Saturday, January 30, 2016

The Irrawaddy Magazine

The Irrawaddy Magazine

In KNLA Territory, Karen Prepare to Mark 67th Resistance Day

Posted: 30 Jan 2016 03:30 AM PST

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HPA-AN DISTRICT, Karen State — Local Karen gathered in Hpa-an District on Saturday, near the headquarters of the Karen National Liberation Army (KNLA), in preparation for events to mark the 67th Karen Resistance Day on Sunday.

Karen Resistance Day events are held annually on Jan. 31 to mark the founding of the Karen National Liberation Army, the armed wing of the Karen National Union, which took up arms against Burma's central government in 1949.

The post In KNLA Territory, Karen Prepare to Mark 67th Resistance Day appeared first on The Irrawaddy.

Old Burma Meets New in Parliament

Posted: 30 Jan 2016 01:12 AM PST

National League for Democracy leader Aung San Suu Kyi attends Burma's first session of Parliament after the Nov. 8 general election. (Photo: Reuters)

National League for Democracy leader Aung San Suu Kyi attends Burma's first session of Parliament after the Nov. 8 general election. (Photo: Reuters)

On the eve of the commencement of the new National League for Democracy (NLD)-dominated Parliament, The Irrawaddy revisits a story from the archives which took the pulse of the national legislature in July 2012, when Aung San Suu Kyi and her party colleagues took up their seats as lawmakers for the first time following an April by-election.

It must be the widest, smoothest road in Burma. Yet there is no traffic and not a single pothole to dodge, just a smattering of SUVs and sedans arriving at a huge gate each morning. From a distance, the vehicles look like ants scurrying across a big white board. Welcome to Burma's Parliament!

Only vehicles belonging to MPs are allowed to drive right up to the Parliament buildings, despite one reporter remarking, "a plane could even land here!"

All cars must be scrutinized by under-vehicle search mirrors at the gate. Peering through tinted windows you can make out parliamentarians wearing khaung paung—the tradition Burmese pink or yellow turbans—cocooned in air conditioned opulence. Of course, not all MPs have their own transport and some instead arrive in communal vans.

Kyaw Zwa Moe is editor (English Edition) of the Irrawaddy magazine. He can be reached at kyawzwa@irrawaddy.org.

Inside the compound, everything is huge with Parliament buildings sprawling in all directions. They are appropriately built in the royal architectural style to compliment the name of the capital—Naypyidaw, the abode of kings.

Yet it is hard to find the spirit of this "royal" city. What is its history and where is its culture?

There are no such things because it was suddenly created in the middle of nowhere in 2005 by the military junta, away from all major cities and 320 kilometers from the former capital Rangoon. Homely is not a word to associate with Naypyidaw. The Parliament building is likewise—enormous and fresh but devoid of a soul.

"This is a royal prison," Win Htein, an MP and senior member of main opposition National League for Democracy (NLD), jokes on the top step of the Lower House building. We were waiting with his fellow parliamentarians and assorted journalists for Aung San Suu Kyi to make her first entrance to the legislature.

Win Htein, a former political prisoner, said MPs had nowhere to go in Naypyidaw. They were supposed to stay in the capital for several months until the current parliamentary session ends.

But despite its obvious flaws, the fact remains that Burma's Parliament is a historic entity. The countries first true legislature for more than half-a-century has proven itself to also be one of the nation's most inclusive, vibrant and relatively democratic institutions.

During Ne Win's rule from 1962 to 1988, the country had a bogus Parliament. From 1988 to early 2011, the country was ruled by the military dictatorship without even the façade of a phoney legislature.

July 9 was a historic day as pro-democracy leader Aung San Suu Kyi, the nation's most famous prisoner-turned-MP, joined the parliamentary session. This significantly changed the country's political landscape by bestowing an element of legitimacy upon the military-dominated administration.

MPs currently hail from Suu Kyi's NLD and many other opposition and ethnic groups, apart from the majority military-backed Union Solidarity and Development Party (USDP) and the appointed 25 percent of armed forces appointees.

The existence of the military stooges clearly undermines the democratic credentials of the Parliament. Even so, it remains an institution of many colors—contrasting attire here represents different parties.

