EU Resource Centre

This Anti-Corruption Helpdesk brief was produced in response to a query from the European Commission. The Anti-Corruption Helpdesk is operated by Transparency International and funded by the European Union

Query

Please provide an overview of corruption and anti-corruption efforts in Mongolia, with a particular focus on public financial management, public procurement and the private sector. 

Content

1. Overview of corruption in Mongolia

2. Corruption in key sectors

3. Legal and institutional anti-corruption framework

4. Other stakeholders

5. References

Summary

Corruption presents a major challenge in Mongolia, and the majority of the population is not satisfied with government efforts to curb it. While petty bribery is reportedly on the decline, corruption in the public service and the political sphere is pervasive. Cronyism, especially in the political parties and government, is eroding trust in the political system and undermining the business environment. 

Mongolia is a signatory to international anti-corruption conventions. The domestic legal framework has witnessed some improvements in recent years, such as the National Action Plan under the Open Government Partnership. However, there are still a number of shortcomings, such as wide-reaching immunity for officials that makes the prosecution of corruption offences difficult. The Independent Authority Against Corruption (IAAC) has a broad set of responsibilities but limited resources to fulfil its mandate, and has been criticised by some for creeping politicisation in the execution of its duties. 

Procurement processes face many corruption risks as bidders are not required to establish a code of conduct or disclose company ownership. Similarly, while public financial management has seen many improvements in anti-corruption, there are still shortcomings in budget transparency and reporting, payroll control and tax dispute resolution, and the internal control body. 

Authors

Ortrun Merkle, tihelpdesk@transparency.org

Reviewers

Christine Hosack, chsoack@transparency.org

Matthew Jenkins, mjenkins@transparency.org 

Date

09/07/2018

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