Armies of Liberation

(You have to admire the Yemeni journalists. This is an astounding and detailed report. It lists the corruption in every ministry and government organization including the presidency. The Yemeni government is a mafia stealing food from the mouths of the starving Yemeni kids, who are among the most hungry child populations in the world. And despite the brutal and continuous targeting of journalists, they continue to fight for governmental transparency. For reference, 200 Yemeni riyals are roughly equivalent to one US dollar.)

Background:
The Yemeni Journalists Against Corruption (Yemen JAC) is an Association which consists of journalists, writers, and intellectuals who work voluntary for the sake of fighting corruption and reinforcement of rational governance in Yemen.

The key objective of the Association is to expose corruption and shedding lights on and investigate cases of corruption. This report comes as an interpretation of that key goal as a first step to fulfill in cooperation with the corruption concerned bodies all the objectives of the JAC Association at large.

The questions to be asked are…what’s corruption? What’s the purpose of this report and on what basis it was based?

There are many approaches that differ in the identification of corruption. One approach identifies it as violation of the law and disrespect of the regime or exploiting the lack of law domination in order to gain personal or collective political, social and economic interests. However, another approach views it as; the irregular misconduct of an employee towards his career and disrespect of his duties. Such misbehavior disagrees with the official requirements and ethics of the public post to obtain particular material or ethereal gains.

Some others go beyond that to the identification of corruption as; every conduct disagrees with the public interest.

This broader classification was undertaken by the team who has worked in the preparation of this report to the bound of including some issues which sometimes irrelevant to corruption but an exposure of a certain point of issue. However, there’s an international consensus on the identification of corruption as recognized by the “Transparency International” as “Any action involves the misuse of the public post for the sake of achieving personal gains for the employee himself or for his group”.

Close to that identification of corruption, comes the recognition of the Yemeni law No (39) for the year 2006 on fighting corruption as “The exploitation of the public post in order to gain personal interests either by violating the law or by using it or using the entitled powers”.

In addition, corruption may include number of behaviors exercised by the public posts occupiers like; bribery, discrimination, intermediation, looting public money and blackmailing. This report comes within the view of the last definition in the observation and registration of whatever the Yemen media published on corruption during the 2007.

This report has been through three different stages as below:

Observation
Which means: Recording all the news stories that were published by the different political and independent media outlets; including electronic and printed or any type of journalistic products.

Classification
Which means: sorting out all the published items under the title of corruption in while the content is not in line with the definition of corruption mentioned earlier.

The formulation
Which means: putting the results of the previous two stages together after conducting the necessary revision and classification under the relevant topics or names of the official bodies where it was witnessed and referred to by the press. Thus, the sources of the Yemen JAC report include what the press reports has disclosed, official reports produced by the Central Organization for Control and Auditing (COCA), parliament reports, Shoura Council reports, the judiciary verdicts, reports of the international and research organizations and the complains of citizens about corruption.

The report was abided by the inclusion of what had been published by the Yemeni press in 2007 about the infringements and braches that happened in the public institutions regardless if they were committed during 2007 or before.

As the Yemen JAC Association presents this first annual report about corruption in Yemen, it aims at disclosing facts and driving the attention of the concerned bodies of investigation and accountability like the Corruption Fighting Authority and the Public Attorney towards such infringements. We at the Yemen JAC are quite confident that the Corruption Authority would react positively with our report and effectively holds the involved bodies responsible. Our confidence stems from the fact that the Authority considers whatever the press had published as guidance assist it to carry out its missions. We relay on our believe and trust in the Corruption Authority as a specialized and authorized body to do its role in view of the current report.

Once again, the Yemen JAC reconfirms that the purpose behind producing this report-which the first of its kind-is to achieve some of its goals of which is to exercise pressure towards investigating those involved in corruption cases and present them to justice and follow up the final sentences. It also meant by this report to practice pressure in order to taking the necessary measures to retain the looted public money and revenues.

The Yemen JAC would be committed to fixed policy of fighting corruption through the production of the periodical and annual reports on corruption cases published by the press including the measures taken to address them. We will pursue our mission in exposing all forms of corruption to public and concerned bodies like the Corruption Authority, COCA, General Attorney, the parliament, the local councils and the local and international organizations.

In addition, we think that it would be a good step if the Corruption Authority would produce its own periodical and annual reports on corruption cases observed and to publish them via the different media means.

Similarly, we do greatly encourage the COCA-and we highly appreciate their valuable efforts in exposing corruption- to get their reports published as well to shed more lights and public intention to it.

Moreover, it is important to confirm our commitment to impartiality and objectivity in conducting our reporting mission as depend mainly on what has been published by press or unveiled by the parliament and the COCA.

Last but not the least, we present our appreciation and thanks to the Women Journalists Without Chains (WJWC) chaired by Mrs. Tawakkol Karman to the efforts exerted to support this report, make it happen and see the light.

Summary

Ministry of Defense
The financial breaches observed in the Ministry of Defense amounted at 202.872.037.000 YR which was mentioned in the public budget as undistributed expenses which disagree with the transparency that the parliament members demanded from the Ministry when it presented its budget to the parliament.

The Prime Presidency
The financial breaches observed in the Prime Presidency amounted at 452.227.955.000 YR which was mainly loans and aids funds. The total loans granted to the government amounted at 358.200.000.000 YR for the implementation of some projects without sound planning, sufficient studies and effective monitoring and accountability. Moreover, an amount of 7.721.200.000 YR was the total aids granted to the government but was not properly due to the lack of sound management and the misuse of the grants and aids. In addition, an amount of 66 billions, 518 millions and 32 thousands YR were spent without providing information or commitment to transparency.

The Republic Presidency
The financial breaches observed in the Republic Presidency amounted at 3.357.823.953 YR of which 2 billions and 14 millions YR spent without the providing the supportive documents, 758 millions YR was spent as advance payment without clearance, 8 millions and 900 thousands was spent without clear justifications and 23 millions YR spent on direct procurements in a clear violation to the tendering regulations

The Ministry of Health
The financial breaches observed in the Health Ministry 9.404.096.793 YR of which 9 billions and 700 millions were spend against the tendering regulations, 420 millions YR spent on uncompleted projects due to the lack of monitoring and supervision, 184 millions was illegally spent, and 19 millions as the total debts of the Ministry.

Ministry of Public Works
The financial breaches observed in the Ministry amounted at 7.133.802.000 YR of which 5 billions and 18 millions were spend on uncompleted projects due to the lack of monitoring and supervision, 1 billion and 355 millions YR spent against the tendering regulations and 760 millions was illegally spent.

Ministry of Agriculture
The financial breaches observed in the Ministry amounted at 10.606.554.000 YR of which 2 billions and 520 millions YR were illegally spent, 2 billions and 630 millions were spend on uncompleted projects due to the lack of monitoring and supervision, 1 billion and 880 millions YR was misplaced, 1 billions and 920 millions YR as violation to the financial law as no valid documentary was provided, 353 millions YR tender breaches, 420 millions as unsettled advance payments and credits and 880 millions YR spent projects which were not implemented.

