that prison department doesn’t have to worry about having a market for its agricultural products.”

Zeyar Lin, the former inmate, said prisoners were regularly deployed in the fields of Ngwe Ye Pale Sugarcane Factory. “The prison authorities charged the company 3,000 kyats per prisoner, they sent 100 prisoners per day, but we earned nothing,” he said.

Local officials and community leaders living near labour camps in Sagaing Region and Mon State also told Myanmar Now that prisoners were regularly hired by local farmers to work their fields.

The deals between prison authorities and companies put prisoners at the disposal of the companies, a practice that would violate the 1930 ILO Forced Labour Convention, which Myanmar signed and ratified in 1955.

The Convention’s Article 2 states that convicted prisoners can only work if it is “any work or services exacted from any person as a consequence of a conviction in a court law, provided that the said work or service is carried out under the supervision and control of a public authority, and the person is not hired to or placed at the disposal of private individuals, companies or associations.”

Piyamal Pichaiwongse, Deputy Liaison Officer with the ILO’s Myanmar office, said she could not comment on whether forced labour was taking place in the Myanmar prison labour system, as there had been few complaints and little evidence of wrongdoing.

After being interviewed by Myanmar Now, Zeyar Lin, the former convict, contacted the ILO to complain about his prison treatment in Naung Cho Township.

Piyamal Pichaiwongse said the organisation was looking into the case as a “forced labour complaint,” adding that Zeyar Lin’s prison conviction did not include hard labour.

Authorities play down allegations

Htay Lwin Tun, the current superintendent of Htone Bo Labour Camp in Mandalay, was previously in charge of the five camps in Naung Cho. He denied that beatings and bribery were commonplace in the camps, acknowledging only one reported case of violent conduct in 2014.

“Since the case did not lead to lethal injury, I just gave a verbal warning to the prison officer involved,” he said in an interview with Myanmar Now at Htone Bo Labour Camp.

Min Tun Soe, a deputy director of the Correctional Department, told Myanmar Now that severe abuses and extreme labour conditions were a thing of the past, and that the reforms initiated by the government of former President Thein Sein between 2011 and 2015 had improved conditions for prisoners.

“I don’t claim that the beatings have completely stopped, but general conditions regarding food and accommodation have improved,” he said, adding that beatings and bribery only occurred in isolated cases where prison management was corrupt.

On Aug. 26, Lower House lawmaker Win Myint Aung, representing the NLD in Sagaing Region’s Depayin Township, asked the Ministry of Home Affairs, which remains under military control, whether the ministry would allow lawmakers to investigate prison conditions, including reports of corruption and abuses in labour camps.

Deputy Minister Gen. Kyaw Soe responded that the Correctional Department had effective mechanisms to investigate such complaints, adding that no violations had been reported. He said the Myanmar Human Rights Commission and the International Committee for the Red Cross were also monitoring prison conditions.

Zaw Win, the Myanmar Human Rights Commission member, insisted that violent abuse in labour camps was limited to isolated cases and was not an institutional problem.

“There is some scolding and slapping, but no more torture and cruel beatings like in the past,” said Zaw Win, whose commission is appointed by the President’s Office.

David Mathieson, a senior Myanmar researcher with Human Rights Watch, said government officials and the commission were turning a blind eye to abuse.

The Home Affairs Ministry should order a review of the prison labour system with the aim of ending it, he said, while the NLD-dominated parliament “should announce an immediate investigation into the Department of Corrections … that includes a thorough accounting of all the prisoners thought to have disappeared into abusive labour camps.”

A lack of reforms

Myanmar Now has obtained hundreds of internal Correctional Department documents that stretch back decades, and that shed a light on junta-era policies for managing the prison labour camps.

A document from Feb. 23, 1993, refers to a statement by then-Minister of Home Affairs Lt-Gen. Phone Myint who said prisoners’ labour was “wasted” if they only remained incarcerated. Their free labour should be used instead for state-owned plantations, infrastructure projects and to generate funds that cover running the prisons, it noted.

