The Special Advisory Council for Myanmar is calling for a global three cuts strategy against the Myanmar military junta: cut the weapons, cut the cash and cut the impunity.

Over decades of military dictatorship, the Myanmar military, the Tatmadaw, has established itself at the center of Myanmar’s economic life by creating a complex web of commercial interests composed of military-linked companies and subsidiaries, relationships with State-owned enterprises, and private crony companies to secure financial resources to support its activities and personnel while escaping any external oversight or accountability. The wealth generated through this system contributed not only to enriching the Tatmadaw’s leadership but also enabled the Tatmadaw to carry out gross human rights violations across the country. In its report on “The economic interests of the Myanmar military” (A/HRC/42/CRP.3), the Independent International Fact-Finding Mission on Myanmar (IIFFM) clearly indicated that “[f]oreign companies with joint ventures and other commercial relationships with the Tatmadaw, Myanmar business donors to the Tatmadaw’s operations, and arms suppliers are in some cases legally implicated in the conduct of the Tatmadaw, and in all cases complicit through their tacit acceptance and approval of the Tatmadaw’s actions”.

Findings, conclusions, and recommendations of the report remain extremely pertinent to the current situation in Myanmar. The IIFMM stressed the need for two parallel approaches to effectively address the situation, halt human rights violations, and hold perpetrators accountable. These approaches require the economic isolation of and disengagement from Tatmadaw associated companies as well as the promotion of economic ties and engagement with non-Tatmadaw companies and businesses in Myanmar. In particular, the IIFMM emphasized the need to cease any business activity with the Myanmar Economic Holding Limited (MEHL) and Myanmar Economic Corporation (MEC), two Tatmadaw-owned conglomerates generating significant incomes for them. MEHL and MEC own at least 106 businesses and are affiliated to another 27 companies through corporate structures.

The report provides a background of MEHL and MEC which is reported here for reference:

Another critical and problematic aspect of the economic life of Myanmar is represented by the State-owned economic enterprises which operate in the natural resources extraction sector and are led by military or former military officials. These State-owned economic enterprises are Myanmar Oil and Gas Enterprise, Myanmar Pearl Enterprise, Myanmar Gems Enterprise, No. 1 Mining Enterprise, No. 2 Mining Enterprise, and Myanmar Timber Enterprise. In May 2019, the United Nations Special Rapporteur on the situation of human rights in Myanmar, Professor Yanghee Lee, reported (A/HRC/40/68) that these enterprises oversee regulation of their respective sectors, collect and allocate revenues, award licenses to private companies and operate commercial joint ventures without any external oversight. The existing legal framework authorizes them to retain vast profits outside the State budget with a complete lack of accountability on how these funds are used. These economic structures, in addition to preventing the sustainable development and the realization of economic and social rights of all people of Myanmar, sustain the power and influence of the Tatmadaw which continues to obstruct democracy and commit egregious crimes with impunity, the Special Rapporteur concluded. Since launching the coup in February 2021, the Tatmadaw has seized full control of these State-owned economic enterprises. Consequently, the IIFFM recommendation for disengagement from military business necessarily extends now to all State-owned economic enterprises.

On these premises and in order to complement the highly reliable advocacy work carried out by Justice for Myanmar aimed at identifying business entities linked to the Tatmadaw and its conglomerates, SAC-M produced this record of actions by States, business enterprises, investment funds, and international intergovernmental organizations following the coup attempt of 1st February by the Tatmadaw as an advocacy tool to pressure States to impose targeted and effective sanctions and business entities to cease engagement with Tatmadaw-owned or affiliated companies. This record is intended as a living document that SAC-M will continue to maintain and update as necessary. SAC-M encourages business enterprises, including those that may not be mentioned in this record, to share information on any relevant action undertaken with regard to their economic activities in Myanmar.

RECORD OF ACTIONS TAKEN BY STATES

A number of States have, individually or collectively, either imposed sanctions on individuals responsible for the coup and the ensuing violations as well as on individuals who have supported and enabled the junta to carry out their crimes; or on business entities under the direct control of the Tatmadaw or otherwise financially contributing to the current regime.

This table lists in chronological order the actions that Stats have adopted in response to the staging of the coup by the Tatmadaw and the acts of violence carried out against peaceful protesters.

RECORD OF ACTIONS TAKEN BY PRIVATE COMPANIES

Among the numerous dreadful consequences of the Tatmadaw’s unlawful attempt to seize power, the economic backlash is certainly one of the most significant. Adding to an already critical situation for many people who have suffered due to the restrictive measures imposed to counter the COIVD-19 pandemic, the Tatmadaw’s actions have pushed the country to a situation of collapse exposing all communities to serious economic constrains leading many to unacceptable conditions of poverty and on the brink of a humanitarian disaster.

In response to the coup and the crimes committed by the Tatmadaw to silence dissent, several business entities have decided to take a range of actions, from leaving the country to suspending production and operations or ceasing partnership with Tatmadaw-affiliated entities, either for ethical reasons, to express opposition to the coup and confirm their commitment to human rights, rule of law, and democracy, or for commercial reasons, because of the uncertainty and instability. SAC-M is not in the position to confirm that all actions announced by the business entities have been implemented in full. However, SAC-M will continue to monitor developments and will update the record accordingly.

