Parliament Investigates, the Media Reports
Another hugely corrupt deal. Privatization is an important process for economic growth. It hasn’t gone very well at all. However, this report is very good actually in that the Parliament is investigating corruption and the media is reporting it. That’s the way it is supposed to work. Corruption is countered by transparency and accountability.
On this specific issue, the Ministry of Agriculture is an obstacle to the implementation of the water strategy, with about 90% of water used for agriculture and the vast bulk of that used in qat production. The ministries are not coordinating; some are profit centers for associated individuals while others are pushing to sustain Yemen’s viability into the future. Another example is the Health Ministry whose employees own many of the shops that sell the smuggled pharmaceuticals.
A report by Agriculture, Irrigation and Fish Wealth Committee at Parliament revealed gross violations by the Supreme Committee for Privatization while selling the General Corporation for increasing genetically improved seeds as the real value was estimated at YR 1.8 billion while it was sold for YR 78.5 million with a difference of YR 1.3 billion.
The report demanded the Public Money Prosecution to act against some Ministry of Agriculture affiliates and Hadramout Deputy Governor for Wadi and Desert Affairs under corruption charges.
The corporation which was established in 1998 as a public company at a capital of YR 75 million and stretches over 6303 m2 was sold to Yemeni businessman Mohammed Al-Hadad.
In 2005, Hathramout members of parliament submitted a complaint to parliament demanding restoration of the corporation and abrogation of the selling operation; however, no action has been taken since then.
Ministry of Agriculture and Irrigation is one of the ministries famous for rampant corruption especially in the Provinces Development Authority as is the case with Eastern Provinces Development Authority whose officials were accused of plundering YR 400 million together with $ 20 million under Desertification Fighting Program.
The officials of the authority now own villas and real estates in Sana’a whose total value reaches millions of dollars.
More from the Yemen Observer
The committee for agriculture, irrigation and fisheries in the Parliament has discovered a corrupt deal worth YR1,800,000,000 involving the General Company for Seed Production in Sayoun.
The committee has revealed that the company was sold for only YR87 million, to investor Mohamed Hussein al-Hadad, contrary to the recommendations of the Prime Minister and the Agriculture Minister that seed production land is not included in sold assets.
The privatization supreme committee and their technical office are accused of violating law 45 of 1999, and not informing Parliament with the sale documents, conducting the negotiations with one investor instead of five, and of ignoring the Central Organization for Control and Auditing (COCA) during the dealings. Engineer Abdlmalik al-Arashi, Deputy Minister of Agriculture,
said in a special statement to the Yemen Observer that the Joint Agriculture Parliamentarian committee will study the report. Sources said that the transaction might be canceled if the report’s information proved to be true.
Privatization officials declined to comment on Parliament’s allegations, however the office sent an anonymous fax to the Observer, saying that the report is still under discussion in government, assuring that there are no legal violations and that all procedures were undertaken according to the law.
Regarding the YR1,800,000,000 mentioned in the report, the office said that it is an unrealistic sum. The committee discovered that a consultative audit office is involved in updating the seed production company’s accounts up to the end of 2003.The agricultural parliamentarian committee manager and ruling party member, Mohamed al-Shadadi, called on the government to hold accountable all those who are involved. He asked that all those involved in selling the land in 2005 in each of the ministries of Finance, Agriculture, the technical privatization office and the Hadramout deputy governor for Wadi and Desert Affairs be referred to the public wealth prosecution. He confirmed that the investor al-Hadad had no right to the seed production land.
