The State Investigation Office”s Economic Crime Investigation Department detained seven individuals as suspects in the money laundering case. The suspects include former CEO of MIAT Ts.Orkon with his wife, the vice director of MIAT, R.Bat-Erdene and the Director of Mongolian Airlines Group. Ch.Khorolsuren

These suspects allegedly created a so called War Risk Insurance tax whereby they collected 5 US dollars from each passenger. It was revealed that the suspects failed to transfer the money to the insurance company’s bank account and instead they transferred the money in their “West Wealth Al group” company bank account.

It is estimated that they caused 6.9 US dollars in damages said a source close to the matter. A detailed investigation was underway but officials hesitated to give more details on the case.

The information comes from the former vise director of MIAT, Ch.Khorolsuren, who worked in MIAT from 2005 to 2010.

Local newspapers say that MAK LLC is also related to the case. It is unconfirmed, but officials speculate that the company is a victim of fraud.

High-up officials of MIAT allegedly granted licenses in a day to MAK, the company that planned to establish an air freight company.  In return the investor company bought a plane for 40 million US dollars.

The number of suspects involved in the case is likely to rise.

Last Saturday Khan-Uul district Court made a decision to detain six suspects over the case.  More suspects have been detained in the last couple of days. Even some officials are among them needed to be questioned.

For example the former CEO of MIAT, Ts.Orkon, his wife U.Tsetsegmaa, former vice director R.Bat-Erdene, director of Mongolain Airlines Group, Ch.Khorolsuren, his brother Ch.Suuritogtokh and the director of an unnamed company S.Batkhishig were detained as suspects last Saturday.

N.Gantumur, Director of a non-bank financial institute was arrested on Tuesday.

N.Gantumur is suspected of mobilizing the laundered money. B.Mandakhbayar was also detained around 7:00 pm on Wednesday. He is the brother of B.Erdenebileg, former director of MIAT.

Local press reported that the former Chief of State Property Committee, D.Sugar was also being questioned but officials from  the Prosecutor`s Office claimed that “he is not suspected or being questioned for now”

A source close to the matter says that one suspect, Ch.Khorolsuren, is highly connected to a Minister of the current Government. But the name of that Minister is being hidden.