shan drug watch 2011 drugloards in parliament-engl

8/3/2019 Shan Drug Watch 2011 Drugloards in Parliament-engl

1/32


2/32


3/32

3

Message to the Reader

The drug problem in Burma is an issue that few people, even academics and politicians,

understand, despite the availability of a host of reading material by experts like AlfredW.McCoy (Politics of Heroin in Southeast Asia), Bertil Lintner (The Politics of the DrugTrade in Burma) and Chao Tzang Yawnghwe (The Shan of Burma).

While quick to interpret new developments in other fields -- whether political, military orcultural -- and to criticize the countrys ruling military junta, observers almost always blamethe armed ethnic rebels as the main culprits when talking about the drug trade.

A case in point is the upsurge in drug production and rising number of seizures by lawenforcement agencies in Thailand, Laos and China during the past few years. Predictably,

a number of experts have concluded that the ceasefire groups, especially the Wa, whichhave spurned Naypyitaw's call to forget their self rule ambitions and become Burma Army-run Border Guard Forces (BGFs), are furiously churning out more drugs to sell and buyweapons to fight.

However, such analysis ignores a number of glaring details:

The Burma Armys Self Reliance policy imposed on its border-based units, requiringthem to raise funds by every means available, legal or not;

Burmese authorities blocking all income generating activities, especially drug pro-duction and trafficking, of the ceasefire groups, particularly the Wa;

Burmese military commanders giving the green light to Peoples Militia Forces (PMFs)- the paramilitary forces built up among the local populace by the Army - to establishtheir own drug production plants and trafficking networks and thereby wrest the marketaway from the ceasefire groups;

The resulting shift by investors, both domestic and foreign, away from the Wa andtheir allies to areas under the control of the Burma Army and the Peoples Militia

Forces (PMFs) where their drug activities are more secure and their profits moreassured;

A massive increase in poppy cultivation, and heroin and methamphetamine produc-tion, in the Burma Army-Peoples Militia controlled areas, far more than in areasunder rebel-ceasefire control.

It is precisely to throw some light on the confused analysis surrounding the drug problem,that we have been publishing this newsletter. In this issue, we examine the situation inShan State post-election, in particular the rise of Burma Army-backed drug-lords into the

new parliament.


4/32


5/32

5

The Association of SoutheastAsian Nations (ASEAN) is

targeting 2015 as the drugfree year for the grouping.Naturally, its most importantmember (in the drug respect)Burma has to assure itsneighbors there is no need toworry it will fulfill its part of theresponsibility. Its target yeartherefore is one year aheadof Asean's: 2014.

In 1999, it designated 51 outof 300 townships in the coun-try for its 15-year drug elimi-nation master plan:

43 in Shan State4 in Kachin State2 in Kayah (Karenni) State2 in Chin State

(Actually, a lot of the formertownships have been re-ar-ranged into new ones, sothere are only 39 targetedtownships left in Shan State:Mongkoe, Panghsai andMuse have become onetownship (Muse), whilePangwai, Manphang, Na-pharn, Mongmai, Pangyangand Wiangkao have becomefour townships: Pangwai,Napharn, Mongmai andPanghsang.)

Until 2010 if one looked at theprogress chart of the 15 yearplan, one would find most ofthe opium free townships

under the control of theceasefire groups:

Countdown to 2014

However, Kunggyan, one of the townships under the newKokang leadership that agreed to become a Border GuardForce (BGF) under the Burma Army in 2009, has since re-turned to poppy cultivation.

The only other targeted townships in Shan State under BurmaArmy control that can boast of being opium free appear tobe Panghsai and Mongyawng.

Township Ceasefire Group

Laogai Myanmar National Democratic AllianceArmy (MNDAA) or Kokang

Kunggyan Myanmar National Democratic AllianceArmy (MNDAA) or Kokang

Mongla National Democratic Alliance Army(NDAA) or Mongla

Pangwai United Wa State Army

Manphang United Wa State Army

Napharn United Wa State Army

Mongmai United Wa State ArmyPangyang United Wa State Army

Wiangkao United Wa State Army

MNDAA soldiers


6/32

6

In the meantime, many town-ships not targeted in the 15-year plan are increasinglygrowing poppies, as can beseen in the charts on the fol-

Significantly, many of the Not Free townships are also un-der BGF control:

State township BGF#

Kachin Gangwin-Chihpwe 1001Lupi-Chihpwe-Pangwa 1002Sinkyaing-Kambaiti 1003

Kayah Loikaw 1005

Dimawso 1005

Shan Kunggyan 1006Mongton 1007Markmang (Metman) 1010

lowing pages.

The fact that these newlyformed Border Guard Forcesare directly under Burma

Army control places somevery large question marksagainst Burma's supposeddrug eradication plans.

Asked recently if he believedthe much touted Asean Com-munity would become a re-ality in 2015, Asean SecretaryGeneral Surin Pitsuwan said:4 years is just a target-date.It is not an end-date.

New president Thein Sein

may need to take a leaf outof Surins book when talkingabout drug-free target datesin Burma.

