Mongolia's Crisis of Democracy Continues www.thediplomat.com

On January 29, a majority of members of Mongolia’s parliamentary body, the State Great Khural, voted to oust the unicameral body’s speaker, Miyegombyn Enkhbold. The ousting of the speaker, who was formerly the chairman of the majority Mongolian People’s Party, comes after months of political turmoil. In the parliament’s special session, 43 out of 65 members who attended voted to throw out Enkhbold, who was embroiled in multiple corruption scandals.

The ousting is the most recent chapter in a slow-moving political crisis causing Mongolians have continuously lose faith in their government due to rampant corruption and inefficacy, particularly in addressing an annual air pollution-induced public health crisis in Ulaanbaatar.

In spite of widespread calls for Enkhbold’s resignation from both major political parties, the speaker had refused to step down for over a month in the face of major demonstrations in front of Mongolia’s parliament building. Since early December, more than half of Mongolian MPs boycotted plenary sessions in protest, which stalled out all legislative action for 40 days. The extraordinary measure to oust the speaker, who had formerly served as Mongolian prime minister and mayor of Ulaanbaatar, comes after a newly minted law approved on January 18, when parliament members granted themselves the new power. The original proposal for the bill was put forth just after the new year by President Kh. Battulga, who is from the opposition Democratic Party.

In his parting address, Enkhbold called it, “a grey day in Mongolian parliament.” He said, “I hope this law isn’t used to change the leadership in the future.”

Mongolia’s government has been in crisis due to a series of corruption scandals implicating leaders in both major political parties, whose platforms are virtually indistinguishable. Even after a new speaker is chosen, likely in early February after the Lunar New Year, the inter-governmental and inter-party conflict will continue to test Mongolia’s fledgling democracy.

More than just holding up the passing of budgets and the development of legislative priorities for 2019, the gridlock has threatened the girders of Mongolia’s political system. Critics have argued that the president proposing the bill sets a dangerous precedent for others to propose timely legislation to their benefit. Notably, President Battulga has also ordered for an inquiry into former President Elbegdorj in relation to the former’s negotiation of major mining deals while president.

Since late November, demonstrators have targeted Enkhbold due to his connection to a number of high-profile corruption scandals, which are still ongoing. Most notably, Enkhbold has been implicated in the long-unresolved 2016 60 billion MNT case, in which a group of politicians were accused of conspiring to sell government offices in return for raising 60 billion tugrik (roughly $22 million). The speaker has not been named directly but has been allegedly associated with last year’s Small and Medium-sized Enterprise Development Fund (SME) case. In the SME scandal, a variety of high-profile public officials granted relatives or friends money intended for small business owners. The funds were originally intended to help offset Mongolia’s heavily mining-dependent economy and stimulate the local-level economy.

Opponents, even in his own party, allege that Enkhbold runs a secretive group of leaders from across both major political parties known as MANAN, or “fog” in Mongolian, which has become synonymous with a shadowy oligarchy. In Mongolian, the word MANAN also combines the acronym of the two major political parties, the Democratic Party and the Mongolian People’s party.

The series of protests surrounding the SME scandal began in November, shortly after Prime Minister Ukhnaagiin Khurelsukh (from Enkhbold’s own party) narrowly escaped a vote of no confidence. The prime minister deflected criticism and accused Enkhbold of corruption.

The scandals have been widely covered in local media, and attracted outrage from average Mongolians.

Namuun, 19, said that “corruption is making everyone’s life hard, even someone young like me. It affects my parents; it affects all the people around me.”

The latest major political protest took place January 10 at Sukhbaatar Square and targeted Enkhbold. Like the previous protest on December 27, there were tens of thousands of demonstrators.

At the protest, 56-year-old Ganhuyag said, “I think this year will be year of protest, because if we don’t stop MANAN, our country will not develop.” He expounded, “every TV, every media company has someone from parliament or someone powerful working behind [it]. That is why people should not believe in news but believe in people’s voice.”

