Poisoned Vodka Continues to Plague Mongolia

UNCLAS SECTION 01 OF 02 ULAANBAATAR 000013 SIPDIS SENSITIVE SIPDIS STATE FOR EAP/CM and EAP/EX BANGKOK FOR USAID RDMA E.O. 12958: N/A TAGS: ECON SOCI PGOV CASC MG SUBJECT: Poisoned Vodka Continues to Plague Mongolia Ref: Ulaanbaatar 006 SENSITIVE BUT UNCLASSIFIED - NOT FOR INTERNET DISTRIBUTION. ¶1. (SBU) As of January 9, 2008, the death toll from the New Year's holiday episode (reftel) has risen from 11 to 14 people and over 70 remain hospitalized out of the 130-plus persons affected by drinking methanol-tainted vodkas produced by "Aziin Chono" or Asian Wolf (AW) Company. Six local policemen from the affected city of Baganuur, who have worked on this case, were hospitalized after reportedly being poisoned by methanol spirits condensation while destroying confiscated vodka bottles. The official ban on the sale of all alcohol remains in effect until January 20, although the ban on beer was lifted yesterday. In an ironic but predictable twist, the dearth of available alcohol has led to a drop in the crime rate, declining to half or one-third the usual rate compared to the same period last year, according to Mongolia's General Police Department. (Note: Fender-benders and dealing with inebriated persons are listed as "crimes" in Mongolia, which help explain the reduced crime rate. Fake Vodkas, Some Dangerous, Remain On Sale -------------- ¶2. (SBU) Police have announced that some 1,000 bottles of vodkas made from methanol spirits remained unaccounted for with a police search of family homes in the affected city of Baganuur turning up only eight bottles. According to officials, AW Company bottled 40 methanol-containing spirits under the respected vodka brand "Black Chinggis" but police have so far only located four of them (Note: Cheap AW vodkas are sometimes re-labeled and re-sold under different, pricier labels for greater profit). Complaints about GOM Alcohol Sales Ban Grow -------------- ¶3. (SBU) Manufactures, distributors, and bar-owners are howling complaints about the extended ban on alcohol sales. Many cafes, bars, and karaoke clubs have either closed for the duration or severally curtailed hours because they cannot sell alcohol, the mainstay of their businesses. Anecdotes of quiet streets empty of cars as well as the absence of drunks have become more common. Alcohol distributors and manufactures have yet to feel a pinch in their bottom line, but opine that they can see no reason for the across-the-board ban on all alcohol sales - including all spirits �A;from all sources foreign and domestic -- when the problem is localized with a single manufacturer whose products have been largely removed from the market. ¶4. (SBU) One obviously frustrated executive of a major Mongolian vodka producer told Econoff that the ban was actually counter-productive as it has only led to increased sales of home-made (read "dangerous") moonshine-like spirits to meet the high demand for alcohol. One press report stated that Mongolians consume 24 liters of vodka per person every year. The reality, according to local experts, may be closer to 17 liters per capita. MCS Group, for example, which claims 50% of the vodka market in Mongolia, sells 24 million bottles of vodka each year, about 8.5 bottles per person. COMMENT: GOM Acting Out of Abundance of Caution -------------- --- ¶5. (SBU) The GOM's response is typical for public health crises. The GOM treats such events just as it treats outbreaks of new diseases in Mongolia. The approach is to shut down everything for an indeterminate or longish period of time until the problem is understood and perceived by authorities to be under control. For example, in the summer of 1996, the GOM banned all transport in and out Ulaanbaatar because of a cholera outbreak. In 2003 severely limited access into Mongolia and buildings to combat SARS. In both cases the blanket approaches defied professional advice from health-care professionals, and imposed strains on daily life far in excess of any prevention benefits obtained. In both instances, the ULAANBAATA 00000013 002 OF 002 general populace endured with few complaints, but it took complaints from a severely impacted populace and business community to budge officials into accepting a less panicky reality. ¶6. (SBU) The current situation mirrors the past in all respects. The GOM's excessive, knee-jerk approach has impacted Mongolian life at all levels -- employment is down because of bar closures, public and private revenues are declining because sales are down, and at this point businesses and the affected individuals are beginning to complain more and more vociferously. As with past cases, the GOM is beginning to calm down and listen. MCS Group, the brewer of Tiger Beer in Mongolia, reports that the GOM is allowing it and other manufactures to distribute and sell beer again, because the GOM accepts that beer is not a problem, although this point was clear within a couple of days of the initial episode of vodka methanol poisoning. However, MCS looks forward to January 20, when it can sell its vodka again. Although loathe to discuss specifics, MCS notes that Mongolia's vodka trade is very competitive and margins are tight; and so, any reduction of volume can impact firms such as MCS greatly. END COMMENT. Goldbeck