Ministry of Civil Service
The total debts unpaid to the Ministry amounted at 21.500.000.000 YR without taking any measures to claim and collect it.

The Ministry of Endowment
The financial breaches observed in the Ministry amounted at 127200000 YR as collected revenues but spent illegally.

The Ministry of Social Affairs
The financial breaches observed in the Ministry amounted at 2.960.988.719 YR of 952 millions YR tender breaches, 966 millions YR as the debts uncollected by the Ministry, 127 millions unsettled credits, and 25 millions YR spent without providing supportive documents.

The Ministry of Transportation
The financial breaches observed in the Ministry amounted at 297.072.347 YR of which 23 millions and 900 thousands YR spend on uncompleted projects due to the lack of monitoring and supervision, 36 millions and 627 thousands YR were transferred to private accounts and illegally spent.

The Ministry of Trade
The financial breaches observed in the Ministry amounted at 7 billions YR spent illegally.

The Ministry of Youth and Sports
The financial breaches observed in the Ministry amounted at 5 billions YR spend on uncompleted projects due to the lack of monitoring and supervision.

The Supreme Commission of Election and Referenda (SCER)
The financial breaches observed in the SCER amounted at 377.906.000 YR as advance payments and unpaid credits.

The Ministry of Legal Affairs
The financial breaches observed in the Ministry amounted at 155 millions and 58 thousands YR were spent illegally, 13 millions YR as unsettled advance payments and credits and 104 millions spent in disagreement with the financial law.

The Shoura Council
The financial breaches observed in the Council amounted at 20.986.555 YR as unsettled advance payments and credits.

The Ministry of Education
The financial breaches observed in the Ministry amounted at 138 billions, 300 millions and 562 thousands YR of which 1 billion and 900 millions were illegally spent, 14 billions and 14 millions as unsettled advance payments and credits, 1 billion and 964 millions YR illegally spent and 645 millions YR as tender violation.

The Ministry of Fishery Wealth
The financial breaches observed in the Ministry amounted at 4.909.343 YR of which 2.193.000.000 YR as unsettled advance payments and credits, 2.514.000.000 YR spent illegally and 199 millions YR as violation to the financial laws.

The Ministry of Oil
The financial breaches observed in the Ministry amounted at 62.961.574 YR of which 58.508.000.000 YR as unsettled advance payments and unclaimed debts, 1.581.000.000 YR illegally spent, 3.366.973 YR as loss due to carelessness and poor management and 19.000.000 YR as tender breach.

Sana’a University
The financial breaches observed in the University amounted at 2.741.322 YR of which 217 millions and 90 thousands YR illegally spent, 2.415.324 YR as unsettled advance payments and credits, 2 billion, 415 millions and 314 thousands YR as unsettled advance payments and unclaimed debts, 7 millions YR as tenders violation and 14 millions spent in violation to the finance law.

Ibb University
The financial breaches observed in the University amounted at 150.000.000 YR was illegally spent.

Dhammar University
The financial breaches observed in the University amounted at 488.934.000 YR was illegally spent.

The Ministry of Foreign Affairs
The financial breaches observed in the Ministry amounted at 200.284.000 YR of which 195.000 YR as uncollected debts and 5 millions and 275 thousands were illegally spent.

The Ministry of Immigration
The financial breaches observed in the Ministry amounted at 16 millions and 581 thousands were illegally spent.

The Cooperative Agricultural Credit Bank
The financial breaches observed in the bank amounted at 42.759.830.000 YR of which 21 billions, 693 millions and 563 thousands YR as unsettled advance payments and unclaimed debts and 4.000.000 YR were illegally spent.

The Civil Aviation Authority
The financial breaches observed in the Authority amounted at 3.681.034.000 YR of which 3 billions, 502 millions and 15 thousands YR as unsettled advance payments and unclaimed debts and 178 millions and 116 thousands were illegally spent.

The Customs Authority
The financial breaches observed in the Authority amounted at 53.812.035.000 YR of 26 billions as unclaimed debts, 12 billions, 575 millions and 76 thousands YR as illegally freed taxes, 15 billions, 138 millions and 409 thousands YR as illegally freed customs and 98.549.000 YR were spent against the financial law.

The local Authority
The financial breaches observed in the Authority amounted at 4.839.699.000 YR of which 4 billions as the amounts transferred to private accounts and illegally spent, 234 millions and 186 thousands were illegally spent and 381 millions and 855 thousands YR as unsettled advance payments and credits, 182 millions and 423 thousands were spend on uncompleted projects due to the lack of monitoring and supervision. Besides, an amount of 41.243.000 YR recorded as loss and misused funds.

The Financial Breaches Table

No Organization The amount
1 Prime Presidency 452.227.955.000
2 Republic Presidency 3.357.823.953
3 Ministry of Defense 202.872.037.000
4 Ministry of Health 9.404.096.793
5 Ministry of Public Works 7133.802.000
6 Ministry of Agriculture 10.606.554.000
7 Ministry of Civil Service 21..500.000.000
8 Ministry of Endowment 127..200.000
9 Ministry of Social Affairs 2.960.988.719
10 Ministry of Youth & Sports 50..000.00.000
11 Ministry of Trade 7..000.000.000
12 Ministry of Transportation 29.707.2347
13 The SCER 377.906.000
14 Ministry of Legal Affairs 155.805.687
15 Shoura Council 20..986.555
16 Ministry of Education 13.830.056.2759
17 Ministry of Fishery 4.909.334.000
18 Ministry of Oil 6.296.157.4475
19 Sana’a University 2.741.322.651
20 Ibb University 150.000.000
21 Dhammar University 488..943.000
22 Ministry of Foreign 200.284.000
23 Ministry of Immigrants 16.581.000
24 The Agriculture credit Bank 42.759.830.474
25 Aviation Authority 3681.034.600
26 The Customs Authority 53.812.035.317
27 The local Authority 4..839.699.343