As late as October 2014, junta-era policy language was still in use by Thein Sein’s government to explain its prison labour policies.

Former Deputy Minister of Home Affairs Brig-Gen. Kyaw Kyaw Tun told parliament at the time that the labour camps “use the prisoners’ labour, which is going waste in the prisons, for state-level agriculture, livestock breeding and rock quarries projects, and to ensure that the prisoners learn about agriculture and livestock breeding techniques and have attained a vocational profession upon their release.”

After the NLD assumed power in April, it urged all departments and ministries to formulate reform priorities for its first 100 days in office.

The Correctional Department’s reform plans for this period remained limited to a single sentence that read: “To increase the duration of family visits in prison from 15 minutes to 20 minutes, and allow family members to visit any day of the week.”

This article was originally published by Myanmar Now. Top photo: Prisoners are working at Zinkyeit rock quarry, run by the prison department in Paung Township, Mon State. (Swe Win / Myanmar Now)

Swe Win is the Editor-in-Chief of Myanmar Now.

Continue Reading

Elements within the anti-coup movement are increasingly turning to guerrilla tactics to resist the junta’s repression

Published on Jun 3, 2021
Police officers stand guard outside a high school in Yangon on June 1 (EPA)

Four months after seizing power, Myanmar’s military is facing a new challenge to its efforts to bring the country under its control—the use of guerrilla tactics by some of its opponents.

After facing brutal crackdowns around the country, elements within the anti-coup movement have decided that the time has come to start fighting violence with violence.

While peaceful protests continue—albeit on a far smaller scale than in the early days of the movement—they have been increasingly overshadowed in recent weeks by almost daily reports of shootings and bombings.

One of the most recent came on Tuesday afternoon, when a lone gunman shot at two soldiers stationed outside the No. 32 Basic Education High School in Mandalay’s Pyigyidagun Township, killing one and injuring the other.

Unlike many such incidents, this one could be attributed to a particular group—the Mandalay People’s Defence Force (PDF), part of a nationwide network of local civilian resistance forces that aims to coalesce into a federal army.

“Our PDF team has started carrying out guerrilla activities in Mandalay,” said Bo Nat Khat, one of the group’s leaders. He also claimed responsibility for a recent series of small explosions in five townships.

Speaking to Myanmar Now by phone, he also acknowledged that the shift to more confrontational tactics could make life more dangerous for ordinary citizens.

“We don’t want people to go to crowded places such as the electricity office or the courts,” he warned. 

He insisted, however, that the only civilian targets would be officials and others who have collaborated with the regime in its bid to cement its hold on power.  

“We have plans to handle informants giving trouble to the people. We’ll be unveiling more soon,” he said. 

Urban warfare

As guns and homemade bombs replace posters demanding democracy as the chief weapons of the resistance, Myanmar’s cities could see a surge in the kind of hit-and-run attacks long deployed by armed groups based along the country’s borders.

Barely a month after young city dwellers began to head to remote areas to receive military training, anti-junta forces have already started hitting army bases and other locations associated with the junta’s oppression. 

On Tuesday, an explosion targeting Supply and Transport Battalion 323, based in Yangon’s Mingaladon Township, destroyed a transport vehicle, according to a member of a guerrilla team that claimed responsibility for the attack.

The vehicle was observed coming and going from the base for several days before it was blown up, he said, adding that bigger attacks were also planned.

“We have plans to handle informants giving trouble to the people. We’ll be unveiling more soon."

Blasts were also reported near Yangon’s infamous Insein prison, where many of the thousands detained since the coup are being held on charges of incitement and other offenses.

More ominously, there were also two shooting deaths in Yangon on Tuesday—one in Hlaing Tharyar Township, where a crackdown left at least 58 dead in a matter of days in March, and another in Mayangon Township.

