Italian- Thai Development (ITD)’s scandal in Thailand alarms Dawei communities and raises questions on ITD's credibility

8 มีนาคม 2561

Is the Myanmar government on the side of the ITD or Dawei people?

THE developer of Dawei Special Economic Zone (SEZ) has caused further alarm in Dawei communities as its president was mired in a major scandal in Thailand. Despite the unprecedented media outcry, the case is not expected to affect the SEZ project.

Premchai Karnasuta, president of Italian-Thai Development (ITD), was arrested on February 4 after being caught with guns and animals carcasses in the Thung Yai Naresuan wildlife sanctuary in Kanchanaburi province, Thailand.

Thai media reported that he was charged with nine counts of poaching in the wildlife sanctuary. Forest rangers and police allegedly found remains of a protected black leopard, pheasant and barking deer as well as hunting rifles from his campsite at a prohibited location. He would also face an additional charge for possession of illegal guns after six of the 43 guns seized from his residence in Bangkok were allegedly illegal when the investigation was expanded to his house.

Bangkok Post reported on February 23 that a charge of cruelty to animals against Premchai Karnasuta was withdrawn, but other cases are moving ahead, including a possible new complaint of forest encroachment. The tycoon and three other members of his hunting party turned themselves in to the police on March 2 to acknowledge the charges against them.

ITD is a Bangkok-listed company engaged in the construction business, building large infrastructure projects across ASEAN and beyond. But the scandal involving ITD in Thailand would only cast further doubt on its trustworthiness and capacity to ensure Dawei SEZ is a responsible investment.

Bo Bo, board member of Dawei Development Association (DDA), a civil society organisation in Tanintharyi Region, told The Myanmar Times that the scandal raised doubts over the suitability of ITD to implement the SEZ.

“It is worrying for Dawei people. Premchai, the president of ITD, a key stakeholder of Dawei SEZ, is now facing several charges from the allegations; not only killed endangered species, he also bribed the authorities. ITD’s reputation and credibility have been severely tarnished especially on the environmental concerns. Thai public is now calling the government to boycott his company from granting concession.

“Dawei people have witnessed the bad reputation of ITD’s performance in Dawei SEZ project. Concerns over social and environmental impacts to Dawei people have repeatedly been raised in the past years. So, this case has raised more concerns and worries over ITD’s liabilities to implement the Dawei SEZ,” the DDA board member said.

We're really worried about the practice of Premchai … he's not following the law even in his own country, how he will follow the law in Myanmar? - U Thant Zin, Dawei Development Association

ITD and Dawei SEZ

He argued that the Nay Pyi Taw should take into account the scandal and evaluate how ITD could be entrusted to develop a mega project which could affect the lives of thousands of people.

“Myanmar government must be aware on this and think about blacklisting the companies that have bad reputation. In Myanmar investment rule, rule 64(g), it has mentioned that before issuing a permit, the MIC must also be satisfied that the investor is ‘of good character and business reputation’. In assessing whether the investor is of good character and business reputation, the MIC may consider whether the investor, or any person with an involvement or interest in the investment, has previously broken the law in Myanmar or another country, including any environmental, labour, tax, anti-bribery and corruption or human rights law.”

Bo Bo added that although Dawei is under a separate SEZ legal framework, the government should consider its tarnished reputation before going ahead with the project, such as signing the land lease contract. 

U Thant Zin, DDA director, repeated a similar concern to Australia-based ABC earlier this week.

“We're really worried about the practice of Premchai … he's not following the law even in his own country, how he will follow the law in Myanmar?" he remarked, adding that Nay Pyi Taw  “should put the ITD in the blacklist.”

Pietro Borsano, lecturer at Bangkok’s Shinawatra International University and Mandalay International University, noted that this scandal broke out in the backdrop of an increasing critical perception “towards malpractices and bribing policies” in the country. The case received intense media scrutiny mostly due to the Thai public mood and the willingness of Thai citizens to “get rid of the double standard which they claim has taken places in other cases”. 

But, despite the exceptionally honourable actions of the ranger who arrested the tycoon, “the rest of the story is more Thai alike”. 

“Khun Premchai was released the day after on 150,000 Baht bail by the local court where he had been convicted; further, he has postponed reporting to police until March 5, after getting two summonses. Last Friday, Khun Premchai showed up at the police office to be questioned: the respects that police officers paid to him – obsequiously bowing in front of him - also went viral on Thai social media.” 

The academic expected this case will eventually be solved in a low-key manner. Likewise, The ITD and the Dawei SEZ “will not face any serious business troubles” arising out of the arrest and charges. With the Premchai family members sitting on the board, ITD is expected to be business as usual even if the tycoon leaves the board.

However, the stocks of ITD heavily plunged after this case was reported on the news and they have never recovered since. But this is not expected to affect its involvement in Dawei as long as the Myanmar government is on their side.

Despite the scandals, “Is the ITD able to influence Myanmar officials effectively and push the project ahead? Is the Myanmar government on the side of the ITD?" the lecturer said. That determines the future of the project.

Is the ITD able to influence Myanmar officials effectively and push the project ahead? Is the Myanmar government on the side of the ITD? - Pietro Borsano, Mandalay International University

Mired in scandals

Communities in Tanintharyi have long been sceptical, if not opposed, to Dawei SEZ, which has been mired in scandals. The SEZ has been accused of grave human rights violations including forced evictions, a lack of transparency and environmental disruption as the land lease contract for its initial phase is expected to be signed before April. 

Residents in the project site were evicted by force from their lands and unfairly sidelined in the land acquisition process, according to Dr Charlie Thame from Thammasat University. He said that promises to compensate local farmers have been made and broken in the past, partly due to unclear laws and shortcomings implementing them.

Sean Bain, legal consultant from the International Commission of Jurists (ICJ), stated that no site-wide EIA or public consultation was implemented, which was required by law, and there has been no transparency either.

36 civil society organisations last month demanded the authorities to reconsider the plans to revive the controversial project. They argued that a site-wide environment impact assessment must be carried out and all past problems must be “fully and completely” resolved before the project resumes.

The legality of the Environment Impact Assessments (EIAs) is also questioned while experts say that the project has destroyed farmlands, polluted rivers and is threatening the lands and livelihoods of communities.

In economic terms, the project was perceived by communities as a mega project designed to benefit the few but not the many.

“We demand the government pursue these alternative strategies immediately and with serious intent,” the 36 signatories said. The statement ended by arguing that Dawei society deserves “an open and honest reckoning” over who will benefit if the SEZ project resumes. 

“Who will gain, and who will lose? We maintain grave reservations over who really benefits from dirty industries and resource extraction: a few political, economic, and military elites. ... we call on project proponents to carefully reconsider their plans to resume the Dawei SEZ. Instead, we must all build alternative futures, not just for Dawei society but Myanmar overall,” the organisations concluded.

The SEZ in Tanintharyi Region, which is divided into two phases, is one of the three SEZs in Myanmar -- the other two being Thilawa SEZ in southern Yangon and Kyaukphyu SEZ in Rakhine. 

 

 

(The Myanmar Times: https://www.mmtimes.com/news/itds-scandal-thailand-alarms-dawei-communities.html )