NUG supporters' raffle for "The Key" Hotel raises MLM allegations and defrauding
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Hsu/ Iris (NP News) - June 13
Pencilo (Eaint Poe Ou), one of the main supporters of the exiled National Unity Government (NUG), is spearheading a raffle sales event for a hotel in Kalaw named "The Key." This initiative has drawn criticism from knowledgeable sources, who allege that it is both illegal and a form of Multi-Level Marketing (MLM) scheme designed to defraud revolution supporters.
The lobbyist Pencilo began promoting a raffle event on Facebook and Telegram on May 21, claiming a hotel in Kalaw was being donated for the revolution. The following day, she continued to post messages highlighting the benefits of selling the hotel, and by May 27, she was actively marketing it. Pencilo described the hotel owners as a wealthy family with successful hotel and travel businesses and extensive land holdings.
Pencilo claimed that the military seized the hotel and its assets due to the owners' involvement in the revolution and that the proceeds from selling the hotel would be donated to the revolutionary cause. The hotel owner mentioned they were school friends and that the loan for the hotel was taken from U Khine Maung Aye, the CB Bank chairman. The inability to repay the loan and interest led to legal issues, which were further complicated by the political situation, resulting in the hotel's closure. Pencilo then independently announced a tender for the hotel.
An associate familiar with the Essence Motel family in Kalaw informed The Statesman News Journal that the so-called hotel is a modest motel rather than a high-end hotel. The family took out a loan from the CB Bank’s owner over a decade ago, which remained unpaid and resulted in a lawsuit. The associate emphasized that these legal issues are unrelated to the political situation in 2021.
According to a court notice dated May 15, 2023, published in a state-owned newspaper, Daw Aye Aye Htun and U Khine Zaw of 196 Pan War Street, Ward 7, Kalaw, were required to settle a debt exceeding 230 million kyats (2,349,017,145 kyats) by July 25, 2023. This address corresponds to the location of the motel in question.
The hotel owner's son acknowledged the lawsuit on his Facebook, and Pencilo did not deny the motel's legal troubles. NLD sources in Mae Sot reported that the family fled to the US in November 2023, assisted by singer Azarni and cartoonist Aw Pyi Kyel.
Legal experts have noted that selling or transferring assets under litigation, including through a raffle, is illegal. An NLD source in Mae Sot emphasized that collaborating with individuals like Zin Zae Lwin, previously criticized for MLM schemes and disrespect towards Buddhist monks, exacerbates the problematic nature of this raffle event.
Pencilo’s promotional activities involved selling raffle tickets to Myanmar nationals in 19 countries, each priced at approximately 450,000 kyats (or $100). She assured buyers that the raffle winner would not inherit the hotel's debt. However, the structure of the raffle suggested that the winner might only nominally own the hotel, without gaining any real control or benefits from it.
Furthermore, individuals who were not fortunate enough to win were urged to view their ticket purchase as a contribution to the revolution. Certain supporters of the NUG voiced disapproval of Pencilo's endeavors, denouncing them as an attempt to capitalize on the revolutionary movement for personal financial benefit. Despite the criticism, Pencilo persisted in her vigorous promotion efforts until 5 June, maintaining a steady stream of posts on various social media platforms.