New drug kings in Burma

Peoples Militia Forces


7/32

7

Results of SDW opium survey:

2010-2011 season

Phase One (1999-2004): 22 townships targeted by SPDC for opium elimination

SHANTOWNSHIP FREE NOT FREE REMARK

STATE

North (15) Mongkoe NFKunggyan NF Border Guard Force 1006

(formerly MNDAA Kokangterritory)

Laokai F Border Guard Force 1006

(formerly MNDAA Kokangterritory)

Kunlong NFHopang NFMongyai NFTangyan NFLashio NFNamtu NFMantong NFHsenwi NFKutkhai NFNamkham NFMuse NFPanghsai F Burma Army

East (1) Mongla F NDAA-ESS terrirory

South (6) Kunhing NFMongpan NFLangkher NFHsihseng NF

Faikhun (Pekhon) NFMong Keung NF

Total 22 3 19

Note:

MNDAA = Myanmar National Democratic Alliance Army, a former ceasefire group

NDAA-ESS = National Democratic Alliance Army - Eastern Shan State, a ceasefire group


8/32

8

Phase Two (2004-2009): 20 townships targeted by SPDC for opium elimination

STATE TOWNSHIP FREE NOT FREE REMARK

Kachin Karmaing NF

Waingmaw NFMoemauk FMoehnyin NF

Shan North Pangwai F UWSA territoryManphang F UWSA territoryNapharn F UWSA territoryMongmai F UWSA territoryPangyang F UWSA territoryWiangkao F UWSA territory

Shan East Mongyang NF

Kengtung NFMongyawng NFMonghsat NFMongton NFMongpiang NFMongkhark NF

Shan South Hopong NFMongnai NFPanglawng NF

Total 20 7 13Note: UWSA = United Wa State Army, a ceasefire group

STATE TOWNSHIP FREE NOT FREE REMARK

Shan State Kehsi NFSouth Monghsu NF

Namzang NFYawnghwe NF

Laikha NF

Kayah Loikaw NF(Karenni) Dimawso NF

Chin Tonzang NFFalam NF

Total 9 - 9

Grand Total 51 10 41

Phase Three (2009-2014): 9 townships targeted by SPDC for opium elimination

Reports from both the Shan Herald Agency for News and other agencies also indicate thatat least 26 townships not targeted in the 15-year plan are also growing poppies:


9/32

9

Northern Shan State - Mongmit, Namhsan, Kyaukme, Nawngkhio and Hsipaw

Southern Shan State - Loilem,Taunggyi, Kalaw, Lawksawk and Mawkmai

Eastern Shan State - Markmang (Metman), Tachilek and Mongphyak

Kachin State - Hsaw Law, Chihpwe, Sumprabum, Tanai, Putao,Machangbaw and Hpakant

Kayah State - Phruso, Shadaw

Chin State - Tiddim and Pletwa

Sagaing - Kalemyo and Tamu

Mandalay - Areas adjoining Shan State

Magwe - Areas adjoining Arakan State

New approach proposed

Global Commission on Drug Policy, made up of 19 members, including former UNchief Kofi Annan and former secretary of state George Shultz, says the war on drugshas failed and urges new approach;

l To replace crimilization and punishment of drug users who do not hurt otherpeople with health and treatment services

l To consider legalizing marijuana and perhaps other illicit drugs to underminethe power of organized crime and drug traffickers

Victories are negated by emergence of other sources and traffickers, the report states. (Reuters)

Opium field in Kunhing Township (February 2011)


10/32

10

The more battalions, the more poppy fields.

Lway Aye Nang, Palaung Womens Organization (PWO),

speaking at Foreign Correspondents Club of Thailand, 29 September 2010


11/32

11


12/32

12

2010-11: The best output in 3 yearsAccording to the UN Officeon Drugs and Crime(UNODC) both opium culti-vation and output have beensteadily climbing over the lasttwo years:

2009 330 tonnes2010 580 tonnes

While the increase in cultiva-tion concurs with SDW data,

the increase in output doesnot. Farmers and traders ex-pressed surprised about theUNODC analysis. Perhapsthese people were just work-ing out the output from theacreage and did not take theweather into account, onebusinessman in Shan StateSouth commented.

According to those on theground, weather conditionsdamaged output in both sea-sons:

2008-09During the first crop (June-October) there were unusu-ally heavy downpours that

washed away a large num-ber of fields. During the sec-ond crop (October-March),there was frost which re-duced the volume of theopium sap.

2009-2010During the first crop, therewere again heavy rains. And

during the second crop, the

weather was uncommonlydry. There wasnt even theusual morning dew (to irri-gate the fields), said a farmerin the south. The result: theoutput was even less thanthe previous year.

Much of this has beenblamed on El Nino, a changein the weather which hap-

pens when the usually coolocean current in the Pacificis replaced by a warm cur-rent.

The 2010-11 season how-ever saw El Nino being re-placed by La Nina, a time ofcolder weather that comesafter El Nino. The effect on

the output was felt differentlyin each part of Shan State:

q In the north, there werelittle or no devastation by

either heavy rains or frost. Asa result, the output couldnthave been better, accordingto several sources.

q In the south, there wereplaces like Monghsu,

where the first crop had abetter yield than the second.

It was so cold in December,there was little or no sap inthe pods, said a trader com-ing to the border. But in mostplaces, especially in Loilem,Laikha, Hsihseng, Hopongand Faikhun (Pekhon), theyield from both crops wassatisfactory.

qIn the east, farmers inplaces like Mong Kang in

Traditional incision method to allow opium sap to flow out


13/32

13

Mongton township, acrossfrom Thailands Chiangmai,said, The first crop wasntgood, but the second crop

was better. But many agreedit was a good year on thewhole.

Even Laota Saenli, 74, aknown druglord who spent afew years in Thai prison ondrug charges, couldn't helpremarking to the Bangkok

In a few mountainous regionsin Shan State, like nearHomong, opposite Thai-lands Mae Hong Son, theword poppy season is amisnomer, because farmers

grow 3 crops a year: one dur-ing the rainy season; theother toward the end of the

Post in January 2011 that theoutput was better than lastyear when there was toomuch rain. The climate this

year has been really obliging.

