Singapore's blood moneyHanging drug couriers but investing with their suppliers
The money trail: the Myanmar FundTHE Singapore government, in cooperation with Morgan Guaranty Trust Company, is directly connected to key business ventures of drug kingpin Lo through an investment group called the Myanmar Fund. The fund, which provides investors "with long term capital appreciation from direct or indirect investments in Myanmar (Burma)," is registered as a tax-free fund in Jersey, Channel Islands, according to documents provided to the Irish Stock Exchange.
Singapore's largest government-controlled financial institution - the Government of Singapore Investment Corporation (GIC) - is listed in the documents along with Morgan Guaranty Trust Bank (a J.P. Morgan subsidiary separate from the Trust Company) as a core shareholder in the Myanmar Fund. A September 1996 GIC business profile from the Registry of Companies and Businesses in Singapore shows that high-level
Singaporean politicians are officers and directors of the GIC, including senior minister Lee Kuan Yew; his son, deputy prime minister Brig Gen Lee Hsien Loong; and finance minister Dr Richard Hu. As a core shareholder, the GIC helps determine how the fund's money is invested in Burma. Jean Tan, a spokesperson for the Singaporean embassy in Washington, confirmed in a June interview that the GIC holds a 21.5 percent share of the Myanmar Fund. As of last November, this investment was worth $10 million, according to the Singaporean government.
The Myanmar Fund owns 25 percent of an Asia World subsidiary, Asia World Industries. In fact, the Myanmar Fund's 1997 first-quarter report features two pictures of Asia World factories on its cover. The Myanmar Fund has also heavily invested in a number of luxury hotels in Burma, including Rangoon's Traders and Shangri-La. The Asia World business profile describes the Traders and Shangri-La hotels as major investment projects for Lo Hsing Han's company. It says that the Shangri-La Hotel (and surrounding apartments and offices) will be "the biggest of all" Asia World's investments, with "$200 million...in appropriation of the project."
In an official press release last November, the Singapore government stated that its investments in the Myanmar Fund were "completely open and above board" and that its investments in both the two luxury hotels and Asia World were "straightforward investments in bona fide commercial projects." However, the fund's operations are hardly straightforward and open. The operations of the GIC itself are effectively a state secret. The government company is not required to file annual reports or report to parliament. It has no public accountability, even though it uses public moneys for its investments. Furthermore, according to fund documents, in late 1994 - only weeks after being listed on the Irish Stock Exchange - the GIC's shares disappeared from the stock exchange register and were re-registered under the name of Ince & Co. The Singaporean government acknowledged in November that Morgan Guaranty Trust Company is the custodian for the GIC securities, and that Ince & Co. was set up by Morgan to hold the shares in its custody.
Morgan Guaranty Trust Bank, investing yet other funds on behalf of clients, is the largest core shareholder (followed by the GIC) of the Myanmar Fund at 42 percent, according to a fund report. This means that together, the Singaporean regime's GIC and Morgan Guaranty Trust Bank have been in control of 63 percent of the Myanmar Fund and its co-investments with the corporation chaired by drug baron Lo Hsing Han. (The GIC shares re-listed as Ince & Co have shifted hands once again. In a February document obtained by The Nation, the fund reported transfer of the Ince & Co. shares to another company, Hare & Co. In telephone interviews, spokesmen for the Myanmar Fund, the GIC and Morgan Guaranty refused to provide information about the identity or purpose of the new custodial company.)
Dining with the devil
SINGAPORE'S dealings with Lo Hsing Han and Steven Law continue to expand unabated. Singapore's GIC investment in the Myanmar Fund increased by 4.3 percent in 1996. In Rangoon, the Traders Hotel celebrated its official opening last November. At the opening ceremony, attended by Singapore's Ambassador and graced with an ap-pearance by Lo himself, the presiding SLORC minister publicly thanked both Steven Law and the government of Singapore for paving the road for a smooth business partnership. "I would like to extend my sincere gratitude to the government of Singapore," he said, "without whose support and encouragement there would be very few Singaporean businessmen in our country."
Since then, ground has been broken on the construction of Sinmardev, a new, $207 million industrial park and port on the outskirts of Rangoon. A Singaporean consortium is the leader in a joint venture with the SLORC, the Myanmar Fund, Lo's family company and a slew of international shareholders. The Myanmar Fund holds a 10 percent interest in Sinmardev. Singaporean entrepreneur Albert Hong, head of Sinmardev, described the project as the largest foreign investment in Burma outside the energy field.
"Singapore is more involved with Lo than any other country, because that's basically where Steven Law is functioning out of when he's not in Burma," observes a US narcotics official.
Singapore's rulers continue to deny any wrongdoing in connection with their relationship to Asia World. "It is fairly far-fetched, trying to link the Singaporean government and drug traffickers," said embassy spokesperson Jean Tan.
"Nonsense," says Singapore's former solicitor general Francis Seow, now a research fellow at the East Asian Legal Studies Program of Harvard Law School. The former close associate of Lee Kuan Yew says he knows "through personal experience" that Lee micro-manages every aspect of Singaporean political, economic and social policy.
Dr Chee Soon Juan, secretary general of the Singapore Democratic Party and a leader of Singapore's political opposition, was labeled a traitor for raising the drug issue in Singapore. "Drug peddlers are routinely hanged in Singapore for carrying heroin," wrote Chee, in a rare and courageous act of public protest in response to a documentary that aired on Australian television last year, Singapore Sling. "And where are all these drugs coming from? Drug lords like Lo Hsing Han are the big-time pushers aided by the SLORC generals." "Is this not hypocrisy at its worst?" he asked.
"The Singapore government knows it's having dinner with the devil, and sharing a very short spoon," says Seow. "And it is a terrible double standard. Drug moneys are being laundered apparently by the same drug lords who supply the heroin for which small-time drug dealers are hanged. We are reaping profits as Burma's biggest investor, but we're being paid with blood money."
http://www.singapore-window.org/1020naus.htm