The Report

The State Budget

The targeted projects which were scheduled to be implemented before 2007 were postponed leading to extra fund in the budget of 2007. The same apply for the investment projects, due to postponement from a year to another, delaying the tenders and arbitrary in investment projects planning, about (247) road construction projects were not implemented.
The budget of 2007 has included unidentified expenses without determining the channels of expenditure which were rated as (16.50%) out of the total budget. These expenses which were enrolled under undistributed funds amounted at 202 billions and 827 millions and 137 thousands YR. another amounts of 166 billions, 518 millions and 132 thousands YR which are very high and unmonitored funds an issue which is against transparency of proper budgeting.
The request submitted by the government for additional fund amounted at (287) billions and (330) millions and (576) thousands YR to be added to the budget of 2007 and has been endorsed by the parliament has included many constitutional violations. In fact, the law doesn’t allow spending any fund before the parliament approval. However, the report of parliamentary financial committee disclosed that the government has spent an amount of 160 billions, 242 millions and 132 thousands YR, 58% of the additional fund, before getting an official endorsement from the parliament.
The state has allocated 885 millions and 750 thousands YR to cover the costs for trial with the US-Oil company, Hint, in the case filed against the company in front of French Court while it denies access to details on the process and expenditure details.
The state has allocated 233 millions and 552 thousands YR to cover the costs of the reconciliation with the Canadian company which was running a project in Tehama that has caused a lot of losses for the country as a result of negligence of the concerned officials.
The Anti-corruption Journalists’ Association (Yemen JAC) called for investigating the government for violating the law and demanding as well as spending extra money out of the allocated budget of 2007. The statement of the association says: there was no point for the government to demand extra fund in the last month of the fiscal year while the money was already used practically!!. The Yemen Jack statement addressed to the parliament demanded investigating the government and holding it accountable for the illegal spending before legal endorsement. It urged the parliament to investigate all the suspicious allocations like the oil derivations subsidy for which was the government has allocated 71.5 billions YR while rate has jumped to 400 billions YR in the 2007 budget. Moreover, the budget allocated for the Defense Ministry was mostly included in the chapter 4 which prevent access to the details of the expenditures amounted at 92.405.018 YR. This huge budget used to be covered from oil revenues but this year it has added to the burden of the budget shortage which has dramatically increased from 188 billions to 466 billions.
A parliamentary report on the fiscal year of 2005, which was leaked to some newspapers, revealed that the government has frozen some of the public revenues in private accounts which reached to 24 accounts in 13 public institutions. These frozen funds amounted at 11 billions and 800 million YR besides 45 millions USD which is around 88 billions YR based on the currency exchange rate of 195 YR of the dollar in 2005. The funds spent out of these frozen money during the same year amounted at 2 billions and 200 millions YR plus 35 millions USD which equals 6 billions and 800 millions YR. it was observed that the spent amounts were not justifiable or rational which was evident through the procurement of vehicles, travel allowances and receptions. It was also noted that most of the spent amounts were no attached by the regular supportive documents of payment.
The total revenues in four accounts belong to the Customs Authority reached to 1 billion and 525 millions and 659 thousands YR while the expenditures from these accounts amounted at 829 millions and 977 thousands YR.
The total revenues of 5 accounts belong to the Taxes Authority 768 millions and 234 thousands YR while the expenditures from these accounts amounted at 679 millions and 836 thousands YR.
The revenues of the Oil Ministry from 3 accounts reached 44000 thousands and 467 USD and the revenues of the Fish Wealth Fund amounted at 107 thousands and 492 USD.
The total revenues of the 208 accounts belong to local authority in 15 governorates plus the capital reached billions to 3 billions and 300 millions YR and 788 thousands USD. The total expenditures from these accounts 751 thousands USD. It shall be noticed that neither these amounts nor the expenditures were included in the public budget which very evident violation of the financial law and its executive bylaws.
In a very apparent violation of the law and based in the directives of the prime minister and in reference to the instructions of the president of the country, the ex-finance minister, Dr. Saif Al assail, has transferred a sum of 2 billions and 754 millions YR out of the additional fund allocated for power ministry to the account of the private company (TASCO) which owned by the businessman Tawfeeq Abdulraheem, a close ally of the presidency. This amount was allocated to cover the cost of the procurement of materials and installation of the power network of Hadramout valley. The transfer took place without the knowledge or approval of the power authority and without following the legal and documentary process through the beneficial body

Loans
Eight public sectors did not use or benefit from the 18.9% of the loans which the government got between 2001-2005 while the Yemeni government is committed to pay an annual interest on these loans. The loans were amounted at 1.8 billion USD; about 225 millions were actually used while the annual interests paid were 10.2 millions USD.
The government has used only 31% of the foreign aids provided to the country between 2001-2005 which means that 176 millions USD were spent and 388 millions were left unspent.
There many deficits and shortages in the state borrowing policy which can be observed through the willingness of various government bodies to get loans without a clear vision or sound and tangible research of the target projects or on where and how these loans shall be spent.
The agreement of the credits to be spent on the power provision to Haja countryside which the government has submitted to the parliament for approval suffers from the lack of accuracy, details of the project components and objectives which the project aims to achieve.
Embezzlements and violations in the utilization of the loans allocated to the constructions of the key roads, variation in the figures between the new loan statement and the supportive documents. There are also variation in the data of the identities, measurements and costs of the roads construction, leaving significant components of some road projects within previous two loans unfinished. However, they were repeated within the new loans approved last year which amounted at 118 millions 750 thousands Saudi Rials.

The Republic Presidency
There are various financial infringements in the accounts of the general secretary of the Republic Presidency. Breaches like advance payments and loans have reached up to 758 millions and 856 thousands and 987 YR in 2001 were not settled during the same year which considered clear violation of the articles (131, 137, 239, and 241) of the fiscal law and executive bylaws no. 8 for the year 1990.
Advance payments were issued and it wasn’t cleared before end of the fiscal year and without taking further measures to clear previous advance payments which accumulated in 2002 to reach 95.660.875 YR. another money breaches include releasing payments without attaching the supportive documents which amounted at 8.965.470 YR which is a breach of the financial bylaws.
Issuance of purchase orders without following the procurement and bidding restrictions. Besides, the procured items were not listed or included in the annual inventory records of the year 2002 which according to a parliamentary report amounted at 23.077.170 YR in addition to 14.254.460 YR spent without supportive documents.

The Prime Ministry
150 millions and 161 thousands YR were spent on the purchase of the ex-prime minister’s house which is breaching the financial bylaws.
15 millions and 312 thousands YR were spent on the purchase of a car for ex-prime minister and another car was also procured for the same user which costs 13 millions and 136 thousands. These amounts were released directly from the bank based on finance memo but without providing legal purchase order and were screened in the annual inventory. These infringements were viewed by a parliamentary report as over procurement of vehicles and transportation means which amounted in total at 38.271.130 YR.

