2 Billion Discrepency
between the market price of oil and that accounted for in the budget. The accounting is at $40.00/barrel and the market prices is $60.00/barrel. (not to mention the amountof public money lost by smuggling) From News Yemen.
MP Ali Ashal criticized the discrepancies in the official report the government submitted concerning oil revenues. He stated such discrepancies are a tool to confuse the public.
A member of the committee for development and oil stated that the statistics provided by the Central Yemen Bank for the month of January show a total production of 5.11 million barrels thus bringing the year-end total to 60 million barrels. The government predicts that this year’s total will be 39.6 million barrels, a decrease of 21 million from the year previous. It has calculated price per barrel at $40 despite the world market price of $60.
The report indicated that the budget for the year 2006 from oil exports is expected to exceed 3.6B dollars, i.e. the difference in price will exceed 2B dollars. The government does not interact with these resources a fact which was taken into account. It was accused of building a budget based on a deficit and “that is not true in most cases.” Ashal clarifies that since 2001 parliament has demanded that this price difference be made available to the future generations and to build more infrastructure. However, this money has been going into the pockets of the corrupt. Mr. Ashal also stated that the oversight committee is unable to produce the real number of government revenue from oil.
Mr. Ashal based his claims on the monopoly of the centers of power over information and their blinding of the truth.
A member on the committee for development and oil confirmed that there was a lack of transparency based on the discrepancies in the central bank’s report. Sakhar Al-Wajih talked about the differences in oil price and stated “the institutions in our country don’t know anything because we are not a state of institutions. Our institutions are only decoration for the world.” He also criticized the government for using the 2B dollars to strengthen security at a time when “the man in the street fears the man in the uniform.”
Ahmed Al-Sharabi, a leader in the GPC, asked those present to not condemn the situation “because it is a difficult situation and people’s feelings are provoked. He stated the “the amount of oil in our country is small and our corruption is big. In other countries the sheer amount of oil covers the size of corruption.”
Related: Yemen seeks 300 million loan from China as some MPs call for some controls on international loans and their dispursement: “The joint council also recommended that the government be bound to not use the revenue from the loans for purposes other than those previously agreed upon….Mohammed Al-Saqaaf called for a clause in the loan law barring the government from buying cars and furniture with loan monies.”
