WARNING: TAINTED LOCAL VODKA KILLS 11 IN MONGOLIA

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SIPDIS

SENSITIVE
SIPDIS

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SUBJECT: WARNING: TAINTED LOCAL VODKA KILLS 11 IN MONGOLIA

SENSITIVE BUT UNCLASSIFIED - NOT FOR INTERNET DISTRIBUTION.

1.(SBU) SUMMARY, INTRODUCTION, AND COMMENT: During New Year's
celebrations in Mongolia, eleven people died, four remain in
critical condition, and scores were hospitalized of the 60-plus
persons affected from drinking methanol-tainted vodkas produced by
"Aziin Chono" or Asian Wolf (AW),an alcoholic beverage production
company located in the Baganuur district east of Ulaanbaatar. The
Government of Mongolia (GOM) responded with great urgency to this
serious event. Its emergency and law enforcement agencies,
responding to quick, decisive Cabinet leadership, coordinated their
activities effectively by identifying and isolating tainted
products, apprehending potential culprits quickly, and swiftly
notifying the public of the problem. However, some officials are
concerned that the Cabinet-mandated certification of all alcohol
products sold in Mongolia by January 20 is premature and beyond the
GOM's capacity to execute. It remains to be seen whether the GOM
may have over-reacted with total ban on all vodka sales until safety
can formally assured of each product as well as its demand for
complete certification and. At the moment, no one is complaining of
not being able to imbibe, although retailers and customers may
become impatient if the ban extends into the February 8-10 Lunar New
Year. END SUMMARY, INTRODUCTION, AND COMMENT.

Cheap Vodka The Wrong Holiday Spirit!
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2. (SBU) According to the Mongolian State Specialized Inspection
Agency (SSIA),AW bottles seven types of cheap vodkas (Tugruk 1,200
or about US$1 a bottle),heavily in demand during the holiday period
and primarily distributed in eastern Mongolia. The SSIA reported
that these bottled vodkas contained methanol spirits normally used
for non-food, industrial purposes. The allowed level of methanol
spirit in beverage is 0.05 to 0.1 %, but these vodkas contained
methanol amounts ranging from 9.5% to 31%.

AW Production Manager Reportedly the Perpetrator;
Methanol Supposedly Traced to Chinese Traders
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3. (SBU) Mongolian officials did not consider Asian Wolf's Director
a suspect in the poisonings as the Director himself of Asian Wolf
Company was poisoned by his own vodka and remains hospitalized.
Instead investigators have turned to a production manager, a
relative of the poisoned Director, who admitted to investigators
that that tainted vodkas were made of two 600 liter barrels of
spirits purchased by brothers called Bayarbaatar and Bayarsaikhan.
These brothers stated that they bought those spirits from some
nameless Chinese traders two years ago. TV reports claim that the
production manager was supposed to have used a more expensive
ethanol spirit to produce the vodkas but employed the cheaper
spirits sold by the two brothers without the knowledge of the Asian
Wolf's senior management. The police are continuing their
investigation and have detained the brothers for further
questioning.

Swift Notification
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4. (U)The SSIA warned the public, especially those in eastern
provinces, by radio, TV, and papers, not to buy any vodka produced
by Asian Wolf Company. Fortunately, no cases of methanol poisoning
have been reported in the eastern provinces.

Cabinet Takes Specific, Decisive Action. . .
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5. (SBU) The seriousness of the issue was highlighted by direct
Cabinet-level involvement in the case. During the most recent
Cabinet meeting (January 2),the Cabinet ordered that the GOM
provide necessary medicines to the victims; find and destroy all
tainted vodkas immediately; inspect all alcoholic beverages for

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quality and health before January 20; cease issuance of special
license to produce alcoholic beverages and inspect operations of
alcohol production companies; and establish a working group to
prepare proposals on how to improve the control of spirit product
imports, distribution and concepts on food safety. That working
group will be headed by Deputy Prime Minister Enkhbold.

. . .But are Cabinet Mandates too tough?
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6. (SBU) However, our contacts at the SSIA report that this Cabinet
mandate is a daunting task. There are 114 vodka producing companies
in Mongolia. In every aimag there are at least 2-3 alcoholic
drink-making factories, very often owned by local governors or
officials in the name of their family members who have received
special licenses to produce vodka from officials who have vested
interests in the continued production of spirits. Cheap local vodka
is reportedly often made from illegally imported Chinese spirits,
many often used for technical and industrial purposes. In addition,
many firms import wines and spirits, which presumably will have to
be tested. Given the sheer volume of products, it is unlikely that
the inspection apparatus can comply with the January 20 deadline.
In fact, a comprehensive inspection may take months, and given that
the Lunar New Year's celebration requires the consumption of vodka
and other potables, it is unlikely that the GOM will be able to hold
line on a comprehensive ban on all alcohol products.

Certification Requirements and Sales Ban:
GOM's Reaction An Over-reaction?
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7. (SBU) Officials said that each barrel could yield some 3,000
liters of vodka. Asian Wolf brands are bottled in half-liter
containers, suggesting a production run of 12,000 bottles of pure
methanol-poisoned vodka, though the figure could be much higher
given it was apparently diluted with other liquids. SSIA officials
and the State Police ordered all Asian Wolf products seized. In
addition, officials banned all alcohol sales for the Baganuur
District of Ulaanbaatar where most of the fatalities and victims
lived. The government has banned the sale of vodka in the capital
city for an indefinite period. As of January 2, 2007 about 300,000
bottles of alcoholic drinks in shops were sealed off and not for
sale. (Note: An Emboff observed the liquor area of one supermarket
on January 1 had been cordoned off and bottles were being removed
from the shelves.) However, sources have told our Commercial Officer
that despite the ban, under the table sales of certain brands of
canned and bottled alcoholic beverages are occurring at bars and
retail outlets.

Minton