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President Xis relatives were implicated too, with his brother-in-law supposedly owning
a major stake in a British Virgin Islands-based firm. PHOTO: REUTERS

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COMPREHENSIVE TEXT AND REFERENCE


FOR DEMOCRACY LEADERS IN MYANMAR
THIS BOOK IS DEDICATED TO

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WE WILL BRING DICTATORS TO JUSTICE



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BURMA: BATTLE FOR DEMOCRACY

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( )
EDITOR THAKHIN VACAKA ( RIT )

POLARIS BURMESE LIBRARY


2013
A5 SIZE
Index: Polaris Burmese Library, LPK Library, Daw Aung San Suu Kyi, Senior General Than
Shwe,Senior General Minn Aung Hlaing, Myanmar Current History, Myanmar Politics,
Myanmar Junta, Myanmar People, Myanmar Students, Insein Prison, Prison in Myanmar,
Political Prisoners in Myanmar, Torture in Myanmar, Myanmar Army, Myanmar Affairs,
Burma Affairs, Democracy and Human Rights in Burma, Burmese Refugees, AntiDictatorship In Myanmar, Dictator Senior General Than Shwe, Anti-Dictator, President U
Thein Sein, China Myanmar Relations, India Myanmar Relation, Thailand Myanmar
Relations, Bangladesh Myanmar Relations, Japan Myanmar Relations, USA Myanmar
Relations, UWSA, KIO, KIA, KNU, RCSS, SSA, Wa, Kachin, Shan, Karen, Jade, Ruby,
Teak, Rangoon, Yangon, Mandalay, Naypyidaw, Rangoon Institute of Technology, RIT,
Yangon Institute of Technology.

Public Enemies

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YANGON UNIVERSITY STUDENTS UNION BUILDING


( ) (

MYANMAR DEMOCRACY MONUMENT

NATIONAL RECONCILIATION AND PEACE TREATY


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PUBLIC ENEMIES OF MYANMAR


KIO/KIA

KACHIN STATE AND KIO/KIA


KIO/KIA

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MYANMAR FOREIGN POLICY 1948 2010

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DEMOCRACY CHECKLIST

()
()

()

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DECEMBER 5, 2013.

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(Crime Against Next Generation)



Crime Against Next Generation





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Crime Against Next Generation





Crime Against Next Generation








()

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D 5 Deny () Delay
( ) Deceive () Disrupt (
) Destroy ()
NLD

( )
institutions
globalization

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..

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The Calm ( ) The Dignity (


) The ability ( ) The Grace (

) The Order ( ) The


Sacrifices ( ) The Kindness
() The Conscience (

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()

()








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The Straits Times

www.straitstimes.com

Published on Jan 23, 2014

Relatives of China's elite 'hiding wealth offshore'


Foreign Ministry dismisses allegations by watchdog group in Washington

President Xis relatives were implicated too, with his brother-in-law supposedly owning a
major stake in a British Virgin Islands-based firm. PHOTO: REUTERS
HONG KONG - Relatives of top Chinese leaders, including President Xi Jinping and

former premier Wen Jiabao, have used offshore tax havens to hide their wealth,
according to a mammoth investigation.The International Consortium of Investigative
Journalists (ICIJ), citing information culled from 2.5 million leaked documents, said
yesterday that Mr Xi's brother-in-law and Mr Wen's son and son-in-law were among

those with offshore holdings.It is the latest revelation to shine a light on the hidden
wealth of family members of China's top officials, a topic considered off limits by

Communist Party leaders.Offshore entities can be legal and there was no evidence
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that the politicians were aware of their relatives' actions.Chinese Foreign Ministry
spokesman Qin Gang told reporters at a regular briefing that "the logic of the article

is unconvincing, which cannot but raise questions of ulterior motives". Asked if the
government planned to follow up on the report, Mr Qin responded: "What I want to

point out is, the clean will be proved clean and the dirty will be proved
dirty."Yesterday's release came on the same day that China put leading activist Xu
Zhiyong on trial for his part in protests calling for officials to disclose their assets.

According to the ICIJ investigation, family members of Mr Wen Chinas former premier
are among those with offshore holdings. -- PHOTO: BLOOMBERG
The report also came days after Mr Wen reportedly penned a letter to Hong Kong

columnist Ng Hong Mun, proclaiming his "innocence" over previous claims that his
family amassed huge wealth during his decade in power.
The ICIJ cited nearly 22,000 offshore clients from mainland China and Hong Kong,
including relatives of former president Hu Jintao, former premier Li Peng and late

leader Deng Xiaoping, the man credited with opening up China's economy in the
1980s.
Also included were members of China's National People's Congress, heads of stateowned enterprises and some of the country's wealthiest men and women, including
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real estate mogul Zhang Xin; Mr Pony Ma and Mr Zhang Zhidong, co-founders of
Chinese Internet giant Tencent; and China's richest woman Yang Huiyan.
The ICIJ said that it sent letters to the government officials, wealthy individuals and
others named in its report.

