DROPPING THE HAMMER ON CRONY STEVEN LAW

C O N F I D E N T I A L SECTION 01 OF 04 RANGOON 001211 SIPDIS SIPDIS STATE FOR EAP/MLS, INR/EAP, EEB/TFS, INR/B PACOM FOR FPA TREASURY FOR OASIA, OFAC E.O. 12958: DECL: 12/28/2017 TAGS: ECON EFIN PREL PGOV BM SUBJECT: DROPPING THE HAMMER ON CRONY STEVEN LAW REF: A. COPE/CARL-YODER EMAILS ¶B. RANGOON 1090 ¶C. RANGOON 645 ¶D. RANGOON 1203 RANGOON 00001211 001.2 OF 004 Classified By: Economic Officer Samantha A. Carl-Yoder for Reasons 1.4 (b and d) ¶1. (C) Summary. Tun Myint Naing, a.k.a. Steven Law, is known among Burma's business circles as the regime's top crony. He is known to be close with both Senior General Than Shwe and Vice Senior General Maung Aye. In addition to owning Asia World Co. Ltd., one of Burma's most successful construction and trading companies, Steven Law and his wife Cecilia Ng have interests in several large Rangoon hotels and office buildings, a supermarket chain, and a brewery. Steven Law also owns several businesses in Singapore, including Asia World Industries, Golden Aaron Company, S.H. Ng Trading Company, and Kokang Singapore Pte. Ltd. He also has economic interests in Thailand. Business contacts confirm that Steven Law has partnered with Malaysian-born billionaire Robert Kuok and Kuok Singapore Ltd. on a number of real estate ventures in Burma. Based on information from Embassy Rangoon's DEA Office as well as business contacts, we have compiled a list of 24 of Steven Law's known aliases. End Summary. Biographic Data -------------- ¶2. (C) The son of Chang Feng Hsuan Lo (a.k.a. Kyat Phone Shin) and Lo Hsing Han, a known drug lord and Chairman of Asia World Company, Tun Myint Naing a.k.a. Steven Law is known among Burma's business circles as the regime's top crony (Ref B). Steven Law was born in Burma on May 16, 1958. He has six brothers: Lu Law, David Lo, Eric Ping Sin Lo, Henry Lo, Moses Ping Chao Lo, and Aung Kyaw Naing, and two sisters: Daisy Lo and Thi Da Han Ma. Steven Law also has a cousin named Win Aung. Our business contacts confirmed that Steven Law's cousin is not the Win Aung associated with Dagon International and Dagon Timber Company (Ref D). ¶3. (C) Based on information gathered from Embassy Rangoon's DEA office, as well as from our business contacts, we have compiled a list of Steven Law's known aliases and name variations: Steven Law Stephen Law Stephen Lo Stephen Ping Chung Lo Steven Ping Chung Lo Stephen 
Steven Naing Win Naing Htun Myint Naing Myint Naing Htun Myint Naing Tun U Tun Myint Naing Tun Myint Naing A Chiu Lo Ping Chung Lo Ping Zhong Lo Ping Hau Lo Ping Haw Ping Chung Lo Ping Shao Lo Pin Shao Lo Ping Han Lo Abdul Halim RANGOON 00001211 002.2 OF 004 Abdul Harfiz ¶4. (C) On March 16, 1996, Steven Law married his business partner, Singaporean-born Cecilia Ng, a.k.a. Ng Sor Hong. They have two daughters (one from Cecilia's previous marriage) and spend most of their time in Singapore. We do not know the exact age of Steven Law's daughters, but understand that they are not yet old enough to be involved in the family business. Business Ventures in Burma -------------- ¶5. (C) According to Embassy contact Anwar Hussain (PROTECT), Steven Law's Asia World Group controls investments in Burma totaling more than $500 million. Although the Myanmar Chamber of Commerce classifies Asia World as a construction company, Hussain emphasized that Steven Law's company specializes in all sectors of trade, from shipping and transportation to manufacturing and sales. Established in 1992 to as an agricultural and animal feed products company, Asia World built the now defunct Equatorial Hotel in Rangoon, as well as several high-rise office buildings. In 1996, Steven Law partnered with Kuok Singapore Ltd., owned by Malaysian billionaire Robert Kuok, to build several hotels in Rangoon, including Traders (owned and operated by Shangri-la Hotels),Shangri-la (a separate hotel which is not yet in operation despite completion of construction),and the Sedona Hotels in Rangoon and Mandalay. While the Chamber of Commerce lists the Traders and Sedona Hotels as 100 percent foreign owned, our contacts confirmed that Steven Law owns a percentage of the hotels in partnership with the Malaysian and Singaporean owners. ¶6. (C) Ref C detailed many of Asia World's infrastructure projects, including the construction of the Rangoon-Mandalay toll road, the Ngwe Saung Beach Resort road, and the Asia World Thilawa deep sea port. Asia World also operates the Leo Express bus line in Northern Burma. Hussain believes that Asia World also operates a shipping line that transports goods from Singapore to Rangoon. Hussain informed us that Steven Law's company also won the rights to rebuild the highway that connects Lashio in Shan State to Muse, on the China-Burma border. ¶7. (C) During the past six years, Asia World has branched into the manufacturing and retail sectors. According to U Soe Win, Chairman of financial consulting firm Myanmar Vigor (PROTECT),Steven Law owns several garment factories and palm oil processing plants in Hlain Tha Ya Industrial Park, several paper mills, Myanmar Brewery in Rangoon, and the Asia Light supermarket chain (which has stores in Rangoon, Mandalay, and Nay Pyi Taw). ¶8. (C) Below is a list of Burmese businesses that Steven Law is involved in: --Asia World Co. Ltd. Address: 61-62 Bahosi Housing Warden Street, Lanmadaw