Sunday, December 21, 2014

Mongolia Brief November 14, 2014

About "Politics of Green Development and Financial System" Meeting
By N. Khaliun
Ulaanbaatar, November 14 (MONTSAME) This theme was a focus at a breakfast at the Ministry of Environment and Green Development on November 11, arranged by the organization's head S.Oyun.

The invited were a president of Mongolbank N.Zoljargal, a president of the Association of Mongolian banks M.Bold, an advisor to the President on living environment and green development policy L.Erkhembayar, and CEO of some commercial banks. They discussed an importance of developing a green policy and green financial development and shared views on a "Stable funding" program, which has been implemented by the commercial banks. 

Reasons of PM Dismissal Studied
By B. Amarsaikhan
Ulaanbaatar, November 13 (MONTSAME) Results of the analysis by major research bodies show that the ratings of the Cabinet and the ruling party were stronger in a society than those of major opposing power. All accepted that the economic growth would reach seven percent by the end of this year despite a bit slower economic growth.
Regardless of being criticized of so-called uneconomical expenditure of the assets of the Government bonds, issued unprecedentedly by this Cabinet, the former Prime Minister Mr Altankhuyag received a great support for the public because the bonds revenue went mostly for improving infrastructure, roads and railroads-- the weakest sphere in Mongolia. 
Although the investments and value of the national currency decreased, the Government of reforms made efforts to safeguard the living standards of the people through increasing salaries and pensions on this October 1, the analysis says. Negotiations with foreign investors, especially with the largest mining investor Rio Tinto were protracted but managed to reach concrete achievements. There were bruits about some officials people with close work connections with the former PM that they were accused of arrogation of state assets bit none of them have been declared to be guilty.
Taking into account all the above aspects, the analysts conclude that the main reason of the dismissal of Mr Altankhuyag was his refusal to cooperate with the opposing political power. After the parliamentary election of 2012, no one party won adequate number of seats to form a cabinet independently. The head of the Democratic Party, which won a majority of the seats in parliament, N.Altankhuyag formed the cabinet in fusion with other political powers excluding the Mongolian People’s Party.
The recent establishment of Memorandum of Cooperation by N.Altankhuyag with the leader of MPRP (Mongolian People’s Revolutionary Party) that had separated from the MPP, faced a severe criticism from his own Democratic Party. The MPP smartly took advantage of this situation that has led to the PM's dismissal, consider the analysts. This has created a conflict within the Democratic Party, thus prolonging an appointment of a new PM. "The public expects that parliament is to begin discussing the appointment from next week", the analysis says. 

Order of Chinggis Khaan to Be Conferred to Scientist
By B. Amarsaikhan
Ulaanbaatar, November 14 (MONTSAME) On the occasion of the anniversary of birth of Chinggis Khaan and the National Pride Day, numerous events have been scheduled, one of which is a ceremony of award of the Order of Chinggis Khaan--the supreme state prize of Mongolia. On November 13, a chief of presidential office Mr P.Tsagaan named a winner of the Order at the Citizen’s Chamber at the State House.
According to the Presidential decree and the legislation of parliament, the National Pride Day--the Great Chinggis Khaan’s birthday--is celebrated on every first day of the first winter month of lunar calendar. This year the Day falls on November 23. P.Tsagaan noted that the Order is conferred to the most distinguished figure of Mongolia and a winner is named ten days before the award ceremony. He said that, on the occasions of the 2223rd anniversary of Mongolia’s First Statehood, the 852nd anniversary of the birth of the Great Chinggis Khaan and the National Pride Day, the Order will go to one of the Mongolian most outstanding scientists of the XX century Mr Khavtgai Namsrai.

Ulaanbaatar and Gyeongsangbuk-Do Province Establish MOU
November 14 ( Upon the invitation of Chairman of the Capital City Citizens' Representative Khural (City Council) D.Battulga, delegates from South Korea headed by Chairman of Gyeongsangbuk-do Council, Jang Dae-Jin are visiting Ulaanbaatar.
On November 14, 2014, the City Council Chairman D.Battulga received the delegation and in the scope of this working visit, parties inked a Memorandum of Understanding to establish friendly relations and partnership between Ulaanbaatar and Gyeongsangbuk Province.
Under the MoU, the two administrative bodies agreed to develop mutually beneficial collaboration based on equal principles of friendly relations and cooperation in matters of common interests and to conduct regular reciprocal visits. 

MP Receives Delegates of US Department of State
By B. Amarsaikhan
Ulaanbaatar, November 14 (MONTSAME) A member of parliament and head of Democratic Party faction Mr D.Erdenebat received Friday a delegation led by a deputy assistant secretary of the Bureau of East-Asia and Pacific Affairs of the US Department of State Susan Thornton and the Ambassador Extraordinary and Plenipotentiary of the USA to Mongolia Ms Piper Campbell.
Mr Erdenebat thanked the delegates for their visit and gave information on Mongolia’s current economic and social states.
In response, Ms Thornton expressed him a gratitude for the audience and touched upon matters of further cooperation between Mongolia and the USA. She underlined the recent intensification of the bilateral relations and said “more opportunities await future economic and social cooperation”.
After this, the sides shared opinions on expanding the cooperation between the two countries in trade, economy and investments.
Present at the meeting were also a head of office of the Democratic Party parliamentary faction S.Demchig and official of the Political Division at the US Embassy Shannon Brown.

U.S. Embassy in Ulaanbaatar to Host Talk Titled “Entrepreneurship in America and Mongolia”
November 14 ( On November 14, 2014, Chairman of Democratic Party Group at the State Great Khural (Parliament) Mr. D.Erdenebat received in his office delegates from the United States of America headed by Deputy Assistant Secretary of State at Bureau of East Asian and Pacific Affairs, Mrs. Susan Thornton and accompanying Ambassador Extraordinary and Plenipotentiary of the United States to Mongolia Mrs. Piper Campbell.
At the beginning of meeting, DP Group Chairman thanked the delegates and briefed about the current socio-economic situation in the country.
Deputy Assistant Secretary Susan Thornton acknowledged that the bilateral relations are being strengthened in recent years and emphasized opportunities to broaden collaboration in socio-economic spheres.
During the meeting, parties focused on stimulating partnerships in trade, economy and investment, where DP Working Group Chairman S.Demchig and Political Officer at the Political Section of the Embassy, Mrs. Shannon Brown were present.
Moreover, the U.S. Embassy in Ulaanbaatar is hosting a talk titled “Entrepreneurship in America and Mongolia” at the American Cultural and Information Center located at the City Public Library under the Global Entrepreneurship Week (GEW) in Mongolia on November 19, 2014.
The Embassy’s Economic and Commercial Chief David Wyche will speak, and his talk will be followed by a panel discussion with Mongolian entrepreneurs. The panel will talk about their experiences with entrepreneurship in Mongolia and about the future of entrepreneurship in Mongolia.
GEW is the world’s largest celebration of the innovators and job creators, who launch startups that bring ideas to life, drive economic growth and expand human welfare. 

