Primary criminal court to review cases of former Development Bank officials

A trial for former CEO of Development Bank of Mongolia N.Munkhbat, former Chairman of Board of Directors of the bank Sh.Shinebaatar and former board member Ch.Otgonchuluu took place on Wednesday at the Appellate Criminal Court of Ulaanbaatar. The court overturned the primary court’s decision and decided to reconsider the case at the Primary Criminal Court of Sukhbaatar District.

Three former senior officials of Development Bank have been charged with abuse of power and favoring Trade and Development Bank. In particular, they were accused of buying a property from Trade and Development Bank for 27.5 billion MNT at a price higher than the market rate and causing 4.8 billion MNT in damage to Development Bank.

Moreover, N.Munkhbat was accused of causing more than 4.6 billion MNT in damage to Development Bank. However, the Primary Criminal Court of Sukhbaatar District acquitted B.Shinebaatar, Ch.Otgonchuluu, and N.Munkhbat on the ground that their actions did not constitute a criminal offience.

During his tenure as deputy director of Erdenet Mining Corporation, B.Shinebaatar used his position to create an advantage for Darkhan Metallurgical Plant JSC, causing Erdenet Mining Corporation a loss of 10.9 billion MNT, but his case was dismissed.

In the past, N.Munkhbat was found guilty of concluding a loan agreement with Mon Laa Company and illegally giving a loan of 3 million USD. However, he was acquitted on the ground that the statute of limitations had expired.

The current directors and officials of Development Bank and Erdenet Mining Corporation have appealed against the decision of the first instance court.