The Burmese military group and the question of responsibility of Dutch companies

Photo – Yangon Region On May 22, 2025, seeing the Netherlands-based Heineken brewery in Mogbe Township. (Taxila College) Mizzima After the February 2021 Myanmar military coup, many foreign companies left Myanmar. However, some companies Human rights groups point out that some investors and business entities linked to the Netherlands remain in Myanmar. According to human rights groups, the situation in Myanmar has become a test for international companies to see whether so-called "human rights due diligence" can really prevent businesses from bolstering a regime accused of war crimes and crimes against humanity. Notable cases involving the Netherlands include the Heineken beer company; Dutch pension funds ABP and PFZW; APG and PGGM, their investment management teams; Also included is European aerospace and defense company Airbus SE. Airbus SE is a European company but legally registered in the Netherlands. Human rights groups say these cases are normal business activities. tax payments; Shareholdings and corporate relationships give the regime financial, It is said that it shows that it can be strengthened politically and economically. Beer sales and tax revenue One of the Netherlands' prominent international companies, Heineken, has faced severe criticism for continuing to operate its beer business in Myanmar after the military coup. According to the Justice For Myanmar group's April 2023 statement, Heineken, Carlsberg and ThaiBev's subsidiaries are said to have paid 49.9 billion Kyats as Specific Goods Tax between October and December 2021. This amount is equivalent to about 27.6 million US dollars according to the exchange rate of the Central Bank of Myanmar. In addition, during this period, another 12.6 billion kyats (US$ bThe group also said that they paid about seven million won. According to Justice For Myanmar, those tax payments are due to airstrikes by the military group. It is pointed out that the income goes into the state treasury, which is controlled by the regime while it is attacking the civilian population with artillery fire and ground operations. Finance Uncovered also reported that while many international companies left Myanmar after the military coup, Heineken of the Netherlands and Carlsberg of Denmark maintained profitable operations in Myanmar. Dutch investigative news agency Follow the Money also reported that Heineken continued to operate in Myanmar after the 2021 military coup, with a portion of the sale price of a bottle of beer flowing to the military through taxes. These allegations do not imply that Heineken directly delivered weapons or military equipment. At the heart of the criticism is the fact that revenue from continuing to operate and pay taxes goes into state coffers controlled by the junta, which can then be used for repression and operations. Dutch pension funds Dutch pension funds have also been criticized for investing in international companies linked to the Myanmar military. In March 2021, shortly after the military coup, Justice For Myanmar reported that Dutch pension funds ABP and PFZW held a total of US$2.3 billion in shares in about 20 companies linked to the Myanmar military. He also said that these investments are being managed by APG and PGGM. These companies are real estate, oil and natural gas; Telecom, Justice For Myanmar says businesses such as beverages have direct or indirect ties to businesses owned by the Myanmar military or state-owned enterprises controlled by the junta. Responsible Investor also reported that ABP and PFZW invested about two billion dollars in companies allegedly linked to the Burmese military. In the eyes of human rights groups, these investments are important. This is because the Myanmar military is not only dependent on weapons purchases, but also military-owned business organizations. It also relies on a wide business network that includes state-owned enterprises and foreign partners. Airbus and the Netherlands connection Airbus SE, France; A European airline with close ties to Germany and Spain, but legally registered in the Netherlands. Airbus has faced pressure over human rights and security concerns due to its business ties to the state-owned Aviation Industry Corporation of China (AVIC). According to Myanmar civil society organizations and international activists, AVIC and its subsidiaries provide the Myanmar military with aircraft, Said to have provided spare parts and maintenance assistance. Human rights groups described the K-8 trainer-light attack aircraft and the Y-12 multipurpose aircraft as being used in airstrikes against civilian areas. In February 2025, domestic In an open letter sent to the Dutch government by a coalition of 361 foreign organizations, they pointed out that Airbus SE is a company registered in the Netherlands and called for an investigation into the business relationship between Airbus and AVIC. Since that move, Airbus has sold its stake in AVIC's subsidiary AviChina, Justice For Myanmar reported. Airbus completed the sale of AviChina shares on April 1, 2025, the group said. As of June 30, 2024, the value of this investment is $140 million. According to the Business & Human Rights Resource Centre, Airbus said it had no equity investment in AVIC and would not comment further because of an ongoing OECD complaint in the Netherlands. The Airbus case is different from Heineken's tax payments or the investments of Dutch pension funds. The allegation is not that Airbus directly supplied the planes to the Myanmar military, but that it was responsible for influencing AVIC because of its investment and business relationship with AVIC. Other Liability Matters The Netherlands is also being used as a venue for filing corporate liability claims. Inclusive Development International by 2024; S&P by ALTSEAN-Burma and Blood Money Campaign Myanmar