The Environmental Investigation Agency says kickbacks to Cambodian authorities have amounted to more than $13 million since early last November.
The incident occurs as members of an advisory commission on Rakhine meets with Buddhist and Muslim leaders over religious tensions.
But an environmental group says any sand taken out of the country is done so illegally.
The incident has prompted a lawmaker in the country’s Ayeyarwady region to raise questions about the transfer of money.
The move comes as the government and other powerful people take heat for cracking down on those who write critical posts of them online.
The former chief minister of Magway region transfers 3 billion kyats to the regional government, with more to come.
Journalists say Aung San Suu Kyi's administration has failed to eliminate laws that restrict press freedom.
The former chief minister of Magway and a lender have until the end of the week to return some of the missing money.
The prime minister should instead address ‘injustice and suffering’ in the country, he says.
The government’s policy is to resolve the problem bilaterally, a spokesman says.
The government has been collecting data on child laborers in an effort to reduce the number of underage kids who must work for a living.