The Irrawaddy Magazine |
- The Ties That Bind
- The Irrawaddy Business Roundup (September 6, 2014)
- Indian States on Alert After al Qaeda Announces Local Wing
| Posted: 05 Sep 2014 06:00 PM PDT  In this undated photo, Col. Myint Swe (seated, center) appears with Gen. Ne Win (standing, in sunglasses) and other members of a party traveling by the naval ship May Yu from Myeik to Kawthaung. (Photo: Tay Za Family Archive) YANGON — As a young officer, Col. Myint Swe was known for his courage and his loyalty to his fellow soldiers. Always generous with those serving under him, he was fierce in battle, whether he was fighting foreign forces during World War II or an array of insurgent armies after Myanmar regained its independence in 1948. Hailing from Pyin Oo Lwin (then known as Maymyo), he joined the army in 1942, when the country was under Japanese occupation. Three years later, he joined the uprising against his military mentors by throwing some Japanese soldiers off a train after getting them drunk while traveling to Upper Myanmar. When he was in his 30s, he led the 104th Special Force Airborne in attacks on communist and ethnic rebels, earning a reputation for ruthlessness. Rebel leaders who surrendered admitted that their troops fled whenever they intercepted reports that the 104th was on its way. In 1958, after a stint at the US Army Infantry School in Fort Benning, Georgia, he was assigned to the army research department—a nascent version of a homegrown Central Intelligence Agency created by Gen. Ne Win, the army leader who seized state power in 1962. As a veteran of Gen. Ne Win's old regiment, the 4th Burma Rifles, Col. Myint Swe enjoyed the trust of the country's new dictator, and in 1968 he was tasked with a mopping-up operation after the communist leader Thakin Than Tun, a former colleague of Myanmar's assassinated independence hero Gen. Aung San, was himself killed by an infiltrator. Forty years later, after a distinguished military career and a comfortable retirement, Col. Myint Swe died, leaving behind a loving family—and a legacy that continues to ripple through the tangled web of connections that make up Myanmar's military-business nexus. A Soldier's Son Soon after his death, the highlights of Col. Myint Swe's career were detailed in a book that included high praise from former army chief Gen. Tin Oo and late Brig.-Gen. Aung Gyi, both of whom went on to co-found the National League for Democracy (NLD) with Daw Aung San Suu Kyi in 1988. The publisher of that book was U Tay Za, Myanmar's richest tycoon, and Col. Myint Swe's youngest son. Although it's widely known that U Tay Za owes his fortune to his close ties to Myanmar's former ruling generals, the depth of his connections to the military has seldom been discussed. However, as the country opens up and the hold of the so-called "cronies" comes under increasing scrutiny, it is becoming clear that some bonds are stronger than others. This became especially apparent in July, when one of the grandsons of the late Gen. Ne Win revealed that his family's firm had agreed to buy a majority stake in U Tay Za's Asian Green Development (AGD) Bank. In an emailed response to questions from The Irrawaddy, U Aye Ne Win said that the deal—which more recent reports have suggested U Tay Za is reconsidering—was based in part on his family's special ties to that of the US-sanctioned tycoon. "Highly reputable and prestigious though some other banking institutions in this nation undoubtedly are, we chose to establish a strategic alliance with U Tay Za and AGD Bank because we have personal connections between our families and the bank in question can provide us with an assurance of a promising future," wrote the grandson of Myanmar's former dictator. If it goes ahead, the plan—which would be backed by the China National Corporation for Overseas Economic Cooperation (CCOEC), a Chinese state-owned company that has offered the Ne Win clan's company Omni US$4.9 billion to invest as it sees fit in the Myanmar economy—would dramatically underline the hold that old elites continue to have over the country, and the role that personal relationships among them could play in its future development. Frustrated At the same time, however, the uncertainty surrounding AGD Bank highlights the continuing pressure on these elites to demonstrate greater transparency. Preempting criticism of his family's decision to accept money from CCOEC, U Aye Ne Win was at pains to stress that Omni had done its due diligence. "After careful evaluation, it was brought to our knowledge that the said amount is legitimate and clean," he said of the Chinese money—emphatically adding that his family's assets were similarly untainted. "In this day and age of WikiLeaks, it is highly unlikely that any fortune that is accumulated as a result of some wrongdoing will go unnoticed," he said. U Tay Za, however, has had to go to much greater lengths to convince