Karen Border Forces and the Shadow Economy: Unveiling the Ties Between Saw Chit Thu, the KNU, and Illicit Activity

The Karen National Union (KNU), a longstanding political organization that many Karen assert does not represent their interests, and point out they were never elected by the Karen people. Recent scrutiny has cast shadows on some of its affiliated and splinter factions, particularly the Border Guard Force (BGF) and Democratic Karen Benevolent Army (DKBA), with questions arising over alleged involvement in human trafficking, drug trafficking, and online scam operations centered along the Thai-Myanmar border.

Saw Chit Thu: A Key Figure at the Crossroads of Power and Corruption

Colonel Saw Chit Thu, originally a commander within the Democratic Karen Buddhist Army (DKBA), later became a central figure in the Karen Border Guard Force (BGF)—a unit integrated with the Myanmar military in 2010. Under his leadership, the region of Shwe Kokko, located on the Moei River near Myawaddy, has transformed into a hub for illicit economies, particularly with the controversial Yatai New City Project, backed by Chinese investors.

Numerous reports from The Irrawaddy, Reuters, and The Nation (Thailand) have linked the project to illegal casinos, cyber scam centers, and human trafficking rings. Victims, many of whom were foreign nationals, were trafficked and forced to work in scam compounds operating fraudulent online schemes. These centers also reportedly served as fronts for drug smuggling and arms trading, compounding the instability in the region.

International Sanctions and Legal Repercussions

In December 2023, the United Kingdom sanctioned Saw Chit Thu for involvement in forced labor and human trafficking. In February 2025, Thailand’s Department of Special Investigation (DSI) sought arrest warrants for Saw Chit Thu and other top BGF commanders for human trafficking—specifically the trafficking of Indian nationals into call center scam operations.

Amid growing pressure, Saw Chit Thu claimed ignorance of the criminal activities and instead positioned himself as a "land lessor" who cooperated with authorities to repatriate thousands of foreign nationals. However, analysts view these statements with skepticism, given his documented influence and wealth amassed through the Shwe Kokko project.

Karen National Union: Silent Allies or Unwitting Bystanders?

While the KNU has publicly denied direct involvement in scam-related activities, internal friction has surfaced. In May 2023, the KNU announced an internal investigation into whether senior KNU leaders were complicit in corrupt land deals and illicit investments tied to the New City project. Reports from Karen News and Frontier Myanmar indicated that the Maw Hto Talay area, where development continued under suspicious terms, may have involved cooperation from both KNU-affiliated individuals and former insurgent leaders now engaged in business ventures.

Although no formal charges have been levied against current KNU leadership, there are calls for transparency and accountability, especially amid leaked information suggesting certain leaders facilitated land access and permits for Saw Chit Thu’s project under informal agreements or in return for bribes.

Complex Terrain: Ethnic Politics and the Criminal Underworld

It's essential to recognize the complex socio-political fabric of the Thai-Myanmar border region. Ethnic insurgencies, cross-border trade, state neglect, and international disinterest have enabled a parallel economy where state and non-state actors cooperate, compete, and coexist in grey zones. The BGF, though officially a paramilitary arm of the Myanmar military, operates with considerable autonomy, particularly in areas rich in natural resources or trade potential.

Analysts caution against assuming a monolithic stance among Karen factions. However, as the lines between political representation, ethnic defense, and economic exploitation blur, the need for transparency within organizations like the KNU has never been greater.

Sources:

1. The Irrawaddy – Karen Warlord Protests Thai Arrest Threat

2. Nation Thailand – Shwe Kokko’s Shadow Economy

3. Karen News – KNU Investigates Leaders in New City Corruption Allegations

4. Frontier Myanmar – Border Project Looms Over KNU

5. Reuters – Thailand’s Crackdown on Scam Centers

6. AP News – 260 Foreigners Rescued from Scam Compounds

7. The Australian – Myanmar Scam Overlord Cries Poor

8. Wikipedia – Saw Chit Thu