Ex-ministers, mining officials and Eden Group charged for corruption regarding to Tigyit coal mine project
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NP News - April 27
Myanmar’s business tycoon Chit Khine, chairman of the Eden Group – one of Myanmar’s largest conglomerates has been detained by the State Administration Council yesterday (April 26) in connection with the Tigyit coal mine project of which the country lost nearly 16,000 million MMK, General Zaw Min Tun said.
According to the statement released by the Anti-Corruption Commission on April 26 evening, ex-ministers Ohn Win, Win Khine and ex-deputy minister Dr. Tun Naing, ex-Managing Director of the Mining Enterprise-1 (ME-1) Kyaw Hsan, Managing Director of Electric Power Generation Enterprise Than Naing Oo, Eden Group’s chairman Chit Khine and managing director Win Min Khine have been charged under Anti-Corruption Law.
The State lost nearly 16,000 million MMK in connecting with the Tigyit coal mine project, General Zaw Min Tun told the NP News. Detaining the chairman of Eden Group is nothing to do with petrol price or dollar cases as rumoring through the social media.
“U Win Khine, deputy minister Dr. Tun Naing; are the main ones responsible for the coal mine projects. Tigyit power plant is operated by the Eden Group, of which project; the state has to gain 30 percent while the private side gains 70 percent. Earning from selling the minerals shall return to the State, in which, the selling price for one ton of minerals should be changing year after year.
However, they returned to the State based on the price in 2017. Therefore, the State lost a total of 1,900 million MMK from earning from selling minerals between 2018 and 2022. Again, another 14,000 million MMK has been lost by the State from 30 percent share to be received by the State,” General Zaw Min Tun said.
As per the findings examined by the investigation team, the Ministry of Natural Resources and Environmental Conservation decided, as per the 1/2017 meeting resolution of the ministry, one ton of selling charcoal price shall be 12,000 MMK which has to be returned to the State. In fact, the price of selling charcoal or minerals should be increasing and changing year after year (48,100 MMK for one ton in 2018-19 FY). Selling prices of charcoal/minerals in 2021-22 FY should have been 56,500 MMK per one ton. Thus, the State had lost a total of more than 1,900 million MMK for a total of charcoal 2.3 million tons from 2018 to 2021. Again, more than 14,000 million MMK has been lost by the State from 30 percent share to be received by the State. Therefore, the State has lost a total of more than 15,900 million MMK in the related project.
Former union minister of Natural Resources and Environmental Conservation Ohn Win is filed under Section 55 of the Anti-Corruption Law; ex-managing director of the Mining Enterprise-1 (ME-1) Kyaw Hsan who is responsible for monitoring and supervising the project and Eden Group’s chairman Chit Khine are filed under Section 55/63 of the Anti-Corruption Law on April 25 accordingly.
In the charcoal purchasing contract made between the Eden Group and the Ministry of Electric and Energy, the calculation for one-ton price was manipulated as daily productivity was reduced to 1,750 tons instead of 2,000 tons – as it was prescribed as per the President Office’s Directive No. 1/2017. Thus, 5,809.12 MMK cost more for one ton, which in turn, the department cost 8,200 million MMK more for a total of more than 1.4 million tons purchase. Therefore, the State lost a total of 9,400 million MMK including the income tax of 1,200 million MMK that the company has to pay, according to the findings of the investigation team.
Former union minister of Electric and Energy Win Khine and the former deputy minister Dr. Tun Naing were filed under Section 55 of the Anti-Corruption Law; Managing Director of Electric Power Generation Enterprise Than Naing Oo who is responsible for monitoring and supervising the project and Eden Group’s managing director Win Min Khine were filed under Section 55/63 of the Anti-Corruption Law accordingly.
Authorities organized the investigation team on the Tigyit mining project and Tigyit power plant since the Anti-Corruption Committee received the reports complaining that briberies occur in charcoal production and selling for Tigyit coal mine and power plant projects.
Tigyit coal mine is located in Tigyit Village Tract, Pinlaung Township of Pa-O Self-Administered Zone, southern Shan State. Eden Energy has been operating a charcoal project in Tigyit since 2004.