The overall result was thatthis years harvest was twiceas good as last years.

One new innovation un-heard of before is the col-lection of opium sap not

rainy season, and the lastduring the time when farm-ers can rely on mountain dewfor irrigation.

In the south and east, more

farmers prefer 2 crops: thefirst during the rainy season,and the second toward the

only from the pods, butalso from the stem. Thispractice has started in cen-tral Shan State, where the

north and south meet. It isn'tquite as juicy as from thepod, but the farmers arehappy, because they are get-ting more, reported one ofour researchers.

One to three crops per year

end of the rainy season.

In the north, most of thepoppy farmers prefer onlyone crop, that is, the one to-ward the end of the rainy sea-

son, commonly regarded asthe main season.

The rich want the drugs and

the poor traffic them.

Laota Saenlee,former Kuomintang officer,Bangkok Post, 30 January 2011


14/32

14

Shan State North almost be-came poppy-free in 2002,when the ruling military juntainitiated a rapprochementpolicy with the United Statesand a vigorous anti-narcoticscampaign was launched.The rapprochement did notwork out, but the Kokang (in2003) and the Wa (in 2005),apparently due to Chinese

pressure, launched their owndrug eradication campaigns,thereby bringing opium culti-vation in the north almost toa stop. This was except for afew selective areas likeNamkham, Mantong, Kutkhaiand Tangyan where theregimes favorite militiagroups remained supreme:

Panhsay, the Kachin De-fense Army, Manpang andMongha.

The result was a balloon ef-fect in the south and east ofShan State. By 2007, accord-ing to Khun Hseng, Khun Sasuncle who used to handle hisbusiness dealings, produc-

tion levels in Shan State wereback to what they had beenprior to the Kokang and Wabans.

Today, as poppies in thesouth and east continue toflourish, they have also re-turned to the north with a ven-geance, especially in Burma

Army-run Peoples Militia ar-

Poppy fields return to the northeas and most particularly inareas that have elected mili-tia leaders known for theirheavy involvement in thedrug business.

Vote for us and youll befree to grow poppies, wasone of the campaign prom-ises given by candidates ofthe military proxy Union Soli-

darity and DevelopmentParty (USDP), popularlyknown as the Lion party forits logo.

Kokang Self-AdministeredZone. Evidently, the output isstill small and not enough forthe refineries there, said aresearcher. Because theprice in Kunggyan is K1.1-1.2million (USD 1,800-1,390)per viss of opium - muchhigher than other townshipsin the north. (Note: one viss= approx 1.63 kg)

The buyer is said to be LuoGuangzhong, assistant to LiuGuoxi, now elected inBurmas new government asa National Assembly(Amyotha-Hluttaw) memberfor Kokang.

Another indicator that more

poppies are being grown andthe output high is the price ofopium in northern ShanState. In the past, followingthe 2002 crackdown, priceshad gone up to 1 million kyat(USD 1,160) and over perviss, but now it is onlyK600,000 (USD 690), a re-searcher said by the end of

February 2011.

On 27 March, 2010, militia leaders who were attending the63rd anniversary of Burmas Armed Forces Day ceremonyin Tachilek were reportedly told by the Tachilek area com-mander Col Khin Maung Soe on the sidelines: This is yourgreat opportunity. You would do well not to let it slip by. Myonly advice is to sell as much drugs as you can across theborder (i.e. in Thailand) but not on this side of the border.

One of the townships thathad long been poppy free, butis now growing poppiesagain, is Kunggyan, one of

the two townships in the now

The USDP logo


15/32

15

In Mantong, now a townshipin the Palaung Self-Adminis-trative Zone in northern ShanState, since the military-drawn constitution becameoperative in March 2011, theNamtu-based Burma ArmyInfantry Battalion 130 wasbusy collecting opium taxesin January 2011. Farmerslike us who could pay went

free, said one. But thosewho could not were arrested.

Another Burma Army unit,Namtu-based Light InfantryBattalion 324, had demanded3 million Kyat (USD 3,480).It got K1.5 million (USD1,740) and left happily, butwarned it would return after

harvest in March, said a lo-cal to SDW.

During January, Col KhaingZaw, Commander of theTangyan area, assigned oneof his units to destroy poppyfields in Nammuhsay tract.While the unit was on its way,Lao Terng, liaison officer to

Manpang Peoples Militia, ledby Bo Mon, arrived with K3million (USD 3,480). The re-sult was that the poppy de-struction unit was re-directedto Nawng Pha and WiangMai village tracts, where itsimply slashed down a fewacres of harvested poppy

How to deal in drugs without fearfields, after receiving a cer-tain amount of tax from thevillagers.

Down south, in traditionalpoppy-growing areas on thePangpi-Kungmao mountainrange in Mongpan-Langkherhtownships, the harvest wasmuch better, yielding over1,000 viss (1.6 tons) to last

year's 600 viss (960 kg).Burma Army Infantry Battal-ion 294 was given K3.4 mil-lion (US$4,000). Not onefield was destroyed here, avillage headman boasted.

These are random examplesof how the poppy farmersand the Army, which has been

forced to pursue a self-reli-ance policy, are undergoinga mutually dependent exist-ence.

If this is what is happening onthe ground, it is only a littledifferent upstairs:

On 23 March 2011, the

Irrawaddy reported sales ofgovernment properties inRangoon with no questionsasked about where themoney had come from. Ac-cording to the report, severalbusinesspeople and officialsdescribed the transactionsas money laundering.

