WIN AUNG - A RISING CRONY WITH CONNECTIONS

C O N F I D E N T I A L SECTION 01 OF 03 RANGOON 001203 SIPDIS SIPDIS STATE FOR EAP/MLS, INR/EAP, EEB/TFS, INR/B PACOM FOR FPA TREASURY FOR OASIA AND OFAC E.O. 12958: DECL: 12/26/2017 TAGS: ECON EFIN PREL PGOV BM SUBJECT: WIN AUNG - A RISING CRONY WITH CONNECTIONS RANGOON 00001203 001.2 OF 003 Classified By: Economic Officer Samantha A. Carl-Yoder for Reasons 1.4 (b and d) ¶1. (C) Summary. Win Aung, owner of Dagon International Construction Company and Dagon Timber Ltd., and his family continue to use their close connections with the Burmese regime to amass great wealth. Although Dagon International specializes in the construction of luxury housing projects, it won contracts to build roads and government dormitories in Nay Pyi Taw. According to Embassy contacts, Win Aung's Dagon Timber Ltd. illegally exports an estimated $5 million in teak logs to China annually, substantially more than the reported exports of $161,000. Win Aung also has interests in the tourist industry and his Palm Beach Resort is an alleged favorite of Senior General Than Shwe. Win Aung boasts close ties with General Thura Shwe Mann and uses this relationship to secure new construction contracts. End Summary. Building Solid Business Relations -------------- ¶2. (C) Like Steven Law, Win Aung is a regime crony that prefers to stay out of the limelight. According to Embassy contact Anwar Hussain (PROTECT),Win Aung made his fortune in the construction and timber businesses. In the early 1990s, he established Dagon International, one of the largest construction companies in Rangoon. Dagon International specializes in the construction of luxurious housing complexes in Rangoon, such as Golden View Condominiums. Upon completion of the housing developments, Win Aung often sells the properties to other wealthy, well-connected Burmese to run and manage. Hussain commented that because of the slowdown in Burma's housing market, Win Aung continues to own two housing development properties: Golden View and newly-built Thurein Yeik Mon Housing Development. Allegedly, close friend, competitor, and fellow regime crony Chit Khaing of Eden Group is interested in purchasing one or both of properties. ¶3. (SBU) In the early 2000s, Win Aung received permission to construct one of Rangoon's premier shopping malls, the Dagon Center. Despite being bombed in 2005, the Dagon Center is one of Rangoon's busiest shopping centers. Unlike other shopping malls in Burma, the Dagon Center has 100 percent occupancy and a waitlist for stores that want to open shop in the space. Business contacts informed us that Win Aung wants to build another shopping center in Rangoon, and filed the request with city officials in November. ¶4. (C) According to Hussain and other business contacts, Dagon International was one of eight Burmese companies that received contracts to construct the new capital in Nay Pyi Taw. Drawing on its experience from building part of the road that connects Rangoon to Mandalay, Dagon International won the bid to build and maintain a stretch of road in Nay Pyi Taw. However, the Burmese regime granted Steven Law's Asia World the rights for the construction of the majority of roads in the new capital. Win Aung's company also built several government housing facilities in Nay Pyi Taw. Like other cronies, Win Aung has yet to receive payment for his work in Nay Pyi Taw. Hussain noted that Win Aung received ten vehicle import licenses, valued at $180,000 each. Branching Out into other Business Forays -------------- ¶5. (C) In the late 1990s, Win Aung entered into the timber trade, establishing Dagon Timber Ltd. According to Hussain, Dagon Timber Ltd. has permission to cut teak in protected forests and exports primarily teak logs rather than finished wood products. In FY2006, Dagon Timber Ltd. reported that it RANGOON 00001203 002.2 OF 003 exported a paltry $161,114 in lumber products, substantially more than the dismal FY2005 exports of $64,432. (Note: Burma's fiscal year is from April 1-March 31.) Hussain dismissed the reports, pointing out that Dagon Timber illegally sends much of its timber to China. He estimated that the value of Dagon Timber's