The Myanmar junta arrested prominent crony Khin Shwe and his son Zay Thiha on Monday after they were accused of demolishing historic buildings on rented land owned by Myanmar’s defence ministry, according to a family friend and leaked police records.
At a press conference in Naypyitaw on Thursday, military spokesperson Maj-Gen Zaw Min Tun confirmed the arrest of the two men.
Employees of an antiques museum owned by the 71-year-old tycoon’s family were also taken for questioning by military authorities on Monday, but were later released. It is not known how many employees were taken into junta custody or the line of questioning posed to them.
Leaked police records seen by Myanmar Now show that charges were filed on February 11 against both Khin Shwe and Zay Thiha at the Bahan Township police station by Lt-Col Aung Kyaw Moe of the Yangon Region Military Command and that they were in detention at the time of reporting.
The chair of the construction firm Zaykabar Company Ltd. and his son are accused of violating Section 24 of Myanmar’s 2015 law on the “protection and preservation of ancient monuments,” which is meant to safeguard buildings deemed important to national heritage. A member of the junta police in Yangon confirmed the charges to Myanmar Now.
If convicted, the charge carries a prison term of five to 10 years.
The source close to Khin Shwe’s family said that the arrest stemmed from outstanding rental fees for military-owned land, and the unauthorised demolition of buildings on that property.
The case outlined in the police documents centres on a contract signed by the Zaykabar chair in 2014 for a long-term leasehold on approximately 13 acres of military-owned land on Pale Road in Bahan Township, on which the company had intended to construct hotels and serviced apartments. However, the military shut down the project in 2018 after it was decided that the developer had breached the initial memorandum of understanding with the defence ministry.
The Zaykabar Company had reportedly agreed to a more than US$41m premium for use of the property and $1.2m annually in rental fees, upon being granted approval from relevant departments and ministries.
Each of five installments amounting to 20 percent of the premium—around $8.3m—would be paid by Zaykabar to the military before any business could be launched on the land. The company reportedly paid the first two installments in 2014, or more than $16m, but failed to pay the remaining three. Police records stated that the company was notified of the delinquency by letters sent on eight occasions.
Leaked documents also accuse Zaykabar of collaborating with a foreign company named Human Land Oversea Real Estate Development to demolish four buildings on the property reportedly considered to be important to Myanmar’s historic and cultural heritage, including an old mayor’s residence.
Family members of the detainees have not answered Myanmar Now’s calls.
It is not known why the military only recently decided to press charges in the case.
Khin Shwe was considered to be a military ally and was a parliamentarian representing Yangon’s Constituency 9 for the military-backed Union Solidarity and Development Party from 2010 until 2015, when he did not win reelection.
His daughter is married to Shwe Mann, former Lower House speaker and once the chair of the USDP, as well as the current chair of the Union Betterment Party. He later grew close to State Counsellor Aung San Suu Kyi, who was subsequently ousted in last year’s military coup against her National League for Democracy Government. He has stayed out of the public eye since that time.
