Head of the Standing Committee on Legislation, MP D.Odbayar was interviewed after his proposal to give “Erdenes Tavantolgoi’s” 20% share to the citizens of Mongolia was supported by the Government.
Q: Your proposal to give 20% shares to the citizens instead of 10% was supported by the Government, what is your opinion?
D.Odbayar: Other laws, decisions of the SGK and the Government should be in favor of the citizens. After the first 10% proposal was approved there were lots of negative articles published in the newspapers and when meeting with voters they supported the idea of them owning 20% of “Erdenes Tavantolgoi”. After the research we decided to make amendment to the decree No 39. The amendment made by myself, MPs Ya.Batsuuri, B.Batbayar, Kh.Jekei and D.Khayankharvaa was supported by the Government.
Q: The previous proposal was to sell 10% of the total shares to businesses and enterprises. They are against the amendment to the decree No 39?
D.Odbayar: We will have lots of difficulties in trying to sell the shares to enterprises. Mongolia’s Population is clear but when it comes to selling shares to each enterprise some businessmen have invested into more than one business. Some are already creating false business names in order to buy more shares of TT and the numbers of enterprises are not clear. Some companies hold licenses but they don’t operate and some don’t make profits according to the Taxation office.
Q: What influenced the MPs to make this amendment?
D.Odbayar: We thought about providing shares to companies that are registered before June 2010. It is also hard to note companies that don’t pay taxes and if we only provide shares to the companies that pay their taxes, it is going to be so few names and the unequal. Therefore it is definitely right to provide these shares to the citizens instead of selling to businesses. We are sure to get support from the SGK as it was already supported by the Government. Additionally, it is likely that businesses will re-sell its shares in the market which will increase supply of shares. Then the prices of the shares that citizens own will be less valued.