those interested in doing business in Myanmar that he is someone they can safely associate with. The flamboyant tycoon, who was put on the US Treasury Department's list of sanctioned "Specially Designated Nationals" (SDN) in 2008 for acting as an arms dealer for the former junta and otherwise supporting its rule, is known to have hired PR firms in Washington, DC, to lobby to have his name expunged from the list, to no avail. The frustrated crony acknowledged the difficulty he's had with cleaning up his image when he explained why he was looking to unload AGD Bank, which he established in 2010. "We even have to provide MasterCard services later than the other banks because of US sanctions on me. Everything I do is later than the others," he told reporters. "The facts I have just mentioned are the reason why I want to sell my shares out." From Crony to Donor In a bid to relax restrictions on his sprawling conglomerate, the Htoo Group of Companies, U Tay Za has also played the philanthropy card, donating to the NLD and, more recently, promising to give $1 million to a journalism foundation to promote better reporting (a move that raised some eyebrows in light of a libel lawsuit he launched against a local publication late last year). But while his contributions to the country may have been enough to win him an honorary title from President U Thein Sein, U Tay Za is likely to find that the US government is not so easily impressed. Following his first visit to Myanmar in July, Tom Malinowski, the US assistant secretary of state for democracy, human rights and labor, made it clear in an interview with The Irrawaddy that "donations to charity, while welcome, would not be taken into consideration—for this purpose, what's important is not how they spend their money but how they make their money." He continued: "We will look to see SDNs sever business ties with the military, respect human rights, including by avoiding involvement in land seizures, and respect civilian rule." Although some see him as increasingly vulnerable (leaders of the Kachin Independence Organization, for instance, have told me that they have "warned" him about his business plans in Kachin State, and even demolished one of his helipads there), if U Tay Za can rehabilitate himself in the eyes of US policymakers—which is still a distinct possibility—he could yet emerge as one of the big winners as Myanmar's economy opens up. In the meantime, his status as a special class of crony—one with ties going back not just to the post-1988 junta, but also to the 1962 coup—will be more than enough to keep him in the game for some time to come. This article was first published in the September 2014 print issue of The Irrawaddy magazine. The post The Ties That Bind appeared first on The Irrawaddy Magazine. |
| The Irrawaddy Business Roundup (September 6, 2014) Posted: 05 Sep 2014 05:30 PM PDT Burma e-Visa Reduces Queues, But Remains 'Cumbersome' A new electronic application system introduced to try to speed up visa applications for tourists visiting Burma is "cumbersome and slow," a travel trade newspaper said. An online visa buying system was introduced this week for visitors from 40 countries, but an application still takes five days and is obtainable only for tourists arriving in the country at Rangoon's airport, said TTR Weekly in Bangkok. "[The system] still remains cumbersome and slow, although considerably more convenient than visiting an embassy or consulate," the paper reported. "The Myanmar embassy in regional hub Bangkok is deluged daily with visa requests, leading to hours-long queues." Tourism has become a mushrooming and lucrative business since the end of the military regime in Burma and the Ministry of Hotels and Tourism is targeting 5 million visitors a year by the end of 2015. There were 2 million overseas visitors in 2013, according to the ministry, and this year could "possibly be 3 million at the present growth rate," TTR Weekly said. The online visa, valid for 28 days, costs US$50, but is not available for business visitors, said Eleven Media quoting the Ministry of Immigration. The new system coincides with an announcement by Bangkok Airways that it will introduce direct routes to Rangoon and Mandalay from Chiang Mai in northern Thailand from October 26 to eliminate transfers in Bangkok. Burma now has an anti-money laundering watchdog charged by the Naypyidaw government with investigating and prosecuting individuals and businesses suspected of illegally processing cash, a report said. The 15-member Anti-Money Laundering Central Board was formed at the end of August and will be led by the home affairs ministry, said Eleven Media quoting a government statement. The only non-government official invited onto the board is Win Aung, the president of the Union of Myanmar Federation of Chambers of Commerce and Industry. "The board has nine tasks, including adopting policies related to