Most MPs from the NLD and its allies wear traditional Burmese jackets in beige, while USDP representatives instead wear white. Members from ethnic Shan Nationalities Democratic Party, known as White Tiger Party, wear their traditional Shan outfit also in beige, while other ethnic groups wear contrasting costumes.

Of course, and ominously, the most significant color is green—the army uniform. There are four columns of seats for MPs in Parliament with the far right occupied by military personnel. Only by amending the widely-condemned 2008 Constitution will this emerald stripe disappear.

Out of their eight rows, seven contain army officials from brigadier-generals and colonel to captain. The last row is shared by officers of the air force and navy who wear different uniforms.

The MPs themselves seem content to avoid tackling the military's presence at the moment. Before joining Parliament, Suu Kyi repeatedly said one of her aims was to amend undemocratic clauses in the Constitution such as the guaranteed legislative quota for the military.

But she might not feel that the time is right to approach this yet. "We came here to collaborate, not to oppose," Suu Kyi reportedly told party colleagues after her first day.

Htay Oo, general secretary of USDP, told me in a hallway in the People's Parliament, "I don't regard other political parties here as opposition. It's difficult to define the meaning of the opposition. I think we all are here to work together for the sake of our people and country."

Without doubt, all MPs, especially ex-military officers within the USDP, could do with more diplomatic and consensual language when they meet press—even if their words sometimes might not be wholly truthful.

When asked how the institution's dynamic had changed due to the presence of Suu Kyi and her party, Htay Oo said, "Well, more people are here. There are no empty seats."

Pressed on how formal the Parliament appears with the strict dress code, he paused for a moment before answering with a smile, "Oh, I’ve got used to it," pointing to his traditional turban. "It’s our pride. We could even hold this Parliament on a lawn. But holding it here is a matter of pride."

Undoubtedly discussions within parliamentary sessions appear to be essentially free. The MPs can bring up practically any issue from repairing potholes and the release of political prisoners to ethnic conflict and land confiscations.

"This Parliament has more freedom though its formality and style is similar to under the BSPP [Ne Win's Burma Socialist Programme Party]," NLD MP Ohn Kyaing told me during an interval. In his former role as a journalist, Ohn Kyaing witnessed the dictator's legislature where there was no opposition at all.

This new Parliament is certainly different. A scoop of reporters is allowed to do their job as the "fourth estate" watchdog on proceedings. Through the glass of media booths above the chamber, they keep dozens of beady eyes on the MPs.

Lots of pictures are snapped of prominent members such as Suu Kyi, the house speaker and certain billionaire tycoons. And during breaks, members mingle with the media as quotes and soundbites are traded and newsworthy material filtered out of the day's bureaucracy.

When we run into Lower House Speaker Shwe Mann, a former high-ranking general, after the lunch, he greets the press pack in a friendly manner. "I am very pleased that you media people come to support our Parliament," he says before warning, "but don't ask questions now." At least journalists were allowed to take photos.

It appears one of the greatest powers the media possesses in Parliament is to prevent MPs nodding off. "I don't dare doze as TV cameras are shooting all the time," joked Win Htein. "If the voters in my constituency catch me, I will be kicked out!"

Yet the way that MPs make proposals and debate issues suggests that most largely ignore the presence of the media. Nevertheless, pictures of parliamentarians sleeping and using iPads have already spread on Facebook and other social media.

After sitting through the whole day, it seems obvious that many MPs, like their children in school, are desperately longing for the end of the day.

On the steps of the Parliament building before boarding the van, reporters surrounded Col Hla Myint Soe, a military-appointed MP, and ask what proposals will be coming from his green-clad section. Hla Myint Soe reportedly played a key role in the brutal crackdown on the 2007 pro-democracy Saffron Revolution.

The colonel was friendly and the reporters kept throwing questions. But another military official interrupted, grabbed his arm and took him away saying abruptly, "We have things to do." A fitting end to a day of Burma's Parliament.

The post Old Burma Meets New in Parliament appeared first on The Irrawaddy.

