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Corruption in Mongolia

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High corruption

High-profile scandals have underscored the depth of corruption in Mongolia’s political establishment. Recent examples include the scandal in 2022, which implicated the state-owned coal company Erdenes-Tavan Tolgoi JSC. Its senior officials reportedly engaged in illicit contracts and smuggling operations. The scandal, often referred to as the "coal theft" case, involved the alleged conspiracy between these officials and business leaders to transport large quantities of coal into China without proper customs registration. An estimated 40 trillion Mongolian tugrik (US$13 billion) in terms of potential revenue was lost to the Mongolian government. The scandal also included members of the State Great Khural in addition to the executives who had signed secret offtake agreements with foreign entities. After the arrest and incarceration of top executives, two members of the parliament lost their positions on March 30, 2023. The scandal had triggered mass protests and intensified scrutiny of the members of Mongolian People’s Party (MPP), highlighting the blurred lines between political authority and business interests.

The resignation of Prime Minister Luvsannamsrain Oyun-Erdene in June 2025 also demonstrated serious allegations of corruption. His departure followed a parliamentary vote of no confidence, sparked by a wave of public outrage after viral social media posts exposed the extravagant lifestyle of his son. Protests erupted after posts shared via social media exhibited his luxury cars, designer handbags, and helicopter rides – all raising suspicions about ill-gotten wealth, particularly amid Oyun-Erdene's claims of modest origins. Although no formal evidence of corruption was presented, the episode amplified public discontent over perceived misuse of public funds and deepened mistrust toward elected officials.

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