The Standing Committee on Budget heard about the Oyu Tolgoi contractual obligations on budget and discussed the establishment of a working group to audit the multi-billion dollar project.

A suggestion to establish a working group that was submitted by MP S.Ganbaatar was agreed on during the Standing Committee meeting.

MP S.Ganbaatar said that “the Mongolian people still hope that the country will benefit from the Oyu Tolgoi Investment Agreement. They promised many things to create thousands of jobs raising the Government budget by 30 percent. Mongolians still remember these promises.

The Oyu Tolgoi project cost increased up to 7.5 billion US dollars. The amount should be explained. Many scientists and economists agreed that the equipment, facilities and services cost brought to Oyu Tolgoi are differed. They claimed that they have paid one trillion MNT in tax. But no one knows if this is reasonable. Therefore a working group consisting of professionals should confirm the details.

In addition Mongolian national companies are not participating in providing services and in tenders of Oyu Tolgoi. The working group will prove why Mongolian companies have failed to take advantage of tenders and whether there is a potential lack of Mongolian companies and benefits of the project to the country. Results will be presented with clear evidence to the Standing Committee.”

The working group is expected to consist of three to five  members. But the appointment of members is an issue of the head of the Standing Committee on Budget.

There will also be a sub-standing committee consisting of experts from professional organizations.

MP S.Ganbaatar delivered a petition relating to Oyu Tolgoi to the Prime Minister and members who attended the shareholders meeting. The Government announced they would reply in a written statement. S.Ganbaatar requested the petition to be heard openly in parliament.