MYANMAR CRISIS
Myanmar's purge of tycoon highlights tension within regime
Military chief may follow 'Xi Jinping's playbook' to eliminate rivals, expert says
THOMPSON CHAU and DOMINIC OO,
Myanmar's purge of tycoon highlights tension within regime
Military chief may follow 'Xi Jinping's playbook' to eliminate rivals, expert says
Myanmar's ruler, Senior Gen. Min Aung Hlaing, has arrested a number of associates of Shwe Mann, a rival and a former speaker of the lower house of parliament.
(Source photo by Reuters)
THOMPSON CHAU and DOMINIC OO,
contributing writers
April 17, 2022
YANGON/TAIPEI -- The arrest and detention of Khin Shwe, a longtime Myanmar tycoon, by the military regime last month hints at an irreconcilable split between Min Aung Hlaing's ruling faction and Shwe Mann, a former general who was once among the country's most powerful politicians.
The arrest of Khin Shwe points to tensions between the current military leaders and the old guard associated with previous juntas, as the two are not believed to be connected with Myanmar's pro-democracy movement, which is trying to remove the generals from power, or the National Unity Government, a shadow authority established by ousted lawmakers from Aung San Suu Kyi's National League for Democracy.
The interrogation by authorities in late March of Yangon's commerce minister, Aung Than Oo, and Mayor Bo Htay over a land dispute has added to speculation that there is a factional dispute between Myanmar's current military rulers and the old guard. Both Aung Than Oo and Bo Htay were appointed by the military after it seized power in February 2021.
Senior Gen. Min Aung Hlaing, Myanmar's ruler, has struggled to resuscitate collapsing business confidence following military takeover in February last year. Members of the local and foreign business community have largely shunned the regime's top officials as public resentment against the military authorities deepens.
On March 21, 70-year-old Khin Shwe and his son, Zay Thiha, were arrested and are being held at Yangon's Insein Prison following a dispute dating back to 2018 related to a construction project on military-owned land in Bahan township. Their detention was confirmed by military spokesperson Zaw Min Tun at a news conference in Naypyidaw on March 24.
A leaked police report circulated on social media and verified by Burmese news outlet Khit Thit Media suggests the father and son were arrested for allegedly failing to pay more than $20 million for land that the company leased in Yangon in breach of the initial memorandum of understanding, as well as for destroying buildings considered heritage sites owned by the Defense Ministry.
YANGON/TAIPEI -- The arrest and detention of Khin Shwe, a longtime Myanmar tycoon, by the military regime last month hints at an irreconcilable split between Min Aung Hlaing's ruling faction and Shwe Mann, a former general who was once among the country's most powerful politicians.
The arrest of Khin Shwe points to tensions between the current military leaders and the old guard associated with previous juntas, as the two are not believed to be connected with Myanmar's pro-democracy movement, which is trying to remove the generals from power, or the National Unity Government, a shadow authority established by ousted lawmakers from Aung San Suu Kyi's National League for Democracy.
The interrogation by authorities in late March of Yangon's commerce minister, Aung Than Oo, and Mayor Bo Htay over a land dispute has added to speculation that there is a factional dispute between Myanmar's current military rulers and the old guard. Both Aung Than Oo and Bo Htay were appointed by the military after it seized power in February 2021.
Senior Gen. Min Aung Hlaing, Myanmar's ruler, has struggled to resuscitate collapsing business confidence following military takeover in February last year. Members of the local and foreign business community have largely shunned the regime's top officials as public resentment against the military authorities deepens.
On March 21, 70-year-old Khin Shwe and his son, Zay Thiha, were arrested and are being held at Yangon's Insein Prison following a dispute dating back to 2018 related to a construction project on military-owned land in Bahan township. Their detention was confirmed by military spokesperson Zaw Min Tun at a news conference in Naypyidaw on March 24.
A leaked police report circulated on social media and verified by Burmese news outlet Khit Thit Media suggests the father and son were arrested for allegedly failing to pay more than $20 million for land that the company leased in Yangon in breach of the initial memorandum of understanding, as well as for destroying buildings considered heritage sites owned by the Defense Ministry.
Myanmar tycoon Khin Shwe poses for a photo at his office in Yangon in 2015.
