Readers and Mongolia investors may want to familiarize themselves with former Prime Minister and former President Enkhbayar. In January of 2011 (last year), Mr. Enkhabayar reclaimed the name of the former communist ruling party, the Mongolian People's Revolutionary Party [MPRP], which he re-started as a new party to run in opposition to the two larger parties in this year's June 2012 elections, the ruling Mongolia People's Party (the MPP, which is the original MPRP that was renamed after the end of communism) and the Democrat Party [DP].
In the 76 member parliament currently 45 members are MPP and 27 are DP (72 of 76 members belong to the two largest parties).
Mr. Enkhbayar was arrested this morning.
One person who e-mailed me noted, "Ex-president Enkhbayar has been forcefully arrested this morning (at 5:50AM) and is now in prison. This is a powder keg that may well explode. All embassies and agencies in town are urging citizens to stay home or indoors."
Mr. Enkhbayar, in a different fashion than Mr. Battulga who I discussed in part 2 of my article on Mongolia Mining Corporation, is very popular with the people. (There were wholly unfounded rumors while I was in Mongolia in February 2012 that an alliance might be formed between Mr. Enkhbayar and Mr. Battulga. While these rumors are baseless, the point is these are both variations on populist candidates that hold political influence over the general public.)
Two links to aid further knowledge:
- Mr. Enkhbayar's Wikipedia page.
- Frontier Securities' summary and research note on Mr. Enkhbayar's arrest.
There will be a lot of gossip and misinformation about Mr. Enkhbayar's arrest and events in Mongolia that unfold as a result of his arrest. I would not be surprised to see the worst elements of this sensationalized and emphasized by media reports.
I will do my best to get more accurate and calm information when it is available.
A complete list of my disclosures regarding Mongolia may be found at the Mongolia Weekly Update which also serves as my home page for Mongolia-related topics.