R.Ganzorig released

Director of Magnai Trade R.Ganzorig was released by the Economic Crimes Division at the Criminal Police Department two days after his arrest on October 8, according to news.mn.

R.Ganzorig was arrested with his executive director G.Dashnyam for possible money laundering and misappropriation, according to the General Police Department. However, an inside source claimed that R.Ganzorig’s arrest had nothing to do with fuel price or quality. In fact, it was explained that he was being investigated under the suspicion that he may be linked to Just Group’s probe on the use of government-owned Erdene Mining Corporation’s 51 percent share as collateral for a large sum of loan obtained.

When Just Group announced bankruptcy in July 2013, R.Ganzorig bought it for around 40 billion MNT and handed over management to his son.

At the time, the Authority for Fair Competition and Consumer Protection reported this as an illegal purchase, saying that R.Ganzorig should have gotten a permit to buy up businesses in the same line of trade. However, no action was taken at the time.

R.Ganzorig is one of the richest people in Mongolia, who owns more than 300 petrol stations and currently conducts oil exploration in Dornod Province.