Mongolian government survives parliamentary vote on dismissal

Majority of Mongolian lawmakers voted against dismissal of Prime Minister Khurelsukh Ukhnaa amidst corruption allegation involving top officials and lawmakers. 

40 lawmakers voted Nay against dismissal versus 33 that voted Yea. 

The scandal polarized the Mongolian public and divided the ruling Mongolian People's Party into opposing factions led by PM and Speaker. 

PM and his faction demanded resignation of Speaker Enkbhold Mieygombo calling him god-father of corrupt special interest business group comprised of both ruling and opposition party members. 

During the heated debate, PM vowed to continue his struggle against corruption and for justice and hold all involved in corruption accountable before court and according to party discipline. 

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Small countries can enrich regional cooperation initiatives, says ex-Mongolian PM

Sukhbaatar Batbold warns against overlooking their growth potential

AKANE OKUTSU, Nikkei Staff WriterJune 11, 2018 19:13 JST

TOKYO -- Small countries have much to offer economically and should not be left out of regional cooperation initiatives, former Mongolian Prime Minister Sukhbaatar Batbold said on Monday.

"To be very blunt, world politics are being more and more perceived as a zero-sum game where one's loss is another's gain," Batbold told the Future of Asia conference in Tokyo. To avoid conflict in Asia, "we need a win-win solution for all parties who have a stake" and "mutual respect" for each other's interests, he stressed.

Batbold said that in the process of pursuing solutions that benefit all governments, smaller economies have been excluded from regional initiatives, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, the Regional Comprehensive Economic Partnership, and the Free Trade Area of the Asia-Pacific.

Leaving these smaller players out of the picture is a wasted opportunity, Batbold said, because they are where "investment and trade could harvest the greatest and fastest results."

He said Mongolia was a prime example of an overlooked opportunity, citing how its gross domestic product has grown more than six times since 2005 and is expected to expand by 6.3% this year. Yet even with all that potential, said the former prime minister, Japan is the only country that has signed an economic partnership agreement with Mongolia. "So far, this is the only linkage Mongolia has to a more liberal and open trade regime besides the [World Trade Organization]," Batbold said.

Mutual respect, cultivated through bilateral and multilateral institutions, is also essential to solving issues plagued by political distrust and rivalry, Batbold said. He said the Ulaanbaatar Dialogue, which takes place in Mongolia this week for the fifth time, will "contribute to greater trust-building dialogue."

"It may be high time to convene a dialogue across the existing processes to converge around the most general and widely accepted principles," Batbold said.

He said smaller countries must be included in such processes, as "they do have experiences and stories to tell."

Regarding the radicalization of political views in Asia stemming from problems of inequality, Batbold suggested that well-informed public policy could provide solutions. Japan, whose economy developed faster than those of other East Asian countries, "should be more vocal in showcasing its example," Batbold said.

The former leader added that the "Asian type of developmental model," characterized by meritocracy and a focus on education and families, would lead to rational public policy that is based on extensive dialogue with major stakeholders.

Source:Nikkei Asian Review

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Mongolia’s anti-corruption agency under threat

ollowing recent calls for the resignation of the head of Mongolia’s leading anti-corruption body, Transparency International urges the president of Mongolia to stop undermining anti-corruption efforts nationwide and cease threats to fire the country’s top watchdog.
Formed in 2007, the Independent Authority against Corruption (IAAC) investigates cases of corruption across the country according to Mongolian law. Yet, the agency is under increasing political pressure from government officials who point to the country’s poor performance on the Corruption Perceptions Index (CPI) and hold the IAAC responsible for low national scores.
“Mongolia’s poor score on this year’s CPI underlines the need to strengthen anti-corruption efforts nationwide, not weaken them,” said Delia Ferreira Rubio, chair of Transparency International. “The CPI should not be used as a bargaining chip by the president to undercut the authority of national, independent anti-corruption agencies.”
According to national law, the head of the IAAC is required to serve a six-year term, with the present leader slated to be in power until the end of 2022. However, since its inception in 2007, the IAAC has changed leadership three times, with no single leader finishing a full term.

The need for an independent agency

Well-financed and independent anti-corruption agencies, like the IAAC, can be strong weapons in the fight against corruption. However, these agencies need support from national governments, including the judiciary and law enforcement systems in order to be successful. Above all, agencies need independence; they need to establish credentials as independent investigators dedicated to fighting corruption both inside and outside government.
Anti-corruption agencies, including the IAAC in Mongolia, often emerge in the context of corruption scandals. The agencies are formed through broad political consensus and are regarded by most stakeholders as the ultimate response to corruption. However, in general, these agencies can also find themselves at the centre of political controversy if they decide to investigate those in power.