annual exports was closer to $5 million. According to press reports, Dagon Timber Ltd. also produces palm oil for local consumption. -------------- -------------- Dagon Timber Ltd. Imports, FY2005-FY2007 In US Dollars -------------- -------------- Category FY2005 FY2006 FY2007* -------------- -------------- Cars 45,709 -- -- Chemicals -- -- 6,600 Food and Beverages 508,971 -- -- Machine Parts 2,503 -- -- Plastic 2,389,534 2,491,022 1,503,083 Steel, Iron, Tin 16 14,820 -- Tires 62,000 -- 119,750 Other 358,333 197,207 28,627 -------------- -------------- Total 3,367,066 2,703,048 1,658,060 -------------- -------------- Source: Business Investment Group, November 2007 *Through October 2007 ¶6. (C) Hussain also noted that Win Aung uses Dagon Timber Ltd. to finance his other business activities, including the Palm Beach Resort in Ngwe Saung Beach and various construction projects. Why else would a timber company import goods such as food and beverages and plastics, he asked. In 2001, Win Aung built the luxurious (by Burmese standards) Palm Beach Resort, which has thirty-one rooms. Rumored to be one of Than Shwe's favorite hotels in Ngwe Saung, the senior general has stayed at Palm Beach Resort at least five times since 2006. Regime Ties -------------- ¶7. (C) Hussain noted that Win Aung receives many construction contracts because of his close connections with the regime, particularly General Thura Shwe Mann. Win Aung also boasts the support of Than Shwe, although our business contacts are skeptical of Win Aung's closeness with the Senior General. Like many other cronies, Win Aung curries favor with the regime leaders by donating heavily to government projects, including education and health programs. Family and Business Information -------------- ¶8. (SBU) Below is biographic information on Win Aung and his family. --Win Aung, born on September 30, 1953, holds a bachelor's degree in Mechanical Engineering. In addition to being CEO of Dagon International and Dagon Timber Ltd, Win Aung is the Vice President of the Myanmar Federation of the Chamber of Commerce and Industry and the Chairman of the GMS Business Forum. He is married and has three children. He and his family are listed on the European Union's visa ban. --Moe Mya Mya, a.k.a. Yew Hoon See, is Win Aung's wife. She was born on August 28, 1958 and holds a Burmese passport, number: CM 101076. Moe Mya Mya works as Managing Director of RANGOON 00001203 003.2 OF 003 Dagon International. Her father lives in Singapore, and her brother and sister live in the United States. --Ei Hnin Pwint, a.k.a. Christabelle Aung, is Win Aung's oldest daughter. She was born on February 22, 1981 and holds a Burmese passport, number: CM 501088. Ei Hnin Pwint works as Director of both Dagon International and the Palm Beach Resort in Ngwe Saung. --Thurane Aung, a.k.a. Christopher Aung, is Win Aung's only son. He was born on July 23, 1982. He is listed as a Director of Dagon International. --Ei Hnin Khin, a.k.a. Christina Aung, is Win Aung's youngest daughter. She was born on December 18, 1983. She is listed as a Director of Dagon International. ¶9. (SBU) Information on Win Aung's businesses follows: --Dagon Center Shopping Mall, Address: 262/264 Pyay Rd. Block A, 6th floor, Myaynigone Township, Rangoon, Burma. Telephone: 95-1-51-4227. --Dagon International, Main Office Address: 262/264 Pyay Rd. Block A, 6th floor, Myaynigone Township, Rangoon, Burma. Telephone: 95-1-51-4227. --Dagon Timber Ltd, Addresses: 262/264 Pyay Rd. Block A, 6th floor, Myaynigone Township, Rangoon, Burma; 42/613 Industrial Estate, Shwe Pyi Tha Industrial Park, Rangoon, Burma. Telephone: 95-1-51-4227. --Grand Golden View Condominiums, Address: U Wisara Rd, Rangoon, Burma. --Palm Beach Resort, Address: 9 Ngwe Saung, Pathein, Burma. Telephone: 95-1-50-1937. --Thurein Yeik Mon Housing Development, Address: Bayint-Naung Rd, Rangoon, Burma. Comment -------------- ¶10. (C) Win Aung is one of several cronies who not only financially supports the Than Shwe regime, but also uses his contacts with the senior generals to amass and maintain his fortune. We recommend adding Win Aung and his family to the U.S. targeted sanctions list. VILLAROSA