Day 817: Mongolia Has Opportunity To Shine Or Face Legal Global Image Failure

March 2, 2015 Nemes Legal

Worldwide attention for occasions in Mongolia is unusual. The cases of sent to prison coal mining executives American Justin Kapla and Filipinos Hilarion Cajucom Jr. and Cristobal is supplying Mongolia’s President Elbegdorj and Prime Minister Saikhanbileg a chance to reveal their strength of management at home and abroad. This opportunity comes at a vital time for Mongolia with the economy in a state needing conversations with the International Monetary Fund.

Checking out Japan this previous week, sources say Prime Minister Saikhanbileg faced concerns about the legal situation of the three sent to prison former SouthGobi mining executives at every conference. Japan has in current years been prominent in providing the government of Mongolia debt funding requiredhad to staysurvive and stay clear of financial collapse. International viewpoint of Mongolia is not just crucial for its mining industry but likewise to the economic health of everything in the country consisting of energy facilities, healthcare and education.

John Viverito, an attorney at DLA Piper in Singapore, is representing Mr. Kapla’s case before the United Nations Office of the High Commission for Human being Rights. Mr. Viverito says:

Based in Singapore, I know this case is being closely seen by members of the worldwide business neighborhood. International executives are given pause by a case like this that if this can take place to these three men, it could happen to their workers or themselves also. This case is having a chilling impact on Mongolia’s economy which is dependent on Foreign Direct Financial investment to prosper.

For Head of state Saikhanbileg, it has actually been a trying early run of months on the task considering that November 2014. In an effort to put public pressure on his parliament to support his reforms, Prime Minister Saikhanbileg conducted a national poll by text in late January. Voters were asked to pick one of 2 choices to enhance Mongolia’s economy:

1. To stabilize the currency by encouraging foreign financial investment in mining jobs.

2. To support the currency by means of austerity policies of economic discipline, minimizing spending and expenses that would mean cuts to government social programs.

Ballot resultswere not persuading in spite of a relatively one-sided question. 56.1 % chose mining and 43.9 % voted for austerity with less than 12 % participation. A regional analyst even more questioned the utility of the question: “Why cannot we have both austerity and mining? There are reasons for both.”

Australia’s Chamber of Commerce in Mongolia the other day signed up with the worldwide objection about the rulings from the SouthGobi case on January 30, 2015, that sent out three guys to jail and greatly fined SouthGobi Resources.

The Board of AustCham Mongolia supports calls by popular Mongolians and many other business chambers and business groups for urgent testimonial of the [SouthGobi] decision … and the instant release Messrs Justin Kapla, Hilarion Cajucom and Cristobal David … we believeour company believe Mongolia as a functional democracy, has the maturity to recognize, that there were numerous controversial concerns in the handling, nature and processes of the [SouthGobi] case relatingrelating to tax evasion … If left unaddressed not just will these issues remain to hamper international financial investment into Mongolia but they are likely to have a deleterious impacteffect on Mongolian citizens who have no option but to look for legal remedy and justice through the Mongolian legal system.

The letter from Australia’s Chamber of Commerce concludes with the hope of many worried parties in this case:

We believeOur company believe this decision in the [SouthGobi] case might be a watershed for the Mongolian legal system if the authorities listen to the understandable grievances aired in the wake of the decision.

Likewise in this post series

Day 829: 3 SouthGobi Executives Pardoned From Prison Sentences By Mongolia’s President

Day 828: Mongolia’s Endless Legal Flexibility

Day 826: Mongolia Fixes To Fix Problems With Rio Tinto By Year End

Day 825: Stopping briefly To Review Mongolia’s Economic Retreat

Day 824: Asking for IMF Help Since GDP Grew “Just 7.8 %” Exposes Mongolia’s Expectations

Day 823: Porsche Fanfare, A Promise, Wrongful Imprisonments, Mongolia Celebrates New Year

Day 822: Alleged Tax Evasion That Sent Three To Prison Suggest More Guilty In Mongolia

Day 821: America RequirementsHave to Step Up Security Of Its Own In Mongolia’s Prison

Day 820: Mongolia Thanks China That Currency Descends Gradually Instead Of Dropping

Day 819: Mongolia’s Mining Squabbles Squander Sovereignty And Present China Power

Day 818: Mongolia’s Doing not have Due Process Versus Households On Social network

Day 816: Mongolia Prefers Economic Suicide Over Ending SouthGobi Vendetta

Day 815: American And Filipinos Wrongfully Detained In Mongolia


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