A recent oversight hearing in Ulaanbaatar focused on the city’s 2024-2026 budget and investment project implementation. A presented expert report revealed significant overlap between Ulaanbaatar City Council (NITKH) members and leadership positions within state-owned and state-affiliated enterprises. Specifically, 43 out of 45 NITKH representatives hold positions as chairpersons or members of the boards of directors of these entities, collectively occupying 104 seats. A disproportionate number of these seats – 65 – are concentrated among just 19 councilors. Furthermore, ten councilors simultaneously hold executive positions while also participating in board-level decision-making in other organizations. Experts warn this concentration of power could lead to governance issues, compromised oversight, and potential conflicts of interest, potentially hindering fair market competition as state-owned entities expand. The report acknowledges legal allowances for these enterprises but highlights the risk of crowding out the private sector.