The Burma Campaign UK today called on the British government to stop foreign companies using UK overseas territories to channel investment into military ruled Burma. A Ch4 Dispatches documentary on Burma broadcast at 8pm on Monday 2nd October reveals that Total Oil used UK overseas territories to invest in Burma.
The UK is ranked the 2nd largest source of approved investment in Burma, estimated at a total of more than 1.2 billion dollars since 1988, largely because companies from all over the world have used UK overseas territories to channel investment to Burma. They are attracted to dependent territories by tax incentives and the lack of transparency. In addition, UNOCAL used the fact that it had invested in Burma via Bermuda to try to avoid being sued in US courts over human rights abuses.
“The British government could stop this kind of investment today, but refuses to do so,” said Yvette Mahon, Director of the Burma Campaign UK. “The refusal to act is inexplicable, the government says it does not support trade and investment in Burma, but does nothing to stop it.”
French oil giant Total is the largest European investor in Burma. It invested via the Bermuda islands. The gas project it manages is believed to earn the regime up to 450 million dollars a year. The regime spends around half its budget on the military. Total Oil is currently considering new investment in Burma, despite facing widespread condemnation for its close relationship with Burma’s military dictatorship.
The British government does not even know the full scale of the UK’s role in financing Burma’s military dictatorship, but despite repeated calls for action by MPs and opposition parties has taken no steps to stop UK companies investing in Burma, or to stop foreign companies investing there via the UK.
Burma’s democracy movement has called for targeted economic sanctions against the regime in Burma. Revenue from foreign investment and trade has helped keep the regime in power, while spending on health and education has fallen. The UK is also the largest European importer from Burma.
“The UK will have blood on its hands as long as it is linked with investment in Burma,” said Yvette Mahon. “Putting money in the generals’ pockets is the same as putting guns in their hands.”
For more information contact Mark Farmaner, Media & Campaigns Manager, on 020 7324 4713