Senators upset US firms can invest in Myanmar's MOGE

Senators upset US firms can invest in Myanmar's MOGE

Senators John McCain (L) and Joe Lieberman (R) (AFP/Getty Images/File, Mark Wilson)

(AFP)–22 hours ago
WASHINGTON — Senators John McCain and Joe Lieberman welcomed Thursday the easing of US sanctions on Myanmar but warned that doing business with the state oil and gas giant could put democratic reforms at risk.

President Barack Obama gave the green light Wednesday to companies to invest in Myanmar, in the United States' broadest and most controversial easing yet of sanctions on the former pariah nation.

Under the new rules, unveiled in recognition of reforms in the Southeast Asian nation dominated by the military since 1962, US companies will be able to enter into business with state-owned Myanma Oil and Gas Enterprise (MOGE), but must notify the State Department within 60 days.

"We are pleased that US companies will now be able to invest in Burma, a step we have advocated," said Republican McCain and Independent Lieberman, a former Democrat, referring to the country by its former name.

"We are concerned, however, that the Obama administration has chosen to permit US firms to do business with MOGE at this time."

They said the firm's operations "remain non-transparent, and the billions of dollars in foreign investment that it receives remain unaccountable to the people and parliament of Burma, even though this money is state and national revenue.

"Under these conditions, we are concerned that doing business with MOGE runs the risk of setting back Burma's democratic reforms, rather than reinforcing them, as is our common goal."

US companies have been pressing for an end to restrictions on investment, fearing they will lose out to European and Asian competitors that already enjoy access to the potentially lucrative economy.

But Obama's move marks a rare divergence from Aung San Suu Kyi, Myanmar's Nobel Peace Prize-winning opposition leader, who has warned foreign firms not to partner with MOGE.

Suu Kyi, who spent years under house arrest but won a seat in parliament since the reforms, said on a recent tour of Europe that MOGE needed first to sign up to international standards such as the IMF code on transparency.

A new investment law is currently under consideration by Myanmar's parliament.

McCain and Lieberman said they had hoped Obama would have given Suu Kyi and other legislators more time to produce a new law enabling investment in Myanmar's energy sector "with a more transparent, accountable and reformed business partner than MOGE is at present."

The senators' statement comes hours before Secretary of State Hillary Clinton and Myanmar President Thein Sein hold landmark talks Friday in Cambodia on the sidelines of a business conference.

Clinton has welcomed reforms by Myanmar's government over the past year, such as welcoming Suu Kyi back into mainstream politics, but the top US diplomat acknowledged that concerns remained.