Myanmar2015CountrySummary

RecommendationsMyanmarislocatedinBandF,whichindicatescriticalcorruptionriskinitsnationaldefenceandsecurityestablishments.Nobranchofthestate-thelegislative,executive,orjudicialbranches-mayexerciseoversightoverthemilitary.Article20ofthe2008constitutionstates,“TheDefenceServiceshastherighttoindependentlyadminister...allaffairsofthearmedforces.”Inpractice,Myanmarhastwoparallelpowerstructures:thecivilgovernmentandthemilitary,withthelatteralsohavingsignificantinfluenceintheformer.Thereisacompletelackoftransparencyregardingmilitaryactivitiesandnopublicdisclosureofanykeyinformationondefencespending,strategy,orprocurementplans-precludinganyopportunitiesforcivilianoversightandscrutiny.TIsuggeststhefollowingreformsofthesecuritysectortominimisecorruptionrisk.BuildmechanismsforindependentoversightofcorruptmilitaryactivityInMyanmar,themilitaryhasownershipoftwomajorenterprisesthatdominatetheeconomy-theUnionofMyanmarEconomicHoldingsLimited(UMEHL)andtheMyanmarEconomicCorporation(MEC).Thetransferofcontrolofthesebusinessestookplacequicklyduring2009and2010,andthereisnotransparencyofownership.Furthermore,thereisevidencethatbusinessesarenotonlycloselytiedtosubstantialoff-budgetmilitaryexpendituresbutthattheyinvolveilliciteconomicactivity.Thereisalsoevidenceofmilitaryunitsinvolvedorcomplicitinorganisedcrime,conscriptionofchildsoldiers,andforcedlabour.MilitiassetupunderthesupervisionoftheArmyinareaswhererebelgroupsoperatehavebeenimplicatedinboththetradeandproductionofnarcotics.Thereareallegationsthatcrimesgounpunished,andthemilitaryactswithimpunity.Whilethepresidentestablisheda15memberActionCommitteeAgainstCorruptionin2014,itisnotyetwhollyindependentoreffective.Werecommendareviewofthecurrentlawsregulatingthemilitaryanditscommercialactivitiesandaprohibitionofprivateenterprisebydefenceandsecurityinstitutionsandpersonnel.Theselawsshouldbeoverseenbyarobustandindependentenforcementagency,suchasbystrengtheningandallocatingfurtherresourcestotheOfficeoftheAuditorGeneral,withstrongsanctionsinplaceforoffenderstoensurethatmilitarypersonnelcannotactwithimpunity.EnhanceBudgetaryScrutiny

ItispositivethatadefencebudgetwasprovidedtoParliamentforthefirsttimein2013,thoughthere’sevidencesuggestingMPsappointedtotheBudgetCommitteemayhavebeenencouragednottoraiseissues.ThereisnoinstitutionforexternalauditofdefenceexpendituresinplaceinMyanmar.AnassessmentbytheWorldBankstatesthattheOfficeoftheAuditorGeneral(OAG)ishavingasignificantlypositiveimpactonthemanagementofpublicfinancesinMyanmar.However,itdoesnothavejurisdictionovermilitaryexpenditure.WerecommendthepowersoftheOAGbeextendedtoallowforscrutinyofallmilitaryeconomicactivity,includingassetdisposals,legalandillegalmilitarybusinesses,procurement,defenceexpenditure,anddefencetenderboarddecisionstohelpensurethatthemilitaryisfulfillingitsproperroleandthatthedefencebudgetisspentonarmsandequipmentthatactuallymeetMyanmar’sstrategicneeds.Complywithinternationalanti-corruptioninstrumentsandregionalcooperationMyanmarsignedUNCACin2005,andratifiedinDecember2012.However,therehasbeenlimitedevidenceofcompliancewiththeConvention.InNovember2013,MyanmarjoinedtheASEANMemorandumofunderstandingonCooperationforPreventingandCombatingCorruption.TheMOUpledgesMyanmartoworktogetherwithotherASEANstatestocombatcorruptionthroughinformationsharingandcapacitybuilding.AswithUNCAC,however,thereneedstobefurtherevidenceofpoliticalwillandactivityonthepartoftheMyanmarauthoritiestoshowcompliancewiththeseinstruments.

Scorecard

Political Defence&SecurityPolicy LegislativeScrutiny 0DefenceCommittee 1

DefencePolicyDebated 0CSOEngagement 0

InternationalACInstruments 2PublicDebate 1ACPolicy 0

ACInstitutions 1PublicTrust 0

RiskAssessments 0Defencebudgets AcquisitionPlanning 1

BudgetTransparency&Detail 0BudgetScrutiny 1

BudgetPubliclyAvailable 0DefenceIncome 0InternalAudit 0ExternalAudit 0

OtherPoliticalAreas NaturalResources 0OrganisedCrimeLinks 0

OrganisedCrimePolicing 0IntelligenceServicesOversight 0

IntelligenceServicesRecruitment 0ExportControls 0

Finance AssetDisposals AssetDisposalControls 1AssetDisposalScrutiny 0

SecretBudgets PercentageSecretSpending 0LegislativeAccesstoInformation 0

SecretProgramAuditing 0Off-budgetSpendinginLaw 0

Off-budgetSpendinginPractice 0InformationClassification 0

LinkstoBusiness Mil.OwnedBusinessesExist 1Mil.OwnedBusinessScrutiny 1

UnauthorisedPrivateEnterprise 0Personnel Leadership PublicCommitment 0

MeasuresforCorruptPersonnel 1Whistleblowing 0

SpecialAttentiontoSensitivePersonnel 1PayrollandRecruitment NumbersofPersonnelKnown 0

PayRatesOpenlyPublished 1Well-establishedPaymentSystem 0

ObjectiveAppointments 1ObjectivePromotions 1

Conscription BriberytoAvoidCompulsoryConscription

0

BriberyforPreferredPostings 0SalaryChain GhostSoldiers 0

ChainsofCommandandPayment 0

Values,Standards,Other CodeofConductCoverage 0CodeofConductBreachesAddressed 0

ACTraining 0ProsecutionOutcomesTransparent 0

FacilitationPayments 0Operations ControlsintheField MilitaryDoctrine 0

OperationalTraining 0ACMonitoring 1

ControlsonContracting 1PrivateMilitaryContractors 0

Procurement GovernmentPolicy Legislation 0TransparentProcurementCycle 0

OversightMechanisms 0PurchasesDisclosed 0

StandardsExpectedofCompanies 0CapabilityGap StrategyDrivesRequirements 0

RequirementsQuantified 0Tendering OpenCompetitionv.Single-Sourcing 0

TenderBoardControls 0Anti-CollusionControls 0

ContractDelivery/Support

ProcurementStaffTraining 0ComplaintMechanismsforFirms 1

SanctionsforCorruption 0Offsets DueDiligence 0

Transparency 0CompetitionRegulation 0

Other ControlsofAgents 0TransparencyofFinancingPackages 0

Subsidiaries/Sub-Contractors 0PoliticalInfluence 0