Saturday, May 13, 2017

The Irrawaddy Magazine

The Irrawaddy Magazine

The Irrawaddy Business Roundup (May 13)

Posted: 13 May 2017 12:07 AM PDT

Myanmar Mahar Htun Teams up with Siemens

Machinery, cement, healthcare and associated businesses operator Myanmar Mahar Htun (MMH) has partnered with international giant Siemens to provide technology support to ports in Burma, MIS-Asia reported.

The partnership will allow MMH to equip ports with facilities such as technology-enabled cranes to boost productivity and safety at the sites, according to Siemens in a press release. It also allied with efforts by the Myanmar Port Authority (MPA) to raise the capacity of Burma's port facilities, Siemens said.

"Along with MMH and the MPA, we aim to enhance port optimization to reliably handle increased traffic and trade volumes," said Christian Beckers, Head of Business Development, Digital Factory, Process Industry and Drives, Siemens Myanmar and Cambodia.

Burma's ports are able to handle around 20 small tankers, with a total of 220,000 deadweight tons (DWT). This number is set to further rise with port expansion.

"Our aim is to make Myanmar's ports more efficient as they expand, and this will in turn make the country more competitive on a regional level, and all the more attractive to investors and operators," said Daw Yamon Win, executive director, Myanmar Mahar Htun.

Siemens said it planned to continue to provide technology and solutions to other industries in Burma, including manufacturing and logistics.

Puma Energy Eyes Petrol Distribution

The US$92 million oil and gas terminal opened at the Thilawa port last weekend by Singapore-based Puma Energy and its local partner Asia Sun is expected to boost energy imports to Burma as the economy expands, AFP reported.

Puma Energy Asia Sun General Manager David Holden said the new terminal would cut import costs on products ranging from jet fuel to petrol and bitumen, used to make roads.

"Myanmar is where the need is and Myanmar is what drove the investment," he told AFP, estimating fuel demand could grow around 5 percent annually in coming years.

Puma Energy is backed by global commodities giant Trafigura and is also one of three foreign firms in the last round of bidding to operate part of Burma's petrol distribution market with the Ministry of Energy, according to the report.

In addition, it is seeking a license to run petrol stations independently with a focus on the corridor between Rangoon and Mandalay, the report said.

Korean Cable Firm set for Thilawa

Approval has been granted for Korean power cable producer LS Cable & System (LS C&S) to invest in the Thilawa SEZ, DealStreet Asia reported.

The firm's subsidiary Gaon Cable will form a joint venture to conduct manufacturing with Japan Thilawa Development Ltd, the SEZ developer, according to the report.

The plant at Thilawa will make aerial cables for power infrastructure that passes through transmission towers, as well as low-voltage cables for residential use.

Manufacturing will begin with medium-voltage cables and move on to high-voltage cables.

"We will grow the Myanmar subsidiary just like our Vietnamese subsidiary, which has grown 240 times in 20 years after it entered the local market," said Shin Yong-hyun, CEO of LS C&S Asia.

LS C&S Asia is the holding company of LS-VINA, one of the largest power cable companies in Vietnam.
Paradiso Expands Movie Business

Paradiso Cinemas Co Ltd, a joint venture between the Maze company and Myanmar Investment Group, has spent about $2 million of a planned $20 million investment in building cinemas, according to DealStreet Asia.

Cinemas opened so far include one in Hmawbi Township in Rangoon Division and Monywa town in Sagaing Division.

The venture aims to finish 100 cinemas in two years, according to the report.

"We target to finish 45 cinemas by 2017 and the remaining 55 by next year," said U Tin Maung Win, chief executive officer of Paradiso Cinema Co Ltd.

The first cinema, a 320-seater in Hmawbi, opened in January, and the construction of others are in progress in Irrawaddy Division's Pyapon, Shan State's Aungban, Shwebo and Kalay in Sagaing Region, and Madaya, Yamethin and Kyaukpadaung in Mandalay Division.

