An Interview with COL I.Purevtsogt
Chief, GIA Investigation Division

Q: Since the imposition on 68 per cent Windfall Revenue Tax on metal ore media reported, not once, on GIA, police and customs crackdown on illegal export of gold. Do you think that the increase of this particular type of felony is a direct result of this provision?
 
A: We indeed witness an increase of this crime since June 2006, when the Windfall Revenue Tax was imposed. Prior to that, gold smuggling was still there, but in a much smaller scale – we’d see a couple of such attempts per year, not more.

Between 2006 and 2008 the GIA, as an organization tasked with ensuring economic security, has confiscated 154 kg of gold subject to smuggling. In the first quarter of 2009 alone, we halted the attempt of exporting 8.3 kg of gold illegally and the cases are now under investigation.
 
As a result, we’ve contributed the amount of gold worth 3.626 billion Tugrug to the state budget, in addition to investigating the 56.3 kg gold case turned over by the police.

Q: Do you think the GIA, as well as other law enforcement agencies fully apprehend the gold smuggling crime nationwide?

A: I can’t say that for sure. Until 2006 the average amount of gold extraction was approximately 20 ton per year. This number, for the aforementioned reasons, has fallen to 7-8 ton between 2006 and 2008. I already mentioned the amount of gold we were able to recover; distracting that you have the amount we weren’t able to trace. Please note that I am only mentioning the numbers we at the GIA came through. That still doesn’t include the numbers police and customs have investigated.

Q: In your assessment as a layer, would the lifting of 68 per cent Windfall Revenue Tax ease the situation?
 
A: I guess it will, given the situation prior to and following the introduction of the Windfall Revenue Tax. Apparently, so do the participants of the recent conference on Gold Mining and Financing think.

Thank you.