Mongolia Brief April 22, 2014 Part III
Income
and asset statements of Parliamentarians released
April 22 (UB
Post) All state servants including the
President, governmental and parliamentary officials annually declare their
income and asset statements. The Independent Authority Against Corruption
(IAAC) has recently united the income and asset declaration of a total of 239 state
servants and released the information publicly.
The following article highlights who in the
Parliament, Government and National Security Council had more income in 2013.
President of Mongolia Ts.Elbegdorj:
The total 2013
income of the President was 59,516,890 MNT and the income of his family was 6
million MNT. The President owns one apartment, 23 horses, 5 cows, 30 sheep and
15 goats. He has valuables worth 635 million MNT and keeps 75, 744,000 MNT in
his account. According to his declaration he does not own any vehicles, but he
has invested in several companies including Mushtaag LLC, Ankh-Erdene LLC,
Liberty Institute, Asu LLC, Jenco tour bureau Co. LTD., etc.
Speaker of the Parliament Z.Enkhbold:
Speaker
Z.Enkhbold earned 86 million MNT last year, while the members of his family
earned 20, 499,000 MNT. He declared that he owns two apartments one horse and
has no vehicles in his name.
Prime Minister N.Altankhuyag:
Total income of
the Prime Minister in 2013 was 318 million MNT, while his family members earned
in total 160 million MNT. According to his declaration he owns two apartments,
as well as two cars including a Lexus-470 and a Lexus-570. He saves 114 million
MNT in his savings account.
Vice-Speaker of the Parliament, Member of Parliament
R.Gonchigdorj:
Last year his
income was 50 million MNT. His family earned 8.5 billion MNT. According to the
IAAC report he owns 3 apartments and has a savings account with 165 million
MNT.
Vice-Speaker of the Parliament, Member of
Parliament L.Tsog:
His annual
income was 20 million MNT, while his family’s was 25 million MNT. He has two
apartments, worth altogether 310 million MNT. Also he owns two vehicles
including Toyota Mark – II and Toyota FJ Cruiser.
Vice-Speaker of the Parliament, Member of
Parliament M.Enkhbold:
M.Enkhbold
declared in his income statement that he earned 43 million MNT a year and his
family earned 22, 964,000 MNT. He owns two apartments, a Toyota Land Cruiser –
200, a Mercedes Benz S – 320. Also he has 350 horses and 50 of them are racing
breed horses. M.Enkhbold has valuables worth 190 million MNT and saves 276
million and 228 thousand MNT in his account.
PARLIAMENTARY MEMBERS WITH HIGHEST INCOME
The following members of Parliament had the
most individual and family income in 2013.
Member of Parliament and Minister for
Foreign Affairs of Mongolia L.Bold:
Minister L.Bold
is the MP with highest income in 2013. Last year he earned in total 33 billion
139 million and 788 thousand 640 tugriks individually and declared that he has
no family income. His income has notably increased in 2013, while in 2012’s
statement he declared that he earned 208 million MNT. In terms of assets, he
owns three apartments, four horses and has 31 billion 527 million MNT in his
account.
Member of Parliament J.Enkhbayar:
He is the MP
with the second highest income with 3 billion and 72 million MNT. According to
his statement, his income in 2013 decreased by a billion compared with 2012.
His family income in 2013 is estimated at 24 million 870 thousand MNT. However,
he declared that he has no apartment. He owns valuables worth 100 million MNT
and has 3 billion MNT in his savings account.
Member of Parliament D.Zorigt:
D.Zorigt
has been listed in third place with 2013 annual income of 2 billion 47 million
MNT, while in 2012 he declared that he earned 459 million MNT. His family’s
income is estimated at 140 million MNT. In terms of the real estate, he owns
three apartments and keeps valuables worth 750 million MNT. In his savings
account he keeps 93.5 million MNT. Also he has declared that he has 10 billion
MNT debts to be collected from Odod LLC, Erdenejas and ASU LLC. D.Zorigt has
loaned 4 billion MNT from the Trade Development Bank, invested in 15 companies
and holds shares worth over 5 billion MNT.