Financial Sector Forum Coming up
By B. Amarsaikhan
Ulaanbaatar, November 14 (MONTSAME) A Financial Regulatory Commission (FRC) of Mongolia will host a general forum gathering the financial organizations specialized in currency trades, insurances and micro-finances on November 20.
The forum will discuss current state of Mongolia’s financial sector, its future trends and goals, monitoring and regulations, obstacles faced in protecting interests on investors and other financial subjects and improving their knowledge, and will adopt general guidelines on the solutions to problems.
As expected, the action will be of great importance in ensuring coordination of provision of goods and services by different sectors, in improving an access to the financial services, in ensuring growth of all financial sectors except for banking, and in strengthening connection between government agencies and NGOs.
Key lectors will be a chairman of FRC D.Bayarsaikhan, an acting general director of Mongolian Stock Exchange D.Angar, a president of Association for Non-Bank Financial Institutions A.Altansukh, a president of Association of Insurers J.Bat-Orshikh, and a head of the National Association of saving-and- credit cooperatives Sh.Gookhuu.

Amelie Schenk awarded Order of Polar Star of Mongolia
November 14 ( German national, Dr. Amelie Schenk was awarded the Order of Polar Star of Mongolia, in accordance with a decree by President of Mongolia Ts.Elbegdorj on Thursday, November 13, 2014.
The prestigious award was given to Dr. Schenk by the Chief of Staff of the Office of the President, P.Tsagaan, at the Government House. The Order of Polar Star of Mongolia was given to her for efforts to promote Mongolia in European nations; conducting research on Mongolia's culture, science, tradition, customs, religion and shamanism; and publishing scientific and literature works that explore the nomadic nation's traditional lifestyle and culture. 

Save Children: 20 Years for Children--20 Progressive Initiatives
By B. Amarsaikhan
Ulaanbaatar, November 14 (MONTSAME) "Save the Children" is celebrating on November 14 the 20th anniversary of "Save the Children Mongolia" program and the 25th anniversary of the UN Convention on the Rights of the Child. The program manifests the highlights of its twenty years of progressive and enduring commitments for changing the lives of children.
The marking of this anniversary will attract 250 representatives of state and international organizations, diplomatic missions and civil society. Mongolia joined the UN Convention on the Rights of the Child in 1990. The Convention was enacted on November 20 of 1989 and has been serving as pillar document declaring all rights of children to society, politics, economy and culture. The parties to this convention should observe duties to reflect the principles of the document to their national legislations, policies and activities.
Save the Children, established in 1919, is the world’s first independent organization on Children’s Rights, actions' spheres of which are defined in the UN Convention. Save the Children Mongolia started its activities in 1994 and has been working in three main lines--child protection, governance of children’s rights and education. The organization supports state and community organizations for protecting children from any forms of violence and coercion, aims to facilitate mechanisms of comprehensive involvement of children in development and implementation of local policies, and works towards ensuring children’s access to qualified pre-school and general education without discrimination of age, sex, nationality and developmental states through cooperating with parents and the public. Bringing new achievements in the global vision towards children and making progressive changes to children’s lives is the main objective of Save the Children. The organization will present today its implementation in Mongolia of such objective.
Key speeches will be delivered at the celebration by the representative of the Government of Mongolia, Senior Commissioner of the National Human Rights Commission J.Byambadorj, chairman of the National Authority for Children I.Narantuya, secretary-general of the Red Cross Mongolia N.Bolormaa, executive director of Save the Children Japan Kunio Senta and the director of the Mongolia Program Mitsuaki Toyoda.

“Script of Eternal Sky 2014” National Calligraphy Exhibition to Run until November 24th
November 14 ( Welcoming the National Pride Day as commemorating nationwide the birth of Great Chinggis Khaan, the “Script of Eternal Sky 2014” a national calligraphy exhibition will be opened at the Mongolian National Modern Art Gallery in UB at 11:40 am on November 17, 2014.
In 2010, the President of Mongolia Ts.Elbegdorj issued a Decree No. 155 that aims to promote the use of the traditional Mongolian script, which cites, "Official letters by the President, the Speaker of Parliament, the Prime Minister and members of the Cabinet to officials of other countries in similar positions shall be written in the traditional Mongolian script and will be translated to the language of that state or any of the official languages of the United Nations and be attached".
Moreover, the Decree also mandates the use of the script in documents such as birth and marriage certificates, educational certificates and diplomas along with the Cyrillic alphabet.
The National Pride Day of Mongolia or the Day of Birth of Great Chinggis Khaan was included in the List of Public Holidays ratified by the Parliament of Mongolia in 2012 and since then the Day is celebrated annually on the first day of the first winter month by lunar calendar, which occurs on different day by Gregorian style and this year, the Day falls on Sunday, November 23, 2014.
National Calligraphy Exhibition to OpenMontsame, November 14

Four out of six of City Mayor's vice mayors to be dismissed
November 14 ( In Thursday's plenary session meeting of parliament, members agreed on the redundancy of positions within state organizations during the discussion of the 2015 state budget.
A cut of 345 positions, such as deputy, vice and assistant positions at all levels of state structure is expected to take place. The MPs agreed to cut positions as some local governors in sums and agencies of the government have two vice governors.
Mayor of Ulaanbaatar E.Bat-Uul leads in numbers, having six deputy mayors.
The Standing Committee meeting on Budget reviewed the 2015 state budget  and agreed to make the cuts to city administration and local government.

Electrical poles pose danger to Mongolia's falcons
November 14 ( More accidents involving electricity power grids posing electrocution danger to falcons in Mongolia have been reported.
The Government of Mongolia issued Resolution No. 101 on October 20, 2012, naming the Saker Falcon the National Pride Bird of Mongolia. It is said that the Saker Falcon, native to Mongolia, China and India, is an excellent hunter and well adapted to desert climates. The Saker Falcon is a common bird of prey and is exported to countries including Qatar, Bahrain, Kuwait, the UEA and Saudi Arabia. The Government of Mongolia issues permits to falcon catchers with an annual quota to catch and export the bird to these countries. The wild Saker Falcon population is a big concern in Mongolia, but lately electrical poles have cause more falcon deaths than illegal traders.
Last year dozens of Saker Falcons were found dead after being electrocuted at the top of the electrical power grid in Bayankhongor Province.
After the accident, an official from the Ministry of the Environment and Green Development made a statement about building grids that would protect birds from electrocution. But more and more incidents of electrocuted birds at the power grid have been reported.

