Valuable teak from northern Burma is being illegally exported to China through the border by Aung Mai Company. The company is also into exporting teak since December last year, said local sources.
Aung Mai Company is based in Kachin State. The company is only authorized by the junta to buy seized teak from the Burmese Army in northern Burma and cross-border export to China, said sources close to the company.
Currently, the company's cross-border teak export to China is linked to the junta's No. 1 strongman Senior General Than Shwe's sons-in-law, according to reliable border teak trading sources.
The Aung Mai Company transports teak to the Nong Dao timber camp in Chinese territory on the border along three illegal cross-border roads controlled by the company near Man Win in Burmese territory, said residents of Man Win.
The teak is originally transported from the teak forests around Mong Mit (Momeik), Mabain and Shweli (Ruili in Chinese) River in Burmese territory as well as teak forests on the border between Kachin State and Shan State, a local teak trader told KNG today.
At the moment teak prices on the border have dropped to around 11,000 Yuan (US $1,618) per ton from 18,000 Yuan (US $2,647) per ton compared to last year, said border teak traders.
Aung Mai Company collects 2,000 Yuan (US $294) per Lifang (1 Ton = 1.3 Lifang) of teak from other private companies as transportation fee for teak from Burma to China using the Aung Mai Company name, said border trade sources.
On the other hand, the Burmese Army's Infantry Battalion (Kha La Ya) No. 121 based in Kai Htik operates in the areas also called 'Front line' for the Burmese Army which is near the border, said local people.
The Burmese Army collects fees twice from Chinese log-trucks. Once when it enters teak logging fields and again when it comes back after loading teak. The soldiers demand more money from trucks which carry teak. The rate is between one million kyat and two million kyat (between US $980 - $1,961) per truck, according to local teak traders.
Interestingly, Aung Mai Company has to use gold bars as bribe for teak transport permits to China. The bribe goes to the junta's Northern Command commander Brig-Gen Soe Win and the junta's senior officials in Naypyitaw, the country's capital. Burmese top military officials do not accept currency notes, said sources close to the company.
In military-ruled Burma, the junta orders punishment of three years in prison for people who fell down a teak tree. However border teak exporters keep transporting teak to the China border by handing over large amounts of bribe to the Burmese military authorities, said local teak traders.