The Irrawaddy Business Roundup (Jan. 30, 2016)

Posted: 29 Jan 2016 06:58 PM PST

Workers chat near a ship at Rangoon's Asia World port in July 2014. (Photo: Soe Zeya Tun / Reuters)

Workers chat near a ship at Rangoon's Asia World port in July 2014. (Photo: Soe Zeya Tun / Reuters)

Call for Reform of Burma's State-Owned Companies

The Natural Resource Governance Institute (NRGI) has called for the Burmese government to prioritize reforms of state enterprises, in a report that draws attention to the "worrying" lack of oversight on such companies.

In its report, Gilded Gatekeepers, published this week, NRGI focused its attention on the so-called state-owned economic enterprises (SEEs) operating in the oil and gas sector, and especially the Myanmar Oil and Gas Enterprise, or MOGE.

MOGE is the entity with which all companies extracting oil or gas in Burma must form a joint venture. That means it receives vast sums of money on behalf of the Burmese state. It collects a massive 16 percent of all government revenues, the report said.

Mysteriously, MOGE also accounts for 10 percent of public expenditure—on what is it unclear. As NRGI noted, "There is not a clear link between the activities that SEEs like MOGE are charged with performing and the large sums they are entrusted with retaining and spending."

Additionally, state-run firms are not obliged to hand over all their profits to the government, but instead can put them in "other accounts." According to data released under the Extractive Industries Transparency Initiative, MOGE chose to squirrel away US$1.4 billion in this manner in the fiscal year 2013-14 alone.

The report's co-author, Patrick Heller, NRGI's director of legal and economic programs, in an editorial posted on the organization's website and first published by the Myanmar Times, noted that MOGE could have accumulated a much larger sum in its own bank accounts over the years.

"The total sum that has accumulated in MOGE's Other Accounts over many years remains unknown," he wrote, also noting the "weak formal controls" over the management of state companies.

"We don't know what MOGE does with this money. Is it simply leaving the money in an account? Is it using the money to finance other investments?" he added.

Asia World Looks to Clean Up Its Act

Asia World Company, the Burmese conglomerate that remains under US government sanctions for its alleged links to drug trafficking, has undergone a major restructuring that appears at least in part designed to improve the firm's image.

The company said this week that it had offloaded certain parts of its business in order to "streamline" its operations and focus on the three sectors of infrastructure, energy and property development.

The parts of the business from which Asia World is divesting are its most visible and controversial, suggesting an element of rebranding in the move. The notoriously secretive company also overhauled its website recently, adding a lengthy document setting out the firm's human rights policy and even including a previously unpublished email address specifically for media inquiries.

The company is headed by Htun Myint Naing, a.k.a. Steven Law, the son of the late Lo Hsing Han. Lo was an ethnic Kokang militia leader labeled by the US government as a major drug lord in Shan State, although Asia World has insisted that the company's success has not depended on his money.

The company's statement Wednesday said Asia World had exited entirely from its toll road business, was quitting a planned coal-fired power project in Rangoon, and had divested from the gas station brand Green Luck.

Notably, the company also said it was now completely out of the jade sector, which has come under intense scrutiny due to dangerous conditions for local miners, allegations of official corruption and suggestions that the industry is fueling the civil conflict in Kachin State.

The company had been involved in mining jade in Hpakant Township through a company known as Yadanar Taung Tann. The UK-based campaigners Global Witness reported last year that this company had been cutting both the Burma Army and a senior member of the Kachin Independence Organization (KIO) into part of its operation, in what the group labeled "an unholy trinity."

The statement also offered a quote from Steven Law, Asia World's chairman and managing director, who hinted at the company's wish to be seen as a responsible business living up to international standards.

"AWC was founded with a strong belief in making lasting contributions to the people of Myanmar and the future of the country, and we reiterate our commitment to play a leading role in Myanmar's economic growth and progress," he said.

"We have streamlined our business to focus on infrastructure, energy and property projects, and we are confident this strategy will enable us to deliver more projects that are in compliance with international standards of quality and efficiency."

Seven Foreign Firms Want to Join Fourth Telecoms License

Seven companies from overseas have expressed interest in partnering with a consortium of 11 local firms to operate mobile phone services in Burma, Reuters reports.