Ganuhuyag’s comments are emblematic of a growing public distrust in Mongolia’s governing class, and increasing disillusionment with the country’s media, both of which score low in global transparency ratings.

Occupiers in traditional gers, or yurts, register protest signatures against speaker Enkhbold at Sukhbaatar Square on January 13. The banner says “Protest against the tyranny of MANAN!” Photo by Peter Bittner.

Since the demonstration, dozens of “gers,” or yurts have occupied Sukhbaatar Square, the central government plaza, with at least 10 Mongolians promising to go on hunger strike.

One demonstrator, Batzorig, said, “I am one of 300 people who protested in 1989 in the Democratic Revolution. Look at what the people we trusted since that time have done! This is unbearable.

“I want this destroyed by its roots.”

Peter Bittner is a freelance journalist based in Ulaanbaatar, Mongolia. Tuguldur Chulunbaatar and Anand Daliad contributed reporting to this story.

IMF Continues Discussions on the Sixth Review of Mongolia’s Extended Fund Facility www.imf.org

An International Monetary Fund (IMF) staff team led by Mr. Geoff Gottlieb visited Ulaanbaatar during January 28–30, 2019 to continue discussions on the sixth review of the three-year Extended Fund Facility (EFF) arrangement approved on May 24, 2017, in an amount equivalent to SDR314.5054 million, or about US$434.3 million [1] (see Press Release No. 17/193 ).

Altantuya’s son tells of rejection by father, a popular singer in Mongolia www.malaymail.com

SHAH ALAM, Jan 31 — The High Court here today was told by Mungunshagai Bayarjargal that his father had refused to take him in after his mother, Altantuya Shaariibuu was murdered in 2006.

Testifying as the fourth witness in his family’s RM100 million civil lawsuit against the Malaysian government, Mungunshagai said he reached out to his father, Bayarjargal Bayasgalam, whom he described as a popular singer in Mongolia, for support after Altantuya’s death and was rejected.

“My father clearly told me he was married again. He has other children and he refused to take me in,” he replied under cross-examination to the Manjeet Singh Dhillon, the lawyer representing Abdul Razak Baginda who is also one of the defendants in the lawsuit.

Manjeet had asked Mungunshagai if his maternal grandfather, Shariibuu Setev who is the first plaintiff in the suit, had asked the college graduate if he wished to be with his father.

Bayarjargal and published on November 15, 2006, Manjeet cited that the pop singer had wanted to take custody of his son following Altantuya’s death.

When asked by Manjeet whether he agrees with the article’s content, Mungunshagai disagreed and explained that his father even acknowledged later in his life that he had refused to care for him when he was young.

“I disagree that my father wanted to take care of me. I spoke to him man-to-man. He was very clear at the time and he apologised to me for not being there when I grew up.

“As a son, he didn’t want me at that time. He admitted it and apologised to me,” he said.

Manjeet then asked whether Mungunshagai’s father wanted the best for him; however, Mungunshagai said he never felt loved by his father.

“I knew I had a father but I never felt any loved, any care from him ever. We never spent a night together,” he said.

Manjeet also asked whether Bayarjargal was able to care for him after his mother’s passing in 2006.

“How would I ever know, I never met him,” Mungunshagai replied.

Earlier today, Mungunshagai testified in court that he met his father for the first time in 2011 and while he was growing up, the pop singer would sometimes send him gift and toys.

Referring to the same news article, Manjeet also asked whether Mungunshagai knew that Altantuya had prevented his father from seeing him. The 21-year-old stated he had no knowledge of the matter.

On Tuesday, Mungunshagai testified in court that he had changed his name to Bayarkhuu Bayarjargal to escape the negative stigma from Altantuya’s murder.

In court today, Manjeet asked the unemployed college graduate whether he had kept the word “Bayar” in his name to signify his fondness of his father.