SAC-M expresses appreciation to those entities that have promptly decided to modify their modus operandi to avoid providing unwanted support to the Tatmadaw. In particular, SAC-M positively notes the efforts of business entities to comply with the Guiding Principles on Business and Human Rights – chiefly Principle 13 “Avoid causing or contributing to adverse human rights impacts through their own activities, and address such impacts when they occur” and Principle 23 “In all contexts, business enterprises should: […] (b) Seek ways to honour the principles of internationally recognized human rights when faced with conflicting requirements; (c) Treat the risk of causing or contributing to gross human rights abuses as a legal compliance issue wherever they operate.”

The importance of business entities weighing in to address the political and human rights situation is evident from the wide range of economic sectors that have already taken actions. These include communication services, financial institutions, technology companies, clothing and fashion industries, food and beverages, and oil, gas, electricity, and renewable energy actors. SAC-M calls on all companies operating in Myanmar, and in particular those active in at-risk sectors such as natural resource extraction, to assess without any further delay if their actions are financially supporting the Tatmadaw, directly or indirectly, and take immediate appropriate actions to end that support.

This table lists in chronological order actions announced by business entities with the scope of enhancing respect for human rights. This record does not include actions taken on a temporary basis, such as suspension of production, when security concerns or the impossibility to carry out operations were mentioned as the sole reason for it without expressing any opposition to the Tatmadaw’s actions or human right concerns. Whenever possible, the record refers to official statements made by business entities. In a number of occasions, the only available sources were media outlets engaging in communication with the entities. SAC-M welcomes open dialogue with any business entity so as to update the record as necessary.

Table Notes:

[1] The international companies signatory to the statement are: Acteus, Adidas, Amer Sports, Artelia, Asian Research Institute for Environmental Affairs (ARIEL) Pty Ltd, ATALIAN Global Services Myanmar, Audaxia Global, Audier & Partners, Beiersdorf, Being (Myanmar), BESTSELLER, Big Dutchman Myanmar, Bolloré Logistics, CANAL+, Carlsberg, CastGlobal Consulting (Myanmar) Co Ltd, Coca-Cola Myanmar, Daizen Myanmar, De Heus, Denso Industry Yangon Ltd, DSV Air & Sea, Emerging Markets Investment Advisers Pte Ltd, ENI, Ericsson Group, Facebook, Fresh Studio, Frontiir, GIC Myanmar Co Ltd, Gojo & Company, Inc, Golden Dowa Eco-System Myanmar, H&M Group, HEINEKEN, Hirokei Myanmar Systems Co Ltd (HIMS), Hongo Tsuji Tax & Accounting Myanmar Co Ltd, Humology, Japan Create Engineering Co Ltd, Japan Valuers (Myanmar) Co Ltd, Jotun Myanmar, Kantar Myanmar, KappAhl, Kelvin Chia Yangon Ltd, Kubota Myanmar Co Ltd, LEOPALACE21, LITHAN, L’Oréal, Maersk, MDF Asia Myanmar, Meranti Steel, METRO, Mintha Care Co Ltd (Bioderma), Monkiri, MPRL E&P Pte Ltd, Nestlé, Nishimura & Asahi Myanmar Ltd, Ooredoo, Otsuka Myanmar Co Ltd, PERM, Rice, Schenker Myanmar Co Ltd, SCS Global Consulting Myanmar Ltd, Telenor, TNY Legal Myanmar Co Ltd, TOTAL, Unilever, Unocal Myanmar (Chevron), Woodside, Yara, and Zuellig Pharma.

