Post Nargis development: Generals’ cronies were encouraged in a wrong place to invest?

BDD
Sunday, June 29, 2008


Sources close to SPDC and Business tycoons stressed that many businessmen have faced uncertainty of high profits and long term projects from Nargis cyclone. Sources continued that SPDC top generals suggested their cronies to plan their projects in cyclone Nargis's most affected areas for constructions, rebuilding villages and other logistic needs.

Nepotism is common in Burma business circle but time is slowly running out without cash flowing from donors and SPDC.

After referendum, senior general Than Shwe visited and inspected showcase refugee camps in cyclone affected area with a handful of businessmen. He reportedly instructed his businessmen to start preparing to re-build the roads, villages, towns, schools and other logistic needs to speed up the reconstruction phase.

However, one month after donors meeting in Rangoon, SPDC’s game plan might have to change it, in terms of donors carefully reviewing the regime’s proposals and that would not prove any accountability and worries of their tax payers money might not go to the needy. Indeed, donors didn’t promise to provide a blank-check to the regime. “There will be more check and balance mechanism if any major projects would be placed” ASEAN diplomat stressed.

Furthermore, UN itself even faces fund shortage to deliver emergency relief with airlift. UN’s promising two hundred million USD project has only fifty million in hands and would take few time to raise the rest. Donors wanted more efficiency and accountability issues are top of that.

Major dilemma is now within SPDC. SPDC’s proposal of eleven billions to realize the reconstruction and rebuilding for two and half millions peoples’ way of lives and their future, prevention of next round of major cyclone, raising one hundred feet high roads to prevent fifteen meters high sea waves if another storm would come.

Sources said few high fly companies are now facing funding needs to run these uncertain projects from SPDC and foreign donors. These companies have opened their relief centers and front-line offices in many cities and towns in Irrawaddy delta. They are ready to start doing their construction business.

Both SPDC generals and cronies expected high cash flows after post cyclone, the generals issued the special regulations for donations, lifting restrictions and regulations for this purpose. “But now things are different,” one of the high fly companies’ employees said, “their boss demanded not to spend cash and wait for day by day instructions”.

One of the SPDC close associates said “companies may never lose, senior general would let them recover their lost from different money making fields; oil drilling, gold mines, timber and fishing rights, don’t worry about it.”