Agency for Policy Coordination v Batbold: Freezing Order Dispute in Mongolia Secret Profit Scheme
The Agency for Policy Coordination on State Property of Mongolia, Erdenet Mining Corporation LLC, and Erdenes Oyu Tolgoi LLC sued Batbold Sukhbaatar and others in the General Division of the High Court of Singapore, alleging a scheme of secret profits from contracts related to Mongolian mines. The court discharged the freezing order against the fifth and sixth defendants, Eoin Barry Saadien and Everest VC Pte Ltd, respectively, finding insufficient evidence of a real risk of dissipation of assets. The claims against the other defendants will be determined in Mongolian Claim.
1. Case Overview
1.1 Court
General Division of the High Court1.2 Outcome
Freezing order discharged against the fifth and sixth defendants only.
1.3 Case Type
Civil
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Singapore court discharges freezing order against defendants in a case involving alleged secret profits from Mongolian mining contracts, citing insufficient evidence.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| The Agency for Policy Coordination on State Property of Mongolia | Plaintiff | Government Agency | Freezing order discharged against the fifth and sixth defendants | Partial | |
| Erdenet Mining Corporation LLC | Plaintiff | Corporation | Freezing order discharged against the fifth and sixth defendants | Partial | |
| Erdenes Oyu Tolgoi LLC | Plaintiff | Corporation | Freezing order discharged against the fifth and sixth defendants | Partial | |
| Batbold Sukhbaatar | Defendant | Individual | Freezing order remains in force | Neutral | |
| Cheong Choo Young | Defendant | Individual | Freezing order remains in force | Neutral | |
| Kim Hak Seon | Defendant | Individual | Freezing order remains in force | Neutral | |
| Cliveden Trading AG | Defendant | Corporation | Other | Other | |
| Everest VC Pte Ltd | Defendant | Corporation | Freezing order discharged | Won | |
| Ponduver Pte Limited | Defendant | Corporation | Freezing order remains in force | Neutral | |
| Eoin Barry Saadien | Defendant | Individual | Freezing order discharged | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Philip Jeyaretnam | Judicial Commissioner | Yes |
4. Counsels
4. Facts
- The Agency owns 100% of Erdenet Mining Corporation LLC.
- Erdenet Mining holds the Mongolian State’s interest in the Erdenet copper mine.
- Erdenes Oyu Tolgoi LLC holds the Mongolian State’s interest in a copper and gold mine, known as Oyu Tolgoi.
- MPOM alleges that the first defendant made secret profits from contracts awarded in relation to the Erdenet and Oyu Tolgoi mines.
- The fifth defendant is a director and one-third shareholder of the sixth defendant.
- The plaintiffs sought a freezing order in support of the Mongolian Claim against the defendants.
- The fifth defendant was a director of Cliveden Trading AG when the second contract between Cliveden and Erdenet Mining was made.
