The jade sector “is secretly controlled by networks of military elites, drug lords and crony companies associated with the darkest days of junta rule”, according to the Global Witness report.
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In a report published on Friday Global Witness estimated the value of jade produced in 2014 was around $31 billion – far exceeding the $3.4 billion sold at Myanmar’s gem emporium a year ago, the country’s only official market for worldwide sales of the precious stone.
Jade in Myanmar is mostly mined from Kachin state, where it hasfuelled years of strife and conflict, Global Witness said. Conditions around the mines are risky, drugs and prostitution are endemic, and “those who stand in the way of the guns and machines face land grabs, intimidation and violence”.
Global Witness also calls on the government to review and revise bidding processes for jade concessions in consultation with Kachin and Myanmar civil society “to make them open and fair”.
Global Witness found that many high-ranking individuals are tied to the “elaborate extortion racket”, including relatives of former dictator Than Shwe, current government officials and various business groups with connections to the military and the abolished junta government.
Separately, The New York Times has reported that impoverished, heroin-addicted laborers are supplied drugs to hack jade out of the earth in harsh conditions in the Hpakant mining area which is closed to foreigners, except Chinese gem buyers.
“It’s important that the US use the influence it has, not least through the sanctions, to try and push for more data to come out and real change to happen and for issues like jade and natural resources to be part of the peace negotiations”, said Kubba.
“Much more significant but virtually unknown” is the Ever victor group, made up of 12 separate mining firms, according to the report.
“Anyone can apply to work in the jade business in this country”, he said.
“We can say that the allegations contained in the Global Witness report are not correct”, he said.
Myanmar is set to vote in general elections on November 8, with themilitary-dominated ruling party, the Union Solidarity and DevelopmentParty, facing off against the opposition National League forDemocracy.
It warns that with access to a multibillion-dollar slush fund from the trade, Myanmar’s elite have the most to lose if the country’s military-backed government is defeated at the polls.
“The secrecy and abuse at play in the jade sector can also pose major problems for global businesses operating in the country”, according to Global Witness, which names U.S.-based beverage giant Coca-Cola and industrial equipment manufacturer Caterpillar.
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“The U.S. and Myanmar’s other partners should benchmark the lifting of sanctions and future aid disbursements to [industry reforms]”.