"Their response in most cases was to not respond, a standard practice in China," it
said.

The ICIJ said it collaborated with more than 50 partner organisations across the
globe in sifting through the data, including The Guardian, Le Monde in France, El
Pais in Spain and Hong Kong's Ming Pao newspaper.
The websites of all four were not accessible within China yesterday, and nor was the
ICIJ's.

Censors appear to be working hard to prevent the topic from being discussed on
Sina Weibo, China's popular Twitter-like microblogging service, which is already

subject to heavy censorship. Searches for sensitive words like "offshore" and

"princeling" - the term for the children of senior leaders - caused the page to go
blank.
The investigation said 90 per cent of the mainland Chinese clients set up offshore
entities in the British Virgin Islands, often with the help of Western firms like UBS
and PricewaterhouseCoopers.

The British Virgin Islands was the destination of choice for President Xi's brother-inlaw Deng Jiagui, a wealthy real estate developer and investor who married Mr Xi's

older sister in 1996. According to the report, Mr Deng Jiagui owns a 50 per cent
stake in a British Virgin Islands-based company named Excellence Effort Property
Development.
While such offshore trusts and companies "may not be strictly illegal", they are often
linked to "conflict of interest and covert use of government power", political science
professor Minxin Pei, at Claremont McKenna College in California, told the ICIJ.

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In 2012, The New York Times and Bloomberg news agency published investigations
into the vast wealth said to have been amassed by family members of Mr Wen and
Mr Xi.

Last November, The New York Times found that US bank JPMorgan hired a daughter
of Mr Wen as a consultant, part of a broader strategy that the newspaper said was
aimed at accumulating influence in China by employing relatives of the nation's
leaders.

According to the Times report, JPMorgan paid a total of US$1.8 million (S$2.3
million) to Fullmark Consultants, a firm set up by Mr Wen's daughter Wen Ruchun,
who also goes by the alias "Lily Chang".

The files leaked to the ICIJ purported to show that Fullmark Consultants was set up
in the British Virgin Islands in 2004 by Ms Wen's husband, Mr Liu Chunhang, who
was its sole director and shareholder until 2006.
Ming Pao headlined its story on the ICIJ revelations on Mr Wen but omitted any
reference to President Xi.
AGENCE FRANCE-PRESSE, REUTERS

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Report Says Chinas Elite Use Offshore Companies


By ANDREW JACOBS and DAVID BARBOZAJAN. 22, 2014 http://www.nytimes.com
BEIJING Members of the Chinese elite, including some of the countrys most

politically connected figures, have set up a large number of offshore companies that
allow them to conceal billions of dollars abroad, according to a report released

Wednesday by the International Consortium of Investigative Journalists, a


Washington-based group that works with a number of news organizations around

the world.The reports authors say it is based on leaked documents concerning tens
of thousands of tax-haven clients. The report names more than a dozen of Chinas
wealthiest citizens, as well as relatives of top officials, including those of the
countrys president, Xi Jinping; the former prime minister Wen Jiabao; and

descendants of the governing Communist Partys revolutionary founders.The report


was released at an awkward time for Mr. Xi, who has made cracking down on

corruption and reining in officials displays of wealth among his top priorities since
taking charge of the Communist Party in 2012. The combination of wealth and

power illustrated in the report could become a political liability for the government at
a time when the Chinese public is showing increasing concern about official privilege.

Launch media viewer

Li Xiaolin, the daughter of a former Chinese prime minister, was named in a report.
Bobby Yip/Reuters

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During a regular news briefing, a Foreign Ministry spokesman who was asked about
the report dismissed it as hardly convincing and suggested that those who had
leaked the documents had ulterior motives. Censors blocked access to the

consortiums online report in much of China on Wednesday, and the Chinese news
media made no mention of it.

Offshore bank accounts, trusts and shell companies are not in and of themselves
illegal. The Chinese government allows Chinese investors and executives to hold

stakes in domestic companies like the Internet giants Baidu and Tencent through

offshore investment vehicles. And foreign banks and private equity firms have often
encouraged Chinese investors to hold some assets offshore, especially stakes in
companies that plan to list their shares in Hong Kong or New York.

It was us, the foreigners, that imposed this, Rocky T. Lee, the head of Greater
China corporate practice for the law firm Cadwalader, Wickersham & Taft, told the

consortium about the practice. It had to do with the foreign investors general
discomfort with Chinese rules and regulations.

But offshore companies can also be used to launder money, avoid taxes and hide an
individuals stake in a company.

Chinas widening wealth gap has thrown into stark relief the windfalls enjoyed by the
countrys well-connected elite, especially the relatives of people in powerful posts.
The potential for embarrassment is likely to grow as the consortium releases more
data and analysts tease apart the strands of previously opaque financial
arrangements. The consortium said it would publish a database of tax-haven
documents on Thursday.

The Chinese government does not require its officials to disclose their financial
assets publicly.

