President Kh.Battulga: Mining sector has the largest corruption network


2017-10-02 16:19 GMT+8

ULAANBAATAR (GoGo Mongolia) - 2017 autumn session of the State Great Khural opens today at 10 a.m. We deliver you the highlights of the speech delivered by President of Mongolia Kh.Battulga. 

"We need to urge the formation of the Government. The economy expects to have 5.3 percent of growth this year. However, the economic and financial situation of the country is not doing well. 

Demand by teachers and doctors for pay raise is a clear manifestation of the failure of economic growth induced solely by coal price. There are many remaining financial problems such as the repayment of foreign debts due next year. 

The main mistake made by Mongolia politicians until today is that they have not adjusted the national interest to foreign loans and aid. Therefore, State Great Khural of Mongolia should prioritize Mongolian interest first when discussing foreign loans and aid including International Monetary Fund`s Extended Fund Facility Program. 

For instance, the requirement set out by IMF on invalidating livestock as a deposit is a representation of how they failed to consider that this is Mongolia, where livestock has remained the main asset in ownership of nomadic Mongolians. If we can enforce the implementation of Law on the Procurement of Goods and Services on State and Local Budgets, MNT 105 billion, cost of children’s lunch would go to national food producers and trigger increase in the number of workplaces and pay raise. 

If the Government supports the private sector, it will turn on the green light in the economy. Full implementation and pursuance of the positive changes made to the Law on Procurement of Goods and Services on State and Local Budgets will be largish support for the private sector.

Everyone with a mouth has been talking about how dependent we are on mining. The absence of correction for the imbalance, caused by the dominance of few wealthy families in the distribution of natural resources due to the legalization of license to owning the ground reserves which are the property of the Mongolian people according to laws, threatens the national unity. The Law on Mineral Resources creates a situation where foreigners and few powerful figures can get hold of the natural resources. We have to immediately put an end to this. Regardless of our hope in mining, which is deemed the most promising economic sector of Mongolia, the situation became worse than it had been before. This is the greatest proof which signals the failure of carrying on the mining businesses. It is hard to call a policy a correct one when it created the debt of MNT 3.0 trillion for the people who had no apparent debt before the mining boom. Renewing our mining policies is the only approach to fixing this situation. 

Furthermore, the Government must set special policy for gold exploration and gold mines. Gold defines the purchasing ability of the national currency. Thus, we need to stop issuing exploration and mining license for gold as well as to oblige gold miners to sell all golds only to the Bank of Mongolia. I will submit this amendment to the law soon to Parliament.

A single example is showing us that a member of cabinet and parliament has exempted own tobacco factory for the next three years by using his political authority and saved MNT 60 billion, which could have sorted out the demand for pay raise for a large number of teachers. 

I am hereby uncovering an evidence of the 
serious violation of Article 4 of the Law on Tobacco Control – the State Policy on Tobacco. 

The ousted cabinet has violated the provisions of the Tobacco Control Law and arranged to impose 5 percent tax for tobaccos imported by its member’s company, and imposed 30 percent tax for other tobacco importers. This is not justice. This is an apparent conflict of interests. Income from the taxes on tobacco import should be dedicated to the 
wellness of the society. 

It is a
timely requirement for the upcoming cabinet to be formed free of such conflicts of interests.  

The IPU Committee on Human Rights of Parliamentarians has issued a warning statement about the failure to exercise justice and questionable situation in Mongolia’s justice system in Geneva on September 14 after getting acquainted with the process of the case of S.Zorig’s murder. The Inter-Parliamentary Union’s delegation who worked in Mongolia between 11th and 13th of September, 2017, to assess the case of assassination of Sanjaasurengiin Zorig, a renowned politician, and expressed their dire concern and hesitation for Mongolian justice system for it had, reportedly, managed to violate a number of international standards of fair trial. 

On this day, the death anniversary of the First Leader of Mongolian Democratic Union, parliamentarian and outstanding political figure S.Zorig, I trust the members of today’s State Great Khural will re-consider that the IPU’s conclusion might be an authentication of injustice and political putrefaction in Mongolia. 

As the President of Mongolia, from this podium, I hereby declare that I will be attaching special importance to combating over-
policitizing and restoring fairness in justice system of Mongolia. I was elected to mobilize social control and I will be doing this with all my heart". 

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