Rights group says Malaysia's deals in Myanmar may benefit its military
In a report titled "Nodes of Corruption, Lines of Abuse", the group looked at the business connections of Telecom International Myanmar Co Ltd (Mytel), a Myanmar-based telecommunications company that is backed by its military.
According to the report, among the Malaysian businesses that have dealings...
Human rights group Justice for Myanmar has raised concerns that companies from across the globe that are doing business in Myanmar, including from Malaysia, may be inadvertently benefitting Myanmar's military, which has been accused of various human rights violations.
In a report titled "Nodes of Corruption, Lines of Abuse", the group looked at the business connections of Telecom International Myanmar Co Ltd (Mytel), a Myanmar-based telecommunications company that is backed by its military.
According to the report, among the Malaysian businesses that have dealings with Mytel include two telecommunication companies and a bank.
The report said Mytel is 51 percent controlled by Myanmar entities comprising the Myanmar military-backed Star High Co Ltd (28 percent stake) and Myanmar National Telecom Holdings (MNTH) (23 percent), a special purpose vehicle of 11 Myanmar investors.
"Shares in Star High are held by individual members of the military leadership... As Star High is 'supervised' by the Defence Ministry, the civilian government lacks authority to scrutinise Mytel finances or operations...," Justice for Myanmar said.
The remaining 49 percent is controlled by the Viettel Global Investment JSC (Viettel), which is also military-linked and controlled by Vietnam's National Defence Ministry.
The report noted that edotco Group Sdn Bhd, Axiata Group Bhd's telecommunication tower arm, which also owns and operates telecommunication towers in Myanmar, has leasing arrangements with Mytel.
It added that OCK Group Berhad, another Malaysian telecommunication contractor, also has similar arrangements with Mytel.
The report also highlighted Maybank's short-term and long-term loans amounting to US$140.82 million (RM568.98 million) that it had provided to Viettel, Star High's business partner in Mytel.
Mytel was created in the context of the World Bank-supported reforms to Myanmar's telecommunications sector. However, the report said it was done in a way that enabled the Myanmar military interests to control critical infrastructure.
It added that this could enable them to conduct mass surveillance, grant them access to technology and also profit financially.
It said in the context of the Myanmar military's human rights records, the profits it makes from businesses raise concerns.
Justice for Myanmar said that among the human rights violations by the Myanmar military include genocide against the Rohingya people.
"The Myanmar military has an expansive hold on the Myanmar economy, which supports the military’s continued autonomy from civilian oversight and provides a strong financial incentive for it to block meaningful, democratic reform," it said.
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