An esteemed lawyer in north-ern Shan State told SDW inJanuary 2011, that he had nothad a drug case to handle fora few years now, as the au-thorities were handling thesecases in their own way.

On 8 January 2011, two drugpeddlers, one a woman,were detained by Nam-

khams Manhio sub-townshippolice at Nawng Ma casino.They were released after theypaid Y26,800 ($3,350). In-deed, one drug addict toldSDW, We (addicts) arenot afraid of the police,only of the wind (that mightblow away the fire used tolight our smoke).

Further back in 2008, thetownspeople of Kehsi, ShanState south, lodged a com-plaint to the township policechief about shops sellingdrugs to their children. Hehanded out K 30,000 to thechief complainant, saying:Use this to buy yaba and

action will be taken againstthe seller at once. By no co-incidence, the townspeoplewere unable to find any shopselling yaba that day and themoney had to be returned tothe police chief. The next day,everything returned to busi-ness as usual.


16/32

16

Naw Kham: Who is he serving?

Once an obscure supply of-ficer in the Mong Tai Army(MTA) of the late Khun Sa, heshot to notoriety on 25 Feb-ruary 2008, when gunmenbelieved to be under his con-

trol shot up a Chinese patrolboat on the Mekong, wound-ing three Chinese officers.

Since then ships entering

and departing from theGolden Triangle, whereBurma, Laos and Thailandmeet, have never felt safe.

q On 4 April 2011, 13 Chi-nese working at the

Kings Romans casino atTonpheung in Laos, oppositeThailand's Chiang Saen,

were kidnapped in a daylightraid. They were released af-ter the casino owner ZhaoWei reportedly paid 25 millionbaht (US$ 833,000).

q A month later, on 17 May,another Chinese cargo

ship Hong Xing was fired onby gunmen in two speed-

boats, presumably for notstopping and paying protec-tion money, prompting Chinato lodge a complaint with theJoint Committee on Coordi-nation of Commercial Navi-gation (JCCCN).

Protection fees must be paidto Naw Kham on all contra-

band, including illicit drugs,going to Laos from Burmaacross the Golden Triangle,or else goods risk confisca-tion. Even paying protectionmoney is sometimes not afoolproof guarantee thatones goods will not beseized, as can be testified byseveral drug traders.

Naw Kham is wanted by Chi-

nese, Thai and Laotian au-thorities. He is also wantedby the Shan State Army(SSA) and the United WaState Army (UWSA). But no-body has been able to catchhim so far.

Not even the Burma Army,which had no trouble chas-

ing out the SSA and theUWSA from the area, hasmanaged to arrest NawKham. It has reportedlylaunched at least three cam-paigns against the fugitive,whose strength is nothingcompared to the Shan andWa armies, all coming tonaught.

Many businesspeople claimNaw Kham has an insidetrack with the Kengtung-based Triangle Region Com-mand, paying up to 8 millionbaht (USD 266,000) a month.Naw Kham himself is said tobe close to General Ko Ko,current Home Minister and

formerly a commander of theTachilek area, where he knewNaw Kham as a Burma Army-run local militia leader.

A recent Thai news report byASTV Manager Online on 12June 2011 also speculatedthat Naw Kham must havelinks to state personnel inZhao Wei

Naw Kham


17/32

17

The Golden Triangle today :Where Naw Kham reigns


18/32

18

Burma. They wondered whystate personnel just watchand do nothing whileGolden Triangle Godfather

Naw Kham and his gang or-der cargo ships on theMekong to lift tarpaulin cov-ers of cargo so they can seewhat they are carrying. Non-compliance is met with swiftreprisals: either shooting orboarding the ship.

Others also point out that

most of the village heads onboth sides of the Mekong areon his payroll. His targetingof the Kings Romans casinoand its boats plying the wa-ters of the Mekong has alsowon support among local Laopeople, who were forcibly re-located from their lands to

make way for the casino andits surrounding businesscomplex.

Naw Kham himself has beenoften quoted saying that hekeeps only 30% of his earn-ings for himself. The restgoes to pay his men, localnetworks, and the BurmaArmy.

One thing is clear: Naypyitawis out to close Hsop Lwe, the

outlet of the Wa and their allyMongla to the Mekong. It isalso pursuing a relentlesspolicy of cutting down thetwo's revenues. The two areknown to be business part-ners with Kings Romans ca-sino owner Zhao Wei, whohas been operating a casino

in Mongla for more than 10years. Naw Khams squeez-ing of Zhao Wei thus hurtsboth the Wa and Mongla.

Evidence that control of theGolden Triangle is high onNaypyidaw's agenda is that junta chief Than Shwe flewto the Laotian capitalVientiane in October 2010,ostensibly to conclude a pactto jointly cooperate againsthuman and drug trafficking

on the Mekong.

While available facts may notbe conclusive, they point toan obvious question: Is NawKham working for Naypyi-taw?

Killing on the Mekong

Weeks after 11 crewmen and 2 women were found shot and knifed to death on twocargo ships on 5 October 2011 at the Golden Triangle near Thailands Chiang Saen,both officials and locals have been wondering who did it and why. One of the myster-ies is that though the killers had taken their time to butcher their victims, first blindfold-ing and handcuffing them, they didnt have time to carry off the 920,000 speed pillswhich were left behind on the boats.

Obviously, almost all fingers have pointed to Naw Kham, who for four years has beenthe areas undisputed godfather, collecting protection money from both legal and ille-gal trade in that part of the Mekong.

