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Sin City: Illegal Wildlife Trade in Laos' Special Economic Zone

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Sin City: Illegal Wildlife Trade in Laos' Special Economic Zone SIN CITY Illegal wildlife trade in Laos’ Golden Triangle Special Economic Zone ACKNOWLEDGEMENTS CONTENTS This report was written by the Environmental Investigation Agency. 2 INTRODUCTION Special thanks to Education for Nature Vietnam (ENV), the Rufford Foundation, Ernest Kleinwort 3 PROFILE OF THE GOLDEN TRIANGLE SPECIAL Charitable Trust, Save Wild Tigers and Michael Vickers. ECONOMIC ZONE & KINGS ROMANS GROUP Report design by: 5 WILDLIFE TRADE AT THE GT SEZ www.designsolutions.me.uk March 2015 7 REGIONAL WILDLIFE CRIME HOTSPOTS All images © EIA/ENV unless otherwise stated. 9 ILLEGAL WILDLIFE SUPERMARKET 11 LAWLESSNESS IN THE GOLDEN TRIANGLE SPECIAL ECONOMIC ZONE 13 WILDLIFE CLEARING HOUSE: LAOS’ ROLE IN REGIONAL AND GLOBAL WILDLIFE TRADE 16 CORRUPTION & A LACK OF CAPACITY 17 DEMAND DRIVERS OF TIGER TRADE IN LAOS 19 CONCLUSIONS 20 RECOMMENDATIONS ENVIRONMENTAL INVESTIGATION AGENCY (EIA) 62/63 Upper Street, London N1 0NY, UK Tel: +44 (0) 20 7354 7960 Fax: +44 (0) 20 7354 7961 email: [email protected] www.eia-international.org EIA US P.O.Box 53343 Washington DC 20009 USA Tel: +1 202 483 6621 Fax: +202 986 8626 email: [email protected] COVER IMAGE: © Monkey Business Images | Dreamstime.com 1 INTRODUCTION This report takes a journey to a dark corner of north-west Lao PDR (hereafter referred to as Laos), in the heart of the Golden Triangle in South-East Asia. The Environmental Investigation While Laos’ wildlife laws are weak, there The blatant illegal wildlife trade by Agency (EIA) and Education for Nature is not even a pretence of enforcement in Chinese companies in this part of Laos Vietnam (ENV) have documented how the GT SEZ. Sellers and buyers are free should be a national embarrassment the Golden Triangle Special Economic to trade a host of endangered species and yet it appears to enjoy high-level Zone (GT SEZ) in Bokeo Province, in products including tigers, leopards, political support from the Laos Laos has become a lawless playground, elephants, rhinos, pangolins, helmeted Government, blocking any potential law catering to the desires of visiting hornbills, snakes and bears, poached enforcement. Cleaning up the GT SEZ, Chinese gamblers and tourists who can from Asia and Africa, and smuggled to reversing Laos’ role as the weak link in openly purchase and consume illegal this small haven for wildlife crime. the regional wildlife crime chain and wildlife products and parts, including ending tiger farming throughout the those of endangered tigers. The unchecked illegal wildlife trade in country will require a major policy shift the GT SEZ is illustrative of illegal from the top. Despite being a part of Laos territory, wildlife trade across the region, largely the GT SEZ is run by the Chinese company catering to growing numbers of Chinese The international community has a Kings Romans Group. It has a 99-year visitors. The casino-led set-up is a model responsibility to stop fawning over lease and an 80 per cent stake in the exported from Mong La in Myanmar, one lip-service commitments to combating operation. Clocks are run on Beijing of the longest-standing illegal wildlife organised wildlife crime and reducing time, all business is done in Chinese markets in the region. demand. This is not a new phenomenon, currency and businesses are Chinese- but one that has persisted and owned. With its 20 per cent stake in the The Government of China is acutely escalated because of a failure to take GT SEZ, the Government of Laos is a aware of the footprint of Chinese bold action. Business-as-usual is a complicit partner in what is a free-for-all businesses and consumers in relation recipe for disaster for wild tigers and illegal wildlife supermarket and has to poaching, trafficking and the other endangered species. granted special benefits to the consumption of illegal wildlife. If the businesses in the SEZ by declaring it a Government of China is truly committed Environmental Investigation Agency duty-free area. to ending illegal wildlife trade, there is (EIA), March 2015 much it can do to help end the illegal wildlife trade at the GT SEZ. Map showing the location of the Golden Triangle Special Economic Zone (GT SEZ), Bokeo Province, Lao PDR. Arrows indicate source and destination of tiger parts sold at the GT SEZ. TIGERS IN TO GT SEZ TIGERS OUT OF GT SEZ Map not to scale. Jinghong Daluo Mong La Boten Tachileik Golden Triangle SEZ Chiang Rai Houayxay 2 PROFILE OF THE GOLDEN TRIANGLE SPECIAL ECONOMIC ZONE & KINGS ROMANS GROUP © Kings Romans Group Brochure ABOVE: The GT SEZ lies on the Laos bank of the These places are often found near the The Kings Romans Group Mekong River in The Golden Triangle border checkpoints with China