The Burmese armed forces' key business enterprise, the Union of Myanmar Economic Holding Ltd (UMEHL), took over the Bo Aung Kyaw Jetty, a major port facility in Rangoon, on Monday, business sources said.
Taking control of Bo Aung Kyaw Jetty increased the UMEHL’s grip on the country’s shipping and port industries. It also took control of the state-run shipping line, Myanma Five Star Line, on April 1, as part of the junta’s pre-election privatization campaign.
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A North Korean ship is unloaded at the Bo Aung Kyaw Jetty in Rangoon. |
An official of the port authority told
The Irrawaddy that several firms have been taken over by UMEHL. The jetty is a major port link for the transfer of shipping cargo.
So far, the state-run-media has not reported the transfer of the port to the military enterprise. However,
The New Light of Myanmar reported on Wednesday that Minister of Transport Thein Swe, who chairs the Committee for Ensuring Expeditious Port Service, inspected the Bo Aung Kyaw jetty, touring export-import areas, systematic storage facilities and X-ray machines.
UMEHL was formed in 1990, two years after the junta's 1988 coup, and it is now the largest non-state enterprise in the country. It is the Tatmadaw’s (Burma's armed forces) major business venture with 51 firms under its control.
“As a special company, UMEHL enjoys the privilege of tax exemption for its fully owned and subsidiary firms,” wrote Maung Aye Myoe in his book, “
Building the Tatmadaw.”
The massive enterprise is involved in areas including gem production and marketing, garment factories, wood and wood-based industries, food and beverage, supermarkets, banking, hotels and tourism, transportation, telecommunications and electronic equipment, computers, construction and real estate, the steel industry, cement production, automobiles, cosmetics and stationery.
The Office of the Defense Industries, headed by Lt-Gen Tin Aye, took control of the enterprise in 2002. Tin Aye is reported to be one of Snr-Gen Than Shwe’s most trusted aides.
One of UMEHL roles is transferring money for the purchase of weapons and military equipment in foreign countries, including North Korea's Kwangson Banking Corporation. North Korea has recently become a major supplier of weaponry to the Burmese military.
The UMEHL is currently under economic sanctions imposed by the United States and other Western countries.