Examining Mongolia’s CPI score

Earlier this year, Transparency International released the 2017 CPI, which scores and ranks 180 countries and territories by their perceived levels of public sector corruption on a scale of zero (highly corrupt) to 100 (very clean). With a score of 36, Mongolia scores poorly on this year’s index, highlighting how corruption is a serious problem across the country.
Specifically, the index draws on 13 surveys and assessments from independent institutions specialising in governance and business analysis, covering experts’ opinions and the views of businesspeople. The score for Mongolia was aggregated from nine data sources.
Transparency International Mongolia was not involved in the data collection or score calculation process for the CPI. Based in Berlin, the secretariat for Transparency International calculates the index independently, and the score calculation approach is designed to be non-political and non-partisan.
Despite this, recent reports in Mongolia have painted an inaccurate picture of the index’s methodology and results. The CPI has been criticised in Mongolia as a reflection of the poor performance of the IAAC. However, the CPI is not an adequate tool to measure the performance of any institution in a country, including the IAAC. Instead, the CPI looks at the general perceptions in a country. In fact, any interference with the proceedings of autonomous anti-corruption agencies could potentially backfire, resulting in additional negative perceptions and even lower CPI scores.
To truly tackle corruption in Mongolia, and throughout the Asia Pacific region, governments must strengthen anti-corruption rules and policies, punish corrupt individuals, support activists who demand accountability and denounce corrupt acts as soon as they occur.
For more information about the Corruption Perceptions Index and its methodology, visit: https://www.transparency.org/news/feature/corruption_perceptions_index_2017#resources 

For any press enquiries please contact


Jen Pollakusky/Michael Hornsby    
E: press@transparency.org
T: +49 30 3438 20 666

Source:Transparency International

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Mongolian anti-corruption agency arrests 2 ex-PMs amid mine probe

ULAN BATOR, April 11 (Xinhua) -- Mongolian law enforcement officials on Wednesday confirmed the arrest of two former prime ministers as part of an investigation into abuse of power involving a large mining deal.

They have been investigated by the Independent Agency Against Corruption (IAAC), the country's top anti-corruption body, in the large mining deal signed between the government and Anglo-Australian mining giant Rio Tinto.

The agency detained Bayar Sanjaa, prime minister when Mongolian government signed the original 2009 investment agreement, as well as Saikhanbileg Chimed, prime minister when the financing arrangement of the deal was revised in 2015.

The prosecutor's office in the capital, Ulan Bator, said the two have been arrested Tuesday evening for charges of abuse of official power for preferential treatment in the investment agreement to develop the Oyu Tolgoi mine.

Earlier, the IAAC has arrested other former officials including a former finance minister and a former head of tax authority.

Currently, financing arrangements of the mining deal are under investigation by the IAAC and a parliamentary working group.

Source:Xinhua news agency

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Mongolia mining corruption probe snares former PM

Saikhanbileg Chimed the highest-ranking official implicated in investigation

By Lucy Hornby in Beijing, China

A Mongolian investigation into allegations of corrupt mining payments has ensnared a former prime minister who has been asked to return from the US to answer prosecutors’ questions. 

 Saikhanbileg Chimed, prime minister for two years until 2016, is the highest-ranking official to have been implicated in the probe, which dates from revelations in the leaked Panama Papers of transfers to a Swiss bank account in the name of Bayartsogt Sangajav, the former Mongolian finance minister. Swiss authorities froze the account in January. 

 Over the weekend, Mongolian authorities arrested Mr Bayartsogt and two other former officials with ties to Erdenes Mongol, the state-owned holding company set up to contain Mongolia’s shares in mining projects including the Oyu Tolgoi copper mine and the Tavan Tolgoi coking coal deposit. 

They also requested Mr Saikhanbileg return from the US. Mr Saikhanbileg could not be contacted for comment. 

Turquoise Hill, the Canada-listed subsidiary of Rio Tinto which is developing a $5bn underground stage of the Oyu Tolgoi mine, has previously said it received a request for more information by the Mongolian anti-corruption authorities. 