The thousands of names disclosed in the report include more than a dozen scions of
Chinas so-called red nobility, the hallowed revolutionary figures who played pivotal

roles in establishing the Peoples Republic. Those named include Deng Jiagui, a
wealthy businessman who is the brother-in-law of Mr. Xi, and Li Xiaolin, the
daughter of the former prime minister Li Peng. Others cited in the report include Wu
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Jianchang, the son-in-law of Deng Xiaoping, the reformist leader who ushered in
Chinas embrace of market economics.
Also included are the son, the daughter and the son-in-law of Mr. Wen, the recently

retired prime minister, whose familys immense wealth was the subject of a series of
articles in The New York Times in 2012. The Times investigation found that relatives
of Mr. Wen held at least $2.7 billion in assets, often through hidden stakes in
Chinese financial, telecommunication and jewelry companies.

The records released by the consortium on Wednesday show, for instance, that in
2004 Mr. Wens family registered Fullmark Consultants, a British Virgin Islands

company. Last year, J. P. Morgan turned over documents to federal investigators in


the United States showing that between 2006 and 2008, the bank paid $1.8 million
in consulting fees to Fullmark for work done by Mr. Wens only daughter, Wen
Ruchun, who worked for J. P. Morgan under the name Lily Chang.

In its report, the consortium said Fullmark was controlled by Liu Chunhang, Wen
Ruchuns husband. In 2006, according to the report, he became a government
official at the China Banking Regulatory Commission and transferred his stake in
Fullmark to Zhang Yuhong, a longtime Wen family friend and business partner.
The Wen family could not be reached for comment on Wednesday.
Other records released by the consortium revealed that Mr. Xis brother-in-law was a

half-owner of Excellence Effort Property Development, a British Virgin Islands


company. The records say the other half is owned by another company based there,

which in turn belongs to Li Wa and Li Xiaoping; the consortium described them as


property tycoons who made news in July by winning a $2 billion bid to purchase
commercial real estate in Shenzhen.
The report was released hours before the opening of a trial in which Xu Zhiyong, a
legal scholar, is accused of assembling a crowd to disrupt order in a public place.
Mr. Xu is one of several activists who have called for the public disclosure of officials
assets. Several other members of their group, the New Citizens Movement, are

expected to stand trial in the coming days in what is widely seen as an effort by the
government to shut down their grass-roots anticorruption campaign.
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The report says that PricewaterhouseCoopers, UBS and other Western banks and
accounting firms act as middlemen to help Chinese clients set up trusts and
companies in Samoa, the British Virgin Islands and other offshore centers sometimes
associated with hidden wealth; for instance, the giant Swiss financial company Credit

Suisse helped Mr. Wens son, who is also known by the name Winston Wen, create a
company in the British Virgin Islands while his father was prime minister.
The files that undergird the report, part of a cache of 2.5 million documents leaked
to the consortium, originated with two offshore firms that help clients create
offshore companies, trusts and bank accounts: Portcullis TrustNet, based in
Singapore, and Commonwealth Trust, based in the British Virgin Islands.
The consortium said that more than 50 reporting partners in Europe, North America,
Asia and elsewhere had been involved in helping it sift through the cache of
documents.

The consortium is a project of the Center for Public Integrity, which links journalists
around the world for investigative reporting projects. Working with news media
organizations including The Times, it has already published reports based on the

leaked documents that identified a range of prominent figures in other countries who
have benefited from overseas accounts. Those include a former budget minister in
France, a daughter of the former Philippine dictator Ferdinand E. Marcos and the
family of Azerbaijans leader.
Files on people from China, Hong Kong and Taiwan more than 37,000 names
formed the largest portion of the collection of tax-haven documents, the consortium
said. A reporting team spent six months looking through those files. A mainland

Chinese news organization that originally participated in the reporting was forced to

withdraw from the project after government warnings, the consortium said. It did
not name the news organization to protect journalists from government retaliation.
The Guardian, a British newspaper, said its website was partially blocked in China on
Wednesday after it published a report based on some of the leaked tax-haven
documents.

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China's Elite Hide Wealth Offshore

FILE - 100 Yuan notes are seen in this illustration picture in Beijing.
VOA News

January 22, 2014


BEIJING Relatives of Chinas top leaders, including president Xi Jinping and

former premier Wen Jiabao, as well as members of the countrys business elite have
been helped by Western banks to hide their wealth in tax havens according to a
team of investigative journalists.The report, by the International Consortium of

Investigative Journalists (ICIJ), is the latest probe into the wealth of some of China's
most powerful individuals, including so-called princelings, those tied by blood or
marriage to China's revolutionary leaders.
Journalists focused on leaked documents

The journalists spent months combing through some 2.5 million leaked documents
before publishing their findings Wednesday.The news comes as one of the country's
most vocal proponents of financial transparency within China's politics faces trial on
charges relating to his advocacy for government officials to disclose their assets.
Banks leaked documents
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The confidential documents were leaked by two banks based in Singapore and the

