The case for revenue transparency in the oil and gas ... - La'o Hamutuk

Section 3: Winds of change?
Former military officers control key positions in new government
Following Burma’s military-controlled elections in November 2010,
a new parliament opened in March 2011. Former military officers,
including President Thein Sein and 28 out of 35 high level cabinet
ministers, control key positions in this new regime. All 28 former
military officers resigned their military posts just weeks before the
election.
Leading members of Burma’s previous
junta are in leading positions in the
new government (left to right: Senior
General Than Shwe, Vice Senior
General Maung Aye, General Thura
Shwe Mann (now speaker of the
House) and General Thein Sein (now
Prime Minister) in October 2007.
Photo Reuters
Under the new government, Burma’s largest money-making sectors
- energy, mining, and electricity - are ministered by former military
generals. The Ministry of Finance and Revenue, critical in managing
import and export revenues, is now ministered by U Hla Tun, head of
the Finance and Revenue department under the Than Shwe regime.
The following laws and practices enacted since the election have
cemented the military’s position, legalizing the advantages and
protections that the armed forces and its companies enjoy.
Budgetary process is not transparent
In 2011 the national budget was publically disclosed for the first time
in decades. 45 The budget was enacted by the military before the new
legislature opened its first session on January 31, giving the Parliament
no oversight of expenditures.
In 2012, a budget drafted by the president was submitted to Parliament
for some debate on allocation decisions, which was an improvement
over the previous year. However, the source of budget revenues,
including revenues from the sale of oil and gas, remain undisclosed.
This makes it impossible to calculate whether all gas payments have
been entered into the budget and, if so, at what exchange rate. This
lack of transparency makes it impossible to allocate gas revenues for
specific expenses, such as social spending. The budgetary process for
state budgets also remains opaque.
Given the limited nature of debates within the Parliament thus
far, how much genuine input into or control over budget allocation
decisions MPs will have remains unclear. It must be remembered that
25% of seats in Parliament are held directly by military personnel and
a further 58% are held by the military-backed USDP party. According
to the Myanmar Times, the military will receive about US$2.3 billion in
the 2012 budget, a 36% increase from the 2011 fiscal year. 46
16