Member of Parliament, Energy Minister
M.Sonompil:
Minister
M.Sonompil’s income has not increased that significantly in 2013. In 2012’s
income statement he declared that he earned one billion 107 million MNT, while
in 2013 he earned one billion 120 million MNT. This time the minister declared
that he has no household or family income. He owns one apartment, a Lexus-470,
Hummer-H2 and breeds 50 sheep and 20 horses. Also he has valuables worth 100
million MNT and saves 15 million MNT in his account. He owes 5 billion MNT to
Khaan Bank.
Member of Parliament B.Garamgaibaatar:
He earned 1
billion 27 million MNT in 2013, which is double the amount of his 2012 income.
His family income of last year was 1 million 740 thousand MNT. B.Garamgaibaatar
has two apartments, saves 30 million MNT in his accounts and invested in four
companies, according to the IAAC report.
PARLIAMENTARIANS WITH LOWEST INCOME
Member of Parliament, Minister for
Education and Science L.Gantumur:
Minister
L.Gantumur was the MP with lowest income in 2013. Last year he earned 18
million MNT while in 2012’s statement he declared that he earned 244 million
MNT. His family income in 2013 was 57 million 920 thousand MNT. Although, he is
the minister with lowest income he has the most apartments. He has more
apartments than the richest MP L.Bold. In total he owns four apartments and
cars including Nissan Teana, Hyundai Sonata – 5. Also he has 110 horses and
saves 11 million MNT in his account, according to his income and asset
declaration statement.
Member of Parliament M.Zorigt:
MP M.Zorig
earned over 3 billion MNT in 2012, while his income of 2013 was 19 million 776
thousand MNT. He has one apartment, one car and 23 horses. According to his
statement he owns 9 million MNT in his account.
Member of Parliament N.Nomtoibayar:
N.Nomtoibayar’s
income decreased in 2013. In 2012 he had an income of 820 million MNT, while in
2013 he earned only 19 million 776 thousand MNT. He owns two apartments and
holds 13 million MNT in his account. However, he has six cars, including four
Mercedes, a Lexus – 570 and a Land Cruiser, which altogether cost 950 million
MNT.
Member of Parliament Ya.Sodbaatar:
He passed 2013
with an income of 19 million 776 thousand MNT. His income increased by 3
million MNT in 2013 in comparison with the previous year. Even though he earned
low individually, his family income is estimated at 494 million 480 thousand
MNT. He has two apartments and holds shares in six companies.
Member of Parliament L.Enkhamgalan:
L.Enkhamgalan
earned the same income as N.Nomtoibayar and M.Zorigt. This MP, who runs his own
business, declared he has no household income. He owns three apartments and two
service places and drives a Land Rover and Range Rover. Also he owns valuables
worth 1.6 billion and 540 million MNT. Inter International Group company owes
him 2.7 billion MNT.
PARLIAMENTARIANS WITH HIGHEST FAMILY INCOME
The family of
MP O.Sodbileg was the family with the highest income – 990 million MNT. In 2012
his family income was estimated at only 9 million MNT. O.Sodbileg individually
earned 28 million 600 thousand MNT. He has one apartment and two Mercedes.
Family of
Parliamentarian S.Bayartsogt had an income of 975 million MNT in 2013. Also
Parliamentarian S.Sarangerel’s family earned 491 million MNT. One of the
families whose income was notably increased in comparison with 2012, is
D.Battsogt’s family. His family had 80 million 789 thousand MNT income in 2012,
while last year it became 487 million 700 thousand MNT.
INCOME OF FEMALE PARLIAMENTARIANS
There are nine
female members in the Parliament. L.Erdenechimeg is leading them with an annual
income of 500 million MNT. After her, the parliamentarian D.Oyunkhorol was
listed second with an individual income of 260 million 878 thousand MNT and a
family income of 252 million 777 thousand MNT. Third place goes to Minister of
Culture, Sports and Tourism Ts.Oyungerel. She and her household income are
estimated at 353 million MNT altogether. Female parliamentarians with the
lowest incomes are D.Arvin and S.Oyun.
