The Mongolian People’s Party’s (MPP) caucus held a meeting about controversial issue surrounding the small and medium-sized enterprise (SME) lending. Reports that close associates of a number of lawmakers reportedly received loans worth billions from the SME Development Fund leaked through social media.
Some politicians have already admitted that their family members took out loans from the fund, but lawmakers repeatedly stated that they did not help their family members receive the loans.
Despite the lawmakers’ statements, the leaks of loan documents have led to opposition on social media for almost two weeks. Strong opposition to loan allocation processes from the public prompted the caucus to delve into the current controversial topic. The public strongly criticized Minister of Food, Agriculture and Light Industry B.Batzorig for abusing his power by allocating money from the fund to lawmakers’ associates as the fund is being operated under the agricultural minister’s authority.
After the meeting, D.Khayankhyarvaa, the MPP caucus chairman, held a press briefing about the meeting. D.Khayankhyarvaa noted that the caucus decided to hold accountability to Minister B.Batzorig, who is considered as the key player in this controversial issue.
After the public criticism against him, B.Batzorig denied his involvement in loan allocations.The caucus chairman said that the caucus will propose Parliament to oust B.Batzorig from Cabinet for his involvement in the ongoing matter.
In addition, he added that Prime Minister and Chairman of MPP U.Khurelsukh instructed all lawmakers whose associates and family members took loans from the fund to give back loans to the fund. B.Batzorig has served as a minister for a year, and it is almost certain that he will become the second minister to be ousted from U.Khurelsukh’s Cabinet.
Following D.Khayankhyarvaa’s statement, B.Batzorig spoke with the media, “I will resign from the minister’s position to take ethical responsibility for the ongoing matter,”