18-11-2023 (YANGON) Recent military clashes have further intensified Myanmar’s economic and political turmoil. The dismissal of high-ranking military officials on corruption charges indicates deeper troubles within the country.
In late October, the Three Brotherhood Alliance, consisting of communal and regional people’s armies, executed coordinated attacks named Operation 1027 along Myanmar’s border with China. This offensive dealt a significant blow to the Myanmar military’s claim of control. Prior to this assault, the State Administration Council (SAC), Myanmar’s military regime, seemed more focused on internal power shifts than securing the border region.
The SAC had been reshuffling top leadership and purging two confidants of SAC chief Senior General Min Aung Hlaing for corruption. This crackdown marks the regime’s most significant anti-corruption move since the February 2021 coup.
On October 10, Lieutenant-General Moe Myint Tun and his aide Brigadier-General Yan Naung Soe received 20-year prison sentences for treason and violating the state’s road map and objectives. Moe Myint Tun, previously seen as Min Aung Hlaing’s potential successor, oversaw the SAC’s economic and financial policies. His arrest highlighted the regime’s crackdown on corruption.
Another powerful general, Lieutenant-General Soe Htut, former home affairs minister, received a five-year imprisonment sentence on November 11 for exploiting his power. Both generals were once Min Aung Hlaing’s trusted deputies, sent to negotiate with ousted state counsellor Aung San Suu Kyi before the coup.
Moe Myint Tun’s case is critical as he played a key role in implementing the SAC’s economic policy, including stabilizing commodity prices. Sources reveal that the regime took control of rice, oil, and cooking oil after the coup. Despite Myanmar producing enough rice, it imports oil and cooking oil. The Central Bank of Myanmar annually provided $600 million to well-connected businessmen for importing cooking oil at a fixed official rate, lower than the market rate. However, the regime struggles to stabilize commodity prices.
The SAC initiated investigations into the instability, leading to the arrests of fuel and cooking oil importers, followed by Moe Myint Tun and his aides. A senior staff officer at the commander-in-chief’s office in Naypyidaw mentioned that corruption cases emerged during the questioning of importers, revealing weaknesses in the import policy that require policy review.
Corruption has thrived alongside crony capitalism since Myanmar reintroduced a market economy in 1988. The recent crackdown on Moe Myint Tun underscores underlying tensions and currents in Myanmar’s upper echelons. The SAC needed a scapegoat for economic policy failures, and Moe Myint Tun’s complicity in approving businesses linked to Min Aung Hlaing’s family made him a convenient target.
Analysts with military insights suggest that the sackings resulted from an “economic predicament” triggered by exchange rate depreciation, threatening the SAC’s power center. The crackdown, initially aimed at displaying strength in combating corruption, has led to political fallout, weakening Min Aung Hlaing’s position and paving the way for potential infighting.
The vacuum left by the fallen generals has been filled by Joint Chief of Staff General Maung Maung Aye, Minister for Transport and Communication General Mya Tun Oo, and Minister for Home Affairs Lieutenant-General Yar Pyae. The situation remains tense, with uncertainty surrounding the roles of these officials and the emerging factions within the military, as Myanmar navigates through a precarious political landscape.