PARLIAMENTARIANS WITH MOST LIVESTOCK
Most of MPs
declared that they have livestock. The member of the Parliament with the most
cattle is D.Bat-Erdene. He breeds 400 goats, 450 horses, 70 cows and 3100
sheep. While, MP D.Battulga declared that he has only one horse.
Meanwhile, MP
Sh.Tuvdendorj has the most pigs. He has five horses and 356 pigs.
B.Ser-Od
wins silver at 16th Nagano Olympic Commemorative Marathon
April 22 (UB
Post) Mongolian runner B.Ser-Od won a silver medal at the 16th Nagano Olympic
Commemorative Marathon on April 20.
The marathon
was organized in two categories for men and women, at the distance of 40 km
each. Ukrain’s Serhiy Lebid won the marathon, completing the distance in
2:13:56. B.Ser-Od completed the distance in 2:14:04 and was followed by Taiga
Ito of Japan. Russian runner Alina Prokopeva won the women’s category with
2:30:56.
The Nagano
Olympic Commemorative Marathon is an annual marathon road race, which takes
place in middle of April in Nagano, Japan. It is an International Association
of Athletics Federation Bronze Label Road Race competition. The Nagano Marathon
has races for both elite and amateur runners. It is named in honor of the 1998
Winter Olympics, which were held in Nagano.
‘Three
Friends’ television series launches
April 22 (UB
Post) “Three Friends” Mongolian comedy series premiered on April 18 on
Education TV. “Three Friends” is based on a Korean comedy serial with the same
name.
The comedy
series stars notable Mongolian actors and actresses from Emotsi Production, the
youngest comedy producers of Mongolia.
The comedy
series will show long-lasting friendship, funny fights for love and young
people’s life. “Three Friends” will be aired on Education TV every night at
22:10 p.m.
The
Philippines’ Gambit in the South China Sea
April 22 (UB
Post) The Mark News
By Jay L.
Batongbacal
Tensions
between China and the Philippines spiked in March when a small civilian boat
was confronted by a Chinese Coast Guard vessel about 100 miles from the
Philippine coast. The boat was trying to bring soldiers, food, and water to a
grounded Philippine Navy ship on Second Thomas Shoal, which serves as the
Philippines’ last line of defense against further Chinese incursions into its
waters in the South China Sea (SCS). The incident took place just two days
before the Philippines submitted its Memorial in a case filed before an
arbitral tribunal established under the 1982 United Nations Convention on the
Law of the Sea (UNCLOS).
Documented by
journalists on board the small boat, the incident further proves that China has
established an undeclared and paramilitary blockade against Philippine ships in
the SCS. In 2012, China effectively took over the Scarborough Shoal, which is
located well within the Philippine exclusive economic zone (EEZ). This Second
Thomas Shoal incident is the latest flare in the ongoing contest for portions
of the SCS. It marks China’s increasingly provocative movements against its
maritime neighbors.
China’s
regional adventurism in the SCS is a product of its impressive economic growth
and aspirations to be a major maritime power. Its economy relies greatly upon
maritime trade, and the SCS contains vital sea lanes needed to transport
everything from fuel and raw materials to manufactured goods. Its coastal
regions also host hundreds of Chinese fishing communities. The Chinese
leadership must prove to these communities that the benefits of its economic
growth are not funneled exclusively to coastal metropolises like Shanghai. To
protect its massive trade interests and demanding fishing population, China is
investing heavily in its military and civilian maritime assets to enhance its
capability to project its naval might, as well as its fishing fleets.
While such
provocative acts may be seen as rational from the perspective of an aspiring
maritime power (its moves are basically patterned after the U.S. sea-power
doctrine), China also claims almost the entire SCS as its exclusive waters. It
no longer hides its intention to dominate this strategic maritime region. In
December, a Chinese documentary entitled Journey to the South China Sea,
released by the state-run CCTV-4, proudly revealed that since 2007, China’s
maritime law-enforcement agencies have confronted its neighbors’ ships in
dangerous games of “chicken,” reminiscent of U.S.–U.S.S.R. naval rivalries
during the Cold War.
