The truth is more likely that both the junta and local militias have ties to different scam centres. The Myanmar government never does anything for its people, it's motivated by power and money and they were profiting heavily from scam centres until China's patience broke, due to large numbers of Chinese being trafficked and imprisoned at these scam compounds. The junta needs China's support in order to survive. As the junta lost control of the border regions the local militias stepped in to either profit from scams or close them to please China, depending upon what they thought would benefit them most.
i haven’t seen any good evidence tying the Tatmadaw to these large-scale scam operations, while I have seen a fair bit of evidence tying a few of the regional militias.
Many of those regional militias are or were integrated into the Tatmadaw as Border Guard Forces to hold territory against other militias. E.g. the scam centers in Laukkai were run by the local BGF until 2023 when the Tatmadaw lost control to the MNDAA, who then shut them down, presumably as part of a deal with China. The Tatmadaw doesn't control many towns on the eastern border anymore, but they do control Muse near the border with China, where scam centers were operating unimpeded until after that offensive, when the Tatmadaw began to target them with arrests and deportations https://shwepheemyay.org/english-edition/junta-raids-muse-sc... probably to get back on China's good side.
