B.Lkhagvajav: Tavantolgoi shares should be sold, not given away

The MPP caucus at Parliament discussed the issue of distributing Tavantolgoi LLC shares and decided that 20 percent of the shares should be distributed to citizens.

According to the 39th protocol of Parliament, ten percent of the shares are to be distributed to citizens for free, and another ten percent are to be sold to Mongolian organizations.

But some MPs want to change that, saying that the ten percent of shares to be sold to organizations might be distributed unfairly to just a handful of groups.

A member of the Representative Managing Council of the “Mongol 999” Union and Urbanek LLC Director B.Lkhagvajav shared his thoughts on the issue with our correspondent.

He said the 39th protocol was passed by Parliament and no political party has a right to change it. Nonetheless, he said, the MPP and the DP have decided to distribute 20 percent of the shares to citizens. His opinion is that Parliament should ultimately decide the issue.

B.Lkhagvajav noted that, by giving away the shares for free, the shares will be devalued. He said it would be better for citizens to buy shares than to take them for free. If citizens can’t buy shares, then they could be sold to organizations. He said the Tavantolgoi project needs capital that could be raised by selling shares, and that is why the price of shares should be established right away.



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