“I put it to you that you changed your name to Bayarkhuu Bayarjagal because you were proud of your father,” he said.

Mungunshagai disagreed, stating that the decision to change his name was made by his grandfather, Shariibuu and that “Bayar” was a very common Mongolian name, which means “joy”.

The hearing will resume on May 6 and start with the cross-examinations of Shariibuu.

Altantuya’s parents Shaariibuu and Altantsetseg Sanjaa, and Altantuya’s two sons had on June 4, 2007, filed a civil lawsuit to claim compensation for the mental shock and psychological trauma they suffered over her death.

However, Altantuya’s younger son, 15-year-old Alatanshagai Munkhtukga, was removed as a plaintiff following his death in 2017.

In the lawsuit where Altantuya’s family is seeking RM100 million as compensation, Sirul Azhar Umar, Azilah Hadri, Abdul Razak and the government of Malaysia were named as defendants.

Sirul and Azilah were convicted by the High Court in 2009 of killing Altantuya. They succeeded in overturning their convictions at the Court of Appeal in 2013, but the Federal Court in 2015 restored their convictions and sentenced them to death.

Abdul Razak, who was accused of abetting the two former police officers in her murder, was acquitted.

Sirul fled to Australia after the death sentence was handed down and is currently in detention there as Australian laws do not allow the extradition of anyone to a country where he or she may be subjected to the death penalty. Azilah is on death row here.

Mongolian ruling party backs new Speaker of Parliament www.news.mn

The Executive Commission of Mongolian People’s Party has today (January 31st) backed MP G.Zandanshatar as the new Speaker of Parliament. G.Zandanshatar is currently working as the Head of the Cabinet Secretariat. He has been nominated to the post by the Mongolian Prime Minister U.Khurelsukh and the nomination will now be discussed by parliament.

70 percent of Mongolian grazing lands degraded www.news.mn

Essential to the economy and national identity of Mongolia, the grasslands are under increasing threat from overgrazing and climate change. Multiple studies over the past decade have shown that the once lush Mongolian steppe, which is an expanse twice the size of the American state of Texas, that is one of the world’s largest remaining grasslands, is slowly turning into a desert. An estimated 70% of all the grazing lands in the country have been degraded to some degree.

Mongolia to spend USD 56.3 million for food program www.news.mn

The Mongolian government has adopted a national program to ensure the supply of safe and healthy food products to the population.

Erdenes Tavan Tolgoi to pay dividends within this quarter www.zgm.mn

Prime Minister Khurelsukh Ukhnaa has reportedly ordered the Minister of Mining and Heavy Industry Sumiyabazar Dolgorusren, Minister of Finance Khurelbaatar Chimed and the authorities of Erdenes Mongol LLC to wrap up the dividends distribution of Erdenes Tavan Tolgoi JSC (ETT) within the first quarter of this year.

Subsidiary of ‘MIK HOLDING’ JSC issues international bond worth USD 250 million www.montsame.mn

Ulaanbaatar /MONTSAME/ ‘MIK HFC’ LLC, a wholly-owned subsidiary of MSE listed ‘MIK HOLDING’ JSC issued bond worth USD 250.0 million at international financial market successfully. The bond’s annual yield is 9.75% with 3 years duration.

Mongolian mining sector contributes State Budget www.news.mn

At a press conference today (January 31st), the Ministry of Mining and Light Industry gave a report on its performance and productivity over the past year. In 2018, the Ministry contributed a total of MNT 2 trillion and 51.5 billion in tax revenue to the State Budget, which was an increase of 28.6% on the previous year.

The US wants to halt Huawei's global advance. It may be too late www.cnn.com

Hong Kong (CNN Business)Huawei's rise as a global tech company is under threat as an increasing number of governments express concern that its technology could be used by Chinese spies.

