As Myanmar, China and Thailand conduct a joint crackdown on border scam syndicates, many seem to overlook the fact that Min Aung Hlaing, who recently loudly declared the crackdown a national duty, and vowed to cooperate with the international community toward that end, has ties to cyber scam kingpins.
Not only Karen State Border Guard Force (BGF) chief Saw Chit Thu, who has recently made international headlines for his involvement in scam compounds near the Thai border in Myanmar’s Karen State, but also former Kokang leaders and tycoons detained by China for their scam operations near the Chinese border, are closely linked to the junta boss.
Kokang
Former Kokang leader Bai Suocheng, who has been detained by China for online fraud operations targeting Chinese citizens, was appointed as the first leader of the Kokang Self-Administered Zone in northern Shan State after the Myanmar military took control of Kokang from the Myanmar National Democratic Alliance Army (MNDAA), then led by Peng Jiasheng, in 2009.
Min Aung Hlaing mentioned at a November 2023 meeting of the National Defense and Security Council that he led the Kokang offensive in 2009 and tasked Bai with governing Kokang after Peng’s withdrawal.
Bai’s younger son, Bai Yingcang, was the leader of a local militia aligned with the Myanmar military. He frequently attended regime-organized events in Naypyitaw.
Bai Suocheng’s elder son, Bai Yingneng (aka Khin Maung Lwin), was a lawmaker for the military’s proxy Union Solidarity and Development Party (USDP). He was a member of the junta-appointed administrative body of Kokang after the 2021 coup, and the recipient of an honorary title conferred by Min Aung Hlaing.
Liu Zhengxiang, the CEO of Fully Light Group of Companies, currently detained in China for scam operations, also had ties to Min Aung Hlaing. Liu and his younger brother, former USDP lawmaker Maung Maung, are also recipients of honorary titles awarded by the junta boss. Fully Light was the biggest conglomerate in Kokang, and involved in major projects across Myanmar, including key real estate and energy projects.
Like Bai Suocheng, Wei San, also currently detained in China, was trusted with important positions after the Myanmar military’s offensive in 2009.
Wei was made the chief of Border Guard Force 1006 formed by the Myanmar military after Peng’s withdrawal from Kokang. He created the central advisory and supervisory committee chairman position to maintain his grip even after his retirement.
When Laukkai came under siege by the MNDAA during Operation 1027 launched at the end of 2023, the regime rescued those Kokang leaders and tycoons, evacuating them to Naypyitaw and offering them refuge.
After China issued arrest warrants for 10 scam suspects including Bai, Wei and Liu, Min Aung Hlaing, who needed Beijing’s support to end armed conflicts in northern Shan State, handed his old friends over to China in Naypyitaw.
By this time Maung Maung had already been arrested in Yunnan while on a business trip.
Saw Chit Thu and Shwe Kokko
Myawaddy, which has recently made international headlines as the most notorious scam hub in Southeast Asia, falls under the jurisdiction of Saw Chit Thu.
Many years ago, Saw Chit Thu signed a ceasefire with Myanmar’s army that saw his breakaway Democratic Karen Buddhist Army rebadged as the Karen BGF under partial command of the Myanmar military.
In 2017, Saw Chit Thu formed a joint venture with Yatai International, owned by She Zhijiang, a Chinese national with dual Cambodian citizenship currently detained in Thailand, to develop Shwe Kokko as a so-called “New City” project.
In 2018, the Myanmar Investment Commission of the since ousted National League for Democracy government approved the first phase of the Shwe Kokko New City project. However, construction activity expanded well beyond the agreed limits, leading to a government probe and suspension of the project.
At that time, Thailand shut off power and telecom services to Shwe Kokko. However, power and internet services were switched back on just weeks after the 2021 coup.
After the crackdown on scam gangs in Kokang in northern Shan near the Chinese border, they relocated to the Thai-Myanmar border, finally developing into a scam hub with protection from the regime and BGF.
They are said to be a lucrative revenue source for the Myanmar military, which collects some 50 percent of the US$192 million earned by the BGF annually from the Shwe Kokko project, according to a report by United States Institute of Peace.
Saw Chit Thu has donated cash to Sitagu Sayadaw, one of the favorite monks of Min Aung Hlaing and his family. He and She Zhijiang donated cash to Sitagu Sayadaw in 2019 in Shwe Kokko.
Echoing the regime, Saw Chit Thu has pointed a finger at Thailand, claiming that scammers illegally entered his territory through the neighboring country.
In its first statement on scam operations on the Thai-Myanmar border on Jan. 20, the regime tried to distance itself from the scam compounds, saying it does not have complete control over those areas due to the lack of peace and stability.
Lately, under pressure from China and Thailand, the regime and Saw Chit Thu have been cracking down on cyber scam operations, arresting thousands of people at scam centers along the Thai border.
However, so far, most of those detained are low-level scammers, and no official announcements have been made about capturing the leaders. Neither China nor Thailand has reported capturing any ringleaders.
The regime has not arrested any BGF officials, including Saw Chit Thu, and Thailand has not yet issued any arrest warrants for them either, though it said it plans to do so.