British Virgin Islands. The ICIJ has published the results of their investigations since
April, but this is the first time the group disclosed details on the nearly 22,000

offshore clients with addresses in China and Hong Kong.As the country has moved
from an insular communist system to a socialist/capitalist hybrid, China has become

a leading market for offshore havens that peddle secrecy, tax shelters and
streamlined international deal making, the report read.Incorporating companies
offshore is not illegal in China, where the tax system has loopholes that allow

companies to sell their products through subsidiaries located abroad and report
lower profits inside China.
Chinese public sensitive to corruption
But the convergence of extreme wealth and connections with political power remains
a sensitive topic in China, where people are easily incensed by the visible marks of
officials' corruption.Jean-Pierre Cabestan, a political scientist at Hong Kong Baptist
University says wealthy Chinese, especially those with blood links to China's political

elite, might choose to incorporate companies abroad for tax reasons as well as
political ones.They do not want the money in the same basket, they want to put the

money in a safe place for their old days, or if anything happens. He said, it shows
that they do not fully trust the system and the future of the current political system.
High Officials in China allegedly involved in offshore companies
Among the ICIJ's findings are details about offshore companies set up by relatives of
at least five current or former members of the Politburo Standing Committee, China's
highest decision making body.On the list is President Xi Jinping's brother-in-law,

Deng Jiagui whose family's wealth was exposed by a Bloomberg's article in


2012.According to the ICIJ, Deng, who made a fortune in real estate and electronics,

owns 50 percent of a company called Excellence Effort Property Development


located in the British Virgin Islands.The ICIJ also connected records of a number of

British Virgin Island companies to the son, daughter and a family friend of former
premier Wen Jiabao.It is not the first time that Wen's family has come under
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scrutiny for its secretive wealth.In 2012, The New York Times reported that while
Wen was in power, his relatives accumulated billions of dollars in hidden assets.

Before the ICIJ published its findings, Hong Kong media reported that Grandfather
Wen, as the ex premier is affectionately called in China, defended himself in a
December letter to a Hong Kong newspaper columnist.Wen wrote that he had never
been involved in any deal abusing his power for personal gain because no such

gains whatsoever could shake his conviction.Some Hong Kong media have reported
that Wen himself might be under investigation in the mainland.
Chinese leaders aware of public discontent
Aware of the popular discontent against mounting corruption, politicians in China
have promised to deliver a clean government by cracking down on all levels of graft.
In the past year, an increasing number of high ranking officials have been put under

investigation, but authorities remain wary of media reports that disclose the finances
of senior politicians and their families.According to the ICIJ, a mainland Chinese
news outlet working in partnership with the ICIJ on the bank documents

discontinued the investigation after warning from authorities not to publish any of
the leaked material.The ICIJ website, which carried a translation of the report in
Mandarin, was blocked in the mainland shortly after the report went online and
searches for the document on China's microblog services were also censored.
News about off shore wealth always gets out
Cabestan said that even though reports on the wealth of well-connected families are
blocked in China, news always trickles in. In the long term, he says, that might

generate more popular resentment against the privileged.But whether they [people
in China] are in a position to change and put pressure on their leaders and change

the system is another story. We have to be careful there because the political
system is pretty strong, he said.The ICIJ said it will continue to publish stories in
the next few days, and it will provide a list of names connected with offshore
accounts on Thursday.

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Report: Top China Leaders' Families Concealing


Riches Overseas

FILE - Li Xiaolin, the daughter of former Chinese Premier Li Peng, attends a news

conference. Li is one of the family members of former and current leaders listed in
the report.
VOA News
January 22, 2014
An investigation by a U.S.-based journalism group suggests the close relatives of
China's top leaders, including President Xi Jinping, have set up offshore companies
to hide their massive wealth.The report, released Wednesday by the International

Consortium of Investigative Journalists, was based on information from 2.5 million

leaked documents showing the identities of the owners of overseas businesses and
trusts.President Xi's brother-in-law and former Premier Wen Jiabao's son were
among those named. Close relatives of ex-President Hu Jintao, former Premier Li
Peng and late leader Deng Xiaoping were also mentioned as having overseas

holdings.The New York Times and Bloomberg in 2012 published reports claiming
that the families of Xi and Wen had accumulated massive fortunes. Beijing promptly
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blocked the news outlets' websites in China in response.On Wednesday, Chinese


authorities blocked access to the ICIJ website. There has been no other official

response to the report.The ICIJ report cautioned that there was no evidence of
wrongdoing by Chinese leaders, and stressed that many may have not known about
the financial activities of their families.Nonetheless, such reports are a potential

embarrassment to the Communist Party, which is in the midst of a highly publicized


crackdown on rampant corruption within its ranks. Beijing fears widespread public

frustration over the hidden, glamorous lives of Chinese leaders could spill over into
social unrest.Though no financial details were given in the ICIJ report, the
investigation found that 90 percent of the mainland Chinese clients named set up

offshore entities in the British Virgin Islands, some with the help of Western
companies.

