Khin Nyunt stands accused of corruption
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Burma's former prime minister, who was dismissed last month, had been threatening military unity, a top military official has said.
The military regime at first said Khin Nyunt had retired on health grounds.
But senior official Gen Thura Shwe Mahn has now said Khin Nyunt was involved in a corruption scandal.
In a booklet sent to Burma's media, he said the fraud could have led to the disintegration of the military, which has ruled Burma for four decades.
'Blow to reformers'
Khin Nyunt, who also headed Burma's intelligence services, is currently under house arrest.
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KHIN NYUNT'S POSITION
Number three in junta hierarchy
Appointed Prime Minister in 2003, in perceived demotion
Sponsored "roadmap" for democracy and freeing of Aung San Suu Kyi
But power struggle with senior leader Than Shwe hampered progress
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He has been criticised for his investigations of regional commanders which along with his other actions, "could have... extreme danger for the country", Gen Thura Shwe Mahn said.
Businessmen have been told to disclose their connections with the former prime minister.
The new Prime Minister is Gen Soe Win, a former chief of air defence, who has become prominent in the military leadership in the past two years.
Gen Soe Win - described as a trusted deputy to the country's top general, Than Shwe - is believed to advocate a hard line against the opposition.