The victim of the first attack was Sai Lin Zaw, a member of the junta’s township administration who was also allegedly a local leader of “Pyu Saw Htee,” a group said to have been formed in the wake of the coup to counter resistance to the regime.

The other was a ward administrator—one of a number of junta-appointed officials killed in recent weeks on suspicion of informing on anti-coup activists.

According to the guerrilla team member who spoke to Myanmar Now about the Mingaladon blast, the shootings were carried out by associated groups.

He said the groups intended to inform the public about their activities in the coming days.

Sparing civilians

Urban guerrilla groups say that even as they step up their use of war tactics against the regime, they remain committed to protecting the lives of innocent civilians.

According to Mandalay PDF leader Bo Nat Khat, that means avoiding any area where members of the public could be harmed by attacks carried out by the group or military reprisals.

“Mainly, we promise the people that we won’t do anything harmful in crowded public places,” he said.

However, there is always the danger that the regime or its allies could plant bombs in such areas in order to discredit the PDF, he added.   

“If that happens, it’s not our doing. I’d just like to say it’s the military council deceiving the public,” he said.

At a press conference held in Naypyitaw on May 15, junta spokesperson Zaw Min Tun told journalists that “terrorists” were targeting government buildings and other public places in order to foment unrest now that protests have died down.

“Mainly, we promise the people that we won’t do anything harmful in crowded public places."

He said there were up to 57 attacks with handmade bombs and Molotov cocktails in township education administration offices and schools in April and May.

But a member of one Yangon-based guerrilla group said that under no circumstances would he or any other member of his team endanger anyone who was not connected to the regime.

“If there are bombs and shots in places where civilians are, it’s not us. It’s just the Pyu Saw Htee, backed by the junta,” he said.

 

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

Continue Reading

Everything you need to know about revenues flowing from Myanmar’s natural gas projects

Published on Jun 3, 2021
Gas production in Myanmar

Myanmar was forecast to earn 2,305 billion kyat (now about US$1.4 billion) from oil and gas in the year to March 2022, according to a Myanmar budget document drawn up before the coup.

This would be just over 10% of total government revenues this year – slightly lower than in previous years.

It is not certain whether Myanmar will actually earn its forecasted 2,305 billion kyat because oil and gas prices are volatile and change frequently.

Where does this revenue come from?

By far the biggest proportion of extractive industry revenue in Myanmar comes from four big offshore projects producing natural gas.

The Yadana project is operated by France’s Total, which produces and transports the gas as well as owning 32.14% of the project. The other investors are Chevron of the US, a unit of Thailand’s PTT and a 15% stake held by Myanma State Oil and Gas Enterprise (MOGE), which is owned by Myanmar. Most of the gas is piped to Thailand and bought by PTT while some is supplied to Myanmar’s domestic market.

The Shwe project is operated by Korea’s POSCO and exports gas to China via a pipeline. The other investors in the project are owned by foreign governments: Korea’s KOGAS, MOGE and the Indian companies ONGC Videsh and GAIL. China’s China National Petroleum Corporation (CNPC) is an investor in the pipeline

The Yetagun project is operated by Petronas, the state oil company of Malaysia, and its co-investors are MOGE, a subsidiary of PTT and Nippon Oil, whose ultimate owners include the government of Japan. Petronas suspended operations in April 2021 for technical rather than political reasons.

The Zawtika project is operated and mostly owned by a subsidiary of Thailand’s PTT, with MOGE holding a 20% stake. The gas is mostly piped to Thailand.

Another pipeline from Myanmar to China is jointly owned by CNPC and MOGE and used to ship crude oil rather than natural gas.

What form do gas revenue payments take?

Myanmar receives several types of gas revenue, including the government’s share of profits from gas export sales, royalties (a fee based on gas volumes) and income tax on the profits of oil companies.