Mongolia Gains Its Sixth Gold Medal from 2014 Asian Beach Games
November 14 ( On November 13, 2014, last competitions of the Sambo Mixed Team and Ju-Jitsu newaza Women’s under 50, 60 and 70 kg were held as parts of the 2014 Asian Beach Games being held in Phuket, Thailand, where Mongolian Team gained its sixth Gold and the second Bronze medal.
The Gold medal was achieved by Battsogt BUYANDELGER in the Ju-Jitsu ne-waza Women’s -60 kg, she won over a Vietnamese competitor Nguyen Thi Huong in the final round.
On the same day, following the Men’s and Women’s Beach Sambo individuals, the Sambo Mixed Team competitions were held, where Mongolian Sambo Mixed Team grabbed a Bronze medal sharing the third place with the Team of Uzbekistan and Mongolian Team was represented by D.Tumurkhuleg (Men’s 68kg), G.Tuvshinjargal (Men’s 82kg), B.Ariun-Erdene (Men’s -100kg), S.Solongogerel (Women’s 52kg), T.Battugs (Women’s 64kg) and B.Sainbuyan (Women’s 72kg).
After successful conclusion winning 4 Gold and 1 Bronze medal out of 7 Gold medals, staff coach of Mongolian Sambo Team, Jamsrandorj BAYARSAIKHAN commented, "I'm very satisfied with my team's exceptional performances. Actually, sambo is a combat sport which has its origin in the Soviet Union or Russia. From then, the sport became very popular among the countries which previously broke away from Russia including its neighboring Mongolia.
An important reason why sambo has gained an increasing popularity in Mongolia is that sambo is a combat sport like wrestling, our national sport. Mongolians have learned sambo since young, making them very strong when they grow up. The childhood training in the sport also plays a vital part in making strong bones. This leads to our great success in international competitions.
Training hard since young gave us a significant success in these Asian Beach Games. After this, Mongolia will send this strong sambo squad to the 2014 Sambo World Championships in Narita, Japan, which is scheduled on November 21-23, 2014. More than 70 nations have confirmed their participation, with over 600 athletes worldwide pitted against one another. A daunting task awaits us out there, but we have set our sights on winning at least one Gold".
As of November 14, 2014, Mongolian Team gained 6 Gold (4 in Sambo and 2 in Ju-Jitsu) and 2 Bronze medals (1 in Sambo Mixed Team and 1 in Ju-Jitsu) leading the medal table rank so far and from today, Mongolian other athletes will start their competitions in Beach Basketball, Beach Wrestling, Kurash and Petanque, besides Muaythai will commence on November 17 and the Beach Modern Pentathlon on November 18, 2014.

Citizens of Mongolia and Russian Federation Start to Visit Reciprocal Territories Visa-Free from Today, November 14, 2014
November 14 ( On September 03, 2014, the Agreement between the Government of Mongolia and the Government of the Russian Federation on Mutual Visa-Free Travels of the Citizens of Russia and Mongolia was signed in Ulaanbaatar during the visit of the President Vladimir Vladimirovich Putin to Mongolia, which enters into force from today on November 14, 2014.
Accordingly, the Head of the Consular Section of the Embassy of the Russian Federation in Ulaanbaatar, Mongolia, Mr. Vladimir Vladimirovich Goryachev called a press conference on November 13, 2014.
According to the Agreement, citizens of the Russian Federation and citizens of Mongolia, who own diplomatic, service or foreign passports may enter, exit, travel through, and stay on the territory of the other state Visa Free for up to 30 days, wherein, the total time of stay is not to exceed 90 days in a 180-day period, starting from the day of the first entrance.
Citizens of one state intending to stay or live on the territory of the other state for more than 30 days, or to engage in work or commercial activities there, must obtain a visa in accordance with the legislation of the other state.

MSE Top-20 Index Basket to Be Renewed from November 17, 2014
November 14 ( According to the Resolution No.376 issued by Financial Regulatory Commission of Mongolia dated on October 21, 2014, the “Ulaanbaatar Hotel” Joint Stock Company (JSC) is delisted from Mongolian Stock Exchange (MSE) Top-20 Index Basket and replaced by “Dakhan Nekhii” JSC.
The decision was made due to reform of the Ulaanbaatar Hotel company’s structural changes into Ulaanbaatar Hotel Limited Liability Company (LLC).
Thus, due to changes of the MSE’s Top-20 Index Basket, the renewed Top-20 Index will be calculated starting from November 17, 2014.
The latest trade on MSE was held on November 13, 2014, were a total of 22,653 shares of 17 companies worth of 30,935,075.00 MNT were traded on MSE. Of which, a total 22,518 shares of 16 companies worth of 30,428,775.00 MNT were traded on the “A” Board and the rest of 135 shares of 1 company worth 506,300.00 MNT on "B" board respectively.
The TOP-20 Index decreased by 0.86 % to 15,209.56 units.
The MSE TOP-20 Index as of November 14, 2014
Symbol - Company Name (Prospectus)
1. APU - APU (Industry)
2. BAN - Baganuur (Mining)
3. BNG - Bayangol Hotel (Trade and Service)
4. BDS - BDSec (Brokerage and Dealing Firm)
5. GOV - Gobi (Cashmere and Wool)
6. JTB - Genco Tour Bureau (Trade and Service)
7. BDL - Mogoin Gol (Mining)
8. MSH - Mongol Shiltgeen (Trade and Service)
9. MDR - Mongolia Development Resources (Construction and Transportation)
10. MCH - Telecom Mongolia (Trade and Service)
11. RMC - Remicon (Industry)
12. SIL - Silicate (Industry)
13. SUU - Suu (Industry)
14. TTL – Tavan Tolgoi (Mining)
15. TCK - Talkh-Chikher (Food)
16. ULN - Ulaanbaatar Hotel (Trade and Service)
17. UID - Ulsyn Ikh Delguur (Trade and Service)
18. HGN - Khukh Gan (Industry)
19. SHG - Sharyn Gol (Mining)
20. SHV - Shivee Ovoo (Mining)
As of Government Retail Bond, buy order of 12 weeks Government retail bonds with annual interest rate of 15.99% starts from November 12, 2014 until November 18, 2014 through brokerage companies.

State Budget for 2015 Adopted
By B. Amarsaikhan
Ulaanbaatar, November 14 (MONTSAME) Plenary meeting of parliament on November 14 ran a third and fourth readings of the State Budget draft for 2015 and adopted it.
Tomorrow will expire the date within which the presented by the cabinet on October 1 draft would be considered and adopted by parliament. The cabinet had suggested the budget income to be MNT 7.1 trillion and the budget expenditure–MNT 7.6 trillion. Parliament has reflected in the State Budget the income as estimated but reduced the expenditure by over 100 billion Togrog, thus subscribing the budget deficit as 439.2 billion or 1.8 percent of the country’s GDP. Assumption of the Mongolian Togrog, which is 1,878 against US dollar today, is 1,750 Togrog. 
The State Great Khural has allowed expenditure portfolios, including MNT 2.9 trillion for Minister of Finance, 1.9 trillion for Minister of Education, 27 billion for the Speaker, 86.5 billion for Prime Minister, 56 billion for Minister of Foreign Affairs and Economic Cooperation, 98.3 billion for Minister of Mining and Energy, 425 billion for Minister of Justice, and 324 billion for Minister of Road, Transportation, Construction and Urban Development.  