The Health Ministry
The ministry of health has violated the bidding process No.9 for the year 2005 for the provision of medical gases to the Yemeni hospitals. A report indicated that direct contracting process took place in 4/8/2006 between the health ministry and ISCO factory which doest respect the bidding law and the factory lacks the capacity to produce the Niteros gas and the lacks quality control labs while the competitor factory was rejected although it was more qualified and cheaper.
The Ministry of Health has exaggerated in the procurement quantities of some items which amounted at 4 millions and 119 thousands USD as costs of providing (100) millions of nitro oxygen when company contracted in 1998. This amount spent on this order can be used to cover the cost of the same quantity times five according to an assessment report number no.5/1999 submitted to the health minister in 25/3/2000 which indicates corruption and public budget misuse.
There are deficits in the cost recovery system of the Medication Fund and there is a lack of mechanisms for implementing this system which can be clearly observed in Mahra where the Medication Fund has never used the cost recovery system since its establishment in 1999 until 2000 which led to high debts on the governorate budget estimated at 19 millions and 413 thousands and 793 YR.
The Medication Fund has breached its laws and bylaws which regulate its activities and witnessed many infringements to the bylaw approved by the cabinet in collecting the public revenues.
The Supreme Medication Authority send memo in Mahra which allows the use of the vessel analytic bottles made by YEDICO Drugs company, regardless the recommendation of the parliament to be discarded.
Public contributions collection infringements committed by the main hospitals in Aden. The cash receipts used to collect costs of the health services were printed by health office in the governorate without approval and official stamps of the local authority. These collected returns should be at rate of 30% of real cost of the services while the percentage they collected from people is higher.
Almost all the public returns, expenditures and social contributions gained through the health facilities in Aden do not maintain the financial and auditing criteria.
Almost all the public health facilities in Yemen are in miserable situation either in terms of cleanness or nutrition although they got huge allocations to deal with these two challenges but in vein. This was attributed to the lack of the competitive service providing atmosphere and depending on particular companies which monopolize the service provision to health facilities
The Medication Fund has witnessed many cases of embezzlement. One was when a letter submitted by the director of the health office to the governor of Al Jawf dated in 6/4/2004 disclosed that in December of 2003, the health office ordered medications and health devices of 59400 USD to be provided from the regional drug store in Sana’a. However, the quantity received by the health office priced at 25840 USD only. About 33560 USD was missing!.
The contract to rehabilitate the General Hospital of Al Hazm, Al Jawf, financed by the gtz with the amount of 1200.000 Euros was not implemented properly and huge sums were embezzled. The parliament has called for investigation into the case but in vein.
The same happened with the rehabilitation of the Main hospital of Ibb (Al Thawra) where big amount of money was embezzled and the outcomes were far from desired standards.
Another money breaching committed by the Supreme Authority for Drugs and Health equipments when it issued the payment of 68 millions and 948 thousands YR as allowances which exceeds (38%) of the allocated 43 millions YR budget for allowances. Press articles described it as a remarkable infringement especially if we compare the amounts of the allowances paid to the tasks and responsibilities of the paid staff.
The infringements of the allowance payments made by the Yemeni Quality Control Authority reached 49 millions and 551 thousands YR, 143% more than the allocated fund which indicates the excessive allowance payments and the lack of regulations to control the payment.
The anti-malaria project is organizing various local and regional trainings every year for (Sheikhs, intellectuals and social figures) who have no relation with health sector. Besides, they receive monthly allocations on the grounds of public education and fighting malaria. These allocations reach millions of YR spent without reasonable justifications.
A report of the COCA has revealed that the Arabian Company for drugs industry in which Yemen is contributing with 5% to its capital, has transferred the annual profits of Yemen amounted at (7897) UDD to a personal account of unknown person in Sana’a as per the instruction of the memo of the Supreme Authority for Drugs and Health equipments dated in 19/11/2006.
The Maeen Contracting Company had complained to the head of the COCA that the company had applied to a tender announced by the Thawra Hospital of Sana’a with an amount of 648 USD but the Hospital had given the tender to another company despite the higher price it had submitted and the tender conditions were not respected by the other company.
The Kuwait Hospital of Sana’a had violated the law and accepted a tender valued at 40 million USD for the supplement of surgery strings while the actual cost of the deal is not more than 30% of the tender.
The Kuwait Hospital of Sana’a had violated the law and accepted a tender of 400 millions YR without involving the tenders’ authority.
In Kuwait Hospital of Sana’a, two intensive care beds were granted to a person and taken out of the hospital despite the high cost which amounted at more than 1 million and 400 thousands YR.

Public Works Ministry
Many mistakes occurred during the implementation of the extraordinary projects plan of Ibb governorate during the host of unification 17th anniversary. It was reported that 5 billions and 18 millions and 802 thousands YR. Due to the demanding speed to finish the roads construction in time, led to improper achievements which were far from the desired specifications. Other negative outcomes were delay in managing flood channels, weak cement layer, asphalt road cracks and a 7-km paved road out of whole length of (875m) were wept away by floods. A parliamentary repot unveiled that most of the constructed roads are threatened by spading due to the incomplete construction of floods outlets.
About (222) roads construction projects were not fulfilled as scheduled and were transferred from previous years due to the delegation of work to incompetent contractors who lack the sufficient resources, tools, technical capabilities to fulfill their contracts. These hindered projects mainly based in Aden, Hadramout, Lahj, Mahra, Hodieda, Mahweet, Taiz, Ibb, Dhamar, Baidha, Shabwah, Dhalae, Abyan, Ammran and Mareb.
The Ministry of Public works has violated the tender and bidding law when it hired contractors directly to implement loans-financed roads construction projects during the years 1997-2004. Besides, many projects enlisted in investment program were not clearly identified.
Repetition of names of many roads projects and their funds allocation within the investment program of the both the central and local authorities and within loans-based projects allocated rural areas and public works.
Delegating the implementation of most of the central roads projects in Aden governorate to the General Authority for Roads and Bridges which in return has illegally delegates them to other contractors in clear violation of the tenders’ law.
The Local Council of Al Mansoura, Aden, was not aware of a roads construction project which was operating in the district to rehabilitate the roads of the district that cost about 760 millions. The report condemned the policy of screening information from the concerned bodies which serve dishonest purposes. Consequently, the council was not informed about the tender which determined the cost of asphalting at 500 millions YR and the lightening at 200 million YR.
The frequent excavations and fillings which took place in the streets of Sirah district in Aden led to the destruction of the infrastructure of the other services like the sanitary system and have damaged the outlets of the rains water.
The funds allocated for the asphalting of Mansoura streets were subject to misuse and the way of implementation opened the door for corruption and personal interests through the misleading directives and putting hinders issued by some influential entities at the district. These breaches include the allocation of 80 millions for the years 2004-2006 for conducting road projects which the local council was not informed about.
A committee of the parliament has demanded the investigation on the contravention of transforming asphalting project of Mansoura streets to another location far away from populated areas. Moreover, the statement also criticized the technical breaches accompanied the implantation of some other construction projects which the parliamentarians described as destruction projects. They also requested investigating the body who granted the implementing company the achievement certificate although it proved to be disqualified.
The Public works and Planning Ministries have contracted a contractor to asphalt the 7km Daery Street in Al Qaeda town. The contract, which costs 1 billion and half YR, included an increase of the price of the km of pavement to be 200 millions YR while the actual price of a km of spis 35 millions. That means that actual cost of the 7 km of asphalt is 245 millions only. The cost differences between the contract and the real cost is 1 billion and 355 millions YR.

