The junta has filed lawsuits against 16 executives from nine edible-oil importers under non-bailable charges for allegedly selling cooking oil at prices higher than the reference rate set by the regime.
The lawsuits were filed on Tuesday and cited the Essential Supplies and Services Law and Section 409 of Penal Code, saying the 16 suspects were charged with criminal breach of trust, sources said.
They were remanded in custody during Tuesday’s trial. The next court hearing was scheduled for October 31, according to a business owner.
The prosecutions came after some of the executives were detained and questioned in Naypyitaw in connection with former junta’s trade chief—former Lt-General Moe Myint Tun—who was convicted of corruption and sentenced to 20 years behind bars.
The lawsuits were filed by the junta’s Bureau of Special Investigation.
A source in Naypyitaw told The Irrawaddy: “I heard [the executives] will be told to compensate [for overcharging] and will also be imprisoned.”
Convictions for violations of Section 409 of the Penal Code can result in life in prison—or up to 10 years and a fine— for public servants, merchants, brokers, attorneys, or agents breaching trust in respect to a property entrusted to them.
The Essential Supplies and Services Law also prescribes six months to three years in prison plus a fine of no more than 500,000 kyats (around US$ 238 at the official exchange rate of 2,100 kyats per dollar) for price gouging and hoarding for the purpose of price gouging.
A subsidiary of Htoo Group of Companies—owned by junta crony and arms-broker Tay Za—as well as Europe Asia Commercial Co Ltd are among the companies whose executives have been charged. Some other major cooking-oil importers were excluded from prosecution, according to a source.
Those from other companies interrogated were released on Tuesday. The companies include CF Global, Wilmar Myanmar Edible Oils Ltd, Resources Group Trading Co Ltd, ViVo Group Myanmar, Global Good Pure Group and Aung Thabyay Khine Co.
“It appears that Min Aung Hlaing has ordered that his partner companies are not sued. So, the Bureau of Special Investigation dares not file lawsuits against them. Wilmar is the No. 1 edible oil importer, and Zaw Win Shein is No. 2,” the source said.
The plan to import palm oil was initiated under the previous regime, which called itself State Law and Order Restoration Council, to meet the domestic demand. Wilmar, a subsidiary of Asia World, a conglomerate owned by drug lord Lo Hsing Han, then won contracts to build many edible-oil storage facilities, and palm oil importers have to keep their goods at Wilmar facilities.
Zaw Win Shein is the owner Ayeyar Hinthar Holdings Co Ltd and has close ties to junta boss Min Aung Hlaing. Another major palm oil importer is Myanmar Distribution Group whose head Mya Nyein is close to Min Aung Hlaing’s daughter.
Zaw Win Shein is an adoptive son of Soe Maung, who was a key President’s Office minister when the military proxy Thein Sein administration was in power. Soe Maung is a retired major general and also a former judge advocate-general.
The regime sold US dollars to edible-oil importers at the official rate of 2,100 kyats per greenback, and instructed them to sell them at its kyat reference rate. The currency market rate has been unstable, but the average has been around 3,500 kyats per dollar since last year.
Merchants, including palm-oil importers, had to bribe Moe Myint Tun and his assistant, former Brigadier-General Yan Naung Soe, to acquire US dollars at the rate of 2,100 kyats and permits for edible oil imports.
Both Moe Myint Tun and Yan Naung Soe have been sentenced to 20 years in prison.
There are 22 palm-oil importers in Myanmar.