anti-money laundering and terrorism financing; taking legal action…in coordination with respective government departments and other agencies; and laying down a national strategy to combat the crime," said Eleven Media, citing a government gazette statement. Burma is to begin importing natural gas to meet a shortfall in supplies to fuel new power plants built in the greater Rangoon area, a report said. Import licenses were awarded to several Burmese firms, including Asia World, said Eleven Media, adding that they were jointly paying for a delivery of 85 million cubic feet of liquefied natural gas (LNG) by sea tanker. The report quoted Ministry of Energy sources. However, it's not clear how LNG imports will be handled. The Naypyidaw government was considering the hire of a Floating Storage and Regasification Unit to anchor off Rangoon harbor, Natural Gas Asia reported several months ago. Despite Burma being a major natural gas producer, most production is exported on long-term contracts signed by the previous military government, mainly to Thailand. The Ministry of Electrical Power has said Burma's growing number of gas-fueled power plants need 500 million cubic feet per day (mcfd), however, only 300 mcfd is available. Major international retailing businesses such as Marks & Spencer and food chain giant Tesco have joined called for the criminal case against human rights campaigner Andy Hall in Thailand to be dropped. Hall is facing multiple criminal defamation charges brought by Thailand's Natural Fruit company, the world's largest pineapple grower which produces juice drinks for export. He alleged in a report that the company's factory near Bangkok abused Burmese migrant workers in various ways and illegally employed Burmese children. The trial against Hall, a Briton, began this week and if convicted he could be imprisoned for up to eight years. "The Thai government should be embarrassed that its courts are being used to prosecute Mr Hall. And it should be grateful for his work to expose wrongdoing." Hall and other rights campaigners allege that many of the estimated 2.5 million migrant workers in Thailand—80 percent of whom are Burmese—are mistreated by employers with below legal pay, long hours, no holidays and confiscation of documents to prevent them leaving. India is to import 500,000 tons of rice from Burma for distribution in the isolated northeast Indian states of Mizoram and Tripura. The rice is needed because of major renovation work on the states' railways beginning in October which will disrupt local supply routes, Myanmar Business Network said. The Burmese rice will be imported over a year until the railways are back to normal, it said. The India sales deal comes after the Ministry of Commerce said rice exports rose 25 percent in the first four months of this financial year compared with the previous. The increase was attributed to higher purchases from Russia, the ministry said. Burma exported about 1 million tons of rice in the 2013-14 financial year. The post The Irrawaddy Business Roundup (September 6, 2014) appeared first on The Irrawaddy Magazine. |
| Indian States on Alert After al Qaeda Announces Local Wing Posted: 05 Sep 2014 05:00 PM PDT  A Kashmiri vendor takes a nap as Indian policemen stand guard before funeral prayers for Osama bin Laden after Friday prayers in Srinagar on May 6, 2011. (Photo: Reuters) NEW DELHI — India put several provinces on heightened alert on Thursday after al Qaeda announced the formation of a wing of the militant group in India and its neighborhood, a senior government official said. In a video posted online, al Qaeda chief Ayman al-Zawahri promised to spread Islamic rule and "raise the flag of jihad" across the "Indian subcontinent." New Delhi regards the message as authentic and has warned local governments, said an official who attended a security briefing in which it was discussed with Home Minister Rajnath Singh, who is responsible for policing and internal security. "This matter has been taken very seriously," the official told Reuters. "An alert has been sounded." Indian security forces are usually on a state of alert for attacks by home-grown Islamist militants and by anti-India groups based in Pakistan. It was not immediately clear what additional steps were being taken. Until now there has been no evidence that al Qaeda, the group responsible for the Sept. 11, 2001, airliner attacks on New York's World Trade Center, has a presence in India. The timing and content of the video suggests rivalry between al Qaeda and its more vigorous rival in Syria and Iraq, Islamic State, which anecdotal evidence suggests is gathering support in South Asia. According to media reports, Islamic State pamphlets have been distributed in Pakistan in recent days. "Al Qaeda has seen its authority eroded by the fact that it is no longer able to independently carry out large-scale attacks anywhere in the world, and by the