and are brochure, available to guests region where Thailand, Myanmar and Laos designed to cater for Chinese visitors.6 at the GT SEZ hotel, openly converge, just south of China’s Yunnan The extent of these trades – especially promotes its own brand of Province. The term ‘Golden Triangle’ was for illegal wildlife – has been widely tiger bone wine. coined in the 1970s due to the area’s role reported in the international media over as a heartland for narcotics production and the years.7,8,9 EIA/ENV’s investigation trafficking, a role it continues to play. A findings suggest that illegal wildlife 2014 report by the United Nations Office traders move between these places as on Drugs and Crime (UNODC) found that new centres emerge to capitalise on opium production in the area had trebled business opportunities within the since 2006, with an upsurge in Laos and Golden Triangle. Myanmar, reaching an estimated value of US$16.3 billion.1 In 2007, Hong Kong-registered Kings Romans Group (KRG), also known by its The Golden Triangle is also renowned for Laotian name Dok Ngiew Kham, signed the trafficking of people and wildlife and an agreement with the Laos Government for the laundering of proceeds of the for the 99-year lease of a 10,000 hectare narcotics trade through casinos.2 concession in the Ton Pheung district of In Myanmar and Laos, especially near Bokeo province in northern Laos.10,11 the borders of Thailand and China where Within this concession, 3,000 hectares casinos are banned, gambling tourism is are designated as a duty-free zone, known touted to attract Chinese and Thai as the Golden Triangle Special Economic visitors.3,4 The dark side of the casino Zone (GT SEZ).12 industry includes human trafficking for the sex trade and wildlife crime.5 The stated aim of the agreement is to attract foreign investment in trade and Over the past two decades, many of these tourism to drive local economic growth and casino-based towns have been established alleviate poverty.13 Central to it is a casino in the Golden Triangle, including Mong La to attract tourists, particularly from China. and Tachileik in Myanmar’s Shan State, The Laos Government is reportedly a 20 and Boten and Ton Pheung in Laos’ Luang per cent shareholder in the project while Namtha and Bokeo Provinces, respectively. KRG holds the remaining 80 per cent.14 3 Investors have reportedly put up to $800 with the Laos Government is KRG’s million into the project to date.15 independence to run its business operations, suggesting that apart from The casino opened in 2009, followed by military, foreign relations and judiciary, a shopping and restaurant area called KRG can decide its own legislation.29 Chinatown in 2013. Both are located in the GT SEZ and so benefit from the duty The GT SEZ benefits from high-level free exemption.16,17 Other developments political patrons in the Laos in the zone included a private landing Government. Officials who have taken dock for boats, a hotel, massage parlours, part in Government visits include Laos museums, gardens, a temple, banquet President Choummaly Sayasone, halls, an animal enclosure, a shooting Prime Minister Thongsing Thammavong, © iStock.com/EdStock range and a large banana plantation.18 Deputy Prime Minister Somsavad To access the area, a 30km road has Lengsavath, Deputy Prime Minister been built from the nearest Laos town Asang Laoly and Bokeo Governor of Houayxay, while plans to construct Khammanh Sounvilerth. an international airport have created conflict with local farmers over Ex-officials are involved in GT SEZ land rights.19 committees, namely Bounmy Souvannalangsy and Chantachone Wangfaseng as Chairs of the © Kings Romans Group Brochure INVESTMENT IN THE GT SEZ Executive Management and Economic TOP: Management Committees, The GT SEZ may be dominated Despite the reportedly large investment 30,31 respectively. Souvannalangsy was by Chinese businesses, but in the GT SEZ, only sparse information previously the Head of Agriculture and Laos law still applies. on its investors exists. Chinese academics Forestry Division of Bokeo Province, who were part of an official Chinese a branch within the Government ABOVE: delegation which visited the GT SEZ in responsible for upholding laws related President of the KRG and 2009 suggested that the “real investor is 32 to wildlife conservation. Wangfaseng Chairman of the GT SEZ with a drug cartel from Myanmar”.20 Press was previously an official in Bokeo in the President of Laos during a reports have suggested that notorious charge of trade and approved the high-level delegation visit to Myanmar drug lord Lin Mingxian is business license of the Fantasy the GT SEZ. among the investors. This has been Garret restaurant at the GT SEZ denied by Zhao Wei, the owner of the Chinatown, where tiger bone wine is Kings Romans Group.21 openly sold.33 Named investors,
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