Tensions Rise over Junta Crony’s Car Imports

By LWIN KO, The Irrawaddy News Magazine.

RANGOON — Tensions between Burmese junta crony Tay Za and the Union of Myanmar Economic Holdings, Ltd. (UMEHL), a military-owned conglomerate, are rising over the recent import of 1,000 cars, according to business sources in Rangoon.

A source from UMEHL said that the company owns only 100 of the 1,000 Toyota Corolla Mark II-model cars that were imported into the country in September. The other 900, he said, belong to Tay Za.

Tay Za is regarded as a major player in the Burmese economy. His close ties to Burma’s leading generals have earned him and his companies a place on the US State Department’s sanctions blacklist.

His privileged position is highlighted by the fact that the regime normally allows only a few thousand cars to be imported each year. According to an employee of Tay Za’s Htoo Trading Company, most of the 900 vehicles the company imported last month will be used as taxis, although some may be sold.

There have been a number of reports in recent months of tensions between Tay Za and UMEHL, which is involved in a wide range of businesses, including the import of everything from staple foods to automobiles and electronic equipment.

In August, Burma’s Food and Drug Administration banned several brands of cooking oil imported by Tay Za, apparently after coming under pressure from the UMEHL, which routinely uses its status as a military-controlled enterprise to maintain an advantage over privately owned companies.

According to businessmen in Rangoon, the only two people who can issue import licenses for cars are Snr-Gen Than Shwe and Vice Snr-Gen Maung Aye—the two highest-ranking members of the ruling junta.

Import restrictions have skewed the prices of cars—new or used—to levels that would be considered absurd in neighboring countries. A used Toyota Land Cruiser in good condition, for instance, typically costs around US $100,000.

However, the richest Burmese in Rangoon have been seen driving Hummers and Italian sports cars. Tay Za is known to have a fleet of luxury automobiles, including a Lamborghini and a Rolls Royce, but seldom uses them because of the poor condition of roads in the former capital.