A tendering process is ongoing for the 15-year license that would be only the third to be given to a private operator.

Ooredoo from Qatar and Norway's Telenor began operating mobile phone services in 2014. The former monopoly holder Myanma Posts and Telecommunications (MPT) and the military-run MecTel also have their own networks.

Reuters cited Chit Wai, deputy permanent secretary of the Ministry of Communications and Information Technology, saying that seven foreign firms had submitted formal expressions of interest in the tender.

The newswire pointed out, however, that the 11 local public companies involved in the consortium—who would together hold the majority of the shares in the venture set to operate on the new license—were little known and appeared to lack experience in the telecoms or IT sectors.

"The obscurity of the companies poses a potential problem in Myanmar, where some entities and businessmen are still targeted by US sanctions, connections to the military are not uncommon and reputational risk remains high," Reuters said.

Malaysian Company Breaks Ground on Rangoon Private Hospital

Kuala Lumpur-based private healthcare company IHH Healthcare Berhad announced this week that it had broken ground on a $70 million hospital in Rangoon.

The 250-bed hospital will be known as the Parkway Yangon. The project is being led by Parkway Healthcare Indo-China, a subsidiary of IHH Healthcare, according to a statement.

The project also involves Singapore-incorporated Macondray Holdings and two Burmese companies—AMMK Medicare Company Limited and Global Star Company Limited—as minority shareholders.

It said the hospital project represented a "significant commitment to invest in the local community," although the hospital will be run on a private basis and appears to be aimed primarily at the wealthy.

"The new hospital will be a boost to ongoing efforts in uplifting medical services to world-class standards," the statement said. "This will provide an alternative for the many citizens who currently travel out of the country each year for healthcare."

Analysts at BMI Research said the news was positive for the wider healthcare business in Burma.

"The influx of private healthcare providers into Myanmar will continue, creating positive spillover effects for both medical device and pharmaceutical firms," said BMI Research's Peter Hoflich in a note.

"This attraction is due to the confluence of a large unmet demand for medical services in the country, as well as the development of healthcare financing such as the introduction of private medical insurance. Due to the geographic proximity, Thailand-based healthcare providers are expected to be the most active in expanding into this frontier market."

Thai Healthcare Provider Expanding in Burma

In another development for the private healthcare sector, Thailand's Samitivej Hospital is planning to increase its presence in Burma, the company's managing director told a Bangkok-based newspaper.

The Nation reported comments from Samitivej Plc managing director and CEO Dr. Chairat Panthuraamporn, who said the group wanted to build on its existing joint venture, through which it operates a clinic in Rangoon, as part of efforts to grow its business as Southeast Asia integrates under the Asean Economic Community initiative.

"We forged a joint venture with Parami Hospital in Myanmar, setting up Samitivej International Clinic at its medical complex in Yangon two years ago," Chairat was quoted saying.

"We will also open our stand-alone medical clinic in Myanmar in April this year at a cost of Bt50 million [$1.4 million] to serve both expatriates and local people. About 80 percent of the clinic will be owned by Samitivej, while another 10 percent will be owned by Parami, and 10 percent by local investors in Myanmar. The clinic will be able to serve about 100 patients a day."

Samitivej Plc is part of the Bangkok Dusit Medical Services network and operates five hospitals in Thailand.

The post The Irrawaddy Business Roundup (Jan. 30, 2016) appeared first on The Irrawaddy.

Dateline Irrawaddy: ‘Whether Suu Kyi Can Become President No Longer Depends on the People’

Posted: 29 Jan 2016 06:48 PM PST

This week, the panel discusses the prospect of power sharing in the government between the military, the NLD and ethnic parties.

This week, the panel discusses the prospect of power sharing in the government between the military, the NLD and ethnic parties.