5. Formal Citations
- The Agency for Policy Coordination on State Property of Mongolia and others v Batbold Sukhbaatar and others, Suit No 1145 of 2020 (Summons No 5541 of 2020), [2021] SGHC 91
6. Timeline
| Date | Event |
|---|---|
| Eoin Barry Saadien first met the second defendant in Mongolia. | |
| Batbold Sukhbaatar became Prime Minister of Mongolia. | |
| Cliveden Trading AG incorporated. | |
| Ever Global Trading Limited became the sole shareholder of the third defendant. | |
| Ever Global purchased 56% of the shares in Cliveden. | |
| Eoin Barry Saadien became a director of Ever Global Trading Limited. | |
| Erdenet Mining made deliveries totalling 131,517.47 wet metric tonnes to Cliveden Trading AG. | |
| Batbold Sukhbaatar ceased to be Prime Minister of Mongolia. | |
| The third defendant resigned as director of Cliveden Trading AG. | |
| Eoin Barry Saadien became a director of Cliveden Trading AG. | |
| Ever Global divested shares in Cliveden Trading AG. | |
| Cliveden Trading AG secured the second contract with Erdenet Mining. | |
| Eoin Barry Saadien ceased to be a director of Cliveden Trading AG. | |
| The second defendant was replaced by another alleged proxy of the first defendant. | |
| The Metropolitan Prosecutor’s Office of Mongolia filed a civil case on behalf of the plaintiffs against the first defendant and others before the Bayanzurkh District Civil Court of First Instance in Mongolia. | |
| The Mongolian Claim was opened by Judicial Decree No. 101/SHZ2020/20219. | |
| The plaintiffs obtained a freezing order in these proceedings in support of the Mongolian Claim against the defendants. | |
| The fifth and sixth defendants filed a summons for discharge of the freezing order. | |
| Hearing date. | |
| Hearing date. | |
| The court ruled that the solicitors on record for the plaintiffs had authority to act. | |
| Hearing date. | |
| Judgment reserved. |
7. Legal Issues
- Discharge of Freezing Order
- Outcome: The court discharged the freezing order against the fifth and sixth defendants, finding insufficient evidence of a real risk of dissipation of assets.
- Category: Procedural
- Sub-Issues:
- Risk of dissipation of assets
- Material non-disclosure
- Abuse of process
- Related Cases:
- [1983] 2 Lloyd’s Rep 600
- [2015] 5 SLR 558
- [2006] 1 SLR(R) 901
- Good Arguable Case
- Outcome: The court found that there was a good arguable case against the fifth defendant, but not against the sixth defendant.
- Category: Procedural
- Related Cases:
- [1983] 2 Lloyd’s Rep 600
- [2015] 5 SLR 558
- Real Risk of Dissipation
- Outcome: The court found that there was no real risk of dissipation on the part of the fifth and sixth defendants.
- Category: Procedural
- Related Cases:
- [2015] 5 SLR 558
8. Remedies Sought
- Damages
- Equitable Compensation
- Freezing Order
9. Cause of Actions
- Unlawful Means Conspiracy
- Dishonest Assistance
- Breach of Fiduciary Duty
- Knowing Receipt
10. Practice Areas
- Commercial Litigation
- Injunctions
11. Industries
- Mining
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Ninemia Maritime Corporation v Trave Schiffahrtgesellschaft mbH und Co KG (The Niedersachsen) | N/A | Yes | [1983] 2 Lloyd’s Rep 600 | N/A | Cited for the test of a good arguable case. |
| Bouvier, Yves Charles Edgar and another v Accent Delight International Ltd and another and another appeal | Court of Appeal | Yes | [2015] 5 SLR 558 | Singapore | Cited for the test of a good arguable case and the relationship between an allegation of dishonesty and the existence of a real risk of dissipation. |
| Asian Corporate Services (SEA) Pte Ltd v Eastwest Management Ltd (Singapore Branch) | Court of Appeal | Yes | [2006] 1 SLR(R) 901 | Singapore | Cited for the principle that proof of conspiracy is normally to be inferred from other objective facts. |
| The Agency for Policy Coordination on State Property of Mongolia and others v Batbold Sukhbaatar and others | High Court | Yes | [2021] SGHC 50 | Singapore | Cited for the ruling that the solicitors on record for the plaintiffs had authority to act. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Freezing Order
- Good Arguable Case
- Real Risk of Dissipation
- Erdenet Mine Scheme
- Proxy
- Secret Profits
- Mongolian Claim
15.2 Keywords
- freezing order
- Mongolia
- secret profits
- mining
- dissipation
- injunction
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Injunctions | 80 |
| Civil Practice | 75 |
| Asset Recovery | 60 |
| Fraud and Deceit | 60 |
| Fiduciary Duties | 50 |
| Misrepresentation | 40 |
| Conspiracy by Unlawful Means | 40 |
| Business Litigation | 30 |
| Company Law | 30 |
16. Subjects
- Civil Procedure
- Injunctions
- Commercial Litigation
- International Litigation