The former owner of the Mandalay Beer brewery says she will ask
Burma’s government to compensate her for damages incurred more than a
decade ago after the former military junta confiscated the company, in a
long legal battle that has put the country’s beer industry on the map
of an international court.
Win Win Nu—who owned Mandalay Beer in a joint venture between Burma’s
Ministry of Industry (1) and her Singapore-based company, Yaung Chi Oo
Trading—earned rights to produce the beer in a five-year contract
starting in 1993.
In 1997, the brewery was confiscated by the military, reportedly
after a fallout between Win Win Nu’s company and Aung Thaung, then the
minister of information. Win Win Nu left the country and was forced to
withdraw from the investment.
The case was heard not only in Burma’s domestic courts, but also in
the International Court of Justice (ICJ) in The Hague, where Win Win Nu
accused Burma’s junta of forcibly nationalizing the company. The junta
claimed Win Win Nu had misappropriated funds and later sued her in a
court in Rangoon for allegedly scaring away other foreign investors.
Win Win Nu lost the ICJ case, but now under Burma’s nominally civilian government she has decided to try her luck again.
“I was unlikely to get compensation if I asked the former military
regime,” Win Win Nu told The Irrawaddy recently. “Having presented the
case to the International Court of Justice, I have strong evidence: I
neither committed embezzlement nor had personal problems with U Aung
Thaung.”
Singapore-based Yaung Chi Oo suffered losses of US $7 million when
the venture was compensated, she said. “And the factory still hasn’t
been transferred to a government department,” she added.
During Win Win Nu’s joint ownership, Mandalay Beer competed for
market share with popular international brands including Heineken,
Carlsberg, Singha and Foster’s, as well as Chinese beers which entered
Burma on the black market.
Many international brands including Heineken later left the Burmese
market, facing pressure to stop conducting business in a country ruled
by a junta with grave rights violations. Many are now forming joint
ventures to reinter the market under the new government.
Win Win Nu was believed to have close ties to members of the former
junta, including Khin Nyunt, who was then the head of the military
intelligence unit.
Aung Thaung, the former minister, told The Irrawaddy that the
Mandalay Beer contract was terminated because Yaung Chi Oo did not
fulfill its obligation to invest $6 million within five years. He said
the Singapore-based company invested just $1 million and did not
cooperate with the factory’s director on business matters.
“She [Win Win Nu] tried to show that she was familiar with
authorities of higher rank, half the members of the cabinet and the
military intelligence. I don’t know what she intended, but it was
intimidating for me,” Aung Thaung, now a parliamentarian, said of their
relationship during the joint venture.
“As Win Win Nu prosecuted the ministry at the International Court of
Justice, we also did the same to her in domestic court for telling
lies,” he added. “But she didn’t come to trial. So we regard her as an
outlaw.”
Aung Thaung said that the military’s decision to nationalize Mandalay
Beer was legal and that he believed Win Win Nu should provide
compensation to the government.
Critics have said the junta’s takeover of the brewery without prior
negotiation made a stain on the country’s investment record, raising
concern for foreign investors.
The beer factory, built in 1859 and originally used to produce
artillery, was turned into a brewery under the British in 1886. Japan
operated the factory during World War II. The brewery is currently owned
by the military-owned Union of Myanmar Economic Holdings Ltd.
source: The Irrawaddy
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