Casinos, high-rises and fraud: The BBC visits a bizarre city built on scams

In the heart of Myanmar, a peculiar city named Shwe Kokko has emerged, capturing the attention of many due to its unusual origins. Just eight years ago, this area was a quiet and impoverished region, marked by trees and a few basic buildings. However, today, it boasts tall, shiny skyscrapers that rise dramatically from the landscape, creating a striking contrast against the backdrop of the Moei River. This transformation has led to accusations that Shwe Kokko is a city built on scams, with a reputation for being a hub of fraud, money laundering, and human trafficking. The mastermind behind this ambitious project, She Zhijiang, currently finds himself in a Bangkok prison, awaiting extradition to China. His company, Yatai, presents a different narrative, portraying Shwe Kokko as a luxurious resort city designed for wealthy Chinese tourists. This stark contrast between the city's image and its reality raises questions about the true nature of Shwe Kokko. The story of Shwe Kokko reflects the unrestrained ambition that has emerged from China over the past two decades. She Zhijiang envisioned this glittering city as a means to escape his past in the world of scams and gambling. However, his aspirations have drawn the scrutiny of the Chinese government, which is now determined to eradicate the fraudulent operations that have proliferated along the Thai-Myanmar border, particularly those targeting Chinese citizens. The tall buildings of Shwe Kokko are visible from the Thai border, and the negative publicity surrounding the scams has begun to impact tourism in Thailand. In response, the Thai government has taken measures to cut off power to compounds associated with these scams, tightened banking regulations, and promised to deny visas to individuals suspected of using Thailand as a transit point for illicit activities. As a result, Shwe Kokko finds itself isolated in a post-coup Myanmar, struggling to attract the investment and visitors it desperately needs to thrive. Yatai is attempting to reshape the city's sinister image by inviting journalists to visit, hoping that favorable coverage might lead to She Zhijiang's release from jail. The BBC was granted access to Shwe Kokko, but reaching the city proved to be a challenging endeavor. Since construction began in 2017, Shwe Kokko has been largely off-limits to casual visitors. The ongoing civil war in Myanmar has further complicated access, making the journey from the commercial hub of Yangon a lengthy and perilous one, fraught with checkpoints and the risk of armed conflict. Crossing from Thailand is quicker but requires careful navigation to avoid police and military patrols. Once inside Shwe Kokko, the tour guides showcased the newly paved streets, luxurious villas, and green spaces, emphasizing She Zhijiang's vision of a 'green city. ' The signs throughout the city are predominantly in Chinese, and the workforce consists mainly of local Karen people, one of Myanmar's ethnic minorities. However, the absence of foreign tourists raises doubts about the city's intended purpose. Yatai claims that scams are no longer a part of Shwe Kokko, but local residents tell a different story. They assert that the scam operations continue to thrive, despite Yatai's public denials. The scam industry has evolved into a multi-billion dollar enterprise, employing thousands of workers from various countries, some of whom are coerced into participating. Those who have managed to escape recount harrowing tales of abuse and exploitation. Yatai has constructed Shwe Kokko with the protection of local armed groups, further complicating the city's reputation. During the visit, a young woman who had recently worked in a scam center shared her experience. She explained how she and other women would establish online relationships with unsuspecting victims, often targeting the elderly, and lure them into fraudulent investment schemes. The BBC team was only permitted to see what Yatai wanted them to see, but it was evident that scams remained a significant part of the city's operations. Requests to enter the office buildings were consistently denied, and security personnel were present at all times. The young woman insisted that everyone in Shwe Kokko is aware of the ongoing scams, dismissing Yatai's claims as false. She Zhijiang, currently incarcerated, asserted that Yatai would never condone scams, but many remain skeptical of his statements. His background is complex, having previously been involved in illegal activities. Born in a poor village in China, he left school at a young age and ventured into online gambling, which is illegal in China. After facing legal troubles in China, he relocated to Cambodia and eventually partnered with a local warlord to establish Shwe Kokko. The city was initially envisioned as part of a larger initiative to attract Chinese investment, but circumstances have changed dramatically. The Chinese government has distanced itself from She Zhijiang, and he now faces serious allegations. Despite his claims of innocence, it is difficult to believe that Yatai, which oversees all operations in Shwe Kokko, could not prevent the scams from continuing. The city is grappling with the challenge of attracting legitimate businesses, and the ongoing civil war complicates matters further. The BBC team was only allowed to visit a few locations, and many of the buildings appeared deserted. A local casino was on the verge of closing due to a lack of customers, with the primary revenue source shifting to online gambling. Yatai declined to disclose any financial information, citing privacy concerns. The company is registered in multiple countries, but it seems to operate more as a facade than a legitimate business. The future of Shwe Kokko remains uncertain, as the Thai and Chinese governments intensify efforts to dismantle the scams. If these initiatives succeed, the city's financial viability may be jeopardized, leaving its fate hanging in the balance.