Mongolia: Government Held Accountable to Victims of Bankrupt Cooperatives
18 May 2007 7:00 pm

The prolonged bankruptcy issue of the Savings and Credit Cooperatives (SCCs) in Mongolia finally reached a turning point this month for victims who have been struggling to demand their rightful compensation.
The prolonged bankruptcy issue of the Savings and Credit Cooperatives (SCCs) in Mongolia finally reached a turning point this month for victims who have been struggling to demand their rightful compensation. A new chapter for the protection of Economic and Social Cultural Rights (ESCR) was opened when the parliament of Mongolia finally decided to adopt the new law on Compensation for Damages on 11 June 2007, after a burning debate on whether the state should be responsible for damages perpetrated by private entities.

The victims have been mobilising under an NGO called the Association to Protect Interests of the Victims of the Co-operative Law (APIVAL). They have organised a series of strong protest activities, including hunger strikes, to voice their concerns since last year. Around 10,000 victims face impoverishment as US$50 million in losses have been accrued due to mismanagement and illegal use of member’s savings by the co-operative.

The investigation process has been progressing too slowly and ineffectively. Furthermore, the victims themselves are not able to participate in judicial sessions and thus cannot seek access to justice. “We are victims of a very complicated scheme that includes bad law, bad enforcement, bad monitoring and all kinds of additional fraud and deceit,” says Mrs Tuya, a chairperson of the APIVCL.

Civil society organizations and the National Human Rights Commission of Mongolia (NHRCM) see this problem as the Mongolian government’s failure to address corruption and abuse of power, instead of promoting genuine good governance which it has promised over decades to the international community. They are particularly concerned that this is one of the chronic symptoms of a failed state, and results in the total absence of accountability and responsibility for Mongolia’s citizens.

Sources:
1.http://www.liberty-center.org/
2.http://ubpost.mongolnews.mn/
3.www.mongolnews.mn
4.www.sonin.mn