OSCE Parliamentary Assembly Session to Run Here
By B. Amarsaikhan
Ulaanbaatar, November 14 (MONTSAME) A secretary-general of the Office of the State Great Khural B.Boldbaatar and the Deputy secretary-general of the Parliamentary Assembly of the Organization for Security and Cooperation in Europe (OSCE) Gustavo Pallares called a press-conference on Friday to talk about the organization of the Autumn Regular Session of OSCE Parliamentary Assembly in Ulaanbaatar.
The Assembly will run in September of 2015. In frames of the preparation for the event, officials of the Office of the OSCE Parliamentary Assembly are paying visit here on November 11-15.
The OSCE has 57 member-countries, Mongolia joined the organization two years ago, noted Mr B.Boldbaatar and reminded all that Mongolia had proposed holding the Autumn Session of the OSCE Parliamentary Assembly in Ulaanbaatar. "It was in light of realizing the objective to strengthen the relations and cooperation with other countries in a scope of many-pillar foreign policy and the 'Third Neighbor' policy," he said.
Mr Pallares said his office accepted Mongolia’s proposal with a pleasure and appreciates a chance to meet with the organization committee. The theme of the Session is not certain yet, he said and noted that the delegates accompanying him are to get au fait with the preparation process only.  After this, Boldbaatar and Pallares replied to the media questions.

BoM to deter inflation within seven percent
By B. Amarsaikhan
Ulaanbaatar, November 14 (MONTSAME) A president of the Bank of Mongolia (BoM) Mr N.Zoljargal called a press conference on November 13 in regard of the adoption of Monetary Policy for 2015 by parliament.
The Central bank will focus on providing the market with appropriate macroeconomic environment and on strengthening a capacity of the financial sector, he said. "This means the coordination of budgetary and monetary policies will improve".
Parliament gave special concern to coordinating these policies during a month discussion. “So, a working group of the Standing Committee on economy delivered a recommendation addressing eight issues to the Standing Committee on budget. The implementation of monetary policies will no longer put pressure on private entities," he noted.
Main guidelines of the monetary policy for 2015 aim to ensure the external macroeconomic balance, to reduce a level of inflation, to strengthen a financial sustainability, and to ensure medium- and long-term sustainability in the country’s economy, he went on.
"The main factor to reduce inflation is to increase the flow of US dollars, the BoM will focus on establishing the legal environment for Treasury fund and on capitalizing the market through forming investment funds," he said.
The Government, the BoM and the Financial Regulatory Commission will intensify in 2015 the innovation in the system of social insurances and the pension fund by securing sustainable economic growth and promoting domestic savings and the financial market development, he added.

Trial livestock trade held by Agricultural Exchange
By B. Amarsaikhan
Ulaanbaatar, November 14 (MONTSAME) Agricultural Exchange market of Mongolia ran its first trial trade of livestock at a center of Bayankhongor aimag on November 14.
The 285th trade of the Agricultural Exchange ran online. The farmers and herders made the orders with brokerage by the local "Khongoriin Tavan Erdeniin Khishig" company. The subjects to this trade used an assumption of MNT 1,850 for every kilogram of live weight, subscribing an average price of a sheep approximately 83,250 Togrog.
The organizers of the trade said it needs to be bettered. The Exchange decided to take orders from 16 aimags, that have broker companies, within this year. Thus, the herders and farmers of 330 soums will be able to access exchange trades online network through forming agricultural cooperatives once they meet all requirements.

Stock Exchange news for November 14
By B. Amarsaikhan
Ulaanbaatar, November 14 (MONTSAME) At the Stock Exchange trades on Friday, a total of 21,022 shares of 12 JSCs were traded costing MNT 16 million 105 thousand and 711.50.
"Hermes Center” /15,000 units/, “APU” /2,097 units/, “Remicon” /2,069 units/, “HBOil” /1,050 units/ and "Gobi” /200 units/ were the most actively traded in terms of trading volume, in terms of trading value were "APU” (MNT seven million 663 thousand and 175), "Hermes Center” (MNT two million and 685 thousand), “Gobi” (MNT one million and 500 thousand), “Bayangol Hotel” (MNT one million and 160 thousand) and "Shariin Gol” (MNT one million 104 thousand and 250).
The total market capitalization was set at MNT one trillion 531 billion 211 million 350 thousand and 622. The Index of Top-20 JSCs was 15,257.69, increasing 48.13 units or 0.32% against the previous day.

DP agrees on nominating R.Amarjargal for the next PM
By Ch. Khaliun
November 16 (UB Post) On Wednesday, the Democratic Party (DP) group held a meeting, deciding on a nominee for the next Prime Minister.
A total of 28 members attended the meeting and the members agreed to nominate MP R.Amarjargal with 100 percent of the vote. Seven members of the Altangadas faction did not attend the meeting, while MP Kh.Temuujin also declined to participate in Wednesday’s vote.
During the meeting, Kh.Temuujin addressed the nominee, saying, “I believe that as an individual, Amarjargal, you have the potential to head the government, and overcome the economic crisis. But I think it’s not a good principle to choose someone who contributed to the collapse of the government, so I can’t vote for you.”
MP Kh.Temuujin said that he doesn’t have any intention of becoming a member of the new prime minister’s cabinet, but said that he will support the new government in Parliament on changes to the justice system.
Following the final decision of the DP group’s nomination of R.Amarjargal for PM, the DP’s Chairman of the Inspection Committee (IC) L.Baigali and members M.Lut-Ochir and T.Gantumur made a statement to the press.
Chairman L.Baigali said, “I’m responsibly announcing that the DP group doesn’t have the right to nominate someone for the position of PM. In 2005, the law on political parties was approved, and the party’s regulations are in accordance with this law. Provision 6.8.2 states the full powers of a head of the party. Specifically, the head of the party should discuss the suggestion for the president or prime minister with the National Consultative Committee (NCC), which means that the DP group of the Parliament doesn’t have the right to decide this issue.”
The IC is investigating this issue and will introduce it in the upcoming NCC meeting.

Parliament suggests cutting positions in budgetary organizations
By Ch. Khaliun
November 16 (UB Post) Aiming to decrease the current expenditure of the state budget, the Parliament suggested reducing the numbers of positions in parliamentary standing committees and budgetary organizations at all levels.
According to the proposal, governors of provinces and districts would have the right to only one advisor, while UB’s governor may have two advisors, and the government officials won’t have any advisors or deputy chairs.
The number of vice chairs and advisors at the state’s budgetary organizations and offices of the Citizens’ Representative Khural has exceeded limits. The Parliament proposed reducing the number of these officials by 345 positions, which they suggest will save 2,960.4 million MNT, and cutting 540 positions from all budgetary organizations, thereby saving 4,010.1 million MNT.
The draft calls for eliminating all positions created by organizations since 2012, cutting them back to the number of positions available when the organizations were first established, as well as reducing the number of positions at the Citizens’ Representative Khural and its current expenditures.
The draft also includes cutting state transportation and fuel expenditures by 30 percent in all sectors, with the exception of medical, police, defense, border, and emergency service sectors.
There is also a call for reducing the budgets of the government’s special foundations for tourism, culture and art development, health support, assistance for citizens living abroad, state education, science and technology, environmental protection, clean air, and international cooperation by 34,847.8 million MNT.
Parliamentarians have so far agreed to reduce the budget for the social insurance fund by one billion MNT.
Only a final discussion of the wide ranging proposal for reduced spending and job cuts is left before final approval by Parliament.