 The request for information concerned the “possible abuse of power by authorised officials” during the negotiation of the 2009 Oyu Tolgoi investment agreement, shortly after Rio took over negotiation of the Oyu Tolgoi project from Ivanhoe Mines, the original developer. 

 Mr Saikhanbileg signed the agreement to develop the second, underground phase of the mine, which economists said was necessary for the Mongolian government to meet its budgetary commitments. Negotiations over the first phase of the giant mine were also fraught, with rancour on both sides and repeated changes to Mongolia’s mining investment regime, once the most liberal in the world. 

 Swiss prosecutors have said the investigation was not directed against Rio or its employees. Rio Tinto declined to comment on Tuesday. 

 “The Mongolian government and public is slowly beginning to build up capacity to analyse its relationship with Oyu Tolgoi and with Rio Tinto as an investor and to ask questions about that relationship in the process,” said Julian Dierkes, an expert on Mongolian civil society at the University of British Columbia. 

 Mr Saikhanbileg’s departure from office in 2016 was marred by the contentious $400m purchase of nearly half of the giant Erdenet copper mine in Mongolia’s north from Russian holding company Rostec, which returned the entire mine to Mongolian ownership.

Erdenet long had symbolic value as the Soviet Union’s most important investment in Mongolia but has been plagued by allegations of mismanagement and corruption. The previously unknown private company that bought the stake, Mongolian Copper Corp, is fighting the Mongolian government’s decision in February 2017 to nationalise the stake bought from Rostec.

Bayanjargal Byambasaikhan, former chief executive of Erdenes Mongol, told the Financial Times in 2016 that the holding company would have trouble establishing control over the state’s share in Erdenet due to the complexity of the politics surrounding that mine. Mr Byambasaikhan was one of the people arrested this weekend. 

 In a statement on Tuesday, the Business Council of Mongolia, an organisation chaired by Mr Byambasaikhan, noted that he had returned to Mongolia from a posting at the Asian Development Bank in 2010, after the 2009 investment accord for the Oyu Tolgoi mine. “The BCM Executive Committee has full confidence in Byambasaikhan’s integrity,” it said.

Source:Financial Times

Financial Times

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Opinion poll shows President Elbegdorj is most popular politician in Mongolia

Opinion poll shows President Elbegdorj is most popular politician in Mongolia

ULAN BATOR, Oct. 16 (MonInfo)-According to MPO (Mongolian Public Opinion) research center, President Elbegdorj is rated as most popular politician of Mongolia. The opinion poll result disclosed by the MPO today showed 33.5 of the respondents of Ulaanbaatar and 26.0 percent of the respondents in rural areas rated Elbegdorj as top politician of Mongolia. In the national average, 30.0 percent of the respondents considered Elbegdorj as top politician.

Second most popular top politician is Enkhbold Zandaakhuu, the parliament speaker. He was favored by 12.4 percent of UB respondents and 9.1 percent of the rural respondents and in the national average was 10.9.

PM Altankhuyag was rated as third top politician of the country. 8.2 percent of the UB respondents and 11.3 percent of the rural respondents favored him.

The poll was conducted between Oct 1-6, 2013  covering six districts of Ulaanbaatar and Uvs, Bayankhongor, Umnugobi, Uvurkhangai, Selenge, Dornod provinces and involving 1200 residents.Enditem.

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Canadian professor spreads rumor that Mongolian PM might be replaced by its Minister of Defense

Julian Dierkes, a professor at the University of British Columbia's Institute of Asian Research (IAR) says current PM of Mongolia, Altankhuyag Norov might be replaced by current Minister of Defense Baterdene Dashdemberel.

On his regular blog article, Mr.Julian noted " Factions and disputes between factions often bubble to the surface within the DP and while a replacement of Altankhuyag as prime  minister does not seem imminent, it would also not come as a major surprise". Yes, it is true, Altankhuyag came under fire from opposition MPP and criticized for talking too much and doing too little and firing MPP members indiscriminately from government jobs. 

However, before Altankhuyag survived no-confidence vote in the parliament initiated by the opposition MPP. It seems all factions with DP agreed at this point that Altankhuyag should continue as PM and chairman of the ruling party as changing him would provide opportunity for opposition MPP to undermine DP and capitalize on its disunity. 

The Canadian academic continues" current rumors seem to point to Minister Defense. D.Bat-erdene as a possible replacement" of the PM. 

We at MonInfo believe this time, Mr. Julian made a very wild guess about this. It would be a suicide for DP if it replaces Altankhuyag with Mr.Baterdene.