But the US-led campaign against the Chinese company may do little more than act as a brake on growth, given the dominant position Huawei has already built in fifth generation (5G) wireless technology. It has loyal customers in emerging markets and parts of Europe, and expects to become the world's top smartphone seller by next year.
"This campaign will only slow Huawei's business growth in some countries in European and Asia Pacific markets," said Charlie Dai, an analyst with research firm Forrester based in Beijing. "But I don't think it's going to retreat from any market at all in the foreseeable future."
Huawei's global dominance has raised alarm bells in the United States, which has accused the company of selling products that the Chinese government could use for spying.
The latest move against the company came on Monday, when the US Justice Department filed criminal charges that accuse Huawei of stealing trade secrets, obstruction of justice, bank fraud and evading US sanctions on Iran. Huawei denies the charges.
"Suspicion of Huawei runs deep and there is a bipartisan, whole of government campaign in Washington to take down this company, not just in the United States, but around the world," said Samm Sacks, a cybersecurity policy and China digital economy fellow at the New America think tank.
The assault on Huawei's business reflects the increasingly bitter rivalry between Beijing and Washington over who will control the technologies of the future. There is particular concern about the security of 5G because it will be used to carry vast amounts of data, connecting robots, autonomous vehicles and other sensitive devices.

If the US government decides to escalate the fight still further by preventing Huawei buying US-made parts, as it did with another Chinese tech company ZTE (ZTCOF) last year, it could inflict substantial damage.
"Huawei is less dependent on US suppliers than ZTE, but without access to US technologies, even it will not survive long," Dan Wang, an analyst at research firm Gavekal wrote in a note to clients Tuesday.
For now, though, the Chinese company remains in a strong position to lead the rollout of 5G networks. Huawei says it has signed 30 contracts for 5G, and is working with more than 50 wireless carriers on commercial tests. It is also one of the top owners of 5G patents.
Huawei has spent decades building a strong presence in scores of markets around the world, helped by reliable hardware and competitive pricing. It is the world's No. 1 telecommunications equipment maker, despite being effectively shut out of the US market, and last year overtook Apple (AAPL) as the second biggest supplier of smartphones. It expects to overtake Samsung by 2020.
The company denies that its products are a risk to national security. It also maintains that it is a privately owned company with no ties to the Chinese government. Its international reputation, however, is taking a beating.
Huawei's products include smartphones, laptops, tablets, networking equipment, software and microchips.
Huawei's products include smartphones, laptops, tablets, networking equipment, software and microchips.
Huawei prepares for tougher times
Polish authorities detained a Huawei executive this month on allegations of spying for the Chinese government. The company fired the employee shortly after the arrest, saying his actions had brought Huawei into "disrepute."
In December, Canada arrested Huawei chief financial officer Meng Wanzhou at the request of US prosecutors. The United States is seeking her extradition on allegations she helped the company dodge US sanctions on Iran. Meng, the daughter of Huawei founder Ren Zhengfei, denies any wrongdoing.

In recent months, Australia and New Zealand have restricted Huawei from providing equipment for 5G networks. Germany and Canada are considering similar measures. Top global mobile carrier Vodafone (VOD) is pausing the deployment of Huawei equipment in core networks in Europe while it speaks with authorities and the company.
In the United Kingdom, Huawei is already monitored by a government oversight panel that warned last summer of new risks. The company says it's working to address them. But the pressure has gone beyond the telecoms industry, with organizations such as Oxford University saying they will stop accepting money from Huawei. Prominent American universities are also distancing themselves from the company's funding and equipment.
Huawei's leaders accept that the environment is becoming more hostile.
"In the next few years, the overall situation will not be as optimistic as we imagined. We must prepare for hardships," Ren said in November. His comments were posted on a company website this month.

