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Annan would serve as a mediator to bring an end to the violence and abuse meted out towards members of the Muslim community in the restive Rakhine State.
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The violence has largely been blamed on the majority Buddhist population in the South East Asian country.
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Criticism has also been heaped onto the de facto leader of the country, Aung San Suu Kyi, for failing to speak up against the violence.
In a tweet, Kofi Annan expressed delight and his preparedness to help bring peace.
Kofi Annan became the first black Secretary General of the UN in 1996 and won the Nobel Peace Prize in 2001.
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He is the chairperson of a select group of elderly statesmen and women assembled by Nelson Mandela known as The Elders.
The Ghanaian was the first peace envoy of the Syrian war.
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