Saturday, October 20, 2012
South Gobi Sands Avoids Paying 150 Billion MNT in Taxes
The Anti-Corruption Authority has finished investigating the former head of the Mineral Resources Authority, D.Bathuyag. During the investigation,the ACA revealed that D.Bathuyag abused his power and reissued five suspended mining licenses. The ACA has now transferred the case to the City Prosecutor`s Office to have him charged on abuse of power and illegal actions. D.Bathuyag is accused of illegally reissuing four suspended licenses for SouthGobi Sands and transferring one license to the director of the Zelem company, N.Jargalsaikhan, along with the former Head of the office for geological and mining cadastre of the Mineral Resources Authority, N.Davaatsogt . The state register number for that mining license is 5,261 and the license covers a 72,000 hectares area. It was priced at 2 billion US dollars in 2010 and has 42 million tons of coal reserves. During the inspection on the Mineral Resources Authority, the ACA revealed 150 billion MNT worth of tax fraud for SouthGobi Sands. This investigation revealed that David Lekhov and Dennis Dortage, former finance directors for SouthGobi Sands, avoided paying a large amount of taxes and both have resigned and left the country.