Ministry of Agriculture and Irrigation
Many implemented water projects such as (Dams and water barriers) included a lot of mistakes and misconducts in terms of engineering studies, technical errors, monitoring and financial breaches reached to 955 millions and 672 thousands YR.
The Ministry suffers from the lack of the financial auditing and internal supervision and effective monitoring of the funds provided to the implementing units which led to high budget shortage estimated at 1 billion, 542 millions and 228 thousands YR.
The Ministry suffers from the lack of the effective legal bases for all the loans and international aids which amounted at 1 billion, 924 millions and 210 thousands YR.
The total amounts spent on stuff which were not allocated for in the Ministry were 1 billion, 868 millions and 772 thousands YR in an obvious financial infringements to laws.
Embezzled sums from the loans provided to the Ministry disclosed by a commentary memo which showed two sums of loans the difference between them amounted at 847 thousands and 955 USD. Moreover, the differences between the total cost of the project and the details of the components were 11 millions and 660 thousands USD. Another comparison between the project components statement and the attached tables showed two differences; the first was 882 thousands USD and the second was 11 millions and 248 thousands USD.
There were many deficits occurred in the management of the loans of the Ministry; huge amounts were allocated for consultancy, training, operation and miscellaneous reached to 52%. This was criticized by a report released by parliamentary committee as very high amount which could be used for covering other important areas like equipment, technical support, Societies/farmers support and development.
The administration of the Wadi Hadramout development project has transferred 75% of the project returns to a private account as instructed by a memo No (856), 22/2/2000 issued by the Deputy Minister which is completely against the public revenues collection law.
And during 2002-2003, the amounts which had been isolated by the administration of the Wadi Hadramout development project reached 9 millions and 760 thousands YR regardless the directives of Deputy Minister to deposit 25% of these amounts to the pubic budget.
The management of southern highlands agriculture development project has abandoned the follow up and claim to get back the projects’ cars and equipment looted by unknown people and bodies. These looted properties cost about 19 millions YR.
The management of rural areas development project of Mahra has contracted a company directly to provide the project with equipment and machinery in clear violation to the tenders’ law. The cost of these supplies, according to the Central Auditing Authority, amounted at 37 thousands USD and 3 millions and 432 thousands YR. besides, the project did not charge the supplier for the delay of the provision.
The management of the Agriculture Development and Coffee Production project has violated the tenders’ law and bylaws in contracting suppliers to the project. Besides, the project lacks the effective management of the financial resources especially the French Aid allocated for irrigation of coffee trees. This Aid which was allocated to be spent during 1997-2000 reached 130 millions YR. The total amounts used from this grant were 88 million and 902 thousands YR only which resulted in the postponement and hindrance of many unfinished irrigation projects.
About 3 millions YR as payment delay fines were not claimed by the management of irrigation project of (Bani Aushib and Bait Al Koli) in Kohlan, Hajah.
Water barriers projects of Lowder district in Abyan which cost 3 millions and 397 thousands USD were not implemented as scheduled. The implemented works didn’t exceed 22% of the whole contracts.
The additional fund allocated for the asphalting of Lowder-Daman road was 140 millions and 646 thousands YR. However, an additional amount of 50 millions YR were spent for the pavement of the same road after one year and half of the completion of the asphalting.
The finance unit of Lowder-Daman road project has illegally paid between 8-9 % of the cost of total the contract as expenses of the technical supervision of the implementation of activities. This was against legal percentage determined at 3% only.
6451water pipes were purchased by the Lowder-Daman road project to be used for Mudiah water project. Although the quantity was not used for that project, but it wasn’t returned to the project store.
Delay and impediment of many projects of the Cooperative Agriculture Union scheduled to be implemented during 2003 that cost 202 millions and 519 thousands YR. the reason behind that hindrance was unclear but what it was certain is that no sufficient documents of the contracting were attached.
The financial contribution of the Cooperative Agriculture Union to support the poultry project of Ma’abar amounted at 335 millions and 540 thousands YR as a first installment provided by the Union from a credit granted by the Fish and Agriculture Promotion Fund. However, the amounts which have been settled from this contribution until 2003 were only 6 millions and 294 thousands YR and the Union did not take any legal measures to claim the remained amounts.
The unsettled debts due to paid to the Cooperative Association for Agricultural supplies by the Ministry of Agriculture amounted at 220 millions and 461 thousands until 2003.
The Cooperative Association for Irrigation and Water Establishments has violated the tender law and directly ordered the supplement of water pipes and irrigation networks which cost 342 millions and 251 thousands YR.
The Cooperative Association for Irrigation and Water Establishments did not claim its debts which reached in 2003 up to 197 millions and 461 thousands YR in forms of advance payments and credits.
An amount of 62 millions and 552 thousands has been recorded as a credit belongs to in the Fish and Agriculture Promotion Fund on the account of the Cooperative Association for Irrigation and Water Establishments.

The Civil Service Ministry
The Cabinet has issued decisions which disagree with the article No. (43) of 2005 of the wages and salaries law. Besides, the salary grades system from grade (20) to grade (1) has no legal base or mathematic rule which ensures equal application for all grades. As a result, the high positions benefited the most from salary grades system while the low and middle positions did not.
The government has violated the law when it has determined the pension payment for civil and military servants on the bases of the least public salary payment without considering the salary amount which the employee used to receive before retirement.
The shortages in the legal texts of the salary grade law and bylaws and the unavailability of legal bylaws which regulate the amount of allowances accompany the individual structure and job-risk allowances. Moreover, no executive measures were taken to consider the movement and housing of the judiciary staffs. Besides, there are many exceptions occurred as well as the re-implementation of the special staff system in many public institutions which was previously abolished by the salary law.
Approving the promotion of army servants to the next grade on the basis of the military rank which is against the Civil Service law that determines the promotion on the basis of conditions of the position to be filled. This illegal promotion practice had caused the abolishment of five grades from the unified structure. Military servants shall be graded on the basis of (20) grades in accordance with unified structure grades and the salary law.
The interference of the local councils of some governorates in the recruiting process and rejecting some applicants with no clear justifications. Besides, playing with the applicants’ data, especially personal information and place of residence, by the employees of the civil services governorate offices.
The replacement-oriented employment and upon higher level directives continue to happen in the civil services which completely against the legal employment procedures. Moreover, some governorate civil services offices violated the law and the employment criteria which led to the employment of tens of unqualified people in Dhammar, Amran and Hadramout.

