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Many well-known Mongolian deputies have been charged with stealing exported coal. One of them is D. Bat-Erdene, a member of the Great Khural and the owner of the Azhnai Corporation*. It turned out that he could launder the money stolen from JSC Tavantolgoy * through his own bank Kapitron.
Being a member of the Mongolian parliament from 2012 to 2016 and the owner of a large part of the shares of Tavantolgoy JSC, he used his influence on the chairman of the board of directors B. Tuvshinbayar and executive director R. Seddorzha to create false documents in order to obtain about 324 thousand tons of coal from the enterprise as a payment for a non-existent debt. As a result, Bat-Erdene is accused in the case of organizing the theft of 18.5 billion tugriks from the Tavantolgoy company.
D. Bat-Erdene
51 percent of Tavantolgoy JSC is owned by Umnugov aimag (that is, the regional government), 19.7 percent by Azhnay Corporation, 16.9 percent by Shandas Impex LLC, and the remaining 12.4 percent are owned by shareholders from 23 foreign countries. Deputy D. Bat-Erdene used his shareholding advantage to form the company’s management team from people close to him, and then laundered illegally obtained money through his own bank, Kapitron.
In particular, according to the information of the Mongolian law enforcement officers, it was at the suggestion of Bat-Erdene that L. Badraa and D. Dagvadorj became members of the board of the company, Z. Erdenebayar became the chief engineer, O. Monkhtaivan was appointed deputy director for finance, V. Sainbileg became a personnel specialist , E. Ugtahtsetseg – treasurer, S. Sodbaatar – head of sales department and R. Seddorzh – executive director. That is, he put his people literally in all the most important positions in Tavantolgoy JSC. Currently, the deputy is prohibited from meeting with these people.
As investigators suggest, the deputy laundered the money obtained illegally through the Kapitron bank, which is 100% owned by him. JSC “Tavantolgoy” has nominal and foreign currency accounts in commercial banks, but most of the money was placed in the bank “Kapitron”. Cash transactions were carried out mainly through this bank.
Reference:
*Azhnai Corporation is a large Mongolian firm operating in foreign and domestic trade, tourism, mining, banking, manufacturing, transportation, logistics, securities trading, real estate and road construction, and media.
* JSC “Tavantolgoy” is a large mining company operating in the Umnugov aimag. Provides most of the aimag’s budget. The board of directors of the joint-stock company calls all accusations of the company’s involvement in the theft of coal politically motivated slander, due to which Tavantolgoy incurs heavy losses. In 2023, the miner received 275 billion tugriks in subsidies from the Great Khural, but the reputation cannot be restored with money alone.