The cabinet reviewed the results of recent inspections of several state-owned companies, presented by Minister and Head of the Cabinet Secretariat S.Byambatsogt. The inspections were conducted under the framework of management and supervision of state-owned enterprises by “Erchist Mongol” LLC.

Officials were instructed to hold responsible parties accountable, correct identified errors and violations, and implement stricter oversight measures to improve the operations of subordinate companies.

The inspection highlighted significant issues at Heating Power Plant 4. As of June 30, 2025, the company’s total inventory was valued at 37.4 billion MNT. By 2024, 1.8 billion MNT of inventory had become unusable due to improper storage. The plant also exceeded its budget by 1.1 billion MNT for the overhaul of boilers two and four. Additionally, a large portion of approved inventory failed to meet technical specifications: 90 percent of 61.6 million MNT approved in 2024 and 87.2 percent of 367.5 million MNT approved in 2025 did not meet required standards.

Information Network LLC, a subsidiary of “Erchist Mongol” LLC, was found to have purchased fuel worth 5.33 billion MNT in 2024 and 2025 via direct contracts, in violation of open tender requirements under the Law on the Procurement of Goods, Works, and Services with State and Local Property.

MIAT Mongolian Airlines reported an increase in total operating expenses compared to last year, but its performance fell short of planned targets. The rise in employee salary costs by nine billion MNT was attributed to exceeding the approved number of permanent and temporary positions.

The cabinet emphasized the need for stricter financial discipline and enhanced oversight to ensure proper management and compliance across state-owned enterprises.