Just Group’s Sh.Batkhuu to be jailed extra 15 days

The First Instance Criminal Court of Bayanzurkh, Sukhbaatar and Chingeltei District extended pre-charge detention of former Executive Director of Just Group Sh.Batkhuu by 15 days.

Sh.Batkhuu was taken into custody in March in connection to his involvement in the 109 million USD loan obtained from South Africa’s Standard Bank using the government-owned Erdene Mining Corporation’s 51 percent share. The Independent Authority Against Corruption (IAAC) had been investigating Sh.Batkhuu and his role in using several state-owned corporations including Erdenet Mining Corporation and Ulaanbaatar Railways as collateral for the loan.

Ch.Ganzorig, who was the former director of Erdenet Mining Cooperation, was also approved for a 30-day detainment in connection to the investigation after he was bailed out earlier this week.

According to the government, Just Group borrowed 36 million USD from Standard Bank on July 8, 2009, which was increased to 75 million USD through an additional agreement signed on December 30, 2011. The company established another agreement for a loan of 27 million USD with the same bank on August 5, 2010, which was also revised to 34 million USD on December 20, 2011.

In total, Just Group owes Standard Bank 109 million USD, but hasn’t repaid it yet. Accordingly, an arbitration case was started but Just Group lost the case and was subjected for a criminal case by the Economic Crimes Division of the General Police Department of Mongolia back in 2013. Two years later, IAAC took on the case.