VZCZCXRO5181
PP RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHGP #1997/01 3050947
ZNY SSSSS ZZH
P 010947Z NOV 07
FM AMEMBASSY SINGAPORE
TO RUEHC/SECSTATE WASHDC PRIORITY 4344
INFO RUCNASE/ASEAN MEMBER COLLECTIVE
RUEHBJ/AMEMBASSY BEIJING 2666
RUEHSW/AMEMBASSY BERN 0219
RUEHBY/AMEMBASSY CANBERRA 2014
RUEHLO/AMEMBASSY LONDON 0489
RUEHNE/AMEMBASSY NEW DELHI 1855
RUEHDE/AMCONSUL DUBAI 0073
RUEHHK/AMCONSUL HONG KONG 6272
RUEABND/DEA HQS WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEAHLC/DEPT OF HOMELAND SECURITY CENTER WASHINGTON DC
RUEAWJA/DEPT OF JUSTICE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUEANQT/FINCEN VIENNA VA
RHEHNSC/NSC WASHINGTON DC
RUCNDT/USMISSION USUN NEW YORK 0107

S E C R E T SECTION 01 OF 05 SINGAPORE 001997 
 
SIPDIS 
 
SIPDIS 
 
RANGOON FOR CA WHALEN 
DEA FOR FO/FOE 
TREASURY FOR MSAMARA, JSMITH, AND PDERGARABEDIAN 
 
E.O. 12958: DECL: 10/31/2017 
TAGS: ETTC KCRM EFIN ECON ETRD PGOV SN
SUBJECT: BURMA: PAVO TRADING'S FINANCIAL ACTIVITIES 
 
SINGAPORE 00001997  001.2 OF 005 
 
 
Classified By: Ambassador Patricia L. Herbold; reasons 1.4 (b) and (d) 
 
¶1.  (S) A person who said she is a former finance manager of 
Pavo Trading Pte Ltd. volunteered to meet with us on October 
31 to tell us what she knew of the firm's management and 
business activities.  The USG on October 19 designated the 
Singapore-based company under E.O. 13448 for providing 
financial and material support to the Burmese regime.  Pavo 
Trading is owned and controlled by Tay Za, a key financial 
operator for the junta.  We provide below her responses to 
questions that post coordinated with Washington.  We have not 
independently confirmed the information she provided. 
 
¶2.  (S) WHAT IS YOUR WORKING RELATIONSHIP WITH TAY ZA OR HIS 
FAMILY MEMBERS? 
 
Source said she is a former finance manager is a Singaporean 
citizen who worked for Pavo Trading from August 1, 2005 to 
March 5, 2007.  She supervised five accounting staff.  Before 
this, she worked as an accountant with a publicly listed 
Singapore company.  She said that she had not heard of Pavo 
Trading before the company advertised the Finance Manager 
position in the local newspaper.  After she resigned, Pavo 
Trading's attorneys delivered a letter informing her that 
they were prepared to sue her for alleged violations of the 
company's confidentiality requirements.  Pavo Trading also 
filed a police report claiming that it had fired her for 
insubordination.  She remains in contact with some 
"like-minded" Pavo Trading employees. 
 
Pavo Trading is not in fact engaged in any trade-related 
business.  Its main activity is to process inward and outward 
remittances for the Burmese regime, Tay Za's companies, and 
their affiliates.  Although she was restricted from knowing 
anything but the most basic information related to these 
transactions, she observed that the money "came in and left 
quickly," remaining in the bank on average for only one week. 
 The largest single transaction she could recall was for 
US$500,000.  She could only remember the name of one company 
listed on some of these transactions -- Cheung Hin -- 
although she was uncertain about the spelling. 
 