The Specialized Funds
The infringements of misuses and additional budget resource demands of 33 Funds amounted at 22 billions and 409 millions YR which represents 33% of the allocated budgets for those Funds which is 71billions, 111 millions and 344 thousands YR. These money breaches were mainly focused in the Roads Maintenances Funds, the Social Fund for Development, the Army Pension Fund, the Agricultural and Fishery Products Promotion Funds, the Disabled Care & Rehabilitation Fund and the Interior Retirees Fund.
Some 14 specialized Funds have suffered from budget shortages/high expenditures rate. The shortages estimated at 33 billions, 17 millions and 114 thousands YR (14%) out of the total allocation which is 21 billions, 424 millions and 226 thousands YR mainly within the Civil Service, Vocational Training and social Welfare Funds.
An amount of (44,560,748) were the additional fund illegally spent from Chapter 1 of the Public Budget (Salary/Wages, Contracting) by Civil Service, Vocational Training and social Welfare Funds. This requires revision of the contracting policy and to ensure that it is in accordance with the corresponding Salary and Wages rules.
An infringement of additional budget expenditure (allowance items) practiced by the Civil Service, Vocational Training and social Welfare Funds that amounted at (120, 582, 010) YR which represents (30%) out of the overall budget allocation (3,954, 000) YR which indicates irrational spending policy.
The Civil Service, Vocational Training and social Welfare Funds had witnessed high spending breaches of (432,076,632) YR under the (equipment procurement) entry.
During the 2005, the Civil Service, Vocational Training and social Welfare Funds had also witnessed other financial breaches of additional spending which amounted at (58.964.634) YR as costs of vehicles’ procurement and transportations. This indicates an unjustifiable high operational fund spending, which were originally donations and loans to be used in developmental projects, if compared to the achieved tasks and missions by these Funds.
The budget breaches of the Civil Service, Vocational Training and social Welfare Funds were focused in the (salary and wages) unit; under the allowances payments (6, 680, 754) YR which represents (15%) of the allocated budget (45.000.000) YR of 2005. moreover, these funds had issued various illegal payment orders which either has no legal frame or paid as complements to some irrelevant personalities.
The chapter 1 estimated budget of the Civil Service, Vocational Training and social Welfare Funds under the (current activities revenues) which was approved by the Finance Ministry had reached 4 billions and 724 millions YR as a budget of roads construction for 2005. However, the actual revenues collected from the Oil Ministry amounted at 816 millions and 661 thousands YR, about 11% of the allocated budget. It is obvious that the Finance Ministry along with the Oil Ministry didn’t fulfill their budget commitments to these Funds according to the law which resulted in high accumulation of debts within the two ministries for the interest of the above mentioned Funds. These debts owed by the ministries reached to 21 billions and 500 millions YR until the end of 2005
It was reported that the official budget allocation for the Civil Service, Vocational Training and social Welfare Funds is not factual as they never get the same allocated budget transferred to their accounts as per the articles of the law No (22) of the year 1995 which was abolished and substituted by the law No (27) of 2000. Consequently, and according to a parliamentary report, the state should be investigated for not implementing the law No (27) of 2007 as pledged in front of the parliament during the endorsement of the 2005-2006 budget.
An infringement of allowances payment committed by the Interior Retirees Fund amounted at (5, 216, 636) YR which represents 95% of the allocated budget (5, 500.000) YR. such breach requires that certain rules to regulate the allowances spending process in accordance with the salary and wages law are made available.
The Taiz Cleanness Fund imposes the payment of 3000 YR from each citizen as cleanness fees while the legal fees determined in 2006 was only 500 YR.
Press reported that the financial breaches practiced by the Cleanness Fund of Hajah amounted at 165 millions YR during 2005 as per the report of the Central Organization for Control and Auditing (COCA).
The same report disclosed that Cleanness Fund of Hajah had illegally spent the amount of (14362122) YR during the 2005.
The same report disclosed that Cleanness Fund of Hajah had illegally spent the amount of (2473105) YR as commissions without any legal receipts.
The same report disclosed that Cleanness Fund of Hajah had illegally spent the amount of (36004161) YR for irrelevant activities.
The same report disclosed that Cleanness Fund of Hajah had illegally spent the amount of (2360000) YR without any legal documents.

The Judiciary
Taking about judiciary situation and the problems which hinder the justice process would lead to the conclusion that judiciary inspection authority is considered as a part or department of the Ministry of Justice rather than being an independent inspection body of independent powers and responsibilities all over the country. In addition, the existence of two judiciary authorities; one within the Ministry of Justice and the other with the General Attorney is total a violation against the Judiciary Authority law article No (97). Moreover, the inspection power of the Authority is too weak and whatever comes out of it usually ignored by the Ministry of Justice.
There are many illegal prisons available within the offices of the Public Works in the capital Sana’a which is complete violation of justice.
There are many cases in front of justice in Sana’a which aged more than 14 years without getting a verdict.
The working system used by the Ministry of Justice does not meet the actual contexts of the reality, besides; the perquisites for employment within the Ministry, which often differentiate between applicants, are not in line with the laws Judiciary Authority.

The Ministry of Endowment
There are many gangs in Taiz specialized in lands robbery, the same happens in Dhalae in addition to the fact that many state authorities didn’t fulfill their rental commitments towards the Endowment.
In Mahweet, the endowment properties and lands were subject to seizure by the some state authorities and some powerful entities without paying the legal rental fees.
The head of the endowment office in Taiz was accused by citizens of Al al kadam of Ma’afer district that his office has seized a part of their graveyard to be used for growing Qat plants as trick and later on to be illegally rented as car station.
An exchange of accusations between the head of the endowment office in Ammran and his cashier over the looting of an amount of 700.000 YR.
Sources at the Endowment Ministry reported that two thirds of the endowment properties are under the seizer of some influential personalities and sheikhs as well as army officers.
The Endowment Ministry illegally imposes an amount of 20 KSA Rials from every Yemeni minor hajj visitor to the Holy Ka’aba through the ministry. Press reports revealed that the collected amounts reached in some minor hajj season up to 127 millions and 200 thousands YR.

Ministry of Social Affairs
The Social Development and Productive Families Program didn’t fulfill their scheduled tasks according to the law. Moreover, the Program had violated the law and contracted unqualified employees to work for the program.
The financial data which were copied from the accounting records of the Social Development and Productive Families Program didn’t demonstrate the real spending of the program. Besides, the financial procedures as well as the revenues of the exhibition products are not recorded on regular basis. Moreover, the rewords and allowances are granted to particular directors and mangers within the Ministry in a clear violation to the law and the budget allocations of the program.
The materials, cash, local and international donations which the Social Development and Productive Families Program had received were not documented or registered in the financial and store records. In addition, the Program has opened private accounts at some commercial banks without reporting that in the accounting records. Another monetary breach was committed by the head of the Program when spent from these donations and aids without informing his finance department. These amounts were later on proved to be withdrawn from The Yemeni Bank for Constructions, immigrants’ branch using different names of people who have nothing to do with the program. In addition, it was disclosed that some Centers and Associations supported by the program didn’t exist in the reality.
The Productive Families Program had committed many breaches for the tendering law in various tenders that the Program had conducted over the years; 1998-1999 tender, the tenders No (1, 3) of 2000, the tender no (1) of the year 2001 and tender No (4) of 2003.
Many breaches were reported within the Disabled Rehabilitation Fund; the Aden governor has sold a villa which was willed by late “Hassen Ismael Khadabish” to be a shelter for old, disabled and blind people. another villa in Khur Makssar, Aden, were repaired and that costs of 12 millions and 243 thousands YR and sold to the Arabian Investment Company in 18/5/2004 for an amount of 20 millions Rials while many rental offers were rejected although these offers reached to a 100 thousands Rials as a rent for the villa per month. However, the villa was enlisted within the settled assets of the Fund with an estimated cost of 50 millions and 872 thousands YR according to final fiscal report of 2005.
The Disabled Rehabilitation Fund didn’t collect its revenues in accordance with the law of its establishment; the Fund revenues collected from Costumes Authority as allocated in the State budget exceeds not 5 millions while the Fund law of establishment determines the fees to be collected on every costume statement of 100 YR since the issue of the law in January, 2002.
What the Disabled Rehabilitation Fund collects from the tobacco companies is much less than the legal amounts which the law has determined to be collected as revenues for the Fund. The law has determined an amount of 5 YR on every sold packet of cigarette and10 YR on every sold ticket by the Yemenia Airlines. However, neither the tobacco companies nor the Airlines fulfilled their pledges towards the Fund as later company has deducted an amount of 876 millions due to be paid to the Fund while the tobacco companies have escaped the payment of 98 millions and 64 thousands YR.
Press reports have circulated what was disclosed by the Central Organization for Control and Auditing COCA. Report of the year 2005 that no supportive financial documents were provided for the amount of (18.518.436) YR which the Ministry of Social Affairs had received as donations during the year 2004.
The unspent balance with the Ministry of Social Affairs which was not cleared or settled during the year ….. amounted at (39619285) YR.
Press reported that the Ministry of Social Affairs has spent an amount of (2032338) YR as salaries without completing or attaching the supportive documents.
An amount of (952.209.990) YR was spent by the in the capital secretariat office of the Ministry of Social Affairs as costs of nutrition which is a clear violation of the financial and tendering laws as no supportive payment documents were attached.
The Ministry of Social Affairs has withdrawn an amount of (2.811.833) YR from the bank and handed it over to the cashier of the Ministry while these amounts were supposed to be given to some associations. Other association didn’t not receive their allocation of (390.833) YR from the Ministry.
About 31 of payment receipts valued at (86889670) were lost and remained without clearance until the end of 2004.
An amount of (10752000) YR as balance money were not cleared by the cashiers of Ministry of Social Affairs, Sana’a governorate office for the years 2002-2003.
The final fiscal year report of Ministry of Social Affairs disclosed that an amount of (5.079.000) YR was spent by the Ministry for operation of the free zones without attaching the supportive payment documents.