Huawei is unlikely to repeat the breakneck growth it experienced over the last 30 years, and will have to "give up some mediocre employees and lower labor costs," Ren added.
Following the wave of negative headlines, the company is stepping up its PR campaign. Ren, who rarely speaks to the media, gave interviews to two separate groups of reporters in recent weeks.
He said he expects Huawei to bring in $125 billion in revenue this year, an increase of roughly 15% from 2018.
"If we are not allowed to sell our products in certain markets, we would rather scale down a bit," Ren said. "As long as we can feed our employees, I believe there will always be a future for Huawei."

Emerging markets and loyal customers
Huawei reported revenue growth of 16% for 2017. Its major western rivals, Finland's Nokia (NOK) and Sweden's Ericsson (ERIC), both suffered declines in revenue for the same year.
The Chinese company still does brisk business in many emerging markets, which are unlikely to abandon its equipment.
Perspectives Tensie Whelan
Revenue from Europe, the Middle East and Africa grew by about 5% in 2017 to 164 billion yuan ($25 billion). Growth in the Asia-Pacific region was stronger, with revenue up more than 10%.
Analysts predict customers in those regions will stick with Huawei because of its highly competitive prices and out of a sense of loyalty.
The rollout of 5G wireless networks will be expensive because they require far more base stations than previous generations, according to Kenny Liew, a telecommunications analyst at research firm Fitch Solutions.
Mobile operators "will be keen to slash costs wherever possible, and one way to do so is to opt for cheaper but proven Chinese equipment," he said.
Wireless carriers in India, which have fought a brutal price war in recent years, are likely to favor Huawei as a cheaper option in light of the financial pressures in the industry, Liew added.
And Huawei's early commitment to countries such as Nigeria and South Africa has earned it loyalty.
"There are countries in sub-Saharan Africa where Huawei ... took a risk to invest when other vendors were wary," Liew said.
Huawei could also benefit from the opening of China's market to foreign players such as British carrier BT (BT), which last week became the first foreign telecoms group to obtain a license to sell directly to customers nationwide.
Huawei's smartphone sales soared 30% last year. It plans to overtake Samsung by 2020
Huawei's smartphone sales soared 30% last year. It plans to overtake Samsung by 2020
"This move is definitely helpful for Huawei," said Dai, the Forrester analyst. BT may need Huawei's help to better serve the local market, and a closer business relationship could help Huawei outside China.
The decision from Beijing came just weeks after BT said it would not buy Huawei equipment for the core of its 5G network and was stripping Huawei equipment from the heart of its 4G network. BT said it would continue to buy the Chinese company's products for other parts of its networks.
Beyond telecoms equipment, Huawei's smartphone business is thriving. The company sold more than 200 million devices in 2018, up about 30% from the previous year. The spike in sales helped revenue from Huawei's consumer business rise to $52 billion — an increase of more than 40%.
Geopolitical tightrope
Political considerations could help Huawei, too.
Nations that have benefited from Chinese investment will be reluctant to impose bans on Huawei equipment because of potential geopolitical repercussions, according to Liew.
Poland and the Czech Republic are already trying to walk a diplomatic tightrope, balancing security ties with the United States with their need for Chinese investment.
Poland is reportedly trying to smooth over tensions with Beiing after arresting the Huawei executive. Poland is China's biggest trading partner in the region, according to the World Bank.

Late last year, the Czech Republic's intelligence agencies issued a public warning about using products from Huawei and its smaller rival ZTE (ZTCOF). The Czech prime minister later had to deny a report that he had told Chinese diplomats the warning didn't represent the Czech government's position.
Like Huawei, ZTE denies that its products pose any national security risks.
Chinese officials are also lashing out over the increasing pressure Huawei is facing in Western Europe.
After Vodafone's announcement Friday, Chinese Ambassador to the European Union Zhang Ming blasted the "slander" and "discrimination" that he said Huawei and other Chinese companies are facing in Europe.
Zhang warned that any attempts to restrict the use of Chinese technology in European 5G projects would risk "serious consequences" for global economic and scientific cooperation, according to an interview published Sunday by the Financial Times.