New maternity hospital construction halted as funding drains
By M. Zoljargal
November 16 (UB Post) A maternity hospital whose construction launched after two years of discussion in 2013 with an approved budget of 18 billion MNT still remains incomplete, following financial and infrastructural issues.
The 300-bed hospital was supposed to open in December last year. It covers 2.4 hectares of land and the executor Niislel Urgoo LLC halted construction as an additional 14 billion MNT funding were required to continue the construction due to rise in construction material prices and pay raise.
Minister of Health N.Udval explained the reason for the halt earlier this year, “The infrastructure of the hospital location is impossible to be completed,” after the eight-story building’s skeleton was already completed.
The hospital is located in Khan-Uul District’s 10th khoroo, right next to where Buyant-Ukhaa Apartment Town-2 is currently under construction.
“There is no problem in developing infrastructure in this area. Buyant Ukhaa-2 will be connected to the central heating and electricity networks by next week,” said engineer of the town who implied that there are no infrastructure issues at the hospital construction.
The Independent Authority Against Corruption initiated a criminal case on B.Ganzorig, director of Niislel Urgoo LLC, for possible embezzlement from the hospital construction budget. District Criminal Primary Court No.2 is currently studying the case.
The government refused to provide the additional 14 billion MNT as the state budget “doesn’t have enough” which means the hospital’s construction will not resume until next year at the earliest.

NSO reports on social and economic conditions for first ten months of 2014
By B. Mendbayar
November 16 (UB Post) The National Statistical Office (NSO) of Mongolia released its Social and Economic Report for the first ten months of 2014 on November 11.
According to a report from the Bank of Mongolia, money supply at the end of October 2014 reached 10 trillion MNT, down by 90.2 billion MNT (0.9 percent) from the previous month, while it increased by 1.3 trillion MNT (14.5 percent) compared with the same period from the previous year.
In the first ten months of 2014, total equilibrated revenue and grants of the General Government Budget amounted to 4,850.2 billion MNT, and total expenditure and net lending of the budget reached 5,128.6 billion MNT, representing a deficit of 278.5 billion MNT in the equilibrated balance of the General Government Budget compared to the same period of the previous year.
Compared to the same period of the previous year, tax revenue increased by 212.8 billion MNT, or 5.4 percent. This increase was mainly due to increases of 112.3 billion MNT (21.2 percent) in other taxes, of 103.2 billion MNT (15.2 percent) in social security contributions, and 19.5 billion MNT (1.3 percent) in taxes on goods and services, although income taxes decreased by 23.3 billion MNT (2.7 percent), of which 45.1 billion MNT (8.8 percent) came from corporate income tax.
In the first ten months of 2014, total expenditure and net lending of the General Government Budget reached 5,128.6 billion MNT and increased by 486.8 billion MNT, or 10.5 percent, compared with the same period of the previous year. This increase was mainly due to the increases of 190.3 billion MNT (10.3 percent) in expenditure on goods and service, 209.7 billion MNT (13.7 percent) in subsidies and transfers expenditure, and 183.7 billion MNT (a 2.2 times increase) in lending minus repayments, although there was decrease of 100.3 billion MNT in other lending minus repayments.
The national consumer price index in October 2014 rose by 0.8 percent from the previous month and 12.1 percent over the same period of the previous year. The 0.8 percent rise in the national index was mainly due to increases of 5.3 percent in costs for housing, water, electricity and fuels, and a one percent increase in costs for clothing, footwear and material goods.
The mining of products such as molybdenum with concentrate, gold, iron ore, copper concentrate, fluorspar concentrate, and crude oil increased five to 63.1 percent in the mining and quarrying sectors.
At the end of October 2014, currency issued in circulation reached 809.6 billion MNT, falling by 15.1 billion MNT (1.8 percent) over the same period of the previous year.
Loans outstanding at the end of October 2014 amounted to 12.8 trillion MNT, increased by 222 billion MNT (1.8 percent) from the previous month and 2.3 trillion MNT (22.4 percent) from the same period of the previous year.
Principles in arrears at the end of October 2014 reached 450.6 billion MNT, up by 281.1 billion MNT (a 2.7 times increase), from the same period of the previous year.
At the end of October 2014, non-performing loans over the bank system reached 606.3 billion MNT, up by 15.9 billion MNT (2.7 percent) from the previous month and up by 45.8 billion MNT.
In the first ten months of 2014, 41.7 million shares were traded, valued at 139 billion MNT, in the stock market. The securities trading were decreased by 107.7 billion MNT (43.7 percent) and shares decreased by 17.9 million shares (30 percent) compared to same period of the previous year.
In the first ten months of 2014, Mongolia traded with 131 countries from all over the world and total external trade turnover reached 9,080 million USD, of which 4,605.7 million USD was made up by exports and 4,474.3 million USD by imports.
External trade balance showed a deficit of 1.9 billion USD in the first ten months of 2013, while it was in a surplus of 131.4 million USD in the first ten months of 2014.
The industrial production index in the first ten months of 2014 increased 14.4 percent from the end of the last year, up by 8.5 percent from the previous month.

Pneumonia causes high mortality rate among young children in Mongolia
November 16 (UB Post) Although the mortality rate of children under the age of five in Mongolia has decreased by 17 percent since 1990, latest estimates state that around 80 children die of pneumonia every year.
November 12 is being observed as the World Pneumonia Day. The purpose of this day is to reduce and stop the death of children from pneumonia and to take preventative measures.
For World Pneumonia Day, the National Center for Maternal and Children’s Health is organizing an open house and the Polyclinic of Songinokhairkhan District will hold training sessions and provide information related to pneumonia to the public.
“There are two main things that will reduce the mortality rate [of children]. The role of parents and medical care are the most influential. A person gets sick because of their weak immune system. So I would like to recommend parents to feed their child with nutritious food and mothers to breastfeed their baby”, said the Head of the National Center for Maternal and Child Health.
Statistics shows that pneumonia kills over one million children globally, 15 percent of which are children under five years of age.
Robert Benes, Permanent Representative of the United Nations Children’s Funds to Mongolia told Undesnii shuudan, (This quote has been translated) “Pneumonia is one of the biggest health issues in developing countries. In 2012, over 1.1 million children died worldwide [of pneumonia], in other words 5,500 children died every day. Mongolia has been battling pneumonia effectively for the past ten years. But yet this is the second most common cause for deaths among children. Our organization is working hard to stop the mortality rate by 2025 in Mongolia.” Pneumonia spread rapid in cold conditions especially like that of Mongolia. As a result, over 123 children are undergoing treatment for the disease at the Polyclinic of Sukhbaatar District.
Doctor of the Polyclinic of Sukhbaatar District Sh.Saruultuya noted that parents whose children have fallen ill should follow doctor’s instruction and not take off-the-counter medication.
“Recently the spread of pneumonia has been increasing. This year, pneumonia started early in September and mostly small children from one to three years of age are getting ill. Parents using medicines do not following doctor’s instruction when their child gets ill. As a result the condition gets worse. Food with plenty of vitamins, warm clothes, and protecting masks will help your child from pneumonia,” noted said.
Parents of children who fell ill with pneumonia expressed their worry as hospital conditions remain insufficient. A patient’s parent A.Baigalmaa said, “Several symptoms had occurred to my son such as fever, coughing and vomiting. Since many children are in treatment, the hospital is overloaded at the moment.”
D.Handsuren, whose three year old child has fallen ill said, “We are in a room with six other kids who have different levels of the disease. As a result, it is infecting the other patients.”
As it is getting colder outside, parents must care for their children more, say doctors. They emphasized that children are especially vulnerable to pneumonia as their immune systems aren’t fully mature, and recommended nutritious food to boost children’s immune system and that parents should seek a doctor if their child shows symptoms such as fever, vomiting, cough and diarrhea.
Source: Undesnii Shuudan

