The 89-kilogram heroin seizure in Rangoon on January 25 was the result of a tip-off by Chinese agents, according to sources on the Sino-Burma border.

The heroin was hidden inside teak logs, they said. "The Chinese already have much experience with this technique," said one, "as several shipments to China in the past were caught in the same way."

Among those being interrogated was U Kyaw Sein, Managing Director of Olympic Construction, owned by tycoon U Aik Tun, who formerly owned the Asia Wealth Bank, closed since 2005 on charges of money laundering activities.

As the teak logs were believed to have originated in Kengtawng, Mongnai township, Shan State South, where several companies including Htoo Company of U Tayza have been operating, there was speculation during a meeting of drug officials in Taunggyi  whether he could have been involved, according to a source.

The Chinese officials had made their entry into Burma through the Mongla-Daluo checkpoint, he added.

"Whether or not U Tayza is involved, it is likely he may get away with it, if last year's crackdown on Maung Weik proves anything," said a businessman in Rangoon.

Maung Weik, known to be one of the richest men in Burma, was sentenced to 15 years prison. Many were surprised his partner, Aung Zaw Ye Myint (30)
son of Lt-Gen Ye Myint, was not included.