SAYS THERE ARE MANY PEOPLE WHO HAVE BEEN ‘BOUGHT’ BY OYU TOLGOI
Minister of Mining D.Sumiyabazar stated that there are many people who have been bought by Oyu Tolgoi to leak information and action being taken by the government to the company. The minister implied that there are many civil servants who receive payments from Oyu Tolgoi to “spy” on the government. All of this was stated during a press conference organized by the Ministry of Mining and Heavy Industry.
D.Sumiyabazar divulged this after he was asked about Deputy Minister of Mining D.Zagdjav’s recent calls to halt the operations of Oyu Tolgoi as it is not beneficial for Mongolia.
“There are many people that have been bought by Oyu Tolgoi. They deliver information and materials from the government to Oyu Tolgoi. In Mongolia, there are many instances and topics that cause a stir in society. We must decide whether we want to focus on reaping the short-term benefits or leaving a better future for our children,” the minister said.
Responding to the comments by his deputy minister, D.Sumiyabazar said “This is not the stance of Cabinet, the ministry, or the minister. We have concluded that Cabinet needs to focus on two issues.”
“D.Zagdjav’s issue is a personal one. In the future, if he uses his position to declare things that stray from the stance of Cabinet, there will be accountability. The deputy minister cannot be making statements that are very different from the ministry,” he added.
The first issue according to the minister is to decrease the interest rate that is being charged to Mongolia as part of the loan provided to Mongolia to finance the development of the Oyu Tolgoi mine.
According to D.Sumiyabazar, the second issue is regarding the economic benefits of the project. The reason why Mongolia is not receiving any economic benefits is because the management of expenditure needs to be better, the minister said.
The minister also criticized the board of directors of Oyu Tolgoi for not functioning like a board and not providing adequate information to the government.
“The loan provided to Mongolia has an 8.4 percent interest rate. The capital that sourced the loan has a three to four percent interest rate. The 4.4 percent discrepancy in these interest rates is hurting the cooperation between the government and Oyu Tolgoi. We must focus on these two issues first,” said D.Sumiyabazar.