Pavo Trading, like two other Tay Za-linked companies 
operating in Singapore -- Air Bagan Holdings and Htoo Wood 
Products -- maintains accounts with all three of Singapore's 
banks:  DBS (see para below), OCBC, and UOB.  OCBC and UOB 
also extend loans to Tay Za and his family, as do Hong Leong 
Finance, ABN AMRO, Orix Leasing Singapore PTE Ltd., Maybank, 
EXIM Bank of Malaysia, and CIMB Group (see chart below of Tay 
Za's assets). 
 
UK and U.S. banks have previously declined to open accounts 
for Tay Za and his companies and some Swiss banks similarly 
rebuffed more recent approaches in October 2006.  That same 
month, Tay Za registered a shell company in the British 
Virgin Islands.  Source believes, but could not confirm, that 
the company's name is Pavo International PTE.  DBS Bank 
subsequently refused to open an account for Pavo 
International in the British Virgin Islands.  She heard that 
DBS might have closed all of its accounts for Tay Za shortly 
thereafter.  Additionally, Pavo Trading was rumored to have 
packed up its outstanding payment vouchers this past weekend 
and shipped them to Burma. 
 
Besides processing financial transactions, Pavo Trading's 
staff purchases gifts (Rolex watches, etc.) for the junta's 
senior leaders and their spouses and arranges all-expenses 
paid trips to Singapore for both business and medical 
treatment. 
 
¶3.  (S) WHO ARE THE OWNERS/SHAREHOLDERS AND KEY 
OFFICERS/MANAGERS OF PAVO TRADING? 
 
SINGAPORE 00001997  002.2 OF 005 
 
 
 
Htoo Trading Company Ltd.:  Parent company. 
 
Tay Za:  Principal shareholder and Director.  Tay Za owns 99 
percent of Pavo Trading's shares.  The remainder are in his 
wife's name, as well as his business partner (in both Pavo 
Trading and Htoo Trading) U Lu Lu, aka Chan Kwan Lu.  Source 
provided a copy of Tay Za's passport, which lists him as 
affiliated with Htoo Trading Company, Ltd.: 
 
Number - 716711 
DOB:  July 18, 1964 
Date of Issuance: August 30, 2005 
Expiry Date: August 29, 2008 
Prior Passport Number: 590416 issued July 28, 2004 
 
U Kyaw Thein:  Singapore Permanent Resident (Burmese 
citizen).  General Manager (Pavo Trading) and Director (Pavo 
Trading, Air Bagan Holdings, and Htoo Wood Products Pte).  He 
is the authorized signatory for all bank transactions.  Kyaw 
Thein is a retired Burmese government civil servant who 
worked in one of the Permanent Secretary's offices, according 
to Source.  His daughter-in-law also works for Pavo Trading. 
 
Singapore Identity Card:  S2733659J (issued July 7, 2005) 
DOB:  October 25, 1947 
Address:  503 Sembawang Road, Singapore 757707 
 
LOKE Lih Ping:  Singapore Permanent Resident (Malaysian 
citizen).  U Kyaw Thein's Secretary and Tay Za's rumored 
former or current mistress.  Source informed immigration 
authorities earlier this year that Loke illegally obtained 
her permanent resident status.  We were shown an original 
letter from the Ministry of Manpower dated October 12, 2007 
noting that it had completed its prosecution of Loke's case 
and "passed sentence" on September 27, 2007.  The Ministry 
did not make available details related to its decision. 
Loke's boyfriend, SIN Kok Wee, Jason (aka Xin Guowei, Jason; 
identity card no. S7917430J) is in charge of purchasing for 
Pavo Trading.  Source claims that Loke wields much more 
influence in the company than her title suggests and that 
Jason Sin is involved in facilitating bribes paid by the 
junta through Pavo Trading. 
 
Singapore Identity Card:  S7761669A (issued December 12, 2006) 
DOB:  April 3, 1977 
Address:  Apt. Blk 770 Yishun Avenue 3, no. 07-269, Singapore 
760770 
 
¶4.  (S) PLEASE DESCRIBE THE "ILLEGAL ACTIVITIES" THAT YOU 
MENTION. 
 
