The business community that more than 15 edible oil companies have to pay a total of around 130 billion Kyat in fines in connection with the foreign exchange scandals that occurred during the time of former Lieutenant General Moe Myint Tun.


Regarding this case, some oil company officials have been scheduled for trial on October 27, and the business community is watching with interest to see if they will be fined or prosecuted.


``A company has to pay more than twenty billion. Some of them have to pay ten billion,'' said a person who knows about this examination.


Although he did not reveal the names of the companies, he told the BBC that out of more than 20 companies allowed to import oil, there are only five companies that will not pay back the fines.


How is the fine calculated?

Some oil businessmen were arrested on their way back from a meeting to reduce oil prices in Nay Pyi Taw on August 30

When importing edible oil, 50 percent of the foreign currency cost was exchanged at the central bank's reference exchange rate of 2,100 kyats, and the remaining 50 percent was exchanged at the foreign exchange rate of 2,920 kyats, which is cheaper than the external price.


A businessman close to the Federation of Trade and Industry explained to the BBC that the difference between the price and sale will be calculated and paid as a penalty, which is called a 50-50 rate.


Cooking oil - a political issue that affects kitchen appliances

The entrepreneur said that this penalty calculation is the same as the special investigation handled by the companies that did not return the export import.


Prior to these measures, the price of edible oil was set by the Myanmar Oil Exporters and Oil Manufacturers Association not to take more than two percent of profit on the wholesale reference price, including general expenses.


Even if it is sold step by step, it is set to take no more than ten percent of the profit.


However, the bribery of Lt. Gen. Moe Myint Tun, who is responsible for export and import issues, was discovered by arresting and investigating edible oil companies regarding selling prices higher than the reference price in the market.


Former lieutenant general Moe Myint Tun has been sentenced to twenty years in prison.


Lieutenant General Mo Myint Tun was sentenced to life imprisonment

What will happen to the oil companies?

It's back to the days when you had to queue up to buy oil because of the skyrocketing price of oil

Businessmen are considering that if some officials of the oil company are detained and prosecuted, they may be charged with Section 409 of breach of trust.


Some businessmen said that the military council had sued some businessmen who did not remit export earnings under that section.


Can Burma's economy be controlled by arrest warrants?

Section 409 of the Penal Code provides for a life sentence if convicted. A fine of up to 10 years in prison may be imposed.


``But we see that companies are only 7 years old,'' said an entrepreneur.


At the end of August, major oil companies who attended a negotiation meeting to stabilize domestic consumption oil prices in Nay Pyi Taw were arrested and interrogated on their way back from the meeting.


As a result of this situation, the repayment of fines of more than one hundred billion kyat has also arisen.