Let us explain why? 

Mr.Baterdene, majority shareholder of the Tavan Tolgoi JSC, also known as "Little Tavan Tolgoi" which mines coal in Tavan Tolgoi area and also owns several other coal shipping companies and other assets in Mongolia does not have charisma and persona to lead the country. Many are suspicious of the way how he ended up as majority shareholder of Tavan Tolgoi JSC, which is local Umnugobi provincial government owned entity and eventually as one of richest men of Mongolia. Some believe he is involved in shady deals with corrupt local officials of South-Gobi province.

Mr.Baterdene could be a good businessman, good husband (also a good horse trainer), but he does not wield substantial power within DP. He is not the most charismatic politician of Mongolia. If he is nominated, it will give more reason for opposition MPP to attack DP and other civic groups likely join this and they may really succeed dismissing the DP-led gov't. DP politicians knows this and there is no way, they will allow this to happen.

So, we believe this time, the professor is off the target. Too wild guess.

Here is the link of the professor's article. 

Shagai, politician analyst at MonInfo news services. 

Source: Moninfo, news services

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Campaigns underway for the 2013 Presidential Election

Candidates express confidence in the voters

On May 22 the GEC handed mandates to the three candidates racing in the 2013 Presidential Election. They are Ts.Elbegdorj from the DP, B.Bat-Erdene from the MPP and N.Udval from the MPRP who are now eligible to start their election campaigns. The CWGP and the MNDP expressed earlier that they will support Ts.Elbegdorj (DP) in the coming election and they signed a contract to participate in the June presidential election with the DP. The Mongolian Green Party, the Freedom Implementing Party and the United Patriotic Party decided to participate in the election by supporting B.Bat-Erdene, candidate of the MPP, and signed a Memorandum of Cooperation on May 20.

By concluding the Memorandum, the Mongolian Green Party, the Freedom Implementing Party and the United Patriotic Party officially declared their intention to carry-out the election campaign of B.Bat-Erdene together with the MPP.

When receiving his election mandate, MPP candidate B.Bat-Erdene requested his opponents be fair and honest in the racing competition.” To my understanding, the election is an expression of democracy and justice. I believe the General Election Committee will organize the election of the President, who must be an expression of the unity of the Mongolian people according to law.

I believe the coming election will be fair and that candidates from other parties will be fair and honest in the election, “ said B.Bat-Erdene. 

Current President Ts.Elbegdorj said: “We face a lot of work. We know well what we have done, what we have to accomplish as a new task, and what we have to continue doing. Mongolia’s reputation has grown, we can raise a significant amount of money and money is not a problem for us now.

Opportunities have been created to resolve matters in cooperation with Parliament, the government, the city and rural authorities. We face a time to accomplish much more than we have done in previous years. Now we must multiply what has been accomplished and more works that should benefit the people. Let do them together,” called Ts.Elbegdorj.

N.Udval, candidate from the MPRP is the first woman to race in a Presidential election. She accepted the fact that her opponents, Ts.Elbegdorj and B.Bat-Erdene, are eminent competitors both in the political scene and in society. This is a very serious challenge for me as my opponents are very powerful competitors; but nevertheless, I have confidence that a champion will gain victory in the competition. I am confident that I will win the race,” said N.Udval. 

On May 22, B.Bat-Erdene, candidate from the MPP, started his election campaign from his native place the Khentii Aimag. Ts.Elbegdorj (DP) participated in the ‘Mongol-93’ petroleum opening ceremony held at ‘Shunkhlai’ petroleum station and headed to Dornod Aimag. On May 23, MPRP candidate N.Udval met with the party leader N.Enkhbayar and opened her official election campaign at Circus. According to the Presidential Law, and with an aim to provide candidates with equal the pre-election campaign, the hours on television programs, campaign materials, and number of posters shall be limited. On May 22, the General Election Committee met and set up a non-staff press and media council to operate during the presidential election. The Council is composed of five members representing the political parties participating in the election, media and press and nongovernmental agencies.

The Council is obliged to supervise balanced media agitation by the parties and candidates running in the election, to check and oversee complaints and claims received from parties, candidates, legal subjects and citizens, make conclusions, present and submit them to the General Election Committee. The candidates are prohibited to involve teenagers   in the election campaign or distribute money and material goods in order to buy votes. The election campaign for candidates running in the presidential election will continue until June 25.


Source: THE MONGOL MESSENGER

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