Some state-owned enterprises to be shut down

2018-01-11 10:33:33
Ulaanbaatar /MONTSAME/ The Cabinet resolved to shut down and reorganize some state-owned enterprises in order to improve their management and reduce unnecessary budget expenditure on January 10.

State-owned enterprises ‘Industrial Complex’, ‘Mongolian Farming Corporation’, ‘Mongolian Meat Corporation’, ‘Mongolian Stamp’ and ‘Road Equipment Rent’ will be shut down, on grounds of inactivity since their establishment and shortage of financial sources.

The decision was prompted by the common practice among Ministries and government agencies in receiving financial and other forms of assistance from state-owned enterprises for various purposes. Specifically, state-owned enterprises have been spending about MNT 500 million per annum on the expenses of Ministries and government agencies in recent years.

Furthermore, corresponding officials were assigned to ensure public participation, sell a portion of shares and privatize some enterprises through auctions.