Mongolian SME fund scandal: demonstrators demand MP resignations www.news.mn
A demonstration took place outside the west gate of Mongolia’s State House, demanding the resignation of the MPs who allegedly received loans from the Small & Medium Enterprise Fund. The demonstrators are demanding that legal action be taken against those MPs who enabled friends and relatives to access funds.
In 2009, the Mongolian government expanded a fund to support small and medium enterprises (SME’s). This provided companies with low-interest loans at 3 percent interest for up to five years and contained 2 billion Mongolian Tugrik (roughly USD 780,000 at today’s exchange rate). The fund is reported to have dispersed loans, totalling nearly 700 billion tugrik, or several hundred million U.S. dollars. The fund was created in – and continues to be overseen by – the Ministry of Food, Agriculture, and Light Industry.
Last week, the chief prosecutor requested the State Great Khural (parliament) to revoke the parliamentary immunity of B. Batzorig’s, who runs this ministry – and, thereby the fund itself. However, the Khural, which is dominated by the MPP refused to do so.