2.3 billion MNT of damage compensated for corruption

The Independent Authority Against Corruption (IAAC) presented an overview of compensations claimed for corruption crimes on October 27. Specifically, damages worth 35 billion MNT were compensated in 2020, 96 billion MNT in 2021 and 2.3 billion MNT in the first nine months of 2022.

IAAC Commissioner O.Erdeneburen highlighted, “As of September this year, 2.3 trillion MNT of damages were compensated for corruption cases and transferred to the state. Many calculations can be made about what possible developments can be made with this amount of money. In particular, 2.3 trillion MNT is equivalent to 20 percent of last year’s state budget.”

More specifically, 2.9 billion MNT was compensated to the treasury account of the Ministry of Finance, 766 billion MNT to Development Bank of Mongolia, 721 billion MNT to the Darkhan Metallurgical Plant, 235 billion MNT to Khutul Cement and Lime Factory, 647 billion MNT to Erdenet Mining Corporation, 148 million MNT to public institutions, 244 million MNT to state property and facilities and 72 million MNT to individuals and private enterprises.

Since the probe into Development Bank’s operations started on January 31 this year, a total of 48 borrowers have paid 766.5 billion MNT in compensation. Currently, the investigation is being carried out on 25 cases related to the authorized officials of the bank.

“There is a difference of opinion as to whether the 766.5 billion MNT repaid to Development Bank is loan repayment or compensation for losses. Not all loans of Development Bank are non-performing and some projects are quite successful. It is considered a loss/financial damage if an employee abused his power to give privileges to projects that failed to meet the criteria or the required amount of collateral. So, 766.5 billion MNT was claimed as compensation,” Press Officer of IAAC N.Temuulen said.