Pavo Trading is involved in a whole host of illegal 
activities, including tax evasion and making 
misrepresentations to obtain work permits and permanent 
resident status for its employees.  Similarly, Air Bagan 
Holding's paid-up capital of US$15 million was not provided 
by shareholders as stated in documents presented to 
Singapore's Registrar of Companies.  The money remained in 
Singapore for approximately one week and then taken out 
again.  Pavo Trading lists the capital as an accounts 
receivable, rather than as shareholder equity, on its books. 
Air Bagan Holdings conducts no business in Singapore other 
than facilitating financial transactions similar to those 
undertaken by Pavo Trading.  Air Bagan Ltd. reportedly 
registered three aircraft (two ATR-72 twin turboprops and one 
Fokker) in Singapore in 2004 under Pavo Trading's name, but 
they are in fact owned directly by Tay Za.  Pavo's books do 
not list these aircraft as assets. 
 
¶5.  (S) WHAT IS YOUR UNDERSTANDING OF THE RELATIONSHIP 
BETWEEN TAY ZA AND THE GOVERNMENT OF BURMA? 
 
SINGAPORE 00001997  003.2 OF 005 
 
 
 
Tay Za is very close to the junta.  In addition to his 
regular, monthly visits to Singapore for about four to five 
days at a time, Tay Za is in town whenever GOB leaders are 
here, making a point to provide entertainment or to visit 
them in the hospital if they are undergoing medical 
treatment.  The junta has reportedly given Tay Za a 1,500 
hectare concession of teakwood forest in Burma in return for 
kickbacks from the proceeds.  Tay Za has in turn contracted 
with an Indian company, Alkemal, which paid for the timber 
two years in advance.  Additionally, Tay Za gave the son of 
Burma's Forestry Minister US$100,000 during a visit to 
Singapore. 
 
¶6.  (S) CAN YOU IDENTIFY THE NAMES OF TAY ZA FAMILY MEMBERS? 
DO TAY ZA'S DAUGHTERS PLAY ANY ROLE IN HIS COMPANIES? 
 
Tay Za is separated from his wife, Daw Thidar Zaw; they have 
reportedly not spoken for several years.  She currently 
resides at the Za family residence at Cairnhill Crest in 
Singapore; before that, she was in the Makena Condominiums 
located on Singapore's East Coast, which is still counted 
among Tay Za's Singapore assets (see chart below).  Tay Za 
books a suite at the Meritus Mandarin hotel during his 
monthly visits to Singapore. 
 
Tay Za's eldest son, Pye Phyo Tay Za, was "kicked out" of 
university in Australia after three months and has returned 
to Singapore where he is enrolled in a private management 
institute.  Tay Za presented him with a Lamborghini Spider 
for his twentieth birthday earlier this year.  Like Pye Phyo 
before him, Tay Za's younger son (whose name the former 
employee could not recall) attends high school at Singapore's 
United World College (UWC).  Source is aware of only one 
daughter (nickname "Nono", age 12, who recently moved to 
Singapore to continue her studies, and did not know of any 
other family members. 
 
¶7.  (S) ARE YOU AWARE OF ANY RELATIONSHIP BETWEEN TAY ZA AND 
AYER SHWE WAH COMPANY LIMITED?  OR BETWEEN TAY ZA AND AUNG 
THET MANN, THE SON OF GENERAL THURA SHWE MANN? 
 
Aung Thet Mann is the Director of Htoo Trading Company 
Limited, which is 100 percent-owned by Tay Za. 
 
¶8.  (S) WHO ARE THE KEY FINANCIAL OFFICERS/ASSOCIATES FOR TAY 
ZA'S FINANCES/COMPANIES IN SINGAPORE?  BURMA?  THAILAND? 
 