[2] The Myanmar national companies that aligned themselves to the statement are: 360ed (EdTech), ABC Beauty Co Ltd, ABC Content Solutions Co Ltd, ABC Convenience Stores, ABC Development Co Ltd, ABC Fashion Co Ltd, ABC Logistic Co Ltd, ABC Medical Solution Co Ltd, ABC Mobile Co Ltd, ABC Telecomm Co Ltd, ACP Management Co Ltd (Ascent Capital), Agriculture & Food Services International Myanmar (AFSIM) Co Ltd, alba Group, All Myanmar Advisors, Alpha Power Engineering, Amata Holding Public Co Ltd, Amiways, ANNAM Myanmar Co Ltd, Anthem Asia, Arakan Nature Lodge Co Ltd, Ayeyarwaddy Seeds & Irrigation Co Ltd, Better HR, Better Life Education & Career Supporting Centre, Better Version Institute, BOD Tech Ventures Co Ltd, Botanical Cosmetics Co Ltd, Bridge, Bumble Bee Professional Cleaning Service, Burgundy Hills, Burma Watches, C-ACTO Myanmar Co Ltd, CCEducare Myanmar, CityMart Holdings Ltd (CMHL), Clean Pro Professional Cleaning Company, Conyat Create, Cube Digital, D2D Co Ltd (Zay2Go), Dagon Group of Companies, DedaaBox, Doh Eain, Doughnut Group Co Ltd, Early Dawn Microfinance, EcoStart Myanmar Co Ltd, Edify, ERA Myanmar, Ever Flow River Group Public Co Ltd, EXO Travel, Ever Sunny Industrial Co Ltd, Exploration Travel Myanmar, First Myanmar Investment (FMI), Flymya.com, Focus Asia Myanmar, Frontier Myanmar, Get All Myanmar Co Ltd, Global Sky Services Ltd, Global Wave Technology, Global United Myanmar Ltd, Greenovator Co Ltd, Green & Partners Architects, Hana Microfinance, HEKS/EPER Myanmar Ltd, H.I.S Myanmar Travels, Hla Day Myanmar, Howe Sustainable, IGE Group, IME Group, IMPACT Co Ltd, Information Matrix, Inle Heritage Co Ltd, Inle Princess Co Ltd, Innoveller Co Ltd (MMBUSTICKET), Inspiral Creative, International Leadership University, Javelin Services, Jewel Palace Trading Co Ltd, JM Company Ltd, JobNet Myanmar, JP & MM Bridge Material Co Ltd, Kalaw Vista Bed & Breakfast, Kasante, KBZ Bank, KFC Myanmar, K Global Co Ltd, KMD Co Ltd, Legacy Music Network Co, L-IFT (Myanmar) Co Ltd, Linklusion, Lucy Wayne & Associates, Luther Myanmar, Maha Agriculture Public Co Ltd, Mahar Mobile App, Maia Travel & Tours, Mango Group, MAPCO, Mee Panyar, Memories Group, Mickey’s Real Wood, Microfinance Delta International Co Ltd, Mira Travels & Enterprises Ltd, MODULAR – Myanmar Home Design Ltd, Monsoon Restaurant and Bar, Moonji Production, M Pride Co Ltd, Mr Chef & Pizzamaru Myanmar, MultiVerse Advertising, MVC Accounting, Mya Ayer Group, Myanma Awba Group, Myanmar B2B Management Magazine, The Myanmar Fly Fishing Project Co Ltd Gty, Myanmar Indobest Co Ltd, Myanmar Parkview Tours Ltd, Myanmar Polestar DMC & MICE Management, Myanmar Shalom Travels, Myanmar Survey Research, Myan Shwe Pyi Tractors Ltd (MSP CAT), My Mentor Myanmar, Nexlabs, OnDoctor Co Ltd, Organic Valley, Pacific Andaman (SEA) Co., Ltd., Parami Energy Group including 8484 Co Ltd., Pegu Partners, The Pink Sun, Platform, Pochi, Pro Niti Co Ltd, Proven Group, Proximity Designs, Pun Hlaing Hospitals, Red House Bar & Restaraurant Ltd (Kalaw), Sampan Travel, Sanctum Inle Resort, SCM Legal, Seagram Myanmar, Shwe Bank, ShweProperty, Sin Sar Bar, SITHAR Coffee, Smart Way Travel, Strategy First Education Group Ltd., Sushi Academy, Thibi, ThitsaWorks, TMW Group of Companies, The Tokyo Enterprise Co Ltd, Top HR Solutions, Tour Mandalay, uab bank, uab securities, Uncharted Horizons, Vero Public Relations, Victoria Hospital, Virya Myanmar, The Warehouse Myanmar Co Ltd, The Water Agency, Wave Money, Yangon Door2Door, Yangoods, Yever, YKKO, Yoma Bank, Yoma Group, and Zingo Myanmar (Guava Ventures Ltd).

RECORD OF ACTIONS TAKEN BY INTERNATIONAL INTER-GOVERNMENTAL AND OTHER ORGANIZATIONS

In addition to actions taken by States and business entities, SAC-M notes and welcomes that also international organizations, in particular multilateral development banks, have taken steps to ensure that funds they provide do not support the commission of crimes and human rights violations by the Tatmadaw. SAC-M reiterates its call to all international organizations to immediately disengage from any military business to avoid any form of complicity in the grave human rights violations occurring in Myanmar.

Table Notes:

[3] Members of the Committee on Credentials are Andorra; Australia; Cameroon; Haiti; Iceland; Mali; Monaco; Namibia; Panama; Singapore; Somalia; and Thailand.

RECORD OF ACTIONS TAKEN BY INVESTMENT FUNDS AND OTHER FINANCIAL INSTITUTIONS

Foreign financial investments represent a major source of funding for the Tatmadaw. Recent research indicated that banks, pension funds, and other various financial entities continue to invest in companies that have either direct and longstanding commercial ties to the Tatmadaw or to public entities that have come under control of the Tatmadaw following the seizure of power on 1 February. The overall investments are estimated in tens of billions of US Dollars. Therefore, it is absolutely critical that banks and investment funds cease immediately any investment in such companies, suspend all payments to Myanmar state-owned entities, and pressure investing companies to sever any commercial and financial relationship that may provide a source of funding to the Tatmadaw.