Myanmar junta’s capital reconstruction funded by Wa army, Mongla armed group as well as cronies

Investigations have revealed that the United Wa State Army and the Mongla-based National Democratic Alliance Army agreed to help cover the costs of rebuilding civil service housing in Myanmar’s capital after the devastating earthquake that struck the country in March. Senior junta officials, led by junta chief Senior General Min Aung Hlaing, received money from these groups—as well as from the usual network of “crony” businessmen connected to the military—on Thursday in Naypyitaw, the military regime’s administrative capital. According to an announcement by the military council, the amount of funds received for reconstruction totalled 131.5 billion kyat (US $29.8 million) plus $2.3 million in American currency. One of the projects to be covered by these funds is the planned construction of 51 four-storey buildings with four units per floor, with each estimated to cost two billion kyat, according to the junta announcement. The public statement did not give the names of donors or other identifying information about the sources of the funds. Funds from Wa, Mongla armed groups A document obtained by Myanmar Now indicated that the UWSA—one of Myanmar’s largest and best-equipped ethnic armed groups—and the Mongla-based NDAA had also agreed to build staff housing to aid the restoration of the military regime’s administrative apparatus. Each organisation would cover the construction costs for two buildings—each valued at two billion kyat—according to those documents. A photo that appeared in the junta-controlled news outlet Myanmar Alin on Friday also showed a man in traditional Wa dress presenting 3.308 billion kyat (US $750,000) to Min Aung Hlaing. The outlet did not give the man’s name, title, or other identifying information. Although the UWSA and NDAA are ostensibly allies of the tripartite, anti-junta Brotherhood Alliance—which includes the organisations Arakan Army (AA), Ta’ang National Liberation Army, and Myanmar National Democratic Alliance Army or Kokang army as members—they declared neutrality during the alliance’s Operation 1027 offensive against the military in 2023 and 2024. San Pae, a deputy leader of the Mongla group, met with Min Aung Hlaing in Kengtung, eastern Shan State on May 25 and promised the NDAA would not harbour or abet any armed resistance or anti-junta groups within its territory. Crony funds Myanmar Now also saw a list of tycoons pledged to support the junta’s reconstruction of staff housing. The list of 13 individuals included Ayeyarwady Bank founder and chair Zaw Zaw; CB Bank chair Khin Maung Aye; MAB Bank and Eden Group chair Chit Khaing’s son Wunna Khine, Shwe Thanlwin company owner Kyaw Win, ATOM Communications and Shwe Byain Phyu Group chair Thein Win Zaw and others. Maung Weik, the owner of the Sae Paing Development firm that has been connected to the Myanmar military generations, had pledged to support the construction of seven buildings. Sae Paing Development had previously received permits for major construction projects in Yangon such as the Parami Residence and the Gonyi Residence & Gonyi Shop House. Mandalay Business Capital City Development Ltd, which obtained the rights to develop the Mandalay Amarapura urban project, is also a subsidiary of Sae Paing Development. The military arrested Maung Weik after seizing power in the coup of 2021, then used his testimony in its corruption case against the deposed elected leader Aung San Suu Kyi. The chairs of Ayeyarwady, CB, and MAB banks are each pledged to donate funds for five buildings, while the chairs of the Shwe Thanlwin group and the A Bank would each cover three. Shwe Byain Phyu Group chair Thein Win Zaw, known for acquiring the Norwegian-backed telecommunications company Telenor Myanmar after it exited the country following the military’s takeover, will donate funds to cover two buildings, the same amount that the UWSA and NDAA each agreed to give. Those pledged to give enough funds for one building each include Zaykabar Company chair Khin Shwe; top officials Aung Shwe and Win Swe of the BOC petroleum company; the head of PT Power Khin Min Aung, also known as Thar Gyi; Maung Sein, the owner of the Six Winner Brother sales and cooking oil company; Myo Lwin of the TMS Auto & KLNA Company; and Myint Sein of the KGL Family Company. The list obtained by Myanmar Now is known to be incomplete, and the amounts pledged by other well-known, influential tycoons in Myanmar are unknown. A business analyst in Myanmar, who spoke on condition of anonymity, argued that these business magnates are not supporting the people’s interests in pledging these funds, but instead enabling easy access to lucrative permits and licenses by the military regime and its network of tycoons. “They will import fuel. They will import other consumer goods. The cronies are seeking out those permits,” he said. “During the previous construction of Naypyitaw, they did the same thing. In reality, there are revenues that should go to the country. There should be taxes. Instead of these revenues going to the country, they go to the cronies.” “For example, take car import permits,” he continued. “When permits are issued, the government should collect taxes from the people granted those permits. But instead of these tax revenues going to the state, they ultimately end up in the cronies’ pockets.” According to official figures released by the military regime, the 7.7-magnitude quake that struck Myanmar on March 28 killed more than 3,700 people and destroyed more than 67,000 homes, more than 6,400 schools, and around 350 hospitals and clinics, as well as the office facilities run by the military council’s ministries. A World Bank report released on May 7 estimated the cost of direct damage from the earthquake to be nearly US $11 billion, equivalent to 14 percent of Myanmar’s 2024-25 gross domestic product. Due to the impossibility of covering the cost of repairs and reconstruction out of the budget, the junta has sought donations for earthquake relief, announcing in Myanmar Alin that it had collected more than 116 billion kyat (US $26 million) from business magnates by early April. The junta announced receiving more than 16 billion kyat (US $3.6 million) in the same newspaper when it collected funds for the Mara Wizaya Statue—a project overseen by Min Aung Hlaing to erect a giant figure of the Buddha in Naypyitaw—in June 2023.

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