Uber Starts Operations in Rangoon

The Uber taxi app began operating in Burma this week, using only licensed taxi drivers in a similar model to regional rival Grab Taxi, which entered the market in March.

Burma is the 76th country where the app operates. In the Asean region, it operates in six other countries, including Thailand, Singapore, Malaysia, Vietnam, Indonesia and the Philippines.

"Yangon is a big city and many people rely on taxis, so Yangon is a crucial market to us. Many drivers and passengers are using mobile phones and we think that they can use our application easily," said Sam Bool, expansion general manager for Southeast Asia at Uber told The Nation newspaper in Thailand.

Rangoon Chief Minister U Phyo Min Thein told the paper that the arrival of Uber would support the government's plans to create a better, more integrated transport system in the city.

Brief Urges Businesses to Protect Children's Right

The Myanmar Center for Responsible Business (MRCB) urged local and foreign businesses to do more to protect children's rights in a briefing paper launched on Thursday.

The paper, titled Children's Rights and Business in Myanmar, outlines 10 business principles designed by UNICEF, UN Global Compact, and Save the Children in 2012 in the context of doing business in Burma.

According to a 2015 study by the International Labor Organization, 10.5 percent of children aged between five and 17 in Burma engage in some sort of employment.

Under current Burmese law, children under the age of 14 are not permitted to work while those between 14 and 18 (young workers) can work limited hours in non-hazardous workplaces.

The brief encourages businesses to ensure they do not use child labor and that young workers are employed in line with international standards. Larger businesses have a duty to ensure subcontractors and suppliers are also respecting children's rights, the brief says.

Children's rights are often neglected when businesses conduct impact assessments prior to new projects, the brief notes. Environmental and social impact assessments should include consultations with children in the areas.

At Thursday's press conference, MRCB director Vicky Bowman acknowledged the legislature must do their part to improve the situation and noted that Parliament is currently drafting a Child Law and a Health and Safety Law is under consideration. She stressed the importance of making sure these laws were in line with international standards.

Tourism Minister Pushes for Ngapali Clean Up

Burma's Union Minister of Hotels and Tourism U Ohn Maung said the waste problem at Arakan State's Ngapali beach must be addressed before the area's airport would be developed to encourage more visitors.

U Ohn Maung made the comments at a workshop on sustainable tourism organized by the Hanns Seidel Foundation (HSF), Myanmar Center for Responsible Business (MCRB) and Myanmar Responsible Tourism Institute (MRTI) attended by Union and state lawmakers, local business people, civil society groups, and tourism and environmental experts at Ngapali beach this week.

"We need to manage tourism sustainably, minimize the negative and maximize the positive impacts of these visitors, and work together to make Ngapali a better place to visit and to live in," U Ohn Maung told the gathered stakeholders.

The minister noted that as waste management was identified as the key challenge (55% of participants said it was their biggest concern), this would have to be remedied before the ministry developed transport links.

Chairman of Ngapali City Development Committee U Saw Lwin said local authorities had recently acquired three new landfill sites and stakeholders committed to combatting litter with less plastic bags and plastic water bottles in hotels, more bins, and a public education campaign.

Other environmental issues such as combatting sand mining and mangrove deforestation were also discussed, as were issues such as sex tourism and limiting properties near the beach to a 10 meter height.

 

The post The Irrawaddy Business Roundup (May 13) appeared first on The Irrawaddy.

Dateline Irrawaddy: ‘We Cannot Forgive Dishonesty and Misconduct’

Posted: 12 May 2017 08:02 PM PDT

Kyaw Zwa Moe: Welcome to Dateline Irrawaddy! This week, we'll discuss the misappropriation of regional development funds by the former Magwe Division government led by U Phone Maw Shwe, a constitutional provision that prohibits retrospective action, and whether this provision will affect national reconciliation if more instances are discovered. Lawyer U Kyi Myint and NHK correspondent Ko Thiha Thway join me for the discussion. I'm Irrawaddy English editor Kyaw Zwa Moe.

