Norov voted out as Mongolia PM

The legislature voted to remove Prime Minister Norov Altankhuyag as Mongolia faces an economic downturn, with gold, copper and coal prices slumping, along with foreign investment. At a special meeting of the Great Hural on Wednesday, 54.5 percent of the country's 66 parliamentarians backed Norov's dismissal, the state broadcaster reported on its website.

In the run-up to the vote, factions from Norov's own Mongolian Democratic Party had voiced concern about his ability to govern. Some even numbered among the 36 parliamentarians who voted for the sacking, the Chinese Xinhua reported, adding that lawmakers had criticized the prime minister for "incompetence and cronyism and corruption." Ten members of parliament, including eight members of Norov's own coalition government, did not show up.

A deputy prime minister will take temporary charge. The coalition government will now have to select a new candidate, followed by presidential approval and parliamentary confirmation. The whole process must be completed within 14 days.

Long time coming

Mongolia embraced a parliamentary system after its independence from the Soviet Union nearly a quarter of a century ago. However, the government had fallen into turmoil over the past month as seven ministers, including the mining and foreign relations chiefs, resigned after Norov won parliamentary approval to consolidate ministries from 16 down to 13.

On the back of a resource boom - mainly involving coal, copper and iron ore - Mongolia had enjoyed unfathomable growth in recent years, peaking at 17.5 percent in 2011. However, that growth has slowed to about 6 percent, and Mongolia also faces rising inflation and a falling currency. There were also concerns that the so-called boom was having serious environmental consequences, and even robbing the capital, Ulan Bator, of water.

The national anti-corruption agency has launched an investigation into former Environment Minister Gansukh Luumed, a senior aide to Norov, over the possible embezzlement of coal subsidies for impoverished residents of Ulan Bator. The prime minister's critics have also accused him of helping relatives to profit from government contracts.

On October 31, the parliament had rejected a budget proposal for the second time, amid criticism of exorbitant spending and overly optimistic economic projections. Mongolia's Fiscal Stability Law takes full effect next year and will cap debt at below 40 percent of gross domestic product.

mkg/es (Reuters, AFP, AP)