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Top Chinese Military Official Accused of


Amassing Illegal Wealth

FILE - A golden bust of the late Chairman Mao Zedong.


VOA News
January 17, 2014
Chinese media are reporting on a rare publicized case of corruption in the army
leadership. A Chinese general in charge of army logistics allegedly abused his power
to amass dozens of homes, gold statues and expensive wine.The excesses of
Lieutenant General Gu Junshan were uncovered by Caixin, a prominent magazine

famous for its investigative reporting and extensive coverage of China's corruption
scandals.The magazine reported that Gu's home in Puyang, a grey courtyard

compound modeled after the Forbidden City in Beijing, was raided over a year ago.
Police filled four trucks with Gu's expensive possessions, including a golden boat, a

golden basin and a golden statue of Mao.Residents of the village told Caixin that
investigators spent two days seizing property from the residence, known in the

village as the General's Mansion, but would only load trucks at night to avoid
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creating dissatisfaction among the villagers.According to the expose', Gu's brother


lived in a house next door, and the two properties were connected through a 30meter-long

basement

packed

with

crates

of

expensive

Chinese

wine.

Chinese leaders have publicized their ongoing anti-graft efforts as a serious step at
stemming corruption and have said they will intensify the campaign in 2014.
But the details of Gu's wealth show that corruption in China can stretch beyond

people's imagination, says Beijing University anti-corruption professor He Bing.


He said the timing of the report in the first few weeks of the new year sends a

powerful message.The anti-graft effort has no forbidden spots, he said, A new


year has started with Xi Jinping's pronouncements against corruption, and this report

is a symbolic sign of that resolution.Chinese leaders devoted numerous speeches


and resources to fighting corruption last year. According to the country's top anti-

graft body, such efforts were effective and led to the investigation and punishment
of more than 182,000 party officials in 2013 for various extents of abuse of power.
According to Caixin, Gu took advantage of his position as the manager of military

real estate deals and building projects to benefit himself and other members of his

family.Dozens of apartments Gu owned in central Beijing were destined to be given


out as gifts, Caixin reported.Gu's alleged illegal wealth touches an especially
sensitive nerve, given that he had made a career within the prestigious People's

Liberation Army.On Friday, the Communist Party-controlled Global Times said in an


editorial that Gu Junshan should be severely investigated.The circumstances of the

investigation should be disclosed and clarified to the public and the media, the
editorial read, Government corruption is an illness, but corruption within the armed

forces is a danger.So far, Gu has not been officially indicted, but rumors abound.
As early as 2012, his name was removed from the website of the Ministry of
Defense. In January 2013 came the house search detailed in Caixin's report, and a

few months later a professor at the PLA National Defence University told state media

that Gu was involved in a corruption case.The lack of an official statement by the


party's disciplinary commission, which usually notifies the media after cadres are put

under investigation, has led some to believe that Gu's case might go beyond his
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or corrupt official, wrote blogger Zhou Pengan. Even if they are pursuing bigger
cases, the anti-corruption body should not let a case drag on so long without
resolution.He Bing said that it is unclear why it's taking so long for authorities to

announce the investigation, but he adds that with the media attention around the
scandal it should not take long before Gu is officially indicted.The anti-graft effort

has no forbidden spots. A new year has started with Xi Jinping's pronouncements

against corruption, and this report is a symbolic sign of that resolution, He Bing
stated.

23 January 2014 Last updated at 13:55


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Report reveals offshore dealings of China's elite


By Celia Hatton BBC News, Beijing

A non-profit organisation estimates that more than $1tn in illicit funds flowed out of
China from 2002-2011

A trove of leaked financial documents 160 times bigger than the famous Wikileaks
classified cables has now revealed the secret offshore banking dealings of thousands

of well-connected people in China, Hong Kong and Taiwan. Reporters from several

different news organisations, working together under the International Consortium


of Investigative Journalists (ICIJ), reportedly spent months combing through a cache
of 2.5 million electronic files to uncover hidden offshore accounts held by Chinese
citizens. The BBC was not involved in the compilation of the ICIJ report and has not

been able to independently verify its contents.The report's authors say they have
found evidence of the secret business dealings of some of China's richest and most
powerful people, including China's richest woman, Yang Huiyan, and the brother-inlaw of China's President, Xi Jinping.

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The ICIJ report has not been mentioned in state media reports and has been
censored on Weibo

Strictly speaking, it is not illegal for a Chinese citizen to set up a company in an


offshore tax haven, like the Cayman Islands or the British Virgin Islands. In order to

circumvent Chinese regulations making it difficult to list on a foreign stock exchange,


Chinese entities often set up offshore parent companies in such locations.
'Legitimate or illegitimate'
"What I think they've documented in this report is the extensive use of offshore tax
haven companies by individuals, including many who are connected with the
government at fairly high levels," explains Paul Gillis, professor of accounting at

