Crony companies get 60-year lease of Myakyunthar Park without MIC approval

Yangon—The lease of Myakyunthar Park to eight private companies has been allowed, even without the approval of the Myanmar Investment Commission (MIC), according to a report submitted by the Auditor General of Yangon Region at a special meeting of the regional parliament on November 30.

The Yangon City Development Committee (YCDC) leased a land plot inside Myakyunthar Park to eight private companies: Max Myanmar, Eden, Inya Palace, Magic Land, Nay La Pwint Services, MGS Resort and Entertainment, Good Shan Brothers and Rya Ji. YCDC did not call for an open tender for the lease, according to the report.

Companies such as Magic Land, Nay La Pwint Services, MGS Resort and Entertainment, Good Shan Brothers and Rya Ji were transferred from the Yangon Command under the Ministry of Defense to YCDC in 2010, and YCDC has notified the auditor general about their businesses, which are still ongoing, the report said.

YCDC submitted the lease of the Myakyunthar Park to the private companies at a special meeting of the regional government on March 7, 2010, and the government approved it. However the lease was not submitted to the MIC, the report said.

Among the eight companies doing business in Myakyunthar Park, only five companies – Nay La Pwint Services, MGS Resort and Entertainment, Good Shan Brothers and Rya Ji – are carrying out construction work there. Three of the five companies submitted proposals to the regional government, and only one company has its project approved. The other two companies have been asked to submit more details and to pay money to the government.

The report said MGS Resort and Entertainment and Eden have not submitted proposals to the Building Department under the YCDC to construct buildings in the park.

YCDC instructed the companies to suspend construction while investigations are carried out. The report said officials from the Gardens and Sports Grounds Department must determine whether the companies are following the procedures stated in the lease or not.

The report said the companies pay Ks 12 million per acre annually for the 60-year lease, which lasts from April 1, 2013, to March 31, 2073. Although the companies have agreed to increase the rent not more than ten per cent of the current rate every year, they did not pay a ten per cent increase in the 2014-15 or 2015-16 fiscal years, the report said.

The department said the buildings constructed by the eight companies are within the premises of the park, not in Inya Lake, according to the report.

Source: Eleven Myanmar

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