The former Magwe Division government's embezzlement scandal spread like wildfire in Burma last month. Former Magwe Division Chief Minister U Phone Maw Shwe misappropriated more than 7 billion kyats [more than US$5 million] and allegedly spent some of it on his party, the Union Solidarity and Development Party (USDP). The State Counselor's Office and some National League for Democracy (NLD) leaders have said no retrospective legal action will be taken. Simply put, give the money back and we will not sue. Do you think this is right?

Kyi Myint: Politics is the most important aspect of a country. The general conception is that it comes before anything else. We should be grateful to Pwintbyu Township lawmaker U Tun Tun, who exposed this case. He asked a question about the alleged embezzlement in May 2016 and it took almost a year before we saw an answer. We are glad there is an answer now. But I disagree with the government's decision not to take legal action, and I find certain points to be against the law.

KZM: Ko Thiha, there was an embezzlement—in other words, a theft—of public funds, and the new government said no legal action would be taken if the money was returned. This is a sensitive issue and the government is concerned that taking action will affect the country's transition. Will the people accept the government's decision not to take legal action?

Thiha Thway: There may be similar cases of chief ministers misappropriating public funds in other regions. We cannot forgive dishonesty and misconduct. We have no reason to reconcile with dishonesty and misconduct. I want Daw Aung San Suu Kyi to distinguish these two things [reconciliation as separate from punishment for misappropriation]. If there are similar cases in other divisions and states, I want the government to expose them and take legal action.

If it does not want to cause unnecessary tension, it could give amnesty in advance and then take action. I want the government to expose the cases and inform the public about all of the links, irregularities and wrongdoings. Even if there are no penalties issued, that is okay. The government could hand down penalties and cancel them immediately. But I want the government to thoroughly investigate and expose everyone who is involved as a warning so that other people do not do the same thing.

KZM: Chapter 14, Article 445 of the 2008 Constitution states that no proceedings shall be instituted against the military regimes of the State Law and Order Restoration Council (SLORC), State Peace and Development Council (SPDC) and any member of the government in respect to any act done in the execution of their respective duties. This amounts to no retrospection. Based on this, the director-general of the State Counselor's Office said the new government would not dredge up the past, as there was a likelihood the transition could be affected. This is cause for concern. Does the Magwe Division case comply with that provision of the Constitution?

KM: From a legal point of view, it does not comply at all. However, this case needs to be considered from a political standpoint. Article 445 of the Constitution means no retrospective actions can be taken against things done in the times of the SLORC and SPDC—in other words, under the reign of [retired Snr-Gen] U Than Shwe. The provision also covers government ministers on the condition that they executed their respective duties. Clearly, killing, raping and stealing are not their duties. So, U Phone Maw Shwe's case is against Article 445.

Again, under former President U Thein Sein, a law was enacted to give prosecutorial immunity for activities done in the line of duty. But the law was meant for U Thein Sein, not other people. Therefore, U Phone Maw Shwe is not eligible for provisions that ban retrospective action. He should be prosecuted under Article 3 of the Public Property Protection Law of 1963. The law prescribes a minimum of ten years' imprisonment to a maximum life sentence. A law that amended that law was enacted in 1964, which clearly defined embezzlement of public property. U Phone Maw Shwe's case clearly breaches Article 3 of the Public Property Protection Law of 1963 and does not concern the provision that bans retrospective actions.

KZM: Everything is sensitive in the current political landscape and there may be the possibility of a reversal because we are still in a transitional period. Do you think taking action against such embezzlement will impact national reconciliation, which is the most critical issue in our country?

KM: Taking action against thieves does not impact national reconciliation. We do not need to have national reconciliation with thieves. There have been satirical cartoons. In one such cartoon, a woman reading a newspaper to her thief husband says: "My darling, here is good news. You will not be arrested if you promise to give back the things you stole in installments." Another says: "The competition of cooking the books—the first one across the finish line is Magwe Division, the second, Irrawaddy, and other divisions and states will soon cross as well." Another one shows a policeman talking to his senior, saying: "Sir, people have been lining up to give back stolen things because it was said that no action would be taken if stolen things were returned."

