Fire in Shwe Kokko Raises Questions Amid Crackdown on Call-Centre Scams

A devastating fire tore through the top floor of a 10-storey hotel in Shwe Kokko, a town on the Thailand-Myanmar border in Myawaddy township, on Thursday afternoon, raising fresh concerns about the volatile situation in an area long associated with illicit activities. The blaze, now under control, has prompted an investigation by local authorities to determine its cause and assess the extent of the damage. The incident comes on the heels of a major crackdown by the Karen Border Guard Force (BGF) on illegal businesses, including call-centre scams, and the repatriation of nearly 8,000 foreign nationals from the area.

The building, reportedly owned by the Chinese conglomerate Yatai International Holding Group, is clearly visible from Tak province on the Thai side of the Moei River. Thai security officials have long suspected it of serving as a hub for call-centre scam operations, a pervasive issue along the border. While the recent BGF operations may have disrupted such activities, with many groups believed to have relocated, the fire has reignited scrutiny over the region’s shadowy economy and the effectiveness of ongoing enforcement efforts.

A Hotbed of Illicit Activity

Shwe Kokko, often dubbed a “lawless zone” due to its proximity to the porous Thailand-Myanmar border, has become synonymous with organized crime, including online fraud and human trafficking. Call-centre scams, where victims are duped into transferring money through elaborate schemes, have flourished in such border areas, exploiting weak governance and jurisdictional ambiguities. Security officials on both sides of the border have struggled to curb these operations, which often involve foreign nationals lured or coerced into working under exploitative conditions.

The BGF, a militia aligned with Myanmar’s military but operating with significant autonomy in Kayin State, has stepped up efforts to dismantle these networks in recent weeks. Last week, the group announced the repatriation of 7,968 foreigners, including nationals from China, Vietnam, and Indonesia, over a 30-day period. According to a BGF spokesperson, investigations revealed that 98% of those repatriated had come to Shwe Kokko knowingly to work in these operations, rather than being deceived or trafficked. “Most understood the nature of the work” a BGF representative stated, though the claim has yet to be independently verified.

The crackdown follows a decisive move by Thai authorities on 5 February to cut off electricity, internet, and fuel supplies to five border areas, including Myawaddy, Tachileik, and Phaya Thonsu townships. The measure, aimed at crippling the infrastructure supporting call-centre fraud, has reportedly strained operations in Shwe Kokko, though its long-term impact remains unclear.

Fire Fuels Speculation

Thursday’s fire has added a new layer of complexity to the situation. While the cause remains under investigation, the incident has sparked speculation about whether it was accidental or linked to the recent crackdown. Some observers suggest—if unconfirmed—that the blaze could be tied to efforts to destroy evidence of illicit activities or even retaliatory actions by displaced groups. However, no evidence currently supports such theories, and officials have urged caution against premature conclusions.

From the Thai side, authorities in Tak province are monitoring the situation closely. The visibility of the burning building across the Moei River has heightened local concerns about potential spillover effects, including an influx of displaced workers or escalating tensions. “We are coordinating with our counterparts to ensure stability along the border” a Thai official in Tak province said, emphasizing the need for vigilance.

The ownership of the building by Yatai International Holding Group, a Chinese conglomerate, has also drawn attention. While the company has not issued a public statement regarding the fire, its involvement in Shwe Kokko has long been a point of contention. Critics have accused foreign investors of turning a blind eye to, or even facilitating, illegal activities in the area, though such claims remain unsubstantiated.

Regional Implications of the Crackdown

The BGF’s operation and Thailand’s punitive measures reflect a broader push to address the scourge of call-centre scams, which have caused significant financial losses globally. Victims, often targeted through sophisticated online schemes, span continents, with losses estimated in the billions of dollars annually. The border region’s role as a hub for such activities has strained diplomatic relations, particularly between Thailand and Myanmar, as both countries grapple with mutual accusations of insufficient enforcement.

Thailand’s decision to sever utilities to border areas, while impactful, has also raised humanitarian concerns. Local communities, already burdened by economic hardship and conflict in Myanmar, may bear the brunt of such measures. Aid organizations have warned that cutting off essential services could exacerbate vulnerabilities, potentially driving more individuals into the hands of criminal networks.

Moreover, the repatriation of nearly 8,000 individuals poses logistical and ethical challenges. While the BGF claims most came to Shwe Kokko willingly, rights groups argue that many may have faced coercion or lacked viable alternatives. The conditions under which these individuals were repatriated, and their treatment upon return to their home countries, remain points of concern. Independent verification of the BGF’s figures and processes is still pending, and discrepancies could undermine the credibility of the operation.

Economic and Political Stakes

Economically, Shwe Kokko’s transformation into a hub for illicit activities has distorted local markets and deterred legitimate investment. The presence of foreign conglomerates like Yatai, often operating in opaque partnerships with local entities, complicates efforts to regulate the area. Thai and Myanmar authorities face the dual challenge of dismantling criminal networks while fostering sustainable development—a balance that has proven elusive amid ongoing political instability in Myanmar.

Politically, the situation in Shwe Kokko underscores the fragility of governance along the border. Myanmar’s central authority, weakened by the 2021 military coup and subsequent civil conflict, has limited control over regions like Kayin State, where groups like the BGF wield significant influence. The BGF’s alignment with the military junta, coupled with its autonomous operations, raises questions about accountability and the potential for abuses of power during crackdowns.

Thailand, meanwhile, must navigate domestic pressure to curb cross-border crime while maintaining diplomatic ties with Myanmar’s junta—a regime facing widespread international condemnation. The decision to cut utilities, though framed as a security measure, may also be seen as a signal of frustration with Myanmar’s inability to address shared challenges.

Human Stories Amid the Chaos

Behind the headlines of fires and crackdowns lie the human stories of those caught in Shwe Kokko’s web. Many of the repatriated workers, regardless of whether they arrived willingly, face uncertain futures. Returning to their home countries, they may encounter stigma, debt, or legal repercussions for their involvement in scam operations. Others, displaced by the crackdown, could fall prey to new forms of exploitation as criminal networks adapt to enforcement pressures.

Local residents of Shwe Kokko, too, bear the consequences of the area’s notoriety. Once a quiet border town, it has become a flashpoint for crime and conflict, leaving communities grappling with insecurity and economic disruption. The fire, while contained, serves as a stark reminder of the volatility that defines their daily lives.

As investigations into the blaze continue, and the broader crackdown unfolds, the Thailand-Myanmar border remains a crucible for some of the region’s most pressing challenges. Whether these latest efforts will yield lasting change—or simply push criminal activities deeper underground—remains an open question, one that will shape the lives of thousands in the months to come.