The business empire under Shwe Than Lwin has proposed to open a financial institution, Shwe Rural and Urban Development Bank.
In the application for commercial and investment banking license, Shwe Than Lwin said the initial investment capital would be Ks 10 billion, partly financed by the profit earnings from the sale Sky Net TV signal receivers to the public.
In addition to the television profit, the capital outlay will come from business units like Shwe Than Lwin Trading, Shwe Than Lwin Media (Sky Net), Global Telephone and Than Lwin Ayer Gems.
All businesses under the Shwe Than Lwin empire are not listed among the 500 top taxpayers despite lucrative earnings.
The proposal of Ks 10 billion investment differs from past offers in similar deals made by United Amara, Myanmar Apex Bank, Ayeyarwady Bank and AGD Bank. Past deals made Ks 20 billion capital outlay.
If the banking proposal is approved, Kyaw Win, chairperson of Shwe Than Lwin Group, is expected to lead the bank.
Under the Section 66 (E) of the 1990 Financial Institutions Act, the chairperson of a bank has to serve full time and must not do any other business.
The Central Bank has already acknowledged the Shwe Than Lwin’s application for banking licence and forwarded it to the union committee on economic affairs.
The committee chairperson is Union Minister Soe Thein, formerly the chairperson of the Myanmar Investment Commission (MIC).
Shwe Than Lwin has been granted privileges to run some of the country’s restricted businesses. In fact, the group received the permission to distribute beer and cigarette on July 11, 2012 when Soe Thein served as the chairperson of the MIC.
Besides, the group has the concession to lease the Sittaung paper industry with very low cost including the first-year grace period from paying the fee.
The group grabbed the total land area of 1,357 acres in Ywar Ngan Township of southern Shan State and failed to compensate the farmers.
The group’s Sky Net has enjoyed three-year tax exemption according to the agreement with the Ministry of Information. Under the contract, Sky Net is entitled to 96 per cent of the profit and the remaining 4 per cent will be paid to the state.
The television station generates Ks. 80 billion annually from advertisement and monthly fees.
The business empire is responsible for cigarette distribution. Because of this, the country has missed out on the international recognition for curbing cigarette smoke, the Health minister said in Parliament.
Shwe Than Lwin is seen as close to the President Office.
Source: ELEVEN Myanmar