IAAC arrests 4 ministry officials over SME loan investigation

The Independent Authority Against Corruption (IAAC) has reportedly arrested four officials from the Ministry of Food, Agriculture, and Light Industry in connection to the SME loan controversy. The detained officials include State Secretary of the Ministry D.Enkhbat, Director of the SME Development Fund S.Tugsbileg, and two other unnamed officials.

The controversy surrounds several key politicians who have allegedly misused their power to funnel billions of MNT in SME financing to companies owned by family members or close associates.

The Ulaanbaatar Prosecutor’s Office filed a claim regarding the controversy and transferred the investigation to the IAAC. In connection with this, the IAAC has made four arrests on the night of November 2.

Prime Minister U.Khurelsukh has ordered MPs and government officials who have taken out SME loans to repay the loans immediately. The Minister of Food, Agriculture, and Light Industry S.Batzorig resigned from his position in light of the news on October 31. The ministry is directly responsible for the management of the SME fund.

“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.