Federation rebuts allegations of financial misconduct
By Su Wai Phyo | Sunday, 18 August 2013Allegations that senior members of the country's largest business federation misused its funds by mortgaging its Yangon headquarters and lending the money to private companies are false, central executive committee members of the Union of Myanmar Federation of Chambers of Commerce and Industry told a press conference on Augusts 17.
UMFCCI central executive committee member U Myint Soe displays a financial document at a press conference last week that was held to respond to allegations of financial misconduct by the federation's leadership. Photo: Zarni Phyo
U Myint Soe, president of the Myanmar Garment Manufacturers Association and a member of the federation's central executive committee, said that under its internal rules and regulations the federation was entitled to mortgage the headquarters.
U Win Aung, president of the federation, said the mortgage was taken out to provide the federation with funding to operate and that the decision had been approved by the federation's central executive committee. "We were in a poor financial condition when we took out the mortgage [in 2011]," he said, adding that the mortgage of K2 billion from Kambawza Bank has been repaid.
Friday's press conference, which drew more than 50 reporters and photographers to the federation's headquarters, followed a meeting on August 14 of the central executive and executive committee to discuss a row that began at the federation's annual general meeting on July 13.
Twelve members of the federation publicly protested against a resolution to endorse the latest financial report, saying the report lacked transparency and that they had not been given time to review it.
They also accused senior members of the federation of cronyism and launched a campaign to remove them.
U Tin Maung Sint, a member of the central executive of the Myanmar Rice Federation and a leader of the protest group, said this campaign is continuing. He said that by mortgaging its headquarters and lending the funds at interest, the federation violated its internal rules, national rules and regulations for associations, and possibly, laws.
He said a lawyer began reviewing documents related to the mortgage and other financial transactions on August 17 and that the documents and a report will be forwarded to ministries for investigation this week. U Tin Maung Sint also said he will hold a press conference this week to deliver what he described as the "final blow" against the federation's
leadership.
The dispute began at the federation's first democratic election on June 15, after scanners brought in to count the ballots failed to read them. Some members disputed the subsequent ballot count, which was done by hand and lasted until 3am the next day due in part to the numerous rounds of voting that had to be conducted to fill posts in each level in the federation.
Senior federation members say the federation also lacked a mechanism to cope with public controversies and questions from reporters. At last week's meeting, they formed a 12-member media-relations team. U Win Aung said monthly press conferences will be held to update reporters about the federation's
activities.
Media relations president U Hla Maung Shwe said the federation's leadership was eager to "take responsibility for its actions" and insisted that every financial transaction was legal, documented and accounted for. – Additional reporting by Vincent MacIsaac
Source: http://www.news.myanmaronlinecentre.com/2013/08/18/federation-rebuts-allegations-of-financial-misconduct/
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