Japan: Stop Real Estate Project in Myanmar

(Tokyo) – Japanese companies should stop participating in a commercial real estate project involving Myanmar’s abusive military, Human Rights Now, Human Rights Watch, Japan International Volunteer Center, Justice For Myanmar and Mekong Watch said today. The proposed Y-Complex in Yangon will be built on land leased from the country’s armed forces, the Tatmadaw, whose long history of ill-treatment has worsened since the February 1, 2021 military coup.

One participating company, Tokyo Tatemono, said it had ceased operations on the Y-Complex project since the coup. However, the project participants, including the publicly funded Japan Bank for International Cooperation (JBIC), Japan Overseas Infrastructure Investment Corporation for Transport and Urban Development (JOIN), Fujita Corporation, and Tokyo Tatemono, have the duration of the suspension or the conditions for resumption of operations .

“The Japanese government and corporations have failed to adequately assess the risk associated with doing business in Myanmar,” said Ryutaro Ogawa, deputy general secretary of Human Rights Now. “They should admit their own shortcomings and act responsibly, otherwise they risk funding the military.”

The Y Complex, which includes a shopping mall, hotel and office rental space, is being built on “military military museum land” leased from the Bureau of the Quartermaster General of Myanmar, according to a copy of the Build, Operate, Transfer (BOT) land lease agreement dated Jan. October 2013. The contract stipulates that upon termination or expiry of the BOT contract, the land built on the property, including the buildings and furnishings, is to be transferred to the “landlord”. Therefore, companies involved in the Y Complex risk creating immovable long-term assets for the military that can continue to generate income even after the deal is terminated. On June 22, 2020, a Myanmar military spokesman confirmed that the land is owned by the military and that the Ministry of Defense is receiving rent payments for the development of the Y Complex.

On March 5, 2021, in response to a request from Mekong Watch, JBIC announced that the Myanmar Ministry of Defense had received all payments for the land rent. JBIC also alleged that the rent payments were ultimately included in the government’s state budget under the State Budget Act, but did not disclose the basis for that claim. JBIC said it is coordinating with the business units involved as well as the Japanese Embassy in Myanmar to confirm such details with the Myanmar government after outside “stakeholders” raised concerns; but it still has to do publicly.

“Even before the coup, we raised concerns with the Japanese government and companies about the dangers of cash flow into the military, but they took no necessary action,” said Yuka Kiguchi, executive director of Mekong Watch. “We strongly condemn that Japan’s public funds have likely fallen into the hands of the Tatmadaw.”

Under the Myanmar Constitution of 2008, which was adopted during the military rule, the Myanmar Ministry of Defense is subordinate to the military and the military is independent of the democratically elected government. According to Article 20 (b) of the Constitution, “the defense service has the right to independently administer and decide all matters of the armed forces”. Pursuant to Article 232 (b) (ii), the Minister of Defense is appointed by the military commander in chief from among the military. Other laws also prevent any review or accountability of Y-Complex lease payments. For example, the Department of Defense is exempt from auditing under Section 39 of the Union Auditor General Law, so the lease payments to the Department of Defense are not subject to government control.

Military incursions, long linked to crimes against humanity in Rakhine state and other serious international crimes in ethnic areas across Myanmar, have increased since the coup. The Aid Organization for Political Prisoners (AAPP) reported that as of July 12, 2021, security forces had killed more than 900 people and authorities arrested, charged or convicted more than 5,200. The military has also stepped up its operations in ethnic minority areas with indiscriminate air and ground strikes that hit schools, villages, places of worship and other civil structures.

“Japanese corporations and the government knew they were dealing with a military that had been responsible for countless atrocities over many years, rather than a civilian-controlled Ministry of Defense,” said Teppei Kasai, Asia program director at Human Rights Watch. “The Japanese government and companies should make it clear that they do not intend to resume commercial projects with the Tatmadaw.”

In a joint submission to the United Nations Working Group on Human Rights and Transnational Corporations and Other Business Enterprises on February 17, 2021, the five groups requested an investigation into whether the Y-Complex project is funding Myanmar’s military. At the time of the joint submission, none of the Japanese companies involved in the Y-Complex project had carried out effective human rights due diligence in accordance with the UN Guiding Principles on Business and Human Rights.

“It is unfortunate that the companies involved in the Y complex have not clarified the status of the project after the attempted coup in Myanmar and the expanding terror campaign of the military,” said Yadanar Maung, spokesman for Justice For Myanmar. “There is no justification for leasing land from the Quartermaster General’s office, the office that buys weapons used by the military to commit war crimes and crimes against humanity. The Japanese government and companies must end their complicity in the atrocities committed by the Myanmar military. “

The UN Guiding Principles state: “States should take additional steps to protect against human rights abuses by commercial enterprises owned or controlled by the state or that receive significant support and services from government agencies.” Shouted May 12, 2021 the UN Working Group on Business and Human Rights and the Special Rapporteur on the Human Rights Situation in Myanmar called on companies “to fulfill their human rights responsibilities and to put pressure on the military junta to stop serious human rights violations”. ; ” and added that companies should act in accordance with the Guiding Principles to “avoid contributing to human rights abuses or complicit in crimes while continuing to operate in Myanmar”.

On October 16, 2020, the Japanese government announced a five-year National Action Plan on Business and Human Rights, stating that it would “help promote and protect the human rights of people who are harmed by business activities “. Business and human rights for society as a whole, including the international community. “

“The Japanese government and business should take human rights seriously and responsibly and proactively follow the commitments and corporate policies set out in the National Action Plan,” said Naoko Watanabe, manager of the Overseas Program Group at Japan International Volunteer Center. “If they don’t, they not only risk funding the Myanmar military, but also further damaging their reputation.”