Kyaw Zwa Moe: Welcome to Dateline Irrawaddy. Leader of the National League for Democracy (NLD) Daw Aung San Suu Kyi and Commander-in-Chief of Defense Services Snr-Gen Min Aung Hlaing held talks this Monday. The talks reportedly focused on a peaceful transition in the post-election period, matters related to the parliament, and permanent peace. But beyond these, it will be interesting to see what agreements the military and the incoming NLD government have made and how power will be shared. Ko Aung Moe Zaw, chairman of the Democratic Party for a New Society and Ko Thalun Zaung Htet, editor of The Irrawaddy's Burmese edition, will join me to discuss this. I'm Kyaw Zwa Moe, editor of The Irrawaddy's English edition.

Ko Aung Zaw Moe, according to the photos, the talks between Daw Aung San Suu Kyi and Snr-Gen Min Aung Hlaing seem pleasing, and it seems that people in general are also pleased with them. We can say that the topics they discussed are key issues. But upon taking a closer look, it seems that the military and the NLD are even discussing sharing power within the next government: in other words, forming of a government of national reconciliation. Can we conclude that they are discussing power sharing?

Aung Moe Zaw: Personally, I think the discussion focused on forming the next government. They might have also discussed other issues, but I mainly [think it was] about the next government. The constitution provides three ministerial posts for the military in the government, plus the vice-presidency. I think the NLD might appoint those recommended by the military and some from the Union Solidarity and Development Party (USDP) into its cabinet. The NLD and Daw Aung San Suu Kyi might offer ministerial posts to those persons for the stable functioning of administrative mechanisms. It is more likely that they could share power through negotiations, rather than forming a government of national reconciliation.

KZM: The question remains among Myanmar people and the international community whether Daw Aung San Suu Kyi can be the president. There is speculation that Article 59(f), which bars her from the presidency, will be suspended. But, gauging the attitude of military leaders, I'm afraid this will not happen for the time being. What do you think?

AMZ: For the time being, the military might be hesitant to accept Daw Aung San Suu Kyi as the president. But for the country, I think it is very important that Daw Aung San Suu Kyi becomes the president. It would be best for the country if she became the president, I think.

KZM: It is the best-case scenario. If the military paved the way for her to take the presidency, perhaps she might have to give back something in return, like formal positions for military leaders and military lawmakers in the cabinet. Here Snr-Gen Min Aung Hlaing's decision will be a determining factor. Ko Thalun, what have you heard about the cards they are keeping close to their chests?

Thalun Zaung Htet: Prior to the talks, Snr-Gen Min Aung Hlaing appointed former Snr-Gen Than Shwe's son-in-law, Brig-Gen Thein Naing from Mingaladon Air Base, to Rangoon Division's parliament. It is an interesting point. Moreover, generals-turned-candidates such as former lieutenant generals Hla Htay Win, Myint Soe, Khin Zaw Oo, Thura Thet Swe and Thet Naing Win are still involved in peace talks through the Myanmar Peace Center (MPC). These former generals are still engaged with military offices. I think they might certainly be the part of the NLD government.

KZM: It is not as though former Snr-Gen Than Shwe's son-in-law Brig-Gen Thein Naing is appointed to the division parliament for no reason. There will be similar cases in other division and state parliaments. It seems that the military has carefully planned for its future. Does the military intend to appoint Brig-Gen Thein Naing as the chief minister of Rangoon Division? If they have such an intention, they might talk with the NLD. The military has made thorough preparations, putting its men into the governments and parliaments at both central and division or state levels. Have you noticed whether the NLD has prepared that much?

AMZ: Previously, there was no such preparation. There may be such preparation at present, but there is no information about it, so it is difficult to predict. Generally, both the governments and parliaments at central and division or state level will include NLD members, plus some ethnic leaders and service personnel recommended by the military, and some USDP members like Thura U Aung Ko, who the NLD likes. It is fair to assume that those recommended by the military will be included in both central and division or state governments, in addition to the quota of positions for the military.

KZM: Daw Aung San Suu Kyi was given the mandate by the people and I'm afraid people will be displeased with the next government if there is only a small proportion of NLD members in it.

AMZ: I think she might take a risk. She has great confidence. I think she has decided to do so because she believes she can. One thing I am sure of is that she is soliciting cooperation from the military right now.

