CB Bank spokesperson told ‘Myanmar Now’ that GGS Company Ltd. managing director Thein Htwe who was recently arrested under corruption charges along with the former Tanintharyi Region Chief Minister was a former Vice-Chairman of CB Bank who retired from his post many years back and the case would not have any impact and implications on the bank.
The police arrested and detained former chief minister Dr. Lei Lei Maw, GGS Company MD Thein Htwe, Director Aung Myat and Thura Ohn in connection with this corruption case. ‘The Voice’ news reported that Thein Htwe was arrested in Yangon and then he was detained in judicial custody in Dawei on March 13.
Thein Htwe is facing the case charged with section 55/63 of the Anti-Corruption Law which carries a maximum prison term of 15 years if found guilty. This GGS Company won a contract for the distribution electricity in Dawei District and it was accused of owing over 8 billion kyat to the state for gas procurement from the state.
CB Bank general manager Zeyar Kyaw told Myanmar Now in exclusive interview, “Currently he is not the Vice-Chairman of CB Bank. Our CB Banks has nothing to do with his GGS Company. And also we can say this over 8-billion kyat due is not related with our bank. We don’t have any worries, any problem for this case and our bank is running smoothly and regularly.”
CB Bank GM Zeyar Kyaw added that the bank had tens of thousands of shareholders and directors were usually elected from these shareholders. So Thein Htwe was once elected and appointed as Vice-Chairman of the bank and currently he was a sleeping director of the bank but he did not disclose how many shares are owned by Thein Htwe and the period in which he served as Vice-Chairman of the bank.
According to the documents available to Myanmar Now, Thein Htwe was in CB Bank Vice-Chairman (2) position until February 5, 2017. But his name is not found in the list of current Board of Directors posted on CB Bank website.
“We even don’t know he is the MD of this GGS Company. And also we don’t know GGS was established. Our directors have many companies in their hands. We know only he is selling and trading in cosmetic products. The government agency did not come to us for investigation of this case. And also any other person and institution did not come to us for this case,” CB Bank GM Zeyar Kyaw added.
Anti-Corruption Commission alleged that Thein Htwe’s GGS Company paid the exorbitant price of 200 million kyats for two-storeyed building and plot owned by Dr. Lei Lei Maw’s family and the corruption watchdog alleged that this price was six times of normal market price of this building and land at a mere 32 million kyat.
The commission also alleged that in return of paying exorbitant price for this building and plot, the GGS Company was awarded contracts for building Thayet Chaung fish auction market, building Dawei cane ball stadium, building Palaw City Town Hall, building four four-storeyed apartment buildings with six flats on each floor in Myeik and Dawei, and building Tanintharyi Region guest house and staff quarters in Naypyitaw.
The press statement issued by commission says that agreement for generating and distribution of electricity in Dawei District, Tanintharyi Region was signed on December 12, 2016 and it was signed by secretary of region government as contractee and Thein Htwe signed for GGS as contractor but the company violated the contract regulation and procedures by failing to supervise the implementation of this contract.
GGS failed to pay over 8-billion kyats due to state for procurement of natural gas for electricity generation from July 1, 2017 until the date of investigation by commission on this contract. The Ministry of Electricity and Energy allegedly incurred a great deal of loss as it had to pay money for gas used by the company so that Thein Htwe and Aung Myat from GGS Company infringed the anti-corruption law as they committed bribery.
Former Tanintharyi Region chief minister Dr. Lei Lei Maw was arrested by police in Kawthaung, the southernmost tip of Myanmar, last Sunday under corruption charges.
CB Bank contacted again and clarified that Thein Htwe was not even the sleeping director of the bank at present since he resigned from this post too and he was currently a shareholder of the bank.