Peking University. "What it doesn't tell us is what these companies were actually
being used for and whether those purposes were legitimate or illegitimate." So are
the people named in the leaked documents guilty of anything? "I think the real
concern is if these entities were used to take money that was obtained in illegitimate

ways and to hide it outside of China, outside of the jurisdiction of Chinese regulators
who might get it, and in ways that evade China's foreign currency laws and its tax

laws," he said.China has long struggled with illegal overseas transfers of capital.
According to Global Financial Integrity, a Washington-based non-profit organisation,

more than $1tn (602bn) in illicit funds flowed out of China between 2002 and 2011.
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That money often comes from criminal activity, tax evasion or state corruption.
However, the ICIJ report received scant public reaction from the Chinese
government."I don't know the details, but as a reader, I think the logic in the article
is unconvincing, which raises suspicions on its intentions," foreign ministry
spokesman Qin Gang told reporters on Wednesday.'We can read it' News of the ICIJ

report has been censored from Weibo, China's version of Twitter. The story was also
not mentioned in China's state media outlets, though some in China still managed to

uncover the news. "I read it on social media like Weixin and other microblogs. A lot
of people transferred those articles and the text of the report itself. We can read it,"

explains economist Xia Yeliang. An outspoken critic of Communist Party rule, Mr Xia
was fired from his teaching position at Peking University last year on the grounds of
poor job performance evaluations.

The report mentions a relative of Chinese President Xi Jinping


Angry Chinese citizens accuse those involved in offshore banking of offloading the
state's assets, Dr Xia said. "The high-ranking officials tried to transfer their capital to

foreign countries and foreign markets, so they're trying to take what we have

produced and transfer it to foreign countries.""China has adequate laws to regulate


this area. It really comes down to enforcement. Likewise, the United States had

adequate laws on foreign bank accounts too, but it was unable to enforce them until
it was able to force the Swiss banks to disclose who was actually using those
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accounts," Paul Gillis said. New information on those who appear to be involved in
offshore banking will soon be released. The ICIJ will soon publish an online list of
37,000 people from China, Hong Kong and Taiwan whose names appear on the

leaked documents. "If the tax bureau does what I expect they'll do, they'll take that

list and they'll start asking questions," Paul Gillis predicts. "Why do you have a BVI
company? What's in it? Why didn't you report it when you set it up?"

Ways to convert Chinese yuan

Celia Hatton BBC News, Beijing


According to Chinese law, individuals can exchange just $50,000 (30,000) worth of Chinese
yuan a year into another currency. However, wealthy people in China have developed a
variety of techniques to skirt those laws, explains Paul Gillis, professor of economics at
Peking University.
One of the favourite techniques, Dr Gillis says, is to pass the money to a junket operator who
travels to the casinos in Macau, an autonomous region south of China.
"When that person gets to Macau, they're given a stack of gambling chips that are not
exchangeable for cash, they have to be gambled. So they get a big tray of chips and they sit
down in a private room. They tend to play Baccarat and they play until they have gambled all
of their chips, and hopefully not lost more than 1-2%. And every time they win, they get back
chips that are redeemable, that can be cashed in. Once they return all their non-redeemable
into redeemable chips, then they go down to the window and they withdraw Hong Kong
dollars," he says.
One technique to exchange smaller amounts of cash also involves a trip to Macau, Dr Gillis
says.
"One of the other favourite techniques is to go a jewellery store in Macau, and buy something
really expensive using a Chinese credit card. Then you turn around as soon as you buy it and
you get a refund in cash."
But one of the most popular methods involves finding a foreign contact who would like to set
up a private exchange for Chinese yuan.
"The overseas person puts their dollars into an account in Hong Kong of the Chinese
individual," explains Dr Gillis. "The Chinese individual in China puts the Chinese yuan in an
account in Beijing that is connected with the overseas investor who wants the money in
China. There's been a lot of foreign investment in China and I think a lot of money has come
in through this mechanism."
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January 22, 2014, 1:14 am

Report Details Overseas Accounts of


Chinese Elite

By THE NEW YORK TIMES

Jason Lee/Reuters Relatives of senior Chinese officials, including President Xi Jinping,


above, are among those whose overseas holdings are listed in a new report.
Chinese elites have set up extensive offshore companies that allow them to conceal
funds abroad, according to a new report from the International Consortium of
Investigative Journalists. The report, which is based on leaked documents covering
thousands of tax haven clients, lists more than a dozen of Chinas wealthiest people

as well as relatives of top officials, including the Chinese leader Xi Jinping, and
descendants of Communist Party red nobility.
Mr. Xi has made cracking down on corruption and reining in officials displays of
wealth among his top priorities since taking charge of Chinas ruling Communist
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Party in 2012. The ICIJ report further exposes the financial success enjoyed by some
family members of Chinese leaders and argues that the combination of wealth and
power is a liability for the government at a time when the Chinese public is
increasingly concerned about official privilege.
Minxin Pei, an expert on Chinese politics at Claremont McKenna College, told the
ICIJ that while such overseas wealth is not necessarily illegal, it is often tied to
conflict of interest and covert use of government power. The report notes that
such overseas companies can have legitimate business purposes and that their
development

was

encouraged

by

foreign

investors

in

China.

