Day 821: America Needs To Step Up Protection Of Its Own In Mongolia's Prison

Minnesotan Justin Kapla and Filipino Hilarion Cajucom Jr. – who has multiple American citizen family members in California – were sentenced to the harsh conditions of Mongolia’s prison system on January 30^th of this year. In Mongolia’s own media, there has been a public outcry about the injustices of the case in which there were five clear violations of Mongolia’s own laws.

The case had been dismissed as having insufficient evidence twice during the approximately 2 ½ years Mr. Kapla, Mr. Cajucom and their colleague Cristobal David were detained in Mongolia for investigations. Since the men were sent to prison only two journalists based in the United States have covered the story and public statements by U.S. government officials against the legally flawed case have been largely absent in American-based media.

Revered local Mongolian journalist Baabar has written that the “Mongolian court did not follow procedure and this fact alone” is a blemish upon Mongolia (original text in Mongolian). In the same article, Baabar poses four different theses on what is behind this case that sheds light on the simple fact that even after the men were investigated for 2 1/2 years and sent to prison, it is unclear why this really happened. Baabar has noted that the original tax evasion claims against the company – reportedly $170 million, but lowered to $18 million by time of conviction – seem preposterously large for a company of SouthGobi’s size. As for the situation of the company where the three imprisoned men worked, Baabar says:

[It] seems like the [tax] inspectors got involved in this because of the decreasing value of our currency. [The Mongolian Tugrik] decreased by [more than 50%] against USD from 1200, which seems to have ‘proved’ their crime since the company makes all transactions in USD. If that is the case, shouldn’t the Mongol Bank be responsible for this?

While Mongolian citizens interrogate the veracity and utility of the case, for many senior American executives still working in Mongolia, there are questions about where the American outrage is. These executives want to express their frustrations but are recalcitrant to be quoted by name in general as they now have little faith that the U.S. Embassy and government would help them if they fell on the wrong side of Mongolia’s legal system. They have witnessed Mr. Kapla, Mr. Cajucom and Mr. David repeatedly present a defense that caused evidence against them to be deemed insufficient. Still, each time the court found fault with the prosecution’s case the only result was the court system granted prosecutors more chances and more time as needed until the judges felt moved to convict and punish.

Mongolia is strategically important to the United States as its only borders are with Russia and... [+] China.

One senior American executive working in Mongolia vented:

Every American here that doesn’t work for the embassy feels like they’re on their own now… The notion that the U.S. government is doing everything they can for these guys is bull [manure].

A former Mongolian member of parliament and former Mongolian Minister of Foreign Affairs G. Zandanshatar has also spoken out against the case by writing in the local news. As with Baabar, his written words published in the Mongolian language have been imperfectly unofficially translated to English (original text in Mongolian). In this translation, Mr. Zandanshatar writes:

What they say about reputation in old Mongolian tradition, 'Break my bones instead of my reputation' also has been forgotten. There have been many cases of invading and insulting people’s reputation since 2005. The system, which above cases are not solved by the related laws and procedures but by the incomplete and unethical ways, have polluted the society of Mongolia, and it doesn’t stop there. It is expanding its influences further out and creating a huge obstacle to our economy’s development and growth. It is unfortunate that the authorities are stirring up this situation even more, instead of understanding and taking actions on it.

One of the classic examples is the court verdict to the managements of SouthGobi Resources, which has been an international sensational news lately. If it is true that they really evaded tax payments, they should get punished according to the laws and procedures in Mongolia. No one would argue with that. But this case makes everyone doubt because it is very unclear that what kind of reasons are hiding behind. The ex-managers of SouthGobi Resources have been sentenced to long-term imprisonments by the criminal court, which makes everyone, foreign and domestic, worried.

With a case still pending against two of America’s family members this past December 2014, the U.S. Embassy announced plans for a second Millennium Challenge Corporation (MCC) Compact in Mongolia on the heels of the completion of the first $285 million aid package program. The American Chamber of Commerce in Mongolia has called for a halt to these negotiations subsequent to the men being sent to prison. This request has gone without response from any government officials.

Jackson Cox, Chairman of the American Chamber of Commerce, has reiterated statements he previously made to Bloomberg that:

[A United States Millennium Challenge] award requires that certain thresholds toward transparency and justice and corruption are met. As long as a U.S. citizen sits in a Mongolian prison based on a flawed trial there should absolutely be an immediate suspension on the negotiations.

In the United States, Maury Glover of Fox 9 Minnesota in two TV reports and Hannah Beech in a Time Magazine article have shown leadership in covering the story of Mr. Kapla’s Minnesota family, alongside Mr. Cajucom's and Mr. David's plight. Unfortunately, no other local paper or television station in Minnesota or California or anywhere else in the United States has covered this story.

Senators Franken and Klobuchar as well as former Congresswoman Bachmann of Minnesota all made supportive statements of Mr. Kapla for articles with multiple news agencies including this one 14 months ago. However, the sincerity of their support should be questioned when they are unable or unwilling to make supporting statements to local media that prompt broader news coverage. Sarah Armstrong – an Australian executive that worked with the three men and was detained for investigation at the same time – was released by Mongolia to Australia over two years ago thanks to an intensity of Australian media and government attention which the Kapla and Cajucom families have not experienced from the United States.

As celebrations for the Mongolian New Year commence this evening, there is likely to be little change out of Mongolia until next week. In the meantime, family, friends and American businessmen working in foreign countries around the world can hope there is a pivot in America’s public activity toward this imprisonment. American officials need to get on the stump, microphone and phone and talk to other members of the American press about the cause of these men. American businessmen around the world need to know this case doesn’t show their jobs are riskier than previously thought and that they can still rely upon the U.S. government for support if irregular legal proceedings are perpetrated against them.

For approximately two and a half years - 821 days precisely - Mr. Kapla was the last of the three to find out he was under an indefinite visa exit ban and indefinitely detained in Mongolia for investigations. During this time, it has been quietly said that the U.S. government was working to resolve this situation behind the scenes between official "no comment" statements. These men are now imprisoned and clearly that policy and advocacy failed. A statement on an embassy website halfway around the world and quotes given to journalists based outside of the United States – regardless of nationality – is no longer sufficient. For the representatives of these men’s family’s districts in Minnesota and California, and for all members of the U.S. Congress concerned about U.S. businessmen being treated fairly by the rule of law in all foreign countries, it is time to work in front of the cameras and microphones, to talk to their local newspapers and let Mongolia - and all foreign nations - know this type of injustice against American citizens and their family members will not be tolerated.

Also in this article series

Day 829: Three SouthGobi Executives Pardoned From Prison Sentences By Mongolia's President

Day 828: Mongolia’s Endless Legal Flexibility

Day 826: Mongolia Resolves To Resolve Problems With Rio Tinto By Year End

Day 825: Pausing To Reflect On Mongolia’s Economic Retreat

Day 824: Requesting IMF Aid Because GDP Grew "Only 7.8%" Reveals Mongolia's Expectations

Day 823: Porsche Fanfare, A Promise, Wrongful Imprisonments, Mongolia Celebrates New Year

Day 822: Alleged Tax Evasion That Sent Three To Prison Suggest More Guilty In Mongolia

Day 820: Mongolia Thanks China That Currency Descends Slowly Instead Of Plummeting

Day 819: Mongolia’s Mining Squabbles Squander Sovreignty And Gift China Power

Day 818: Mongolia’s Lacking Due Process Versus Families On Social Media

Day 817: Mongolia Has Chance To Shine Or Face Legal Global Image Failure