In Macau, Anything Goes But Democracy

macau-invest · March 18th, 2009, 10:35 AM

In Macau, Anything Goes But Democracy
Robyn Meredith, 03.18.09, 12:01 AM EDT
The world's gambling capitol lets in money launderers and gangs, but draws the line at Democracy advocates.

Hong Kong - Macau has seen its share of unsavory action over the past few years, since it became China's offshore gambling hub. There's plenty of prostitution, money-laundering and loan-sharking, much of it run by the Chinese mob.

There's a smattering of human trafficking, mostly for the ubiquitous sex trade. Oh, and until September 2005, a Macau bank ran money for the North Korean government, which laundered the fruits of its drug trafficking and counterfeiting efforts through Macau.

The pro-Beijing government draws the line at the truly dangerous elements: Democracy advocates and the occasional journalist.

Last weekend, a group of 35 pro-democratic Hong Kong lawmakers boarded a ferry for the one-hour ride to Macau. They were on their way to discuss Macau's new national security law with activists in Macau. Five of the lawmakers were refused entry on internal security grounds and put on the next ferry back to Hong Kong.

They weren't the first to be turned back from Macau, a city of 550,000 that reverted from Portuguese to Chinese control in 1999, two years after Britain handed over Hong Kong. Both are "Special Administrative Regions" of China, and follow the "one country, two systems" principle, which gives substantial autonomy to local governments rather than Beijing--except when it comes to foreign affairs and defense.

In late February, Macau passed a new national security bill called Article 23. In the debate leading up to the passage, Macau carefully policed its borders against those who opposed the measure, citing internal security concerns to bar activists and others from entering.

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Last April, Macau barred three democratic Hong Kong legislators from entry. In June, a Hong Kong University student who had waved a Tibetan flag when the Olympic torch passed through Hong Kong was barred from the gambling mecca. In December, as the vote on the national security bill got closer, 24 Hong Kong activists who opposed the measure were denied entry.

Press freedom group Reporters Without Borders is protesting Macau's refusal last month to admit a photographer from the South China Morning Post, a Hong Kong newspaper. The photographer, Felix Wong Chi-keung, was turned away twice in a week, first when attempting to cover the corruption trial of a former government official, and again when trying to cover the Article 23 debate. Earlier this month, the dean of the University of Hong Kong's law faculty was refused entry.

But the weekend's expulsion of members of the Hong Kong group of lawmakers has led diplomats to speak up. "We understand that five members of a 35-member pan-Democratic delegation were denied entry to Macau on March 15," said spokesman Dale Kreiser of the U.S. Consulate in Hong Kong. "While such decisions are within the scope of authority of all governments, we view any attempt to restrict the free flow of information and exchange of ideas with concern." Diplomats from the European Commission and the U.K. have expressed concerns about the matter to the Macau government.

Once a peaceful fishing village, Macau was colonized by the Portuguese in 1557. In 2006, seven years after its return to China, it surpassed Las Vegas as the world's largest gaming center, but there's a lot to do there besides gambling.

For those who like to count more than cards, there's plenty of money laundering action. Macau is the preferred place for corrupt mainland Chinese government officials to launder their ill-gotten cash. Macau's "gaming industry served as a conduit for the unmonitored transfer of funds out of China," a recent U.S. government report on financial crimes explained. This is particularly true of the Macau casinos' VIP rooms, most of which are run by the Triads, a Chinese version of the mob, according to the report.

Those looking for love shouldn't have much trouble finding friends in Macau. "Prostitution is legal and common," the U.S. said in a human rights report on Macau out last month. Macau "had a large sex trade, including brothels, most of which were believed to be controlled by Chinese organized crime groups."

Maybe if Macau had a truly democratic government, voters would insist their leaders clean up the real crime festering there.

Robyn Meredithis Hong Kong bureau chief for Forbes and the author ofThe Elephant and the Dragon: The Rise of India and China and What it Means for All of Us. She writes a biweekly column.

FourSeasons · March 18th, 2009, 12:59 PM