Mongolia PM expected to call vote of confidence in the face of protests

The Guardian

27-05-2025

The political direction of mineral rich Mongolia is to be put to the test, with the country's prime minister expected to call a vote of confidence in his premiership, amid claims that allegations swirling about his son's lavish lifestyle are being exploited to push the country back to authoritarianism.
Mongolia has been an outpost of parliamentary democracy since 1992, uneasily squeezed between superpowers Russia and China.
Small but persistent protests by young Mongolians have been held in the capital's main square over the past week after reports appeared on Instagram that the son of prime minister, Oyun-Erdene Luvsannamsrai, had given lavish gifts to his fiancee. Concerns over inequality and minerals related to corruption have been a frequent source of protests, but until recently the prime minister maintained a reputation as someone who was challenging the many vested interests that kept rare minerals in the hands of a small wealthy oligarchy.
The prime minister's allies say he is leaning towards announcing the vote of confidence on Tuesday with the vote likely to occur in the middle of next week.
The protests have been fuelled by allegations the prime minister's family are enjoying wealth far beyond the level of a civil servant. The fiancee of the prime minister's 23-year-old son, Temuuleni, posted pictures on her Instagram account showing luxury bags, an expensive ring and even a Mercedes-Benz, prompting anger.
It has been claimed the prime minister must have been aware of his son's luxury lifestyle or even funded some of gifts. Luvsannamsrai has submitted himself to a full inquiry by the country's anti-corruption watchdog, but has explained little in public. A petition signed by 59,000 people had called for him to quit citing the unknown sources of his son's wealth, high inflation and growing repression of press freedom.
But sources inside the government say the lifestyle of the prime minister's son is being exploited by the supporters of Mongolia's President, Ukhnaagiin Khürelsükhto, in a bid to give him the power to sideline the parliament and take up a second term in office. Currently the president can only serve one term of six years.
Last September the president courted controversy in Europe when he invited Vladimir Putin to Mongolia even though as a signatory to the Rome Statute, Mongolia had an obligation to arrest the Russian leader for war crimes in Ukraine as requested by the international criminal court. The president also attended Putin's recent 'victory parade' in Red Square.
Figures inside the government say Khürelsükh, previously the country's prime minister and like the current prime minister a member of the Mongolian People's Party, wants to be able to stand for a second six year term and would like to see Luvsannamsrai removed in favour of someone willing to reduce the power of the parliament.
Luvsannamsrai was re-elected prime minister only 10 months ago, with his party winning 68 seats in the 126 seat parliament. But trying to build a political consensus around the long-term changes needed to modernise the country's economy, including developing a national wealth fund and some major infrastructure investments, he chose to form a three party coalition with the Democratic Party (42 seats) and the HUN Party (8 seats) instead of governing alone.
But after three members of the Democratic Party (DP) expressed support for the street protests against the prime minister, the Congress of the Mongolian People's Party at a marathon closed door meeting voted to declare the DP had expelled themselves from the coalition, a decision that could spell the end for the prime minister.
DP leader Gantumur Luvsannyam, who is the deputy prime minister, said that the views of the three legislators were not his or his party's position, but exercising their right to free expression was not in conflict with any coalition agreement.
Jargal DeFacto, a leading Mongolian commentator and broadcaster, told the Guardian: 'Those that want an extended Presidency with more power have a simple argument. They say because China and Russia, our neighbours, have stability, when we keep changing political leaders, we need a strong Presidency. This clash has been coming for more than a year because the next Presidential election is in 2027. The controversy is dividing the ruling Mongolian People's Party into two camps'.
He added 'The government also wanted to move away from being a commodity and debt driven economy by setting up a sovereign wealth fund funded by strategic deposits. That has set the prime minister against wealthy private individuals that will not relinquish their strategic resources to the wealth fund.'
'Ironically he is facing political resistance because he is disclosing corruption in banking, mining and education, which means he is making a lot of enemies, but the court system is itself corrupt so they do not go after the big shots, and instead concentrate on small cases. It creates distrust in the state as a whole, especially when inflation and interest rates are high.'
China is Mongolia's single biggest export market, but the coalition government has tried to diversify the economy by focusing on a raft of 14 major infrastructure projects.