Junta’s cronies buying up national properties
Posted on March 1, 2010
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Burmese businessmen friendly with the country’s ruling military junta have snapped up a large portion of what were once government owned properties in Burma including businesses and factories.
The junta has launched a massive privatisation program and according to a report by the Democratic Voice of Burma (DVB), in recent month’s the junta’s cronies in the business world have managed to buy 70 percent of property in Burma at auction.
The majority of the remaining 30 percent has been sold to foreign companies.
The sale included 115 national properties, including major shipping ports and airports.
However, DVB reports that companies without close contacts in the junta have been excluded from the sale. One businessman in Rangoon complained local companies not close to the government could only bid for small properties, which are unlikely to generate much revenue.
He said, “ [The junta] took the [promising properties] off the bidding list. Those are only opened for the big guys and foreign companies but it is impossible for an ordinary business owner to enter the bid.”
Many of the companies that are being allowed to bid are not only close to the junta, but have sold shares to the generals.
DVB quotes one economist as warning the current government was privatizing industry to show that Burma is heading towards a market economy. In reality, however, this will leave nothing for the country when a next [elected] civilian government comes to power.
The junta has promised to hold elections for a new civilian government before the end of the year. But, critics say the new junta drafted constitution is designed to enshrine military control of the country.
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