Tuul river pollution reaches critical levels
November 16 (UB Post) The State Specialized Inspection Authority (SSIA) reported this week that the water of Tuul River has been polluted and that it cannot be used.
Head of Tuul River Basin Administration and consulting engineer of Mongolia Ph.D. G.Dolgorsuren spoke to Undesnii Shuudan about the issue.
A report this week said that the contamination of Tuul River has reached the worst level. What is your organization’s position about the usage of Tuul River?
The statement of the SSIA is not a new thing. Our organization and experts discuss this issue often. At the beginning of every month, sample inspections are made from 13 points of Tuul River and these tests show that Tuul River has been polluted significantly for the last seven to eight years. The World Health Organization (WHO) also conducted a test last year and Tuul was listed as the third most polluted river in the world.
The SSIA actually knew about it at that time. The Ulaanbaatar City Wastewater Treatment plant pour non-standard and semi-treated 170,000 to 190,000 cubic meters of water per day into Tuul River.  But in this case we cannot blame someone because the total population of the city, factories, entities, and organizations, we all consume this amount of water every day.  The Wastewater Treatment Plant was designed for purifying water for a city  designed for a population of not over 600,000, but we all know that our city has more than a million people. Of course, this plant is not capable of purifying an amount of water that is three times bigger than its capacity.
What kind of measures can be effective to clean up Tuul River once it is already polluted?
The Environment, Food and Agricultural Standing Committee introduced the cause of the pollution, measures that need to be taken, and what should be done first.  The standing committee issued resolutions to decrease contamination of Tuul River and it underlined the construction of a new wastewater treatment plant in the city. Also the Standing Committee decided to relocate leather factories to the outskirts of the city.
But I think that it is not a good solution because water will probably be contaminated if factories operate.  So building a plant with a huge capacity should be there [in the resolution]. Otherwise, factories will cause contamination more and more.  Our Basin Administration Department will work hard on executing works that were written in the papers.  We will pay more attention on water survey in the area where factories will be relocated, especially water supply of factories, how much water will be purified per day and how to inspect them.  If we can work through this principle, water contamination will not become a big deal.
When will Tuul River be purified completely?
It can’t be solved until the new treatment plant is established and it demands a huge amount of investment. Unless we start as early as possible, polluted water is pouring out to Tuul every minute and second.
Tuul River near the city area is polluted, what about other areas?
The pollution of Tuul is not only in the city area. The Governor’s Office of Tuv Province, the State Specialized Inspection Authority, and the Environment Department took samples from the river and bacillus, which causes intestinal diseases, was revealed from the samples. Tuul River stream in Altanbulag, Lun and Undurshireet soums, are not able to make its natural cleansing.  Ulaanbaatar residents are at fault.
What kind of measures are you taking to fight this issue?
We located over 300 advertisement boards within the protected area, 50 meters in. We found out that the companies conducting development works dump their waste into Tuul River. Currently we are installing cameras around river banks.
Does Tuul River influence the quality of underground water reservoir?
The underground water and surface water are connected. If the surface water is polluted, the underground water reservoir will be contaminated too.
The Mongolian Water Management Agency conducts regular investigations on water distributed to the public. They say it is at low risk. If water pollution shows up from any well, it has to be shut down. According to the law, wells must be dug at least 252 meters away from the river. But in Mongolia, wells were dug within 50, 70 and 100 meters from the river. It shows that it is highly possible to pollute drinking-water. 
Source: Undesnii Shuudan

