The release of the official list of Myanmar’s 1,000 top taxpayers for 2013-2014 shows the wealthiest are still overwhelmingly tied to the old guard of military cronyism and elite government corruption. Many are on the US government’s blacklist.
The list, released by the Internal Revenue Department (IRD) of the Ministry of Finance in December, is an indication of how much – or how little –progress the Burmese political economy has made in terms of the separation between civilian versus military investment in Myanmar’s highest grossing companies. The reporting process remains frustratingly opaque to investors.
Despite the move away from military authoritarianism toward more democratic institutions in government in the political sphere, a similar move away from military-tied businesses which either have ties to or a part of the military toward completely independent trade, investment, and entrepreneurship in the economic sphere has yet to really begin.
The three public companies along with top taxpayers on the Internal Revenue Department lists serve to highlight the continued challenge of transparency and continued involvement of investments tied to military families.
For example, AGD Bank is part of the Htoo Group of companies, which has included at various times numerous other subsidiaries like Air Bagan, Htoo Wood Products, Elite Tech IT Services, Htoo Trading, and many others. The chairman of this conglomerate is U Tay Za, well known for his ties to the military elite, particularly Than Shwe, the former general who headed the junta from 1992 to 2011.
Both U Tay Za as an individual and his portfolio of companies are blacklisted by the United States government. For better or worse, this designation ends up trickling down to Htoo Group’s 30,000- odd employees and illustrates how cronyism at the highest levels becomes a system-wide problem affecting the middle and lower classes.
In fact, a comparison of the… [click here to continue to read full text]
*Originally published in Asia Sentinel by T. F. Rhoden; photo credits for image used in post appear on New Mandala. Unless otherwise stated, all posts on this website are under Creative Commons licence.