Transportation Ministry
The Ministry had announced the opening of the tendering to the restoration of Sana’a Airport runaways before assessing the asphalt layers and studying the obstacles located in the eastern side. Rather, the Ministry did approve the credit to finance of phase 1 before signing the agreements with the consultative companies which suppose to provide the necessary designs and supervision. Moreover, the initial designs of the passengers premises which were approved, didn’t really meet the future passengers capacity which further led to an increase in the costs of some components of the project far from what has been allocated.
The monopoly of the Yemenia Airlines over the flights and giving no chance for another company to join this business was observed.
The Yemeni Airlines did not settle its debts due to be paid to the General Aviation Authority and branches.
Press reports based on the general fiscal report of 2004 of Mukalla Airport revealed that there huge debuts for the Airport unpaid by some private companies and government institutions for more than 10 years. Moreover, the debts unpaid by the Sana’a Airport Restoration Project amounted at (2,350,000)YR which were originally a credit provided by the Arab Fund and it was spent by some people without attaching the supportive payments documents.
Financial breaches were witnessed during the implementation of Aden Airport restoration project when the implementing company did not provide spare parts of (10%) out of the total apparatus which it has contracted to supply and install. Instead, the company has provided only 6% of the spare parts which made a difference of an amount of (54.422) USD. Besides, the company didn’t fulfill its contract to carryout the technical trainings programs for which an amount of (66.055) USD was allocated.
The Aden Airport cashier has suffered from a budget shortage amounted at (1.107.976) YR and (2.360) USD during the year 2004.
The debts on the Aden Airport estimated at (236.469.522) YR and an amount of (36.627.902) as irregular balances within these debts.

Ministry of Trade and Investment
The hinders and obstacles of investment has increased in Yemen due to various reasons such as; the lack of concrete infrastructure, the instable economy and currency, lands disputes, the poor public services like the sufficient power supplement, the lack of the legislations which control and regulate the industrial areas, the prolonged processing of the investors’ issues/cases by the judiciary and the commercial courts and complicacy of the sentences issued. Besides, the spread of the smuggling acts are also comes within the obstacles of effective investment in Yemen.
Deficiency and contradictory of the present investment laws are key drawbacks of investment in Yemen such as the shortage current tenders law which doesn’t entitle the official authorities to penalize the disqualified contractors if they won a tender without being able to fulfill.
The head of the Industry Office of Sana’a had accused the Ammran Cement Factory of trading cements in the black market. He had revealed that some truck loaded of 1000 bags of cement left the factory to sell the quantity in an illegal way. Moreover, he added that 6 of the cements official showrooms refused to sell to the public while they sell secretly to some people for 400 YR more than the official price.
The Manipulation of cement prices had caused the loss of 7 billions YR from the state budget in 2006 as a result of the unstable selling policies in the three cement factories (Ammran, Al Barh, Bajel).

Ministry of Sports
The Ministry has practiced various unjustifiable deductions from the financial allocations of the sports’ clubs which supposed to be provided through the Youth Care Fund in Al Baidha governorate.
A number of clubs land properties were subject to seizer by influential and powerful personalities in different Yemeni governorates.
The construction of Ibb sports stadium was started in 1986 with a budget of 130 millions YR but the amount was first raised to 1 billion and by the end of 2006, the cost was raised to 5 billions without completing the work yet.

Ministry of Power and Electricity
It has witnessed many deficits in dealing with the loans and the proper way to utilize them; an amount of 3 millions Kuwaiti Dinars were allocated as additional budget for the 2nd Electrical Gas Station of Mareb which represent (10%) of the total value of the loan. This amount is huge if compared to other loans but due to the delay in tendering and contracting process during the implementation of 1st station led to the delay of operation of the station and in providing the required fund for the second phase.
Press has circulated an article for journalist Muneer Al Mawori that the American company (Powered Corporation) which was contracted by the Ministry of Power represented by the Minister Mustafa Bahran, to provide a nuclear power with estimated cost of 15 billions USD is not a reputable company in this field and it has proven to be a small and unqualified enterprise to fulfill such contract unless it will sell to another companies. The press article reported that the owner of this company is a Yemeni migrant and an old friend of the Minister Bahah. And in order to play a good trick, the owner of the company has used his American partner to sign the agreement with Yemen.

The Supreme Committee for Elections and referenda (SCER)
The SCER has committed a lot of financial breaches when it has allocated monthly salary starting from November 2001 for escorts of the Chairman, General Secretary, Head of the security committee and the members with an amount of 445 thousands YR without payment legal approval.
The SCER has irrationally spent an amount of 2 millions and 258 thousands YR as costs of newspapers adds.
The report of the Central Organization for Control and Auditing (COCA) did include neither a detailed statement of the amounts of donations and Aids granted to the SCER in 2001 nor the sources of the donations and types and quantity of the materials and equipments provided to its stores.
The unsettled budget balance which were not cleared by the heads of the electoral supervisory committees based in the governorates during the parliamentary elections of 1996 (the registration phase) amounted at 54 millions and 862 thousands YR while the (polling phase) balance amounted at 296 millions and 423 thousands YR.
The personal budget balance remained under the possession of the some of the former members and employees of the SCER reached to 26 millions and 621 thousands YR until the end of 2001. About 7 millions and 891 thousands were unsettled salary debts of 2001 and the rest of the amounts were the debts transferred from previous years. Moreover, the salary advancement payments until the end of 2001 estimated at 39 millions 283 thousands transferred from previous years.
Nine vehicles were provided to the head and members of the SCER to be used as transportation means while in office. However, these vehicles were not handed over to the state according to the law article No 11 of the Primary Presidency decree No 35 of the year 1998 which regulates the usage of state owned vehicles.
The SCER has issued the payment of 1 million and 667 thousands YR as a monthly transportation allowances for all its 157 employees although their transportation allowances were included within the monthly salary they receive.