D.Khosbayar: Sukhbaatar Province has a unique mortgage loan the world has never seen
November 16 (UB Post) Sukhbaatar Province’s new local development plan, re-planning, and projects for improving ger district infrastructure, housing residents, and landscaping gardening have become the center of attention of residents of other provinces. Development work of Baruun-Urt city re-planning, which is shaped similar to the radiance of the sun, commenced construction last year.
In the following interview, Deputy Governor of Sukhbaatar Province D.Khosbayar discusses the project in depth.
Roads from Sukhbaatar Province center have become more orderly. At what stage is development work proceeding?
Governor J.Batsuuri’s team has been working since their appointment to the local authorities in 2008. Many new objectives for developing the province, local areas and cities were issued into the Governor’s Action Plan. For example, an apartment for 1,000 households is planned to be constructed in Baruun-Urt city. I remember many people considering this as impossible and criticizing the plan, when it was first revealed. This was probably an expected reaction since the city, founded some 70 years ago, consisted of less than 600 apartments. Currently the country’s economy is expanding and with initiation and effort of only Sukhbaatar Province, almost 2,000 households are living in apartments in Baruun-Urt. Within 2014, over 400 apartments, some 160 houses and private houses were commissioned in the city.
We undertook development work starting from the province center, despite the difficult budget situation in 2008. We, local residents in the countryside, approximate Mongolia’s growth and development with Ulaanbaatar’s development. Obviously we do get depressed about many unresolved issues in the capital city, including traffic congestion, poor landscaping of ger districts, and smoke issues. We gain faith that our country will soon become a developed and prosperous country when we see newly constructed buildings, facilities and roads. That’s why our provincial authorities decided to allocate majority of our small budget for Baruun-Urt city’s development work.
In 2012, governors developed detailed work plans to execute during their term. Action plans were coordinated with previous plans and re-planned by professional organizations. Currently, competition between soums in Sukhbaatar Province is successfully being carried out for development plans, new initiations and implementations.
Abundant number of construction works of local settlements and cities have been halted since last year due to the economic crisis. How is Sukhbaatar Province able to do the opposite and construct more?
Locals weren’t discouraged by Mongolia’s economic difficulties or our low budget and worked harder. This development work is ongoing with initiations of locals, businesses, and foreign and domestic investors, besides the Governor’s Office’s efforts. If we say the province’s annual budget is 18 billion MNT, together we would do development works worth 50 to 60 billion MNT.
Since last year, every soum was permitted to spend large sums of funds and received a minimum financing of 300 million MNT and maximum of 700 million MNT.
Development work proceeded rapidly last spring and summer. Some works recently stopped because of the approaching winter. Anyhow, it’s wonderful that works have been executed successfully, improving the facade of the province and livening up residents.
Bayan-Urt city’s new road layout that goes around the province center twice seems interesting. Also, where did all the livestock disappear to?
According to planning, the province center will have five circular roads. Areas along the main line were completely vacated. We chose negotiations more beneficial to residents to settle relocation issues of some 600 households at the areas for re-planning. New changes conflicted with some individuals’ narrow interests and stirred some resistance but most locals strongly supported works for the local development.
Currently, the first and second circular roads are being paved. Along the outermost circular road, approximately 8,500 trees were planted. It’ll be increased to 20,000. Three new parks have been opened. Baruun-Urt city will get a Green Belt in two to three years when the threes grow. We’ve got plenty more work planned such as vegetation.
Families raising livestock were organized through the city planning. Previously the province center had over 1,000 livestock of 150 households. Locals of Sukhbaatar Province love horses so a herder’s district sized 30รต30, provided with water supply system, electricity and infrastructure, was built seven kms away from the province center. We sold this to locals with discounted price and moved them. Now the province center is livestock-free and if it enters, a penalty will be charged.
A 16-storey building is being constructed on the west side of the Province Governor’s Office. Is it state-owned or a private establishment?
It’s not constructed through state budget funds. Locals accounted their economic opportunities and initiated to construct this tower building with trade services, hotels and offices. The Governor’s Office considered the province’s development and appearance and vacated the land. The building will become operational next summer.
Furthermore, construction work has begun for a new apartment complex as well as swimming pool appropriate for international competitions and a football field consistent with modern standards. Just recently, a large fitness center started operations. Baruun-Urt city will get a new hockey rink this winter. In a few days, a new Fourth School and Volleyball Sports Center will open.
For a remote soums, isn’t it difficult to raise adequate budget, find construction companies and solutions, and generate demand?
There’s a general 15 to 20 year plan for developing Sukhbaatar Province soums. This plan, developed a long time ago, isn’t consistent with the current situation. Households were already occupying lands that were included in the plan for construction. Old, worn-out buildings were still representing soum centers. This issue had to be resolved to improve the facade of soums. We addressed Atmor LLC, which installed engineering networks with modern advanced but cheap technology in our province before.
The company advised rebuilding two or three-storey apartments that enable heat distribution at a cheaper price since current buildings are spaced in between and will charge more for usage. But they said these buildings will be constructed with the same price as Ulaanbaatar’s. We informed residents about this opportunity to improve our soum center and asked them to pay in advance if they support so that construction work can begin immediately. In 2013, Bayandelger soum’s first 14 people supported the project, signed agreements, and begun constructing an apartment for 24 households with a mortgage loan of 1.3 billion MNT.
What’s the price of a cubic meter of an apartment at soum centers? Are locals interested in their prices? 
The price of a cubic meter was one million MNT at first but this year, it rose a little to 1,150,000 MNT. Locals are very interested in apartments. Bayandelger soum is constructing its second apartment for 24 households, Uulbayan and Tumentsogts soums are building their first. All three of them are at final stages. Construction works of these three soums cost 5.2 billion MNT but not a single dime was received from the state.
It might sound as if all our works have been completed quickly but we did face quite a few difficulties. People and companies hesitated on whether banks would give mortgage loans to such an expensive apartment in soum centers. Even when herder’s mortgage loans were approved, businesses still had doubts. We even met the Speaker of Parliament to bid him to pay attention to this. Mongolbank, State Bank and associated people actively supported our project and now, people are paying their loans without any problem. This was the first mortgage loan herders and locals took for apartments in the soum. I think Mongolian herder’s mortgage loans were something never seen in the world before because it was legalized that repayment will be made twice a year to accommodate lifestyles of herders.
In coming years, involvement of which sector is more beneficial for Sukhbaatar Province’s development?
Sukhbaatar Province has environmental, climatic and geographical advantages. It is located at the eastern border, distanced 560 km away from Ulaanbaatar. The capital city seemed far when roads were bad. We’ve recently connected Sukhbaatar Province with Ulaanbaatar through an asphalt road. It’s decided that a railway track routed from Tavantolgoi to Sainshand city and from Baruun-Urt to Choibalsan city will be constructed. This track will pass through Russia to a Pacific port. Railway track from Yellow Sea port was extended to Zuun Khatavch port in China, a bit further form Mongolia’s Bichigt port. The government policy to join Baruun-Urt city to Bichigt port through Khuut is becoming more clear. If budget issues are determined, Sukhbaatar Province has a potential to become an interesting railway hub and transit railway area in not only Mongolia but also Northeast Asia.
Sukhbaatar Province has mineral occurrences of gold, fluorspar, zinc, molybdenum and tungsten. Some are being used now. It’s also rich in lignite (brown coal) reserves. Our province is working towards expanding the economy by building a thermal power station, utilizing its lignite reserves into energy, exporting energy and then, establishing a processing plant for mining, industrial, and agricultural raw materials based on energy sources.

Mongolian girl takes Grand Prix at International Drawing Competition
By B. Baatar
November 16 (UB Post) An international drawing competition was organized by the Alliance for Healthy Cities in Hong Kong on October 29 to November 1, in relation to their 10th anniversary. The alliance held their sixth meeting in Honk Kong during the competition.
Teacher at Mongeni School T.Tsegmid won first place in the professional artist category, student of Mongeni School T.Ninjbadgar won Grand Prix in the student category, student of Mongeni School O.Bishrelmaa and D.Ariunaa, and student of School N.60 E.Sarnai won special prizes.
Their pieces published on 2015 calendar of the Alliance for Healthy Cities.
Over 80 paintings from China, the Philippines, Australia, Taiwan, Malaysia, Japan, Hong Kong and Mongolia was submitted to the competition.
Deputy Governor of Ulaanbaatar Ts.Enkhtsengel received Mongolian artists who participated in the competition and granted prizes.
During the granting ceremony, Ts.Enkhtsengel noted, “I am very happy that Mongolian young artists won prizes from the competition. It is very impressive that children expressed their idea to let Ulaanbaatar become a healthy city. I hope you will develop your talent in the future and participate in more international competitions.”

Godo captures the fundamental duality of the human experience
By Emma Ellis
November 16 (UB Post) In her current 976 Art Gallery show, “The Legend of the Swallow,” artist D.Bayartsetseg (known as Godo) employs the basic unit of art making – the line, the creation of positive and negative space – to pose fundamental questions about our perceptions.
Godo’s pieces in “The Legend of the Swallow” are quite diverse, ranging from a large sheet of paper densely covered in finely inked lines to a suspended white deel (Mongolian traditional costume). But perhaps most striking is the large collection of small sparrow drawings, each in its own frame, arranged side by side in a long line that bends around the gallery space, their sequence suggesting that the swallows arcing across each piece somehow form a narrative.
Godo’s work seems to occupy liminal spaces. Though she tries to make the lines that characterize most of her pieces as straight as possible, when making them, Godo focuses on her breath and heartbeat, and as such, they waver organically. “People always ask what element they are,” says Godo. “But I cannot say if they are wind or water.” A white deel suspended above the floor has a certain ghostly quality, but also has concrete cultural and temporal grounding as a traditional Mongolian garment.
But perhaps most complex and resonant are the narrative-like swallow images. Written narrative, namely Oscar Wilde’s short story, “The Happy Prince,” and the poem “A Requiem of the Warrior Gilgudei” from the AtlanTobchi, was Godo’s source material for this exhibition. Godo is an artist frequently inspired by written work, feeling in it the same energy she seeks to express in her own. In “The Legend of the Swallow,” this is borne out in the ambiguous multiplicity shared by these texts and Godo’s pieces.
In both “The Happy Prince” and “A Requiem of the Warrior Gilgudei,” swallows are simultaneously connected with the earthly – death, of the swallow itself and of the body of Chinggis Khaan – and the unearthly, divine charity and the departure of the soul. Our emotional response depends on whether one views those moments that reinforce life’s ephemerality as triumphant or tragic.
It is this duality, a fundamental duality of the human experience that Godo has captured in evoking the swallow’s image. As such, “The Legend of the Swallow” is not only a virtuoso experiment in the line, but also in the line between grief and remembrance.
The exhibition will be open through November 15, at 976 Art Gallery