Conflicting reports, meanwhile, have also implicated Thai and Burmese authorities.Maybe Naw Kham wasnt the one who was responsible for the killings, said aninformed Thai businessman in Chiang Saen. But he's saying nothing, except that itwasnt him who did it. Because if hes captured, he may not be able to escape fromother charges, which are equally serious if not more so.


19/32

19

Druglords in ParliamentDuring the November elections, the following candidates, all from the proxy Union Solidarityand Development Party (USDP), popularly known as the lion party, were elected to thethree assemblies:

Liu Guoxi

Approximate age : 75

Assembly : National Assembly

Party : Union Solidarity and Development Party

Constituency : 11(Kokang)

According to Bertil Lintner, expert on Burma and Burmesedrug issues, Liu had been the key operator in the Kokangdrug enterprise. His refinery is said to be in Kunggyan town-ship.

One redeeming fact about Liu is that he has been lookingafter Olive Yang aka Yang Jinxui, 84, the first druglord onrather the druglady of Burma, after she was abandoned by

her "wife", former movie star Wa Wa Win Shwe.

Liu Guoxi

Olive Yang aka Yang Jinxui

National Assembly, 1Peoples Assembly, 2State Assembly, 4

As put succintly by a busi-nessman in northern ShanState during the election:The Army gets (drug) taxes

(and) The Lion gets votes.


20/32

20

Ho Xiaochang

Ho Xiaochang

Other name(s) : U Haw, Haw Laosang

Race/religion : Kokang/Buddhist

Age : 67

Place of Birth : Yinsing village, Laogai township

Present Occupation : Agriculture / Animalhusbandry

Parents : Ho Xiaotaw, Chaw May

Marital status : Married to Xiao Zay, with 4 sons

Permanent address : Hokho (Tada Oo) village, Kunlong


Constituency : Peoples Assembly, Kunlong township

Other details : Had served as Deputy Commander ofKunlong Special Combat Police Force, now retired

In our 2003 report Show Business, we had reported howHaw Laosang had liaised directly with General Than Shweto free one of his subordinates jailed for killing a Burmeseofficer in Tachilek (see extract below).

A small Kokang drug boss - A lesson in impunity

Mi Hsiao-ang, not yet 40, is an officer in the Special Combat Police Force of Kunlong led byHaw Laosang (formerly) stationed at Hawngleuk, Tachilek Township.

Early in 2002, he shot dead a Burmese lieutenant from the Border Disciplinary Company inTachilek for attempting to search his car. A few days later he surrendered himself and wentto jail for 4 months plus 3 days. ()

His freedom was gained after Haw Laosang together with Peng Jiasheng obtained audi-ences with SPDC Chairman Senior General Than Shwe and SPDC Secretary-1 and Headof Military Intelligence General Khin Nyunt.

He is now back in Kunlong and pursuing his businesses as usual, according to an insidesource. (Show Business, 2003, page 52)


21/32

21

T. Hkun Myat

T. Hkun Myat

Other name : Jeffrey

Race/Religion : Kachin/Christian

Age : 60

Place of Birth :Quarter#4, KutkhaiEducation : BA (Law) L.L.B

Occupation : Director, Office of Attorney General (Retired)

Marital status : Married, 3 children


Constituency : Peoples Assembly, Kutkhai township

Said to be a very approachable and likeable person. Hardto believe hes involved in drugs, if we didnt know his subor-dinates, reported a researcher. One of them is Aesop, aShan Muslim, who operates a refinery in the nearby town-ship of Namtu. The group is also involved in protection andtransportation of drug shipments passing through the area.

From 1990-2010, he was director at the Attorney GeneralsOffice and also served as commander of the Kutkhai localcombat police force. He has received several medals andawards from the military government. He is currently chair-man of the House Bill Committee.

Kyaw Myint

Name : Kyaw Myint aka Win Maung, Li Yongqiang

Age : 51

Ethnicity : Lisu (Chinese)Place of Birth : Panghsay village, Namkham township

Education : Grade 10

Occupation : Trader (company owner) leader, Pang-hsayPeoples Militia

Marital Status : Married with 4 children

Party : Union Solidarity Development Party

Constituency : Shan State Assembly Constituency #2,Namkham township

Kyaw Myint


22/32

22

Other particulars -

1979 : Panhsay Counter In-surgency militia

1981-88 : Chairman,Panghsay tract

1991-today : 1. Chairman,Kholong Lisu Cultural Soci-ety 2. Leader, PanhsayPeoples Militia

1991 : Medal for heroism

1993 : Attended National Con-vention Chairman, Anti-Drugs Committee

Panhsay Kyaw Myint is closeto local SPDC commandersincluding Lt-Gen MyintHlaing, currently AgricultureMinister in the new govern-

ment. He finances poppy cul-tivators in his area and owns

a refinery. His youngerbrother Kyaw Htwe aka LiYongpin, also doubles as hischief lieutenant. KyawMyints business fronts in-clude:

A cigarette company un-der a Chinese franchiseat Naloi, west of Nam-kham

A licensed pork and beefbusiness supplying Museand Namkham town-ships

A gas station in MusesZawnzaw Quarter

Yongyang Casino on theMao-Shweli River near

Muse

In addition, His 300-strongPanhsay militia force andsubsidiary units control mostof the river crossings on the

Mao.

In March 2006, when an in-formant reportedly told a lo-cal SPDC drug enforcementofficial, Arrest Kyaw Myintand Kyaw Htwe, and most ifnot all drug activities in thenorth will be under control,the official was quoted as re-

plying, You think we dontknow? The fact is that na-tional security says we needthem and their services.