KZM: The government's decision not to take legal action has become a joke. Magwe Division locals will be enraged because it was their money that was stolen. The first case was exposed in Magwe and the second case that is under investigation is in Irrawaddy Division. It is likely that there may be similar cases in other states and divisions. If lawmakers and ministers of the NLD government are dutiful, those cases [under the previous regimes] will be exposed, since our country ranks the lowest it has been on the corruption index in some 20 years. The government can pardon a single case of embezzlement, but if there are several cases, I am afraid it is a problem for national reconciliation.

TT: I would think that Daw Aung San Suu Kyi would handle this cleverly. As far as I'm concerned, the USDP has denied responsibility for the case. If the government handles the party [USDP] and individuals separately, it will not impact national reconciliation. But if it drags the whole party in, the party might resist.

KZM: U Kyi Myint, the USDP has denied receiving some portion of the funds. If they did receive them, what would happen to the party according to the law?

KM: According to the election laws, it is punishable by abolishment. In a satirical cartoon strip, a man said: "I have not taken anything. But take this for the time being, and I'll return the rest later." This is quite funny to the people. The government has to be careful in engaging with the USDP in this instance because politics is related to national reconciliation. But I am absolutely sure that if the USDP were in power and the NLD misappropriated funds, the USDP would not condone it.

KZM: The USDP would not show political tolerance for it.

KM: Right. So, the NLD government needs to take this into consideration.

KZM: Ko Thiha Aung, the new government has to show political tolerance as Daw Aung San Suu Kyi has tried to form an inclusive government, with members of the previous government included in her government. That yardstick has created problems. There are many countries—like South Africa—that undergo transition. To what extent is the NLD government willing to exercise political tolerance? This is the question to be asked of the government because this case is not a political issue but a crime of corruption.

TT: Crimes of corruption are unforgivable. If the NLD government fails to handle this to the satisfaction of the people, it will also be dragged into the problem. This will impact the NLD's image and reduce public trust in them. The NLD needs to handle this skillfully. It cannot just ignore it and take no legal action. I do not think the transition will reverse [because of the government taking legal action against U Phone Maw Shwe] but it might possibly create a political crisis. The government is concerned that taking legal action will result in a reversal. But if it does not act, public trust may decline. So, the government needs to handle this astutely and effectively.

KZM: What is your advice for the NLD government?

KM: The embezzlement scandal unfolded first in Irrawaddy Division, and later in Magwe. But, the investigation was first launched in Magwe. There may be similar cases in other divisions and states. The government needs to audit the accounts with the intention of getting back public funds as opposed to taking revenge. My suggestion, from my experience as a civil servant, is to ask the auditor-general to audit the accounts and send the findings to the Bureau of Special Investigations [BSI]. The BSI should further investigate and the government should take action in line with law.

KZM: That is a good idea to avoid harming national reconciliation. Thank you for your contributions!

 

The post Dateline Irrawaddy: 'We Cannot Forgive Dishonesty and Misconduct' appeared first on The Irrawaddy.

Arakan Communities Demand Govt Support to Halt Mangrove Loss

Posted: 12 May 2017 07:36 PM PDT

KAN NGU VILLAGE, Arakan State – Until fairly recently, the residents of Kan Ngu, a coastal village in southern Arakan State, had considered the mangroves in their area simply as another source of firewood and paid little attention to the shrinking forest.

"The locals did not carry out mangrove conservation in the past and cut it down without permission," recalled Kyaw Win, a 62-year-old former fisherman and village leader.

But then, a few years ago, international aid groups began to implement community projects that raised awareness of the mangroves' important role in protecting the coastal environment and local attitudes quickly changed, he said.