What is behind the lavish bonuses for tax officials?
November 16 (UB Post) The heads of the city’s taxation departments received up to nearly 800 million MNT in cash bonuses for exceeding budget planning for collected taxes.
As citizens and residents of Mongolia, all workers are required to pay taxes that make up the state’s funds. We believe that we will get something valuable for paying our taxes.
Here is one example of the problem facing taxpayers:  the taxation department of one UB district received 775.9 million MNT for surplus taxes of 2.58 billion MNT.
The question is why aren’t taxpayers, instead of the officials who collect taxes, being rewarded?
Who received the cash bonuses?
Sukhbaatar District was awarded 800 million MNT for collecting a surplus of 4.2 billion MNT. Forty percent of the surplus, or 360 million MNT, was transferred to the General Department of Taxation (GDT), 40 million to the head of the district’s taxation department, 40 million to head of the finance and state fund department, 54 million to the tax collection department, and 2.2 million to each tax inspector.
Bayangol District was awarded 574 million MNT, out which 200 million was shifted to the GDT, 20 million to the head of the department, 12 million to each senior inspector, and another senior inspector got 5 million MNT as a cash bonus.
Bayanzurkh District was granted 1 billion 174 million MNT. The head of the department got 273 million, and 528.7 million went to 32 officials.
Songinokhairkhan District got 501 million MNT. The head of the department received a 75 million MNT bonus.
Khan-Uul District was granted 416 million MNT and Chingeltei District was awarded 250 million MNT.
The General Department of Taxation says that the bonuses are connected to the local administrations.  We investigated how the heads of the taxation departments grant bonuses to themselves.
Performance Agreement
We discovered that the taxation departments get bonuses according to a performance agreement.  If the taxation departments collect surplus taxes, they get a bonus of 30 to 50 percent of the surplus amount.
Who benefits from the performance agreement?
The performance agreement is held between the head of a district taxation department, the head of the finance department of a district, and the department of state funds.
The agreement states that if a district can fulfill tax revenue planning, they can receive 30 percent of the amount collected beyond the budget projections. This raises the question of why there would be surplus tax revenue collected.  Are taxation incomes planned much lower than they should be?
Is this evidence of corruption?
Taxes are divided into income, property and sales tax in Mongolia, and the state has become highly dependent on taxes collected from mining.  Why is this money lining civil service worker pockets instead of being applied to the state budget?
Bonuses distributed to UB tax officials in recent years 
Taxation Departments
 Tax Official
Bonus Amount (MNT)
The City Taxation Department



Bayangol District



Bayanzurkh District



Chingeltei District



Sukhbaatar District



Songinokhairkhan District



Khan-Uul District



Baganuur District


Nalaikh District

Source: Daily News

Nehmeliin Shar faces rocky renovations
November 16 (UB Post) The apartments of Nehmeliin Shar are very old and ready to be demolished. Authorities have made official statements about the poor conditions of the buildings. As a result, reconstruction of the apartments has been planned, but residents have faced conflicts with the district in seeing those plans carried out.
Mayor of Ulaanbaatar E.Bat-Uul promised the renovation of old buildings and construction of new apartments instead of ger districts in his election campaign. He told the residents of Nehmeliin Shar that he would help with the renovation if they found a construction company. The residents eventually made an agreement with Fuji Holding to carry out the work.
Fuji Holding uses the latest construction technology from Japan. The company promised residents they would renovate the apartments with high quality materials and provide an extra eight square meters of space after finishing the construction. Agreeing to these terms, Fuji Holding and some residents sent estimates for construction material to the relevant officials.
The District Mayor of Khan-Uul District, J.Gankhuyag, has since been accused of disrupting the construction work and even went so far as to choose Orchlon Construction through a second selection process.
The right of Orchlon Construction to participate in government tenders was restricted from 2011 to June 1, 2015, due to corporate irresponsibility. Concerns have been raised that the company was considered for participation in this tender.
People who reside in other apartments built by Orchlon Construction complained about the poor quality of the buildings to the press on February 25, 2013. Residents dealt with windows that got icy in winter, the floors in some buildings broke down, and walls and ceilings were cracked. The exteriors of the buildings were catastrophic. Residents were very disappointed.
Orchlon Construction have attemped to force the residents of Nehmeliin Shar to move out. “District Mayor J.Gankhuyag forced us to choose Orchlon Construction and even threatened us with his authority. Why must we choose this unqualified company? We are standing against it,” say residents.
The residents of Nehmeliin Shar are very disappointed and they want to impeach their district mayor. A banner with a slogan to remove the district mayor was hung from the apartments of Nehmeliin Shar. Khan-Uul is a district with a large population and lots of land. It is shameful to see the slogan covering the old building, complaining about the J.Gankhuyag.
This incident shows us that some authorities abuse their rights and commission only the projects they want. Some of them are the managers of companies earning state contracts, and state policy is regularly challenged by their selection for tenders.
If the conflict continues, residents of Nehmeliin Shar are prepared to go on a hunger strike to battle for their rights.
Recently, a meeting between Mayor E.Bat-Uul, District Mayor J.Gankhuyag, and residents of Nehmeliin Shar took place. At the meeting, the Mayor officially stated, “Residents will not choose the construction company. Instead, the Evaluation Committee will choose the observer and make an agreement. But still, residents have the right to give permission. Orchlon Construction will not participate in the tender. District Mayor J.Gankhuyag must start the tender announcement soon. Overall, six companies will be considered.
The following interview was conducted with the Head of the Evaluation Committee, J.Gankhuyag
When will the tender results be announced?
Since the city mayor gave us this duty, we are going to assess the materials and announce the results this week.
Authorities say that the Evaluation Committee disrupted the construction work previously. Is this true?
No, we did not. We are protecting the rights of our citizens. We will select the companies following rules and regulations. After all the companies are selected, and when the construction work is ready to begin, then we will demolish the old buildings and start the reconstruction. Previously, there were no instances of disrupting the apartments.
Some companies made agreements with some residents and some people have moved out of their apartments, right?
I have heard that several agreements were made between companies and residents. We do not have the right to forbid that. But according to policy, people must have their say after a construction company is chosen. 
Source: Undesnii Shuudan

No comments:

Post a Comment