Local sources say that hisservices were indeed invalu-able at the start of 2006 dur-ing the Burma Armys pursuitand final capture on New

Years Day of Lt-Col KhunKyaw, an SSA commanderwho was trying to establisha base on the Sino-Burmaborder.

On 22 April 2007, his menwere caught with 60 viss (96kg) of opium at Namphakaand were disarmed and de-

tained, but less than twoweeks later all were releasedfollowing a meeting with MajGen Aung Than Tut, thenCommander of the Lashio-based Northeastern RegionCommand.

On the election day, 7 No-vember 2010, his rival can-

didate Sai Zaw La was enjoy-ing a comfortable lead, morethan 8,000 votes to his 3,600,despite votes from freshlynaturalized people fromacross the border, doubleand triple balloting by somevoters and K10,000 (US$12.5) gifts to those who votedfor him. However, on the next

day, Sai Zaw La was told hehad been beaten by morethan 650 votes, his 9,775against Kyaw Myint's 10,434.

Entrance to Yongyang Casino owned by Panhsay Kyaw Myint


23/32

23

Keng Mai

Age : 41

Ethnicity : Kachin

Place of Birth : Mai Phang village, Mong Paw Tract, Musetownship

Education : Grade 10

Occupation : Leader, Mong Paw Peoples Militia



Constituency : State Assembly Constituency #2, Muse

township

He was said to have become involved in the drug businesswhen his elder brother Mamon was still working with MongHsala, leader of the now defunct Mongkoe Defense Army(MDA).

During the election campaign, he reportedly told the villag-ers at one rally, If you vote for me, Ill be elected. But if youdont vote for me, Ill still be elected.

Keng Mai

Photo:Reuters

Bai Xuoqian akaPei Hsauk Chen

Age : 62

Ethnicity : Kokang

Place of Birth : Liet Sein Htang village, Hong Ai tract,Konggyan township

Education : Grade 9 (Chinese Kokang school)

Occupation : Hotel owner


Party : Union Solidarity Development Party

Constituency : Shan State Assembly, Constituency #1,Laogai township

Particulars-

1989 : Deputy to Peng Jiasheng, Special Region #1

2009 : Chairman, Provisional Kokang Leading Committee

Bai Xuoqian


24/32


25/32

25

Throughout the past two

years, the role of China,dubbed the black hole forheroin by a French expert,has become more promi-nent:

Thai security reported in2009 that China was supply-ing satellite photos to theBurmese authorities of

poppy fields in Markmang,one of the most isolatedtownships in Shan StateEast. Last year, it was againfurnishing more satellite im-ages of poppy fields inMonghsu and Kehsi town-ships.

Still, the Chinese were unable

to pressure the local militaryand police forces into de-stroying the fields most of thetime, according to locals.They said they needed towait for reinforcements andalso information from the tar-geted area, when actuallythey were waiting for the har-vest to be completed before

they went into action, re-ported a local businessman.This happened in Kehsi, forinstance, especially in theMongnawng-Wanzing area,where the local powers arethe (Burma Army-run) Lahumilitia unit and the BurmaArmy battalion in Wanzing.

Restless neighborsChina also pressured the

United Wa State Army(UWSA) and National Demo-cratic Alliance Army (NDAA)whose base areas adjoin itsYunnan province to crackdown on the drug trade intheir capitals, Panghsang(Pang Kham) and Monglarespectively, from August toOctober 2010. At Weluwan

monastery, there were about50 trucks seized from thedrug dealers, a source re-ported during the campaign.Hundreds were also de-tained and jailed.

Chinas impatience withBurmas lukewarm approachto the drug issue became

clear when Meng Sutie, di-rector of the Yunnan PublicSecurity Bureau, reported inMarch 2011 that Opiatesand synthetic stimulantsalike are produced both in

areas controlled by theBurmese government inMyanmars capital Naypyi-taw, as well as in areas ad-

ministered by breakaway eth-nic groups, according to go-kunming.com.

The United States has alsobecome more explicit in itscriticism of Burmese rulerson the drug front, althoughmost of Washingtons drug

policy on Burma in the past

used to be based more onthe regimes human rightsand democratic reforms thanits performance againstdrugs.

As for Thailand, it has madea number of spectacular sei-zures during the past year,such as the haul in Phrae on

18 February 2011 of 95kg ofheroin. However, arrest of 75Iranians with 164kg of Ice(crystal methamphetamine),as reported on 31 December2010, and seizure of a methlab in Bangkok on 9 May 2011also mean that producers inBurma are facing seriouscompetition.

Despite apparent success,Col Peeranate Kettem, Chiefof Staff of the Pha MuengForce, that oversees securityalong the borders of Chiang-mai and Chiangrai provinces,estimated that less than 30%of the drugs smuggled intothe kingdom was intercepted,

reported IRIN News on 11April 2011.

One of the officers explainedto SDW on condition of ano-nymity:

To page 26


26/32

26

There are two kinds of opium

farmers who borrow funds:

Those who don't havecapital to start and maintaina field

Those who want to ex-pand but don't have enoughcapital

Most of them have to repayin kind and not in cash. How-ever, some are allowed torepay in cash in accordancewith current prices. In ShanState North and Shan StateSouth, there are reports offarmers being forced to sell

Loan wolvesat reduced prices. But in

Shan State East no reportsof farmers being forced tosell at reduced prices havebeen received so far, prob-ably due to high demand andproximity to foreign investors.

Even if prices are not forciblyreduced, many farmers areforbidden from selling their

crop to outsiders, and mustsell only to the local militia orthe financier.

