KHARON
Samuel Rubenfeld
U.S. threatens further action if the military does not restore democracy

Students and teachers protest against the military coup in Kayin State, Burma. (Source: Ninjastrikers)
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Students and teachers protest against the military coup in Kayin State, Burma. (Source: Ninjastrikers)
The White House announced broad new curbs
on Burma following a coup earlier this month, issuing an executive
order, imposing sanctions on military companies and leaders, and other
restrictions.
The
U.S. actions follow several days of protests in Burma, which is also
known as Myanmar, after the Feb. 1 coup that ended a decade of democracy
there. The United Nations Human Rights Council on Friday adopted a
resolution without a vote that “deplored the removal” of the
democratically elected government and called for the military to protect
the rights of people.
The executive order
authorizes sanctions on anyone operating in the Burmese defense sector,
as well as those undermining Burmese democracy, and Burmese military
leaders, top government officials and their spouses and adult children.
It also allows the government to identify other sectors of the Burmese
economy for potential sanctions.
Beyond
the sanctions, the U.S. also announced controls on certain exports,
blocked the military from accessing more than USD 1 billion in
government assets held in the U.S. and redirected USD 42 million in
assistance, the White House said Thursday in a fact sheet.
The U.S. Commerce Department announced restrictions
on sensitive exports to Burma’s Ministries of Defense and Home Affairs,
as well as the armed forces and security services. And USAID said it
had redirected aid that would have benefited the Burmese government, saying the funding will go toward benefiting civil society.
The U.S. Treasury Department followed with sanctions
on 10 current and former military officials responsible for the coup or
associated with the military regime, including Commander-in-Chief Min
Aung Hlaing and his deputy, Soe Win, both of whom were already designated in 2019 for human rights abuses tied to the mass killing of Rohingya and other Burmese minorities.
They
and four others sanctioned Thursday -- First Vice President and retired
Lieutenant General Myint Swe; Lieutenant General Sein Win; Lieutenant
General Soe Htut; and Lieutenant General Ye Aung -- were directly
involved in the coup, according to the Treasury. Four military officials
named to the State Administrative Council (SAC) following the coup were
also designated.
Three
companies, Myanmar Ruby Enterprise; Myanmar Imperial Jade Co., LTD.;
and Cancri (Gems and Jewellery) Co., Ltd., were sanctioned because they
are wholly owned subsidiaries of a large conglomerate in Burma, the
Treasury said.
“If
there is more violence against peaceful protestors, the Burmese
military will find that today’s sanctions are just the first,” said
Treasury Secretary Janet Yellen.
Though
not named by the Treasury, corporate records reviewed by Kharon show
the conglomerate to be Myanma Economic Holdings Public Company Limited
(MEHL), a large company founded by the Tatmadaw, Burma’s armed forces.
An August 2019 U.N. Human Rights Council report had listed the three
firms as “alleged” MEHL subsidiaries.
MEHL
was sanctioned in 2007 by the Canadian government under a prior name,
the Union of Burma Economic Holding Ltd. Though Canada eased most of its
sanctions on Burma in 2012, it maintained the listing of the company
and dozens of other individuals and entities.
A
high-level Burmese defense official pegged MEHL’s value at USD 119.4
million in 2017, according to the U.N. report, which said the estimate
was “difficult to verify.” The revenue generated by the conglomerate
“strengthens the Tatmadaw’s autonomy from elected civilian oversight”
and provides financial support for their operations, the U.N. report
said.
The
firm was as of last year owned by nearly 400,000 current or retired
military personnel and about 1,800 institutional shareholders, Amnesty
International reported in September, citing a leaked January 2020 filing
with the Myanmar Directorate of Investment and Company Administration
(DICA). A second document seen by Amnesty International detailed
dividend payments received by shareholders between 1990 and 2011.
MEHL
has an array of holdings and foreign partners, and it operates in a
wide range of industries, including agriculture, construction, gems,
finance, manufacturing, mining and tourism, according to a 2019 U.N.
fact-finding mission and media reporting.
Several international partners began distancing themselves from Burmese military companies in the wake of the coup, however.
Japanese
brewer Kirin announced it would sever ties with MEHL, saying “we have
no option” given the circumstances. Lim Kaling, a prominent Singaporean
businessman, said in a statement cited in multiple media reports that he
would exit his stake in an investment firm that co-owns a tobacco
company with MEHL, saying recent events had caused him “grave concern”
and that he was “exploring options for the responsible disposal.” And
Hong Kong-based company HAECO Xiamen canceled a deal to upgrade a
commercial airliner to a VIP jet for generals following its exposure by
the Organized Crime and Corruption Reporting Project.
The
Burmese military on Feb. 1 had declared a one-year state of emergency
and detained key members of the civilian government, including Aung San
Suu Kyi and President Win Myint, citing alleged fraud tied to a November
parliamentary election. A day later, the Biden administration declared
the act a coup, setting the stage for the new restrictions.
Police
have responded violently to the protests, including by shooting a young
woman in the back of the head. The military has disrupted Internet
access and blocked social media networks such as Facebook; the company
responded by announcing it would reduce the distribution of Burmese
military content, treating their profiles and pages as misinformation.
An electronics shop handwrites an advertisement for a portable radio during the Internet shutdown. (Source: Han Sann)
The
United Nations Security Council should consider “all of the options” it
has used in situations involving human rights violations, including
sanctions, arms embargoes and travel bans, said Tom Andrews, the U.N.
special rapporteur on the human rights situation in Myanmar, in a
statement to the U.N. Human Rights Council. “Member states themselves,
of course, have the ability to act and are beginning to do so,” he said,
urging countries to act on their own.
The
executive order announced Thursday authorizes sanctions against the
spouses and adult children of designated Burmese military leaders and
officials; family members of senior Burmese military leaders appear to
play roles in the country’s economy. Justice for Myanmar, a group of
“covert activists” calling for an end to Burmese military business, released a spreadsheet on Thursday
containing identifying information on the SAC members and members of
their immediate family, as well as 17 of their businesses and 23 of
their associates.
Last
summer, Justice for Myanmar reported on a construction contract awarded
by the Ministry of Border Affairs to a company run by the three sons of
Soe Htut, a general sanctioned Thursday for his direct role in the coup.
The ministry was already under military control before the coup,
according to the group. The children also operated two other companies
involved in a long list of activities, including mining, oil and gas
extraction; construction; logging; manufacturing; wholesale and retail
trade, among others, the group said at the time.
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