The report was released hours before the start of a trial for Xu Zhiyong, a legal
scholar accused of assembling a crowd to disrupt order in a public place. He is one
of several other activists who have called for public disclosure of officials assets. At
least eight of them are going on trial this week in what is widely seen as an effort to

shut down their independent anticorruption campaign, known as the New Citizens
Movement.

Among the names listed in the leaked documents is Deng Jiagui, the husband of Mr.
Xis older sister and a wealthy businessman. Records show that Mr. Deng is a half

owner of a British Virgin Islands company, Excellence Effort Property Development,

according to ICIJ. The other half is owned by yet another BVI company belonging
to Li Wa and Li Xiaoping, property tycoons who made news in July by winning a $2
billion bid to purchase commercial real estate in Shenzhen, ICIJ reported.
The report said:
PricewaterhouseCoopers, UBS and other Western banks and accounting firms play a

key role as middlemen in helping Chinese clients set up trusts and companies in the
British Virgin Islands, Samoa and other offshore centers usually associated with
hidden wealth, the records show. For instance, Swiss financial giant Credit Suisse
helped [former Prime Minister] Wen Jiabaos son create his BVI company while his
father was leading the country.
The files come from two offshore firms Singapore-based Portcullis TrustNet and
BVI-based Commonwealth Trust Limited that help clients create offshore
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companies, trusts and bank accounts. They are part of a cache of 2.5 million leaked
files that ICIJ has sifted through with help from more than 50 reporting partners in
Europe, North America, Asia and other regions.

The ICIJ is a project of the Washington-based Center for Public Integrity, which links
journalists across the globe on investigative reporting projects. Working with media
organizations including The New York Times, it has published reports based on the
leaked documents that identified a range of prominent figures who have benefited

from overseas accounts. Those include a former budget minister in France, a

daughter of the former Philippine dictator Ferdinand Marcos and Azerbaijans ruling
family.
Files on China, Hong Kong and Taiwan formed the biggest portion of the collection
of 2.5 million leaked documents, ICIJ said, and a reporting team spent six months

looking through those files. A mainland Chinese news organization that originally
participated in the reporting was forced to withdraw from the project after

government warnings, the ICIJ said. It did not name the news organization to
protect journalists from government retaliation.
In a sign of the sensitivity with which such reporting is handled in China, the
Guardian newspaper said its website was partially blocked in China on Wednesday

after it ran a report based on leaked tax haven documents shared by the ICIJ. And
the ICIJ said on Twitter that its website is now blocked in many parts of China.
The ICIJ said that more than 37,000 names from China, Hong Kong and Taiwan are
included in a database of tax haven documents and that they would be published
online Thursday.

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The Straits Times


www.straitstimes.com

Published on Jan 23, 2014


NEWS ANALYSIS

Rocky road ahead for Myanmar


Constitution
Changes could pave way for Suu Kyi to become president
after 2015 election

By Nirmal Ghosh Indochina Bureau Chief In Bangkok

THE process of amending Myanmar's military-drafted Constitution begins at the end of this

month, with all eyes on article 59f which, if changed, could pave the way for opposition
leader Aung San Suu Kyi to be president after the late 2015 election.But 59f is only one of
many key clauses at stake, several of which are potential land mines because they directly
affect the role of the military.They will also affect the no less critical place of ethnic
minorities, and the balance of power and sharing of resources between them and the

majority Burmans who comprise about 70 per cent of the population of a diverse country

with 135 officially recognised ethnic groups.Over 2,500 amendment proposals will be
submitted to the speaker of Parliament at the end of this month. But that is only first formal
step. The length of the process of scrutiny, prioritisation and debate, and the contentious
issues involved, means many amendments may not even be legislated by the time the 2015

election comes around.The Constitution was rammed through a national referendum by the
then military regime in 2008. Among other things it put the military in charge of three
security ministries - defence, border affairs and home affairs - and ensured 25 per cent of

Parliament seats for military personnel appointed by the military's commander in chief.As for

article 59f, the proposed amendment is to remove part, but not all of the conditions that
would prevent Ms Suu Kyi from becoming president.

Myanmar has had two previous Constitutions, in 1947 and 1974. In 1988, the army

suspended the Constitution, so the country had no Constitution for two decades until
2008.Previous Constitutions specified that the president must be a citizen who was either
born in the country, or both of whose parents were.

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The 2008 Constitution specified that having a spouse or children and their spouses, who

were citizens of a foreign country, would disqualify a person from the presidency. Ms Suu
Kyi's late husband was a British academic, and their two sons are British citizens.The

suggested new language is to take out the part about the spouses. This would leave Ms Suu
Kyi still with the impediment that her two sons are foreign nationals - both living in the West
- who would have to change to Myanmar nationality to enable her to become president.

