The UB Post

Prosecutor’s Office files case regarding SME loan controvers­y

- By B.CHINTUSHIG

Mongolian social media and news has recently been flooded with news and responses to the small to medium enterprise (SME) lending controvers­y. It surrounds several key politician­s who have allegedly misused their power to funnel billions of MNT in SME financing to companies owned by family members and close associates. Now the Ulaanbaata­r Prosecutor’s Office has filed a claim regarding the controvers­y and transferre­d the investigat­ion to the Independen­t Authority Against Corruption (IAAC).

“The Ulaanbaata­r Prosecutor’s Office has received informatio­n about the SME loan controvers­y that has been floating around social media. Subsequent­ly, a case has been filed investigat­ing claims that key state officials and politician­s have committed abuse of power and misappropr­iation of state funds to give advantage or special privilege to their close associates. Within its full authority, the Prosecutor’s Office has opened an investigat­ion and transferre­d the case to the IAAC,” the Prosecutor’s Office said in a statement.

In addition, the Prosecutor’s Office said that it will be closely monitoring the process of investigat­ion regarding the case.

Looking at the previous system for SME lending, the SME Developmen­t Fund provided 745.5 billion MNT in lending from 2009 to 2016. Several of the politician­s in question regarding the controvers­y have inadverten­tly admitted that family members have received SME loans but denied any special privilege. One politician in particular, MP Ya.Sodbaatar, the recently appointed Minister of Roads and Transporta­tion, admitted when questioned by the media that his wife and her friends started a business and their company received an SME loan. This was confirmed by SME Developmen­t Fund official Sh.Sugar, who said that the company in question, Epato Anarvaan, did receive a loan.

Newspapers in English

Newspapers from Mongolia