"The locals now understand the impacts of mangrove deforestation and they no longer destroy the forest," Kyaw Win said. "These mangrove forests are our benefactor, they are the habitat of fish, prawns and crabs. And we can earn money from catching these animals." He added the he and other villagers had set up a local committee to conserve the mangrove ecosystem.

Mangroves are not only an important habitat, but also help protect the coastal environment against land erosion and floods caused by storms and occasional cyclones that lash the Arakan coast during rainy season.

The Kan Ngu Village committee is one of dozens that have been created in communities in southern Arakan in recent years with the help of the Livelihoods and Food Security Trust Fund (LIFT). This poverty reduction donor fund supported by 12 governments launched the CLEARR project in the area in 2011 to help mangrove rehabilitation and provide agricultural and livelihood support.

Mangroves have been disappearing all along Burma's coast, mostly due to human pressures, with an estimated loss of half of the 1.6 million acres of forest between 1980 and 2007, according to Maung Maung Kyi, a co-founder of the Arakan Coastal Region Conservation Association.

Community projects appear to have stemmed the loss of mangrove forests in southern Arakan State. (Htet Khaung Linn / Myanmar Now)

The densely populated Irrawaddy Delta suffered the biggest losses and only a fraction of the mangroves remain, but in southern Arakan, conservation and reforestation efforts by local communities are starting to take root.

Maung Maung Kyi said the local committees helped restore some 12,000 acres of mangrove in Gwa Township, 30,000 acres in Thandwe Township and 65,000 acres in Taungup Township in recent years.

"Compared to other areas, mangrove forests in Arakan remain strong. Some of the most diverse and rare species of mangrove forests in Southeast Asia are still found there," he said.

Okkar, an officer at the Thandwe Township Forest Department, agreed that the tide could now be turning for mangrove ecosystems in southern Arakan State. "Mangrove reforestation has expanded thanks to the locals. It is a good trend," he said.

In Kan Ngu, the Mangrove Conservation Group restored some 500 acres of forest. However, Kyaw Win and other local environmentalists said the mangroves continue to be threatened and warn that a lack of active government support is causing the community initiatives to lose steam.

Kyaw Win said the biggest threat to the mangroves comes from roving groups of migrating workers and loggers from the Irrawaddy Region. They have been cutting down southern Arakan's mangroves since around 2009 to turn them into charcoal for sale in towns and cities.

"These commercial [charcoal] producers take out both small and big mangrove plants, and do illegal logging by motorboat," he said. "They are still doing this business here as the authorities are turning a blind eye… We are angry about their actions as we have reforested these mangroves."

Kyaw Win and another activist, Than Win from the Gwa Township Mangrove Conservation Committee, both recounted separate incidents in their villages during which residents apprehended loggers and handed them over to authorities, who then failed to act.

"We arrested the people who illegally cut the community mangroves last year and handed them over to the township forestry department and forest police. But they released them, as well as their tools, just after we left," said Than Win.

Okkar, the Forest Department officer, claimed the authorities could take no legal action against the loggers as mangroves, including those being conserved by the communities, often lack official protected status.

"The authorities are preparing to turn these mangrove forests into protected areas as a measure to prevent deforestation," he said, without offering details on how long it would take for the plans to be implemented.

Kyaw Win said villagers had contacted their state parliamentarians and appealed to Forest Department officials during public workshops, but there had been no reaction from authorities.

He said many locals had now "lost their enthusiasm" for protecting the mangroves because of a lack of government support, while villagers had increasingly come into conflict with the loggers, who continue to clear mangroves without government interference.

"The Forestry Department staff [approach] only fosters conflict between locals and loggers. We suggest that senior government officials end these practices," Kyaw Win said.

Maung Maung Kyi, of the Arakan Coastal Region Conservation Association, agreed more should be done from the government side to ensure better mangrove conservation. "The government needs to protect these forests from commercial activities and it should promote fuel substitution technologies" to replace charcoal making, he said.

The post Arakan Communities Demand Govt Support to Halt Mangrove Loss appeared first on The Irrawaddy.
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