Kirin’s probe into Myanmar beer venture “inconclusive”
Myanmar | Kirin should publish its investigation report on the military-owned Myanmar Economic Holdings Ltd. (MEHL) and swiftly cut ties with the company, Human Rights Watch, an NGO, said in early January.
On 7 January 2021, Kirin had announced the conclusion of an investigation by Deloitte Tohmatsu Financial Advisory, but declined to release the report for confidentiality reasons.
The investigation had tried to determine where MEHL’s share of profits from Myanmar Brewery and Mandalay Brewery actually went. In its statement, Kirin only said that the investigation by Deloitte had proven “inconclusive” because Deloitte could not access sufficient information required to make a definitive determination.” Kirin added that it will provide a “further update” on its business activities in Myanmar before the end of April.
A land of golden pagodas and golden opportunities
Kirin owns a majority stake in Myanmar Brewery and Mandalay Brewery in partnership with MEHL. In 2015, Kirin bought 55 percent of Myanmar Brewery for reportedly USD 560 million. It later transferred 4 percent to the military-owned firm. In 2017, Kirin acquired 51 percent of Mandalay Brewery for an estimated USD 5 million in a separate joint venture with MEHL.
Myanmar’s armed forces have been accused of numerous violations of human rights and war crimes against the country’s ethnic minority populations, especially against the Rohingya population. The government refutes these allegations.
Kirin’s indirect involvement with the Myanmar military became widely known after NGOs and consumers lodged a protest against the sale of US craft brewer New Belgium to a Kirin subsidiary in December 2019.
Dragging its feet?
Kirin promised an investigation which was only launched in June 2020, after several NGOs had urged Kirin in May to terminate its partnership.
In November, Kirin finally announced a suspension of “all dividend payments” from its joint ventures to MEHL.
“It’s been more than a year since the UN Fact-Finding Mission strongly advised foreign companies to cut their ties with the Myanmar military, yet Kirin is still dragging its feet with what should be a clear decision,” a spokesperson for Human Rights Watch commented.