As well as collecting gas sales profits and royalties for the government, MOGE earns its own profits from its shareholdings in various gas fields and pipelines. To make things even more complicated, MOGE and other oil companies pay transit fees to use the pipelines, which they also own.

Despite all these distinctions, the reality is that all gas revenues are in the hands of the military junta because it controls MOGE, the Finance Ministry and state-owned banks.

So when foreign companies say that they don’t deal with the generals, this distinction may be true on paper but is arguably meaningless in reality.

So what did Total and Chevron just do?

Total and Chevron announced last week that dividend payments from the Yadana pipeline to all its owners would be suspended, which means that MOGE (which owns 15 per cent of the pipeline) could lose around US$40 million a year in profits.

The two giant energy companies appear to have been prompted by criticism of their dealings with the military junta. The decision is symbolically important because it suggests that oil companies can cut off payments to the military junta if they really want to.

Experts note that these pipeline dividends are only a small part of the revenues that the military junta gets from Yadana.

What’s more, dividends are usually paid at the end of a financial year, which in Myanmar’s case is March 2022, so the suspension may not have an immediate effect on the junta’s finances.

To put serious pressure on the junta’s finances, Total and other foreign oil companies would have to stop all the revenue flows to Myanmar state institutions and channel the money into accounts which the junta cannot access. This is what the opposition wants.

Total says that cutting off the money would breach its contract with Myanmar. However, international sanctions could override Myanmar law and oblige oil companies to do this.

Where exactly does all the gas revenue go?

It isn’t possible to know for sure. Since the coup, Myanmar has been suspended from the Extractive Industries Transparency Initiative (EITI), which tracked the flow of revenues from oil and gas companies to the government, and the companies themselves are saying relatively little.

It is known how the system used to work for the Yadana project: a 1995 agreement between Total and Myanmar shows that PTT would buy the gas and make payment into a bank outside Myanmar. Total, as the operator of the project, would then instruct that bank to divide up that money between the Myanmar government and the investors in Yadana, according to the contracts between them, and transfer the money to their bank accounts.

It is likely that Yadana and other gas projects still use a system like this.

Korea’s POSCO has said that Myanmar’s revenues from the Shwe project are paid into an account held by Myanma Foreign Trade Bank (MFTB) with Singapore’s Overseas Chinese Banking Corporation. Total says Myanmar’s revenues from Yadana are paid in Thailand. This may mean an MFTB account at a Thai bank, though Total has not said this.

It is a serious problem that gas revenue is paid into foreign bank accounts because the military junta, which controls MFTB, could order the bank to move the money to places where it cannot easily be traced, such as front companies in tax havens. This would make it easier for the generals to evade international sanctions, to secretly buy weapons or simply to steal money and keep it for themselves.

Why is it all so complicated?

The gas revenue payments are set out in hundreds of pages of legal agreements between the oil companies and the government.

This complexity is common in the oil industry but it has often been exploited by oil companies to extract more profit from poorer countries.

This is why it is questionable that the profit margin on the Yadana gas pipeline is an extremely high 97% before tax, because high pipeline profits seem to benefit the foreign oil companies at Myanmar’s expense.

Total says the profits of the Yadana pipeline and gas fields, taken together, are not unusually high. This claim is impossible to check because Total has not published the necessary data.

The complexity of the oil industry is also a problem because in many countries it has obscured corrupt transactions between oil companies and government officials.

There is no evidence or suggestion that energy companies active in Myanmar have facilitated corrupt payments.

However, it is still common for oil companies to pay taxes and other revenues to governments in countries where corruption is a big problem, despite knowing that some of this public money will be stolen.

What will happen now?

Unless foreign oil companies decide to cut off the flow of gas revenues to the military junta, or are forced to do so by international sanctions, those revenues will continue to prop up the junta and are vulnerable to being stolen by corrupt officials.

This is a Myanmar Now news story in association with Finance Uncovered

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

Continue Reading