China claims
the vast SCS waters on the basis of a creative reinterpretation of its history,
which denies the long existence and equally legitimate rights and interests of
its smaller Southeast Asian neighbors. Chinese records notwithstanding, the SCS
has historically been an international maritime commons, while the energy and
fishery resources in adjacent portions of the SCS comprise the historical and natural
heritage of states like the Philippines, Malaysia, Brunei, Indonesia, and
Vietnam. These countries also have exclusive rights to such portions,
recognized in the modern international law agreed upon by all states (including
China) and expressed in instruments like the UNCLOS.
From the
Philippines’ perspective, China began to deny it its long-standing access to
the sea. In 2010 and 2011, China actively protested and interfered with
offshore petroleum exploration just 50–100 miles from the Philippines’ west
coast. In 2012, the actual taking of Scarborough Shoal in response to a
Philippine attempt to arrest Chinese fishermen for harvesting coral and
endangered species only demonstrated that China fully intended to deprive the
country of its western EEZ and continental shelf. It did not help that the
Chinese media also openly circulated hawkish proposals of “small wars” against
its neighbors to retake the SCS by force.
With its back
against the wall, the Philippines could do little but seek the support of its
long-time ally, the United States, to dissuade China’s increasingly assertive
and dangerous maritime incursions. It also had to take a huge risk by
unilaterally launching an international arbitration against China. It did so in
the hope that international law affords a more equitable venue for the
protection of its maritime rights and interests against the seemingly
unstoppable expansion of its powerful neighbor.
China is
steadfast in its refusal to participate in the arbitration, and it remains to
be seen if the Philippine gambit will succeed or fail. A decision could have a
major impact on the future of the contested maritime region, which is also a
strategic nexus of global trade routes and a vital gateway between the Indian
and Pacific Oceans. While the present dispute is between the Philippines and
China, the outcome may decide whether the South China Sea will remain part of
the global commons or be taken from the rest of the world. With precious little
with which to challenge its giant neighbor, the Philippines can only hope that
fortune truly favors the bold.
Jay Batongbacal
is the Director of the UP Institute for Maritime Affairs and Law of the Sea at
the University of the Philippines. He was a member of the technical team that
defended the Philippines’ claim to a continental shelf beyond 200 nautical
miles in the Benham Rise Region, made in a Submission filed with the Commission
on the Limits of the Continental Shelf (CLCS).
Artist
brings the homeless to 976 Gallery with “Existent and Nonexistent”
April 22 (UB
Post) Artist E.Lkhagvadorj unveiled his second solo exhibition “Existent &
Nonexistent” at 976 Art Gallery on April 21.
Member of
Global Artist Pension Trust and recipient of the Grand Prix from the Tiger
Translate International Competition, young emerging talent, E.Lkhagvadorj was
born in 1987 in Ulaanbaatar city. In 2002, he began studying at Rajiv Gandhi
Arts and Industrial Design School then entered the School of Fine Arts at the
Mongolian University of Arts and Culture in 2005, graduating in 2010. During
his academic years, he experimented with abstract, surrealist and photo realist
paintings, improving his techniques and compositions and searching for his own
style.
In 2010
E.Lkhagvadorj began producing black and white hyperrealist paintings, depicting
homeless people who lived in the underground pipes and garbage dumps of
Ulaanbaatar city. Their alienation from society and the extremely hazardous
conditions they live in had greatly affected artist E.Lkhagvadorj. He depicted
the everyday lives of homeless people on the garbage dumps and various
drunk-men, sleeping on the streets and in market places, to appeal to the
society at large.
He spent a long
time exploring their conditions and often interviewed them and asked their
permission to take their photographs. When he started first producing work in
his own style, he could not pick colors other than black and grey. The filthy
faces and clothes of the homeless people and their gloomy lives were too somber
to be expressed in other colors. To speak out directly, artist E.Lkhagvadorj
picked the hyperrealist style for his works.
