Mongolia lawyer in frontline 'for Rio'
SARAH Armstrong, the Australian lawyer trapped in Mongolia, is embroiled in one of the country's biggest corruption cases and may be "in the firing line" for any misdeeds by Rio Tinto.
Alarm bells were ringing in the days before Ms Armstrong was denied permission to board a plane in Ulaanbaatar to Hong Kong, with executives at Rio Tinto and its subsidiary SouthGobi Resources concerned about possible action against their employees.
Foreign Minister Bob Carr said yesterday Ms Armstrong would be interviewed by Mongolia's anti-corruption watchdog on Saturday for the second time in a week. Australian diplomats would be present.
Mongolian media has reported she was being questioned regarding the possible solicitation of bribery between her company, SouthGobi, and D. Batkhuyag, the former chairman of Mongolia's Mineral Resources Authority.
The report suggests SouthGobi is being investigated for avoiding taxes to the tune of 150 billion tugrik ($104 million), and for the awarding of licences.
"I do know that Rio had wind of this potentially happening a couple of days before it did happen," a mining industry source familiar with the situation told The Australian.
"She may well be stuck there for a month or two. It's a little bit hotter, perhaps, than you had previously expected and hence she's just wanting to step very delicately at the moment.
"She doesn't want to take anything like this lightly. If you're asking if she's in the firing line, then I'd say that is accurate."
On May 8, about a dozen agents from Mongolia's anti-corruption agency raided SouthGobi's office in Ulaanbaatar. It was investigating the group's operating company, SouthGobi Sands, in connection with "licence speculation".
The raid came after the arrest of Mr Batkhuyag in relation to that "speculation". The company and Rio Tinto both declined to comment further yesterday.
Ms Armstrong's mother, Yvonne, said yesterday her sister had been texting her daughter. "Sarah's touching base each day . . . at least a few times. At least she can go to the gym. That's what she's doing to destress."
Alarm bells were ringing in the days before Ms Armstrong was denied permission to board a plane in Ulaanbaatar to Hong Kong, with executives at Rio Tinto and its subsidiary SouthGobi Resources concerned about possible action against their employees.
Foreign Minister Bob Carr said yesterday Ms Armstrong would be interviewed by Mongolia's anti-corruption watchdog on Saturday for the second time in a week. Australian diplomats would be present.
Mongolian media has reported she was being questioned regarding the possible solicitation of bribery between her company, SouthGobi, and D. Batkhuyag, the former chairman of Mongolia's Mineral Resources Authority.
The report suggests SouthGobi is being investigated for avoiding taxes to the tune of 150 billion tugrik ($104 million), and for the awarding of licences.
"I do know that Rio had wind of this potentially happening a couple of days before it did happen," a mining industry source familiar with the situation told The Australian.
"She may well be stuck there for a month or two. It's a little bit hotter, perhaps, than you had previously expected and hence she's just wanting to step very delicately at the moment.
"She doesn't want to take anything like this lightly. If you're asking if she's in the firing line, then I'd say that is accurate."
On May 8, about a dozen agents from Mongolia's anti-corruption agency raided SouthGobi's office in Ulaanbaatar. It was investigating the group's operating company, SouthGobi Sands, in connection with "licence speculation".
The raid came after the arrest of Mr Batkhuyag in relation to that "speculation". The company and Rio Tinto both declined to comment further yesterday.
Ms Armstrong's mother, Yvonne, said yesterday her sister had been texting her daughter. "Sarah's touching base each day . . . at least a few times. At least she can go to the gym. That's what she's doing to destress."
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