Adani & Myanmar Military $290Mn Port Deal

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What has happened?

The Adani Group reportedly has a US$290m commercial deal with a holding company controlled by Myanmar’s armed forces,
Who have been accused by UN investigators of committing genocide and crimes against humanity, according to an investigative report by Australia’s ABC News Network.
The investigation, based on a report published by human rights lawyers and activists, alleged Adani Ports is developing a container port in collaboration with Myanmar Economic Corporation (MEC), a conglomerate funded by the military junta.
In February, the United States imposed economic sanctions on MEC shortly after the military detained elected leaders and seized power in a coup.

Leaked documents in a report by human rights lawyers and activists reveal the scale of Adani’s cooperation with the junta over a proposed container port in Yangon.
A joint report by the Australian Centre for International Justice (ACIJ) and activist group Justice For Myanmar (JFM) claimed that Adani’s subsidiary is paying US $52 million to MEC, a Myanmar military-controlled company.
Documents filed with Myanmar’s corporate regulator show Adani bringing in $141 million “capital in-cash” and $148 million “capital in-kind” for the project.
Report author and ACIJ human rights lawyer Rawan Arraf said the documents had been leaked from the Yangon Region Investment Commission “Shortly after the violent February 1 coup perpetrated by senior general Hlaing and his cartel of the Myanmar military”.
According to the documents, Adani’s subsidiary is also paying $30 million to MEC as “land lease fee”.
These are likely to also flow to MEC as the owner of the port site.

In February, following Myanmar’s coup, the Adani Group issued a statement denying it had engaged with military leaders over the 2019 approval of its $290 million port.
“We categorically deny having engaged with the military leadership while receiving this approval or thereafter,” ABC quoted an Adani spokesperson as stating.
However, videos and photos accessed by ABC reveal that Adani Ports chief executive Karan Adani had in July 2019 met Senior General Min Aung Hlaing, the army chief who led the coup against the elected government.
Some generals, including Hlaing, were then already under United States human rights sanctions for their role in a campaign against the Rohingya Muslim minority, which sparked a refugee crisis in 2017.

“What these documents reveal in particular is the amount that was provided to the MEC.”
“The concern here — as has been publicly stated by the United Nations fact-finding mission — is that these military conglomerates provide essential financial revenue streams directly to the Myanmar military.”
The funds from Adani Group could also be used by the Myanmar military for international crimes.

The UN has said that companies, like Adani Ports were at high risk of contributing to or being complicit,
‘Either in law, fact or in the eyes of the public’ in violations of human rights laws and international humanitarian laws through its contribution to the Myanmar military’s financial capacity.
The US and UK have imposed sanctions on Myanmar’s two military conglomerates in a move that significantly ratchets up pressure on the country’s leadership.
Myanmar Economic Corporation (MEC) and Myanmar Economic Holdings Ltd (MEHL) control significant portions of Myanmar’s economy,
With interests across many of the country’s major industries.