© Reuters
In 1990, Khin Shwe founded the Zaykabar conglomerate. His company became a big player in Myanmar's construction industry thanks to its closeness to the military, making him one of the richest people in the country.
The tycoon was a prominent member of the military-business establishment, an ally of the military and a member of parliament for the pro-military Union Solidarity and Development Party (USDP) from 2010 to 2015. He was originally sanctioned by the U.S. due to his close relationship with Khin Nyunt, a spymaster who ruled Myanmar with an iron fist until his ouster in 2004.
Business people and analysts have also highlighted Khin Shwe's close ties to Shwe Mann as a reason for his fall from grace. His daughter is married to the son of Shwe Mann, who was a powerful general, third in command in the junta that ruled Myanmar for half a century before giving way in 2011 to a quasi-military government led by President Thein Sein. Shwe Mann then became speaker of the lower house of parliament.
Under the Thein Sein administration, Shwe Mann was also leader of the then-ruling USDP until he was ousted in 2015. He drew closer to Aung San Suu Kyi in the run-up to the elections that year that brought Suu Kyi's National League for Democracy to power.
In 1990, Khin Shwe founded the Zaykabar conglomerate. His company became a big player in Myanmar's construction industry thanks to its closeness to the military, making him one of the richest people in the country.
The tycoon was a prominent member of the military-business establishment, an ally of the military and a member of parliament for the pro-military Union Solidarity and Development Party (USDP) from 2010 to 2015. He was originally sanctioned by the U.S. due to his close relationship with Khin Nyunt, a spymaster who ruled Myanmar with an iron fist until his ouster in 2004.
Business people and analysts have also highlighted Khin Shwe's close ties to Shwe Mann as a reason for his fall from grace. His daughter is married to the son of Shwe Mann, who was a powerful general, third in command in the junta that ruled Myanmar for half a century before giving way in 2011 to a quasi-military government led by President Thein Sein. Shwe Mann then became speaker of the lower house of parliament.
Under the Thein Sein administration, Shwe Mann was also leader of the then-ruling USDP until he was ousted in 2015. He drew closer to Aung San Suu Kyi in the run-up to the elections that year that brought Suu Kyi's National League for Democracy to power.
Shwe Mann, left, then speaker of Myanmar's parliament, greets pro-democracy leader Aung San Suu Kyi before their meeting in 2015.
© Reuters
"Shwe Mann remains widely reviled within the USDP among hard-liners and some military leaders," said Thant Zin, a Burmese business analyst in Yangon who has access to members of the military. They blame his decision as parliament speaker to block a switch to proportional representation for the party's decimation at the polls, despite gaining a significant share of the vote, Than Zin said.
Shwe Mann has not been seen in public since February 2021. The Union Betterment Party that he founded did not win any seats in the 2020 polls.
"Khin Shwe and Shwe Mann are in-laws. This reaffirms the fact that Shwe Mann is now completely out of their picture. I think Min Aung Hlaing is on the path of following Xi Jinping's playbook, where the Chinese president is eliminating Jiang Zemin's faction one after another," said a well-connected Burmese-Chinese business owner in Yangon.
A lot of cronies are "vigilant," and "quite a number of tycoons remain overseas, avoiding the risk of getting detained," the businessman said.
"I can't shed a tear for him [Khin Shwe]. He was crying himself, of course," another influential business source in Yangon remarked.
Khin Shwe had allegedly asked Shwe Mann for help with his business and with bringing in a Chinese company without permission, which might have angered the military. But experts point to other underlying reasons: "Khin Shwe encouraged his constituents in Kawhmu to vote for the NLD, so [he] was regarded as a traitor by the USDP. Also, he was a Khin Nyunt crony, and of Chinese ethnicity, so he's not one that Min Aung Hlaing and company appreciate," the source told Nikkei.
"Shwe Mann remains widely reviled within the USDP among hard-liners and some military leaders," said Thant Zin, a Burmese business analyst in Yangon who has access to members of the military. They blame his decision as parliament speaker to block a switch to proportional representation for the party's decimation at the polls, despite gaining a significant share of the vote, Than Zin said.
Shwe Mann has not been seen in public since February 2021. The Union Betterment Party that he founded did not win any seats in the 2020 polls.
