Teak continues to be one of the prized items for making filthy lucre in Burma’s Kachin State and the Aung Mai Company is negotiating with the Burmese military junta  to buy teak confiscated during an operation last January and February by several Burmese army columns, said sources.

Local sources close to Aung Mai Company said the firm is now negotiating with the Northern Command Headquarters (Ma Pa Kha) based in Myitkyina, the capital of Kachin State and locally-based Burmese army battalions to buy the confiscated teak in Bhamo district in Kachin State.

At the moment, no teak truck from the company has yet come to China border in Kachin State. However they will have to transport all teak which was confiscated by the Burmese Army battalions before the rainy season starts in June, said local timber traders.

During the operation launched last January and February, teak belonging to civilians was targeted for confiscation by Burmese Army columns in the operation--- Infantry Battalion (IB) No. 142, Light Infantry Battalion (LIB) No. 321, LIB No. 347, LIB No. 348 and LIB No. 437, said local teak businessmen in Bhamo.

At the same time, several Chinese companies from Ruili or Shweli, the largest border trade town in China's Yunnan province alongside Burma transports teak from Shwego and Sin Khan in Bhamo district, said local teak businessmen.

For transporting teak to Ruili, the Chinese companies have to shell out over 8 million kyats equivalent to US $ 8,122 per truck as bribe to Burmese army battalions on the timber route, according to local teak businessmen. Greasing palms of the Burmese authorities is the only way that timber can be got out.

Of several timber companies in Kachin State, Aung Mai Company is the only company which is authorized to buy teak confiscated in Kachin State by Burmese Army battalions, said local timber businessmen.

The company is owned by Chinese businessmen and it buys teak from Burmese Army battalions and sells it on the Sino-Burma border in Kachin State. There is a nexus between the company and the junta's Northern Command Headquarters where mutual-interest comes into play, said local sources.

The Aung Mai Company has been making profit from selling confiscated teak on the China border since late 2005. It also had to grease the palms of Maj-Gen Ohn Myint, former commander of Northern Command.

Now, the company is again planning to work out mutual profit sharing with the ruling junta's Northern Command, said local timber traders.