Whether they would change their citizenships is uncertain. Indeed, she is reportedly

estranged from her elder son. "They are adults and have the right to make their own
decision for their own good," Ms Suu Kyi has said.Says Yangon-based Richard Horsey, an

independent analyst and former top United Nations official in Myanmar: "It puts the ball
back in her court. On the one hand, she can argue that it is unfair. On the other hand, you

can imagine a lot of Myanmar nationalists saying if someone is too linked to a foreign
country and the children are foreign citizens, where does one draw the line."The issue is not

unique to Myanmar. In India, though Italian-born Sonia Gandhi is an Indian citizen, to


appease nationalists she has had to stay in the background as head of the Congress Party,
rather than in the forefront as prime minister.

In Peru, ethnic Japanese Alberto Fujimori was president from 1990 to 2000. His strong

leadership veered into authoritarianism; accused of human rights violations and corruption,

he fled - to Japan.He was extradited in 2007 and is now in jail.In the United States, the

Constitution says the president should be a "natural born" US citizen. Former California
governor Arnold Schwarzenegger, who might run for president in 2016, was born in Austria

and wants that part of the Constitution changed.Given Ms Suu Kyi's stature, especially in the
West, the issue of 59f occupies centre stage. But other amendments that address core

issues may be more critical.Says Mr Horsey: "Some of the economic and political reform
touches core interests of the army, taking away monopolies and so forth. They have been
comfortable because they have ultimate guarantees, so if it goes really wrong, they can step
in."

Another Yangon-based analyst who asked not to be named because of the sensitivity of his
position close to senior government figures, told The Straits Times over the phone: "There is

at least unanimity that this Constitution needs amendment. Despite the problems, we may
emerge as a mature nation debating on these difficult issues without resorting to violence.

"But the process is full of uncertainties. The military feels they introduced the Constitution
and they have a sense of entitlement. It seems to a lot of people that the military is not
ready to give up its prerogatives; that can only happen after 2015."

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(BIA)

(CBP) ()

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( idcpc.org.cn)

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- ( )



()



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Military Rulers )

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(DKBA)
(SSA)

(KIA)

KIA
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ABSDF ()

ABSDF ( - Facebook)
ABSDF (

ABSDF ABSDF

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(
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KNU

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() (
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KNU
AK 47- M 79

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)

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Burma

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Front)

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Channel NewsAsia is main source of news for


Sporeans in Myanmar
By May Wong POSTED: 22 Jan 2014 19:02

Singaporeans in Myanmar rely heavily on Channel NewsAsia for updates on news back home
and around Southeast Asia. Available across Myanmar, Channel NewsAsia is one of the few
international television news channels that are focused on regional coverage.

Channel NewsAsia's morning programme "AM Live!" shown on TV.


YANGON: Singaporeans in Myanmar rely heavily on Channel NewsAsia for updates on news
back home and around Southeast Asia.Available across Myanmar, Channel NewsAsia is one

of the few international television news channels that are focused on regional coverage.As

the channel prepares to open its Myanmar bureau, many feel it is a timely move.Born to a
Myanmar father and a Singaporean mother, nine-year-old Seann has never been to
Singapore.But he has seen Singapore through Channel NewsAsia.The channel is equally
important to his mother, who has not returned to the republic for almost 10 years.

Veronica Aw said: "We always want to know what's going on (in) Singapore. Nine years ago,

when I went to Singapore, I know how to take the MRT. But I think nine years later, if I go
to Singapore now, I don't even know how to take an MRT but because of Channel

NewsAsia, it taught me that MRT should be taken this way, that way. It's knowledge too for
me and a connection for me. I still have relatives in Singapore and I like to see food,

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Singaporean people, buildings, what's going on."As a Singaporean, one of the greatest

things that Channel NewsAsia has done is they always update the latest stuff on Singapore.

In terms of financial sector, properties, schools, medical and so on, it kind of makes me
feel closer to Singapore. I think this is one of the biggest reasons why I love Channel
NewsAsia."One of the latest news that captured the attention of many Singaporeans based
in Myanmar was the riot at Little India in December.

The anti-government demonstrations in Thailand also kept many in Myanmar glued to


Channel NewsAsia's coverage.Argus Ang, president of Singapore Association of Myanmar,
said: "It's an international news and global news network with a very strong influence,

which means that at the end of the day, the analysis comes from a perspective of Asian

coverage, not only understanding the culture but also understanding what's going on in
Asia..."The coverage of ASEAN, especially the neighbouring countries for us, is very
important and it's very extensive. We'll know what's going on in Thailand, what's going on in

Cambodia, what's going on in Vietnam, as well as Malaysia and Singapore. So that to us is


very important, the connection back home."Mr Ang knows of many Myanmar citizens who
also enjoy watching Channel NewsAsia for its content, style and format of news coverage.

Myanmar is home to about 200 Singaporeans living and working in the country.Many turn to

Channel NewsAsia as their source of information for the latest policies as well as decisions
affecting Singapore and the region.They also feel that Channel NewsAsia is in a position to
bring the latest stories and developments in the country to the rest of the world, in order to
clear any misperceptions that people may have about Myanmar.

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