Prominent crony Serge Pun, who is under Myanmar junta detention, has stepped down as executive chairman of Singapore-listed Yoma Strategic Holdings Limited after 17 years in charge.
A statement issued in Singapore said he and the board of directors decided it was in the best interest of the company, shareholders, staff and customers to “accelerate leadership succession plans”.
Yoma Strategic said: “It will enable Serge Pun to dedicate his attention to resolving matters relating to his engagement with Myanmar’s authorities concerning banking activities in the country, and preserve the stability of the group.”
Serge Pun, 71, has been detained, along with other Yoma Bank and Yoma Strategic Holdings executives since last month. Sources said he is under house arrest in Naypyitaw and faces interrogation.
They are accused of violating financial regulations by providing mortgages to expats from Myanmar buying Thai property, exceeding Central Bank of Myanmar lending limits.
In early June Serge Pun was first interrogated for providing mortgages for Thai property sales. He was released after a few days but “was in bad shape”, according to a family source.
Yoma Strategic appointed his eldest son, Melvyn Pun, as chair. He was already the CEO.
Serge Pun is stepping down from the leadership of 105 Yoma firms, including First Myanmar Investment, SPA, Pun Hlaing and Myanmar Thilawa Special Economic Zone (SEZ) Holdings, a separate consortium.
The Yoma firms operate in banking, healthcare, real estate, tourism, automotive and other consumer services.
It owns shares and invests in other companies engaged in developing the Thilwa SEZ on the outskirts of Yangon, which is the first in the city and was developed by the governments of Myanmar and Japan.
Myanmar’s regime has not announced charges against him but a business source said he was likely to face several lawsuits and his companies were trying to minimize the impact on the group when it happens.
The junta announced on July 1 that the executives at seven private banks, including Yoma, AYA and UAB, faced administrative action for exceeding home mortgage limits. It said those responsible would be charged under the Financial Institutions Law.
On July 10, junta bosses held a meeting with the country’s top bankers in Naypyitaw and reportedly berated them for causing inflation. Serge Pun did not attend the meeting.
The junta representatives reportedly threatened legal action against anyone violating financial regulations for damaging Myanmar’s financial stability and reducing the value of state assets and resources.
