The General Intelligence Agency (GIA) has arrested four senior employees of the Procurement Department at Oyu Tolgoi LLC, following an early-morning raid on October 23 that uncovered large amounts of cash, real estate holdings, and luxury vehicles allegedly linked to illicit activities.
Those detained include:
- D. Amartuvshin, Procurement Manager
- B. Serjmaa, Procurement Manager
- Ch. Nergui, Senior Procurement Specialist
- M. Ganbold, Head of Concentrator Department
According to investigators, the suspects allegedly abused their official positions to grant preferential treatment in tender processes, accepting bribes and laundering the proceeds by purchasing luxury properties registered under relatives’ names.
Allegations of Long-Term Collusion
Preliminary findings suggest that the four individuals had long coordinated procurement decisions for high-value contracts, particularly for grinding mill liners and steel balls — key consumables in the copper concentrator plant.
Reports indicate that over 12 years, procurement for these items — worth approximately USD 500 million in total — was consistently awarded to companies allegedly linked to the same officials. Investigators estimate that up to 10% of these transactions, or about USD 50 million, may have been diverted as kickbacks.
One of the detained, M. Ganbold, reportedly founded Yalguun Lime LLC in 2017 alongside procurement managers B. Serjmaa and G. Batbaatar, which subsequently secured a lime supply contract with Oyu Tolgoi. Around that time, Batbaatar allegedly purchased a new Land Cruiser 200 following the approval of the contract, according to media reports.
Oyu Tolgoi Responds
In response to the arrests, Oyu Tolgoi LLC reiterated its zero-tolerance policy on bribery and corruption, stating:
“Oyu Tolgoi strictly prohibits all forms of bribery, corruption, and ethical misconduct. The company is conducting its own internal review into the reported procurement irregularities and is fully cooperating with law enforcement authorities.
We encourage anyone with substantiated concerns or evidence of misconduct to report via myvoicemongolia@riotinto.com, where all submissions are treated with strict confidentiality. All verified cases are investigated by an independent third party, and appropriate disciplinary or legal actions are taken,” the company said.
The GIA’s investigation remains ongoing, and no formal charges have yet been announced.
