This Canadian family fuelled Myanmar’s civil war with ‘blood pearls’

The accompany, Belpearl, operates through and through a web of related to entities registered in Toronto, Hong Kong, capital of singapore, Japan and Myanmar. One of those entities, Belpearl Myanmar, operates a pearl farm with two adjacent locations in the country.

Myanmar pearls, particularly the renowned South Sea golden pearls from the Mergui Archipelago, are among the most sought after in the world for their intense, natural deep-gold colour and large size. 

"There's probably a lot of consumers that don't even know that Burma has a military government, that don't even know it's in the civil war, and maybe if they knew that, they would look at things differently," said Eric Braunwart, founder of Columbia Gem House, a Vancouver, Wash., firm that responsibly sources gems.

Exposing the Canadian family that fuelled a civil war with ‘blood pearls’

The regime in Myanmar — formally known as Burma — has waged a civil war since 2021 and the United Nations has accused it of committing "brutal atrocities" and killing thousands of civilians.

Following the 2021 coup, Canada, the U.S., the U.K. And other Western governments placed sanctions on Myanmar as part of efforts to restrict revenue flowing to the junta. The RCMP was asked almost two years ago to investigate the Belpearl arrangement as a violation of those sanctions.

"There is absolutely a case to be made to call them 'blood pearls,'" said William Pellerin, of McMillan LLP, which represents the NGO Justice for Myanmar. 

"I think the government of Canada has an obligation to uphold the law, and we pass these laws specifically because it's in our international interests to make sure that the military junta in Myanmar is not funded and continuing to commit the atrocities that they've been committing."

Corporate records provided by Justice for Myanmar (JFM) show that, until recently, Belpearl Myanmar listed two Canadians — Marie Hajjar and Pierre Hajjar — as directors. The records also show that members of the same family — Michael Hajjar and Sarkis Hajjar — appeared as directors or shareholders across multiple Belpearl entities operating in Asia and Canada.

None of the Hajjars responded to repeated requests for comment.

The pearls provided to the MPE are then sold through state-run auctions.

"The money keeps the regime afloat," said Maw Htun Aung, the deputy minister of Electricity and Energy for Myanmar's opposition National Unity Government. "If you cut these sources of revenue… that would eventually lead to the demise of this military regime."

After the military junta seized power in February 2021 and sanctions were imposed, Belpearl Myanmar continued to operate in the country under the production agreement.

"Through its regulatory role, MPE is a key generator of government revenue," the U.S. Treasury Department said in 2021 after it slapped sanctions on the state-run enterprise.

Pellerin said he believes there's a strong case for the RCMP to investigate. 

In a written statement, the RCMP said it "does not confirm, deny, or release information relating to criminal investigations until charges are laid, rendering it a matter of public record."

Legal experts agree there should be an RCMP investigation but are divided on whether the case represents a clear-cut violation of sanctions.

"The production-sharing agreement and the continuing pearl farms operation with the sanctioned Myanmar company fall foul of the regulations, in my opinion," said Errol Mendes, a prominent law professor at the University of Ottawa who specializes in human rights, constitutional law and international business law.

Mendes said it doesn't matter whether the two Canadians have now stepped back from the company. The question of whether they've violated sanctions rests on the time period between 2021 and their apparent exit from the company.

University of Manitoba defence and sanctions expert Andrea Charron said the case is suspicious. 

Normally, companies and individuals caught up in the sudden imposition of sanctions can notify the RCMP of their circumstances and request grace, and an application can be made to Global Affairs Canada for an exemption while the company tries to exit the country.

"Whenever an entity is sanctioned by Canada and you are a Canadian doing business with them, it should give you pause," said Charron.

"One of the things that Canadians are required to do is to write to the RCMP and let them know if they think there is a potential for a violation, and that's encouraged. So certainly, if it were me, I would always want to be on the side of caution."

Belpearl did not respond when asked if it had taken either step.

Charron said the decision to prosecute is generally guided by two criteria, including "whether there is a reasonable prospect of conviction" and whether "it is in the public interest" to proceed.

She said she doesn't believe the case would be a "slam dunk" because following the money in Belpearl's production-sharing agreement would be tough for Canadian enforcement.

The difficulty of proving the case, Charron said, "is very similar to the blood diamonds" controversy of the late 1990s, where African rebel groups used diamond proceeds to purchase weapons. Traceability issues hampered many blood diamonds prosecutions.

Pellerin, who represents Justice for Myanmar, disagrees and believes the case is clear-cut by virtue of the two Canadians continuing to deal with MPE and not executing plans to leave the country. He said his firm dealt with a number of Canadian companies, for example, that played by the rules following the imposition of sanctions on Russia over the Ukraine war. 

In those instances, applications were made to Global Affairs while the businesses in Russia were wound up.

None of them were answered. 

Myanmar pearls fetch high prices at auction. An independent estimate of auction sales prepared by Braunwart of Columbia Gem House suggests Belpearl auctions in Hong Kong that included Myanmar pearls from multiple suppliers may have conservatively generated more than $20 million US in pearl sales since the 2021 coup. 

"Although there were no legal restrictions on Canadian nationals continuing to own shares in companies in Myanmar, our Canadian shareholders voluntarily chose to remove themselves from the businesses due to the mounting crisis. This process took longer than anticipated due to the complexity of local laws and challenges finding a responsible buyer but was ultimately completed in an orderly manner, and in accordance with applicable laws."

The Canadian Importers Database shows that Belpearl Toronto was a major importer of pearls from Hong Kong in 2023. 

Shipping records indicate pearls produced by Belpearl Myanmar were transported to Hong Kong, where Belpearl Auctions — a related entity — has held regular auctions. Corporate filings list Marie Hajjar as director of Belpearl Auctions.

In a written response, Belpearl Toronto denied importing any Myanmar pearls into Canada since the 2021 coup. 

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