Questions mount over federation’s finances

Questions mount over federation's finances

By Su Phyo Win   |   Sunday, 11 August 2013

Questions about the last financial report of the country's largest business federation went unanswered at a meeting at the Union of Myanmar Federation of Chambers of Commerce and Industry last week, according to a businessman who raised them.

U Khin Hlaing addresses a press conference following a meeting at the UMFCCI last week. Photo: Lim Ko Taik

U Khin Hlaing, chairman of Zawtika International, said the nine members of the federation's central executive committee he met with for more than three hours were unable to answer his questions about the report, including questions about funding to build an office in the capital.

U Tin Maung Sint, a member of the central executive of the Myanmar Rice Federation and a leader of those who say they want to reform the federation, said the financial report approved at the federation's annual general meeting on July 13 could spark a leadership shakeup."They are sitting on a time bomb and they don't know when it will explode," he said, referring to the federation's leadership, which he accuses of using it as a "family business".

This includes the federation's president U Win Aung who is on the US government's list of people American companies and individuals are banned from doing business with. U Win Aung, who is on the blacklist for alleged ties to the former military government, declined repeated requests for comment.The meeting between U Khin Hlaing and the central executive committee members was videotaped and an audio tape was also made.

The subsequenttwo-hour press conference was also taped by staff of U Khin Hlaing's company.Copies of an audio tape are circulating among members of the federation, sources say. U Khin Hlaing, however, said he has not shared his audio or video tapes in which he asks central executive committee members about funds allocated to build the federation's office in Nay Pyi Taw.Although the controversial financial report lacks detail, it does provide a figure for the amount of money allocated to build the office in the capital: more than K1.8 billion.

Members of the reformist group say this expenditure as well as others related to property transactions in Yangon are dubious, and they are gathering more information about them, information they say could result in a legal case against leaders of the federation. Last Tuesday's lengthy meeting between U Khin Hlaing and federation members was prompted by a July 17 letter from the Commerce Ministry instructing U Win Aung and members of the central executive committee to answer U Khin Hlaing's questions about the financial report.

A second letter from the ministry, dated July 28, instructs them to answer questions from the reformist group. U Myint Soe, a member of the federation's central executive committee, said another meeting will be held with U Khin Hlaing to discuss his  concerns.

"We will gather opinions and try to cooperate with U Khin Hlaing not later than August 20," he said following last Tuesday's meeting.U Aung Zaw Oo, a member of the federation's executive committee, downplayed the dispute, saying the only federation members protesting against it were those who had failed to win positions in its first democratic election. "The only complaints are from the losers," U Aung Zaw Oo said.U Tin Maung Sint, who did not stand for election, said that the dispute began over an election he and others believed was rigged but has expanded into one that that will decide how business is conducted in Myanmar.

Additional reporting by Vincent MacIsaac

Source: http://www.news.myanmaronlinecentre.com/2013/08/14/questions-mount-over-federations-finances/