Apart from repayment of theinitial loan, farmers must stillsplit their remaining opium

with the creditor, either 50:50

or financier 75: farmer 25,with the financier responsiblefor tax to the local authorities.

Latest reports also indicatethat at least in some areasmore and more farmers arebecoming wage earners(daily or monthly) rather thanworking on their own fields.

With the pawliangs (finan-ciers) in Kutkhai-Hsenwi ar-eas under militia leaderMahtu Naw, paying 4,000 kyat($5) per day with 3 meals, thepay is not bad at all.

The Thai governmentsanti-drug campaign is wagedmainly in cities where themajority of the voters are,and not on the sparsely popu-lated border

More troops from thenorth are being deployed in

the volatile deep south

In any case, the Armysborder security budget hasbeen cut for almost a decade

One reason for this isBangkok is not anxious tolook for trouble with Naypyi-taw, with which it had alreadyexperienced military confron-tations in 2001-2002 whenThai forces ran into drugcaravans escorted by Burma

Army troops and their mili-tias.

Meanwhile, Kaladan andNarinjara News, based on thewestern Burma border, andNorway-based DemocraticVoice of Burma have reportedthat Bangladesh has be-come another major gatewayfor drug shipments fromBurma.

From page 25

Many new faces have popped up in the drug trade. Around 100 individuals arebeing monitored.

Pornthep Eampraphai, Director, Office of Narcotics Control Board, Northern Region,

Bangkok Post, 30 January 2011


27/32


28/32

28

Our researchers give slightlydifferent answers aboutwhich kind of drugs are themost used.

Shan State North#1. Yaba and/or ice#2. Khakhu#3. Heroin

Shan State South

#1. Yaba#2. Opium and/or khakhu#3. Heroin

Shan State East#1. Yaba and/or ice#2. Heroin#3. Opium and/or khakhu

But one thing is the same:

yaba is the most useddrug. (This is markedly dif-ferent from reports by theKachin News Group that say

Rising drug useKachin State is undergoing aheroin epidemic.)

One reason for heroin being#3 in the north and south isthat it is more of an exportcommodity and as such isdifficult to find in a roadsideshop like yaba. The other rea-son is that people do not likethe after effects of feeling

sleepy and lazy, and itscompulsively addictive prop-erties.

Drug users are mostly foundin the money-making indus-tries, such as in logging, goldand gem worksites, andalong smuggling routes ofcontraband goods and tim-

ber.

More and more drug usersare also found among junta

personnel such as soldiers,police and narcotics police.During Shan festivals sol-diers and police on securityduty are often seen asking foryaba to keep themselvesawake all night.

The age group that mostlyuses drugs is 20-40. But it isalso not unusual to find a

nine-year-old using drugs.Among students, it is duringexaminations they are mostfound taking yaba, becausethey need to stay awake togo over their lessons.

The price for yaba is mostly1,500 to 3,000 kyat (USD 1.7to 3.4) per tablet, depending

on the brand and also theavailability. However, inLashio, the retail price for lowquality yaba is K 2,500 (USD2.9), and high-quality K 3,500(USD 4), while for wholesale,the former is between K 800-1,500 (USD 0.9-1.7), andhigh quality is K 1,500 (USD1.7).

In Tachilek, close to the Thaiborder, the prices are roughlyas follows: 100 baht (USD3.3) per pill, 200 baht (USD6.6) for 3 pills and 500 baht(USD 16.6) for 7 pills, says astudent.

Yaba


29/32

29

Opium

Most elderly people smoke itthrough a water pipe. As forothers, there are those who just swallow it or smoke itafter inserting it in a cigarette.

It is also used for medicinalpurposes. People believeswallowing it can cure/easedysentery, and smoking it

can cure/ease coughing.

Khakhu

Khakhu is cooked opiummixed with minced dried ba-nana leaves or Phak Nawkcreeper leaves, which iswrapped up in foil. It issmoked through a water

pipe. Phak Nawk, known asBua Bok (land lotus) by Thais,is dried, pressed and sold bya Chinese businessman inShan State South, atK30,000-35,000 per viss(USD 34-40).

Yaba or Ice

It is, like Khakhu, wrapped upin foil, which is pierced beforebeing put on the mouth of thepipe, and smoked.

Heroin

It is more commonly smokedand less commonly injected,because of the danger of HIV/AIDS and overdosing.

How drugs are takenIt is put on foil with a coin asan additional pad, lighted andsmoked through the nostrils.Less commonly, it is dis-solved in water and injected,because one gets highquicker and the effect lastslonger.

One can also use sub-stances together, such as

yaba mixed with heroin andsmoked together through awater pipe or cigarette.

There are some users whosay that if one wants to sleepafter using yaba, one mustsmoke heroin to make onesleepy. Others use Phense-dyl or China-made Totusou.

Or else a spoonful of salt dis-solved in a half or full glassof water can help one sleep,says one user.

ATS

Yaba is for lo-so, Ice forhi-so, has become a com-mon saying during the past

few years. Lo-so and hi-soare Thai slang terms mean-ing low-society and high-society.

Around Lashio, high qualityice costs K 25 million (USD29,000) per kg and low qual-ity ice around K 17-18 million(USD 19,700-20,900). Down

south in Shan State East, inJanuary 2011 the cost was B250,000-560,000 (USD8,300-18,600).

Ice (pure ephedrine) startedbeing used 3-5 years ago.Apart from being smoking, itcan also be dissolved in juiceand drunk (it dissolves evenquicker than sugar). The be-

lief is that if a woman whohas just given birth smokesit, she will mend quickly.Other fringe benefits include:the scent doesn't travel farand the user does not go asberserk as those using yaba.

