Many of those who won controversial auctions to buy or lease state property, factories and businesses have yet to fully pay for them, sources familiar with the government's financial accounts said.
At least 13 ministries still need to collect more than 100 billion kyats (about US$116 million) from the winning bidders of the auctions that began in 2008.
Despite snapping up lucrative assets for
a fraction of their worth, bidders have not followed the rules set for
payment, the sources said. Those who won the auctions
are required to make a 10 percent payment within 10 days of their win
and another 25 percent within 30 days. Payment of the remaining 65
percent is required within 90 days for winning bids under 100 million
kyats and within 210 days for winning bids over 100 million kyats.
Most winners of the auctions
have ignored these rules, even those who won the bids in advance due to
their close relationships with government and military officials with a
hand in the sales, the sources said.
According to the rules of the auctions
they are liable for fines for late payments though the sources said
these were unlikely to be enforced. Winning bidders who have been late
in paying because the asset was incorrectly measured and those who
returned their assets to the government because they were dissatisfied
with them will not have to pay late-payment fines, the sources said.
The Privatisation Commission is allowing persistent bidders to take loans from banks so that they can continue to bid for state assets. Asset sales began under the military government and have continued under the current civilian government.
source: Eleven Myanmar
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