emergence of rival factions," Omar Hamid, head of Asia analysis at security research firm IHS Country Risk, wrote in a report. Al Qaeda's establishment of a local branch seeks to take advantage of the planned withdrawal of US-led forces from Afghanistan, which may lead to an influx of battle-hardened militants into India, Hamid added. The SITE monitoring service quoted AQIS spokesman Usama Mahmoud as saying the group's goals include "waging jihad against America and the 'system of global disbelief,' and uprooting it, in order to establish Sharia-based governance," according to an audio speech. It also sought to "revive the Caliphate on the prophetic methodology," SITE said, in a possible challenge to the Caliphate announced by the Islamic State. Modi Heartland Zawahri's announcement made two references to Gujarat, the home state of India's Prime Minister Narendra Modi, a Hindu nationalist. Modi has long been a hate figure for Islamist groups because of religious riots in 2002 when he was chief minister of the state. More than 1,000 people, mainly Muslims, died in the spasm of violence. "In the wake of this al Qaeda video, we will be on a higher alert," S.K. Nanda, the senior bureaucrat in the home department of Gujarat, told Reuters. A high security alert in the state involves activating informer networks in sensitive areas. A senior police official said that Gujarat has been high on the list of militant organizations, including al Qaeda, since the 2002 riots. "It will be more so now because Narendra Modi is prime minister," the official said, requesting anonymity. Zawahri described the formation of "Al Qaeda in the Indian Subcontinent" as glad tidings for Muslims "in Burma, Bangladesh, Assam, Gujarat, Ahmedabad, and Kashmir" and said the new wing would rescue Muslims there from injustice and oppression. Ahmedabad is the main city in Gujarat state, which borders India's arch-rival, Pakistan. Assam is a state in India's far-flung northeast where religious tensions are high after massacres of Muslims by tribal populations in the past two years. A senior intelligence officer in the state said security forces there were "well prepared" to face any threats. Muslims make up 15 percent of the Indian population but, numbering an estimated 175 million, theirs is the third-largest Muslim population in the world. Tensions between Hindus and Muslims on the subcontinent have grown since Pakistan was carved from Muslim-majority areas of India in 1947, a violent partition in which hundreds of thousands were killed. Kashmir, which is claimed by both India and Pakistan, has long attracted foreign mujahideen fighters as well as home-grown separatist militants. In June, al Qaeda released a video urging young radicals in Kashmir to draw inspiration from militants in Syria and Iraq and join the "global jihad." The All India Muslim Majlise Mushawarat, an umbrella body of mainstream Muslim organizations, vowed to fight al Qaeda if it appeared in India. "Indian Muslims are loyal citizens of their country and they will fight al Qaeda if it ever tried to create a presence here," said the group's president Zafarul-Islam Khan. Intelligence sources in Indian-held Kashmir told Reuters on Thursday that they had so far detected no trace of al Qaeda in the Himalayan region that borders Pakistan and China. The appearance of Islamic State flags at recent protest rallies in Kashmir was the work of an individual and did not point to any involvement of the group there, one said. India has suffered several large-scale attacks by Islamist militants, most recently the 2008 Mumbai rampage by Pakistani fighters that left 166 people dead. Smaller domestic militant groups regularly detonate small bombs, but have so far failed to launch a major attack. Earlier this year, Indian intelligence agencies said a handful of Indian men had joined the militancy in the Levant, among the first known cases of Indians joining foreign jihad. Hindu nationalist groups sympathetic to Modi have stirred sectarian tension in recent weeks, claiming there is an Islamist conspiracy to seduce Hindu women and convert them to Islam. At one of the world's most influential Islamic seminaries, Darul Uloom Deoband, in northern India, an official said that extremist groups routinely try to recruit young, uneducated and poor Muslim boys as militants. "We inform our students about the dangers faced by Islam, and rising militancy is one of the key subjects discussed in the seminary," said Ashraf Usmani from the seminary, which is known for its conservative Muslim thought. "I can say this with confidence that no student from Deoband can be recruited by al Qaeda or any other terror groups." Additional reporting by Fayaz Bukhari in Srinagar and Biswajyoti Das in Guwahati. The post Indian States on Alert After al Qaeda Announces Local Wing appeared first on The Irrawaddy Magazine. |
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