The Australian government has spent over $2.5 million in taxpayer funds on luxury accommodation linked to Myanmar's military junta. 

Australia has joined much of the world in condemning the actions of the junta, which has killed over 2,200 people and arrested over 15,500 since its power grab on February 1 last year.

But in the background, the Australian government has spent more than $1.5 million on staff accommodation at Shangri-La residences in Yangon, as well as $862,000 at Lotte Hotel, and $162,000 on short-term accommodation at MGallery in the capital Nay Pyi Taw, which is run by hotel company Accor but owned by Max Myanmar group.

Shangri-La and Max Myanmar have both been by the UN companies that have financial ties with the military, also known as the Tatmadaw.

The chair of Max Myanmar donated almost US$1 million to the military for the construction of a fence along the Bangladesh-Myanmar border, which “played an integral part in the inhumane act of preventing Rohingya from accessing their homeland” in northern Rakhine State, “thereby causing great suffering and anguish”, the UN says. 

Officials from Max Myanmar were found to have “aided, abetted, or otherwise assisted in the crimes against humanity of persecution and other inhumane acts”.

“Lotte and Shangri-La are key business partners of the military, paying rent to the very part of the army that purchases the bombs and bullets used to slaughter the people,” says Yadanar Maung from Justice For Myanmar.

“Max Myanmar was complicit in the genocide against the Rohingya and must be held accountable for that.

“Australia is failing the people of Myanmar. Not only does it consistently refuse to sanction Myanmar war criminals and their businesses, the government even uses taxpayer funds on companies that help the Myanmar military continue committing international crimes.”

Foreign Minister Penny Wong disclosed the Australian government's spending on rental properties linked to the Myanmar military in response to a question on notice from Greens Senator Jordan Steele-John, saying; “The Australian government's operations in Myanmar do not directly fund the Myanmar military”. 

Senator Wong also revealed that the property providers were not subject to targeted financial sanctions in Australia.

DFAT has issued a statement saying that the “safety and security of our staff in Myanmar is our highest priority, there are a limited number of suitably secure accommodation options for Australian staff in the current security context”.

“Our staff accommodation is in line with that used by other embassies, some of which rent through the same companies or providers. We keep accommodation options under review.”

Senator Steele-John says cutting the funding ties to the military “is the very least we can do to address this crisis in our region”.

“Australia should absolutely not be doing business with companies that have ties to the Myanmar military,” he said.

“I am calling on the Australian government's words of condemnation of the military in Myanmar to match their actions. Condemning the coup, and then spending a reported $2.5 million that can find its way back to the military junta is hypocritical.”