As his main
characters are completely isolated and separated from customary society, artist
E.Lkhagvadorj set the goal to let people from these different worlds meet each
other through his work, with no fear and disgust. In daily life, most of us
pretend not to see them or are afraid of facing drunken men sleeping on the
street or the homeless collecting waste food and bottles from the garbage.
Artist E.Lkhagvadorj questions if these people do in fact exist in our society
through his solo exhibition “Existent & Nonexistent”, which is being held
at 976 Art Gallery from April 21 to May 7.
E.Lkhagvadorj
was a recipient of a grant from the project “Promoting Democracy through Art”,
by the Mongolian Contemporary Art Support Association and the US State
Department in 2013. He was also awarded with the Grand Prix from the
Korean-Mongolian Joint Exhibition at the Mongolian National Modern Art Gallery
in 2011 and the Third Best Work Title from the North East Asian International Art
Exhibition, Changchun China. His artworks have been exhibited in the most
prestigious museums and galleries in his home country and also in Hong Kong,
China, Korea, Germany and Australia.
In 2012, “Asian
Art News”, famous international magazine, published a four page article and
information about the artworks of E.Lkhagvadorj.
The
gains of higher taxes
April 22 (UB
Post) Parliament has submitted a draft amendment for the Excise Tax and Mineral
Resources Law. The amendment states that any taxation in foreign currency must
be made in Mongolian currency. An amendment was made according to the law of
2009 where it states that all tax and payments must be in Mongolian currency.
However this law has not been followed in previous years. With the USD rate
reaching 1771 MNT, why the sudden decision to implement the law at this time?
The interesting fact about this draft is that the rate of USD against MNT to be
used is the rate of January 2012 – 1450 MNT – which is lower by 300 MNT than
the current rate. The excise tax is imposed on alcoholic drinks, tobacco, fuel,
diesel and vehicles.
If Parliament
passes the amendment as a draft, producers and importer will pay a lower tax
than the current one. I have a suspicion that behind this there are Parliament
members who will benefit from these kinds of tax cuts.
MPs in the business sector
For a while,
H.Battulga, the Minister of Industry and Agriculture, initiated the idea to
prohibit promoting candidates to Parliament who run alcohol businesses.
Unfortunately, he has been overwhelmed by members who have a conflict of
interest. There are many MPs who produce, import, run services and sell tobacco
and vodka. For instance, everyone knows MP G.Batkhuu is the owner of APU and
Ulaanbaatar Spirits. Moreover MP L.Enkh-Amgalan owns a specific share of the
Spirit Bal Buram, subsidiary of MCS, and Tiger. Ts. Dashdorj, Member of the
Mongolian People’s Party, has Mongol So Tobacco. D.Ganhuyag, the Minister of
Mining, sells vodka and alcoholic drink through the chain stores of Everyday
and his Sansar Bridge imports vodka from Japan. M.Sonompil, the Minister of
Energy, runs Chinggis chain restaurants and beer business.
There are more
than two ministers in Parliament that run such kinds of business. It is obvious
that they made an amendment according to their own interests. There will be an
even longer list if we add MPs who own bars, pubs, restaurants and commercial
centers.
Working with the rate difference
When Parliament
passed the state budget for this year, they considered USD rate at 1380 MNT.
But in reality, it has increased to almost 1800 MNT. The deficit from the
difference is uncertain. In addition, to transfer USD into MNT, they considered
an optimistic budget. Draft makers said “When USD rate increases, the entities’
tax load increases too, conversely, when it declines it impacts negatively on
the budget income.” Although, when they consider the tax amount, they estimated
it very low. This will be a golden opportunity for businessmen who want to work
on rate differences and enhance their businesses.
Last year,
Parliament passed the Law on Tobacco Supervision, after which the number of
small shops decreased and people smoked less in public places such as pubs and
restaurants. In order to decrease the usage of vodka and tobacco, the excise
tax must be higher. However the current situation is shameful because MPs are
using economic levers and giving votes in favor of their own personal
interests. Honestly, at this time, the opposing party mustn’t sit quietly.
