False allegation over EMC's 49 percent ownership debunked at court

ZGM DAILY

2018-02-15 09:01 GMT+8
Court confirms that MCC did not loan from the Government to purchase EMC's 49 percent stake.

The Government has failed in front of the judiciary. It has been confirmed that the Government has come to a deadlock after pressuring the private sector and intervening with its operations. Mongolian Copper Corporation (MCC ) has issued a claim against the Government’s decision to nationalize Erdenet Mining Corporation (EMC) to the Administrative Court, which was ruled in favor of MCC last friday.

Administrative Court rules in favor of MCC again 

It was confirmed by the court that MCC did not loan from the Government to purchase EMC's 49 percent stake. In other words, the claim about MCC buying EMC’s ownership through a loan from Bank of Mongolia (BoM) and Development Bank of Mongolia (DBM) has been proven false. Although the MCC had announced several times that the company did not loan from BoM and DBM, the public agencies have been refusing to provide evidence; however, the Administrative Court required the Government to collect some of the necessary information.

The related documents included a proof that the company did not receive any loan from DBM or BoM. This turn of event raised more attention than the court’s decision for some as its the first time DBM and BoM have released any document relating to the Government’s accusation. Right after the Cabinet was formed, the Minister of Justice and Home Affairs Nyamdorj Tsend proudly declared to settle EMC’s issue in the first 100 days and fulfilled his promise; however, his illegal actions driven by his own interests have failed the Cabinet. During the court ruling, it was also proven that the Government’s Agency for Policy Coordination on State Property (PCS P) has re-appointed EMC’s board of directors, announced distribution of dividend and made its transaction, as well as increasing the number of directors and making structural changes before the court ruled its decision.

While EMC is rushing to ratify 2018 purchase plan, premium of the board, contract review of and the CEO and tender lists, the court has ruled to suspend the rules and regulations of EMC and Mongolrostsvetmet LLC, which was approved by the PCS P, as well as the resolution on reappointing the board. Whether if the Government will accept or reject the suspension will display the true face of justice system in Mongolia. The administration law states that a suspension act must be settled within a week; but the PCSP has made several requests and complaints to delay the case. The plaintiff’s attorney presumed that the Government is trying to buy time in order to ratify the board premium and 2018 tender lists.

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