KZM: Yes, I think the military is the key. If the military does not cooperate, her cabinet may face lots of hurdles. But what about the participation of ethnic persons, Ko Thalun? Recently, there have been unconfirmed reports about ethnic nominees for deputy speaker posts in the parliaments. What have you heard about them?

TZH: A couple of days ago, I happened to talk with the chairman of an ethnic party. He said that the NLD had received the mandate thanks to the votes, and had consequently held negotiations with the military to exercise that mandate. As the NLD holds one negotiation after another with the government, they are now on the side of the military, he thinks. He said that the two get closer through frequent negotiations and that the NLD now barely meets ethnic stakeholders. As the NLD is only engaging continuously with the military, he said the ethnic parties are concerned that the NLD will not consider them [for the posts]. There might be agreements between the NLD leader and the military chief. Snr-Gen Min Aung Hlaing and Daw Aung San Suu Kyi held discussions on Monday on permanent peace, the nationwide ceasefire accord (NCA) and federalism. Daw Aung San Suu Kyi has always upheld federalism. But the ethnic groups have started to become concerned that the federal system which will be adopted will be the one favored by the military, not the one they want.

Regarding power sharing, there is a prediction that a member of the Arakan National Party will be given the position of Upper House speaker and an ethnic Karen will be given the position of deputy Lower House speaker. But I think the nomination process needs to be transparent. Mainly, Daw Aung San Suu Kyi needs to talk to the ethnic groups. At present, she should hold negotiations with the ethnic groups.

KZM: Yes, it is the right move for reconciliation with the ethnic groups. As far as I understand, the military and people's leaders are key players in national reconciliation. But it might arouse the suspicion of both ethnic leaders and ethnic people if the NLD gets too close with the military. But there were lots of suspicions because of the civil war, which spanned some 60 years.

AMZ: Ethnic people have made their suspicions clear. While NLD is cooperating with the military, it should also hold close talks with ethnic parties, ethnic forces and allies. The Committee Representing the People's Parliament (CRPP) had allies, like the Shan Nationalities League for Democracy (SNLD) and the United Nationalities Alliance (UNA). If the two sides become distant over time, there might be strains [in their relationship] in the long run.

KZM: Another question is what percentage of important positions NLD will give [ethnic representatives] either in the government or in the parliament. It is quite a delicate political situation. Regarding the transparency of nominations, most people will understand that the present time is too sensitive for the NLD to reveal information. I think former Snr-Gen Than Shwe plays a very important role. At the meeting with Daw Aung San Suu Kyi, he said that he would use all of his effort to assist her with the national development of the country. Those words count for a lot. How much influence does the former Snr-Gen have over current military leader Snr-Gen Min Aung Hlaing and other military leaders: 100 percent, 90 percent or 50 percent?

AMZ: It is important to note that the son-in-law of former Snr-Gen Than Shwe is on the list of nominees to the Rangoon Division Parliament. One thing I am sure of is that former Snr-Gen Than Shwe still has a certain influence over the military and gives advice. Even if the military leaders do not totally take the advice, I think they must have to take it into account.

KZM: I don't think the military will have 100 percent trust in the government formed by Daw Aung San Suu Kyi. If Article 59(f) is not changed and Daw Aung San Suu Kyi can't assume the presidency, I think she could take the position of Foreign Minister, if she does not take on another position. But as she has said, she would be above the president. And she will be lady-in-charge as the foreign minister. There is speculation that she would not be able to take the presidency for the next two years.

AMZ: Perhaps I am biased, but I not only want her to become the president for our country, for the military, for the people and for the peace process and constitutional reform process, but especially for national development. It would be best if she were the official in charge of the development of the country and livelihoods of the people.

KZM: But will the military allow that much? Whether Daw Aung San Suu Kyi can become president no longer depends on the people. The people have already voted for her. For Daw Aung San Suu Kyi to become the president, the military needs to annul or suspend Article 59(f). Therefore, it is perhaps fair to say that the military is the key to pave the way for her. Ko Aung Moe Zaw, Ko Thalun, thank you for your contributions. We have to wait and see how the next government will be formed in March.

The post Dateline Irrawaddy: 'Whether Suu Kyi Can Become President No Longer Depends on the People' appeared first on The Irrawaddy.
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