In Tachilek, opposite Maesai,almost all casinos and gam-

bling dens have facilities forthe customers. At the nine-storey Mae Khao casino, oneshort smoke costs B 1,500-2,000 (USD 50-66).

How to consume yaba

It can either be swallowed inpill-form or in powder-form.

Some believe it can counterthe effect of a stroke attack.

It can also be dissolved inenergy drinks such as M-100 and Red Bull and drunk.As for smoking it, besidesbeing heated and smokedthrough water (as describedin Hand in Glove, 2007), it


30/32

30

can be put on foil, lighted andinhaled directly. One userspoke of using a rolled 20baht banknote to inhale it.

How to make yaba

The ingredients include:

Ma Huanghsu (naturalephedrine) or Ice (or evenpseudo ephedrine which is acomponent of cold tabletbrands such as Sulidine)

Caffeine

Dye

Scent (India's Monkeybrand is quite common)

Glue

Precursors can be importedfrom Chinas Ruili, Wanding,Nansan and Mengding oppo-

site Shan State North; IndiasMoreh through Tamu; andfrom Thailands Maehong-son, Chiangmai and Chiang-

rai. As for mechanical appli-ances, they can be orderedand made inside Burma, thereporters assured SDW.(Raw materials from India,are favored by the chemistmore than those comingfrom China these days,wrote one report).

From 1 kg of ephedrine,30,000 (high quality) to50,000 (low quality) ya ba pillscan be made, using differentrate of capital:

Shan State North

Y 70,000-80,000(USD 81-93)for low-quality pills

Y 85,000-90,000(USD 98-104)for medium quality

Y 100,000 (USD 116) for

high-quality pills (whichcan be dissolved in wa-ter and injected, mostlyfor export)

Shan State South

K 5-10 million(USD 5,800-11,600)for low-quality pills

K 100 million(USD 116,000)for high-quality

Shan State East

B 1 million (USD 33,000)for 35,000 pills of high-quality (using the formulaIce 1 kg: Caffeine 4 kg)

Popular brands include: Y1,Y2, Tiger, Pink R, Green R,38 and Dimple

Some chemists working withthe militias in the east appearto be facing problems ex-tracting pseudo-ephedrinefrom the cold relief tabletspurchased from Thailand,

according to users. Insteadof becoming wakeful aftertaking them, users say theybecome sleepy, a business-man coming to Maesai toldSDW recently (in June 2011).

Illustration from Hand in Glove, published by SHAN, 2007.


31/32

31

The Wa appear to be the

most draconian in dealingwith drug cases. Users areimprisoned, though not ex-ecuted as rumored by some.Several growers were ex-ecuted to serve as examplesand more than ten were jailedafter the 2005 zero produc-tion announcement. Over100 growers fled across the

Salween or to the nearbyMarkmang township, wherepoppy cultivation is toleratedby the Burma Army.

During 2010, due to Chinesepressure hundreds were ar-rested both in Wa andMongla and locked up incrowded jails. Believe me,

you wouldnt like it there atall, said an official sourcewho declined to elaborate.

The Shan State Army (SSA)Norths treatment of drugconvicts appear to be better,with prisoners enjoying morespace.

As for jails under the militarygovernment, one in Lashioaccording to Shan DrugWatch, October 2010, isquite severe. However, ac-cording to another re-searcher, it is not so bad,compared to other jails. Thearea is 2,500ft x 1,800ft forabout 1,500 inmates, two-

thirds of whom are drugcases.

Visiting inmates there costs

K 2,500. If you want to talk foran hour, you pay another K2,500.

In Shan State East, thosesentenced to less than 10years are kept at local pris-ons, while those with heaviersentences are sent toKengtung.

All in all, wrote one re-searcher, 60% of all thoseserving their terms havebeen involved in drugs, ofwhom 70% are small fishsellers. Very few are big fish.

The following are the stan-dard jail terms for drug of-

fences in Shan State North:

Growing poppies : 10-20years

Using drugs : 7-12 years

Having drugs in posses-

sion : 5-12 years

Selling drugs : 15-40 years

However, no one is jailed forgrowing poppies these days,wrote a researcher. All theyhave to do is to pay tax to thelocal militias, most of whomare working closely with thelocal military.

As for having drugs in pos-

session, well-known drugdealer Panhsay Kyaw Htwehimself was arrested in 2007,but was released after ne-gotiations with his brotherKyaw Myint, who is now anelected lawmaker and cur-rently head of the drug sup-pression committee in Nam-kham township.

Drugs are also being sold tousers in paddy fields inNamkham, as reported byboth SDW and the PalaungWomens Organization. Thevendors pay K 10,000 perday or more to the police.

Taking action against offenders

For a state to maintain stability and extend control, it mustresort to buying loyalty (with money, economic opportuni-ties or political concessions), with the most durable basisfor stability being a complete buy-in of potential opposi-tion.

A. De Waal, Mission with end? Peacekeeping in the Africanpolitical marketplace, International Affairs


32/32

}(The Burmese military regime) seems likely to continue its Janus-faced approach, portraying itself to the west as committed to tacklingdrugs whilst at the same time continuing to use the drug trade as an

arena through which to construct and consolidate state power.~Patrick Meehan (forthcoming), Drugs, insurgency and state building in Burma: Why thedrug trade is central to Burmas changing political order, Journal of South east Asian Stud-ies, 2011

Previous SHAN publications on the drug trade in Shan State

available at www.shanland.org

June 2007 June 2009 October 2010

shan drug watch 2011 drugloards in parliament-engl

Documents