In  Payathonzu (Three Pagoda Pass) area of Kyainseikgyi Township, the Junta’s administrative apparatus has entirely disintegrated, leaving the Karen National Union (KNU) primarily responsible for managing the town's administrative and judicial affairs, according to locals.

Following reports that the KNU had assumed full control of the town's administration, fully equipped Military Council troops have started  patrols and inspections in Payathonzu. Junta troops who had remained confined to their barracks for months, returned to the town to display a visible presence after news of KNU controlling the town spread. Fully equipped Military Council troops initiated patrols and inspections..

Alongside Military Council troops, subordinate Border Guard Force (BGF) members have become increasingly conspicuous in Payathonzu, even as pro-military groups disseminate propaganda asserting the town still remains under the control of the Military Council.

A Payathonzu resident said, "It's been a while since the soldiers left their barracks. When word got out that the KNU was practically running the show in town, the soldiers came out to make their presence felt. In reality the Military Council is no longer able to appoint any administrative officers in Payathonzu. Only KNU-appointed officials are in charge now, and people turn to them for dispute resolution”, a Payathonzu resident said.

Following the January and February raids by the Karen National Liberation Army (KNLA)-led resistance joint forces on the Junta’s  offices and the police station in Payathonzu, the Military Council's governing authority ceased to function in the town, with the KNU progressively assuming control over the administrative and judicial domains.

KNU spokesperson Padoh Saw Tar Nee stated that, in response to the deteriorating administration of the Military Council in Payathonzu, which led to an increase in lawlessness and criminal activity, KNU assumed control of administrative and judicial duties at the request of the local populace

Payathonzu hosts a battalion of the Military Council and a police station within its vicinity. At the town's entry checkpoint, deployments of BGF and DKBA can be seen, while the Military Council and BGF maintain positions along the border with Thailand.

Other smaller groups that have signed the Nationwide Ceasefire Agreement (NCA)  such as the New Mon State Party (NMSP), Democratic Karen Benevolent Army (DKBA).

However the local populace report that they rely on the KNU to perform administrative functions and governance in this area is firmly in their hands of the Karen National Union and its armed wing the KNLA, except for the border checkpoint with Thailand.