Maybe there are MPs who have such businesses among the opposing party as well,
which is why they don’t speak out. Our only hope is that there will be many
honest MPs who can stand up and reject this draft amendment.
Erdene
commences drilling at Altan Nar Gold Project
April 22 (UB
Post) Canada-based Erdene Resource Development Corporation announced that it
intends to issue, by way of a non-brokered private placement, up to 4,062,500
units at a price of 0.16 USD per unit for gross proceeds of up to 650,000 USD.
Each unit will
consist of one common share of the company and one-half of one common share
purchase warrant, with each whole common share purchase warrant entitling the
holder to purchase one common share of Erdene at a price of 0.24 USD for a 24
month period from the closing date.
Net proceeds of
the Private Placement will be used for exploration of the Company’s metal
projects in Mongolia, including drilling at the company’s 100 percent owned
Altan Nar gold-polymetallic project, to commence in late April. The Private
Placement is expected to close on, or before, May 2nd 2014, and is subject to
certain conditions, including, but not limited to, the receipt of all necessary
approvals including the approval and acceptance by the TSX. All securities to
be issued pursuant to the Private Placement will be subject to a four month
hold period from the closing date. A finder’s fees may be payable on a portion
of the financing.
Altan Nar Gold Project – Drill Program
Altan Nar
exploration results, announced in January this year, included multiple, high
grade gold, silver and base metal zones. Follow-up drilling is expected to
commence in late-April and will include 10 drill holes totaling approximately
1,000 meters. The drill program will test continuity of these high priority
targets, some of which have yet to be drill tested. Erdene field crews were
mobilized to site the first week of April. Detailed surface work is underway,
including higher density geochemical sampling, mapping, and an expanded induced
polarization survey. This work will provide a greater understanding of the
extent of the multiple mineralized structures identified to date and provide a
stronger base for designing a more extensive follow-up resource delineation
drill program.
Targets
included in) the drill program will be the Discovery Zone, Union North, Union
South, Maggie, Northbow and Southbow. The following section and enclosed maps
provide additional details on each target.
Erdene Resource
also announced that it has closed its non-brokered private placement financing
with the issuance of 2,000,000 shares to Teck Resources Limited at a price of
0.175 USD per share for gross proceeds of 350,000 USD. All securities issued
pursuant to the Private Placement are subject to a four month hold period. No
commissions or finder’s fees will be paid in connection with the Private
Placement.
This fulfils
Teck’s 2014 equity investment obligation pursuant to the Strategic Alliance
between Erdene and Teck announced by Erdene on April 11th, 2013. Net proceeds
of the Private Placement will be used for exploration of the Company’s
Teck-Alliance projects in Mongolia, including the Khuvyn Khar copper porphyry
project where additional geophysical and geologic mapping programs will be
completed during the second quarter.
Mongol
Skill 2014 competition showcases Mongolia’s vocational education
April 22 (UB Post) -Mongol
Skill 2014 winners to qualify for the WorldSkills Sao Paulo 2015-
The first round
of the Mongol Skill 2014 competition took place on Monday with over 20 teams
competing. The second round will be held in May.
Winners of the
competition will attend a three-month specialized training in South Korea
before representing Mongolia at the WorldSkills Sao Paulo 2015, one of the
biggest vocational education events in the world, with over 1,000 competitors
from 60 countries.
WorldSkills
membership is required to take part in the event and the admission fee is
27,000 USD. The government of Mongolia agreed to pay the fee.
The Ministry of
Labor and Mongolian Builders’ Association are jointly organizing the Mongol
Skill vocational event for the second time.
Teams challenge
their skills required for seven vocational professions. These include skills
required of a builder, tile setter, welder, chef, electrician, joiner and lathe
operator.
The organizers
of the competition aim to set a new benchmark for vocational centers, improve
study environments and teachers’ skills, and most importantly, improve
competency of Mongolian vocational workers in the global market.
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