Singapore - U Kyaw Thein 
 
Burma - Daw Hla Hla Yi (with Htoo Trading) 
 
Thailand - does not know 
 
¶9.  (S) WHO ARE THE OWNERS/SHAREHOLDERS AND OFFICERS/MANAGERS 
OF AIR BAGAN HOLDINGS PTE LTD? 
 
Tay Za and his son, Pye Phyo Tay Za, are the primary 
shareholders.  Tay Za is reported to own 100-percent of Air 
Bagan Ltd. in Rangoon.  Despite the common ownership, Source 
indicated that tensions existed between management in Rangoon 
and Singapore, but could not elaborate. 
 
¶10.  (S) ANY INFORMATION REGARDING U SOE WIN, THE MANAGING 
DIRECTOR OF AIR BAGAN? 
 
U Soe Win (no relation to the recently deceased Prime 
Minister) is Tay Za's brother-in-law. 
 
HAVE YOU HEARD OF HTOO TRANSPORTATION SERVICES?  IS THE 
COMPANY STILL IN EXISTENCE?  HTOO TRADING COMPANY LIMITED? 
HTOO WOOD PRODUCTS PTE LIMITED? 
 
SINGAPORE 00001997  004.2 OF 005 
 
 
 
Htoo Transportation Services - unfamiliar with this company 
 
Htoo Trading Company - based in Rangoon (see related comments 
above) 
 
Htoo Wood Products - sells finished teak wood outdoor 
furniture, most of which is sold to Spain; sales have 
reportedly dropped considerably in the past year.  Tay Za is 
the majority shareholder; the agent in Spain has a minority 
stake.  Paid-up capital is approximately US$100,000. 
 
¶11.  (S) ARE YOU AWARE OF ANY OTHER COMPANIES AFFILIATED WITH 
TAY ZA, PAVO TRADING OR AIR BAGAN? 
 
Tay Za also owns a helicopter company based in Singapore. 
Source was not given access to this company's financial 
records and could not recall its name. 
 
¶12.  (S) As provided by Source: 
 
U Tay Za Assets in Singapore - Company Loan Exposure 
--------------------------------------------- ------- 
 
Bank/Financial..Purpose.........Loan Amt...Year (SG$) 
Institution.................................. .. 
 
OCBC.......... Wintech Centre 
.............. Road #03-07/08...195,000... 2000 
UOB............Vehicle 
...............Lexus 2727.......100,000... 2005 
UOB ...........Vehicle 
...............Toyota Previa....100,000... 2005 
HONG LEONG.....Vehicle 
...............Mercedes 350.....300,000... 2006 
ABN ARMO.......Vehicle 
...............BMW 2727.........250,000... 2006 
Orix Leasing...Tug Boat and 
...............Barges...........600,000... 2003-2005 
 
Total Loans ..................1,545,000 
 
Personal Loan Exposure 
---------------------- 
 
UOB............Makena Condo.. 1,400,000... 2000 
UOB............Cairnhill Crst.3,600,000... 2006 
MAYBANK........Sentosa Cove.. 
...............Parcel B19-9...4,500,000....2007 
MAYBANK........Lamborghini......600,000... 2007 
UOB............Vehicle 
...............Chrysler.........110,000... 2006 
 
Total Co./Personal Loans.....11,755,000 
 
Overseas Loan Exposure 
---------------------- 
 
Exim Bank Labuan.Aircraft....10,000,000... 2005 
East Malaysia 
CIMB KL........Aircraft..... 12,000,000... 2007 
 
Total Liabilities............33,755,000 
 
NOTES: 
-- U Tay Za is separated from his wife Ma Thidar Zaw. 
-- All signatures signed by Ma Thidar Zaw are forged by one 
of U Tay Za's employees in Burma without her knowledge. 
-- US$1 = S$1.5 
 
Visit Embassy Singapore's Classified website: 
http://www.state.sgov.gov/p/eap/singapore/ind ex.cfm 
 
SINGAPORE 00001997  005.2 OF 005 
 
 
HERBOLD