Township, Rangoon. Telephone: 95-1-225-271. Steven Law and his family own the company. --Asia Light Supermarket. Address: 61-62 Bahosi Housing Warden Street, Lanmadaw Township, Rangoon. Telephone: 95-1-225-271. Asia World owns this company. Cecilia Ng is the Managing Director. --Asia World Industries Limited, Hlain Tha Ya Industrial Park, Rangoon. Steven Law owns this company. RANGOON 00001211 003.2 OF 004 --Asia World Thilawa Deep Sea Port. --Hledon Centre Condominium. Address: Pyay Rd, Rangoon. Asia World is currently building this condominium. --Traders Hotel. Address: 223 Sule Pagoda Rd., Rangoon. Telephone: 95-1-242-828. Asia World constructed the building and owns a percentage of the hotel in partnership with Kuok Singapore Ltd. --Sedona Hotel. Address: No 1 Kaba Aye Pagoda Rd., Yankin Township, Rangoon. Telephone: 95-1-666-811. Asia World constructed the hotel and owns a percentage in partnership with Kuok Singapore Ltd. --Sedona Hotel Mandalay. Address: No 1 Junction of 26th and 66th Streets, Chanayetharzan Township, Mandalay. Telephone: 95-2-364-88. Asia World constructed the hotel and owns a percentage in partnership with Kuok Singapore Ltd. --Myanmar Brewery Ltd. Address: No 45, No 3 Trunk Road, Pyinmabin Industrial Complex, Mingalardon Township, Rangoon. Telephone: 95-1-244-877. Asia World owns this company in partnership with Singapore interests. Business Ties to Singapore -------------- ¶9. (C) During the past 15 years, Asia World has cultivated a close relationship with several Singaporean companies. Hussain explained that in the late 1990s and early 2000s, approximately 70 percent of Singapore's investment in Burma was funneled through Law's Asia World. In addition to establishing real estate partnerships with Kuok Singapore Ltd., Steven Law teamed up with Sinmardev Consortium in 1997 to build an industrial park and port in Rangoon. Asia World curries favor from Singapore investors, Hussain asserted, so Steven Law can finance many of his business operations with loans from Singaporean banks. ¶10. (C) Soe Win echoed Hussain's comments, noting that Asia World does most of its banking in Singapore. Unlike the majority of Burmese who use United Overseas Bank (UOB) in Singapore, Steven Law maintains bank accounts in at least three Singaporean banks, including UOB, OCBC, and DBS banks. (Note: Several banking and business contacts confirmed that UOB previously allowed Burmese citizens to open accounts in Singapore with relative ease; other banks had more requirements for Burmese citizens, making it difficult to open an account. End Note.) Soe Win intimated that Steven Law also holds dollar accounts with foreign banks based in Singapore, including HSBC. ¶11. (C) In addition to banking, Steven Law has opened several businesses in Singapore. According to our business contacts, Law operates three subsidiaries of Asia World out of Singapore, including Asia World Industries. Soe Win noted that Law and Ng also own Golden Aaron Pte. Ltd. oil corporation, S.H. Ng Trading Company, and Kokang Singapore Pte. Ltd (also known as Kokang Import Export Co. Ltd.). Golden Aaron Pte. Ltd. signed three production sharing contracts with the Myanmar Oil and Gas Enterprise in 2004 and 2005 for onshore and offshore exploration. Golden Aaron Pte. Ltd. is located at 3 Shenton Way 10-01 Shenton House, Singapore 06805. ¶12. (C) DEA information lists the following as possible Singapore addresses for Steven Law: RANGOON 00001211 004.2 OF 004 --Apt Block 124 Geylang East Avenue 1, Unit 03-37, Singapore ¶1438. --38 Lorong Marzuki, Unit 01-01, Singapore. --Apt Block 7 Redhill Close, Unit 07-188, Singapore 0315. --11 North Bridge Road, Unit 03-11, Singapore. ¶13. (C) According to DEA Rangoon, Steven Law also has economic interests in Thailand. He is allegedly involved with several Bangkok-based companies, such as Chaitanasarn Ltd. Co, Victory International Corporation, and the Kokang Import/Export Company. Ties to the Regime -------------- ¶14. (C) Steven Law and his family have used their relationship with regime leaders to secure lucrative construction and trading contracts. In the 1990s, Law's father, Lo Hsing Han, was close to former Burmese Prime Minister Khin Nyunt and used this friendship to advance Asia World's legitimate and illegitimate operations. According to DEA Rangoon, Khin Nyunt give Lo Hsing Han a "concession" for heroin production and trade in return for his help brokering a cease fire agreement. Although Khin Nyunt was ousted in 2004, Law continues to have excellent relations with the senior generals. Close to Vice Senior General Maung Aye, Steven Law has also traveled with Senior General Than Shwe on trips to China and built Than Shwe's home in Nay Pyi Taw (Ref B). This relationship recently worked in Law's favor, as the regime rescinded its construction contract for the Rangoon-Mandalay road with Win Aung's Dagon International (Ref D),and reassigned it to Asia World. Comment -------------- ¶15. (C) Both Steven Law and the regime continue to benefit from their close relationship. Our omission of Steven Law from the targeted sanctions list has drawn many questions from Burmese citizens, other diplomats, and journalists. Financially, he is a bigger player than Tay Za. Going after Steven Law's financial assets will be a strong signal of our seriousness in cutting off the regime's financing. VILLAROSA