"Khin Shwe and Shwe Mann are in-laws. This reaffirms the fact that Shwe Mann is now completely out of their picture. I think Min Aung Hlaing is on the path of following Xi Jinping's playbook, where the Chinese president is eliminating Jiang Zemin's faction one after another," said a well-connected Burmese-Chinese business owner in Yangon.
A lot of cronies are "vigilant," and "quite a number of tycoons remain overseas, avoiding the risk of getting detained," the businessman said.
"I can't shed a tear for him [Khin Shwe]. He was crying himself, of course," another influential business source in Yangon remarked.
Khin Shwe had allegedly asked Shwe Mann for help with his business and with bringing in a Chinese company without permission, which might have angered the military. But experts point to other underlying reasons: "Khin Shwe encouraged his constituents in Kawhmu to vote for the NLD, so [he] was regarded as a traitor by the USDP. Also, he was a Khin Nyunt crony, and of Chinese ethnicity, so he's not one that Min Aung Hlaing and company appreciate," the source told Nikkei.
Myanmar's military ousted the democratically elected government led by Aung San Suu Kyi in February 2021.
© Reuters
Political insiders have branded Shwe Mann "a paper tiger" and say his political career is over, according to a politician who is not connected to the NUG or the NLD. "Unlike other old guards of the Tatmadaw [Myanmar's military], the State Administration Council [the official name of the military government] will not use Shwe Mann for its future political games."
"I don't think it necessarily signals a split within the old crony-military elite-industrial complex. Khin Shwe's arrest would serve as a 'warning shot' [for] present and old cronies, and their offspring no less -- that they and their assets are not as untouchable as they had deemed," said Thant Zin. "The arrest is symbolic of the current junta's 'settling of old scores' mentality."
The downfall of prominent politicians and tycoons could have implications for the regime's top brass. According to Thant Zin, Aung Than Oo's mentor and the person closest to him in the current cabinet is Immigration Minister and USDP Vice Chair Khin Yi.
"It remains to be seen if the arrests would undermine Khin Yi's position in the regime and the USDP," he said.
Political insiders have branded Shwe Mann "a paper tiger" and say his political career is over, according to a politician who is not connected to the NUG or the NLD. "Unlike other old guards of the Tatmadaw [Myanmar's military], the State Administration Council [the official name of the military government] will not use Shwe Mann for its future political games."
"I don't think it necessarily signals a split within the old crony-military elite-industrial complex. Khin Shwe's arrest would serve as a 'warning shot' [for] present and old cronies, and their offspring no less -- that they and their assets are not as untouchable as they had deemed," said Thant Zin. "The arrest is symbolic of the current junta's 'settling of old scores' mentality."
The downfall of prominent politicians and tycoons could have implications for the regime's top brass. According to Thant Zin, Aung Than Oo's mentor and the person closest to him in the current cabinet is Immigration Minister and USDP Vice Chair Khin Yi.
"It remains to be seen if the arrests would undermine Khin Yi's position in the regime and the USDP," he said.
Some 1,619 prisoners, including 42 foreigners, had been "pardoned" and will be released to mark the new year. PHOTO: AFP
YANGON (AFP) - Myanmar's junta will release over 1,600 prisoners from jails across the country on Sunday(April 17) to mark the Buddhist new year, it said, without specifying whether those being pardoned were protesters or common criminals.
The Southeast Asian country has been in turmoil since the military's ouster of Aung San Suu Kyi's government last year, which sparked huge protests and a deadly crackdown.
Some 1,619 prisoners, including 42 foreigners had been "pardoned" and will be released to mark the new year, according to an announcement carried by state TV on Sunday morning.
It remains unclear whether anti-junta protesters or journalists jailed covering the coup will be among those freed.
There was also no mention of Australian academic Sean Turnell, a former adviser to ousted leader Aung San Suu Kyi, who was arrested shortly after the coup.
He is currently on trial for allegedly breaching the official secrets act, which carries a maximum 14-year jail sentence.
The exact details of his alleged offence have not been made public, though state television has said he had access to "secret state financial information" and had tried to flee the country.
Myanmar typically grants an annual amnesty to thousands of prisoners to mark its traditional Buddhist New Year holiday - which in previous years have been joyous affairs with city-wide water fights.
But this year, with the military continuing its bloody crackdown on dissent, the streets in many major cities have been silent as people protest junta rule.
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