Ministry of Legal Affairs
Many infringements were witnessed within the ministry such as not collecting the revenues of the ministry from for sources which amounted at (918, 610) YR.
The legal Ministry did not collect its legal revenues of the subscriptions to its journal during 2001 which amounted at (9,998,380) YR.
The Legal Ministry did not retain its money back which was illegally spent during the year 2000 which amounted at (8,056,069) YR.
The Ministry fiscal report did not include the statement of the “outer loans” which supposed to be included in the chapter 5. However, the outer loans which the ministry received was (10,310,000) YR which led to the occurrence of unrealistic revenues. The report also has ignored an amount of (18,928,795) YR out of the ministry public expenditures.
The Legal Ministry has spent an amount of (60,671,722) YR during 2000 out of the legal frame and bylaws and an amount of (15,231,001) YR were unjustified expenditures.
The ministry has spent an amount of (36,538, 489) YR without having any spending documentation during the year 2001 which was a clear violation for the article No 47 of the financial law No 8 of the year 1990.
The Legal Ministry has spent an amount of (8,502,232) YR of which 405 thousands were spent on the restoration of private toilette of the Minister which is irresponsible expenditure and an absolute violation of the financial law articles (29, 43,60).
The Ministry has granted advance payments and credits to some governorate offices directors above the legal ceilings. The amounts lent to director of Sa’adah office estimated at 2,800, 000 YR. were not settled
The Legal Ministry did not attach the treasury inventory minute in 31/12/2000 which was a violation of the article No 126 of the executive bylaw of the financial law. However, the inventory showed that the ministry has 17 computers while the number of the computers at the ministry offices was only 10 computers.

Al Shoura Council
There are some differences between fiscal closing state report and the accounting statements of the council in terms of the actual expenditures. The difference amounted at (80.254 266) YR more than what fiscal state report shows. Also the Council fiscal report file was not completed when it was submitted to the Central Organization for Control and Auditing by the end of 2001 besides some other breaches related to spending process and incomplete documents.
The advance payment of Al Shoura Council reached up to (42.424. 250) YR while about (22.427.695) YR was not settled. Moreover, the amounts transferred into the next year 2002 without being cleared during 2001 amounted at (20.986.555) YR besides some differences in the amounts recorded in the temporary advance/credits records and actual account of advance payments amounted at (8.582.522) YR according to the report of the Central Organization for Control and Auditing.
The Shoura Council has paid monthly allowances during 2001 for 44 assigned employees from outside the Council while the actual number of the employees was only 12.

The Ministry of Education
The credits unsettled by the Ministry have been accumulating every year until it reached around 6 billions and 164 millions and 232 thousands. The Central Organization for Control and Auditing report also indicated that there were certain amounts spent without justification which estimated at 79 millions and 472 thousands YR.
Apart from money breaches, the ministry did not properly follow up to make sure the books quantity reaches the assigned locations in the governorates. In some cases, books quantity received by some governorates was not the same as sent with cost difference of around 573 millions and 429 thousands YR.
Violating the tendering and bidding law No (3) of 1997 and spending amounts estimated at 614 millions and 223 thousands and 441 USD.
The ministry did not follow up the fees collected from the students which amounted at 64 millions.
The disability of the ministry to collect its revenues through the education offices, and particularly the examination departments which supposed to collect the fees of the forms and test notes which cost 443 millions and 830 thousands YR.
As a result, the education office did not pay or settled the balance under their responsibility to the ministry which amounted at 7 millions YR accumulated since 1999 up to 2003.
Spending amounts on activities do not relate to capital secretariat education office and implementing some projects which cost 27 millions and 429 thousands and the circulated amounts within the responsibility of the school managers collected from the public contribution were 15 millions and 635 thousands accumulated from 1996 up to 2002. In addition, an amount of one million and 335 thousands as licensing and renew licenses fees of the education buildings and premises.
In Ibb governorate, the circulated amounts from the revenues estimated at 61 millions 273 thousands YR which wasn’t cleared since 1996 up to 2002.
In Shabwa, an amount of 3 millions YR were illegally paid from the budget of state as the 20% of the teachers’ allowances law.
Also in Shabwa, an amount of 22 millions and 581 thousands YR are the fees collected from students which remained with the education managers who did not clear it during the 2002 and 2003.
In Al Mahrah, the education office did not clear the revenues which were collected from schools including costs of certificates which amounted at one million and 185 thousands YR.
In Al Mahrah, the education office had paid several amounts to a school food provider like 4 millions and 999 thousands YR as a payment of January 2002 without checking the actual documents of the quantities distributed to the schools.
In Abyan, the employees of the education office did not settle their advance payments to the office during 2002 which estimated at 2 millions and 288 thousands YR in a clear violation to the article 242 of the financial bylaw.
The education office of Abyan did not submit 58 payment orders during the fiscal year of 2002 and 2120 payment orders during the period from 1996 to 2001 which valued at one billion, 635 millions and 306 thousands YR as well as the illegal payment of 590 thousands YR paid by the accounting unit.
The education office of Al Baidha did not transfer/clear the local revenues collected from schools for the years 2001-2002 which amounted at 2 millions and 447 thousands YR.
In Sa’adah, the education office has paid an amount of 44 millions YR as allowances for employees and teachers who were illegible for those allowances.
In Sa’adah also, an amount of 3 millions and 733 thousands YR were withdrawn as salaries of December 2002 for the new teachers belong to the education office.
In Al Baidha education office, the cashier didn’t pay the salaries of 20 teachers of January and paid an amount of 7 millions 847 thousands YR as salary rise payments for teachers. According to the report of the COCA, no payment supportive documents were submitted on these amounts.
In Al Baidha also, the directors of the education districts did not clear the public fees amounted at 2 millions and 232 thousands YR due to be transferred to the Schools Restoration Fund. Other amounts of 2 millions and 910 thousands were also owed by the education districts as school fees were not cleared either.
About 3 millions and 917 thousands YR (school fees) still owed by the directors of education districts in Al Baidha to the education office which were not cleared for years.
Four millions YR were withdrawn from the bank under the name of the cashier of Al Baidha education office without pointing out why it was withdrawn or where it was spent.
In Taiz governorate, some school managers have sold 800 bags of 50-kg of wheat which they got from the WFP as donations for rural areas students and teachers. The sold quantity valued at one million and 440 thousands YR.
In Taiz also, some school manager imposed an amount of 200 YR from each student benefits or receives food staff from the WFP. The amounts which were reported to be collected valued at 266 thousands.
In Hadramout, the quantity of school books and other requirements sent by the Ministry of Education as the potion of the education office in Hadramout. However, big part of the education office quantity has illegally disappeared which valued at 1 million and 981 thousands YR. no further measures or investigations were taken by the office according to the COCA.
In Hadramout also, an amount of 3 millions and 422 thousands were collected as public contribution fees by the education office during (2000-2001) and it was not cleared.
In Hadramout, an amount of one million and 207 thousands YR were paid by the education office to an illegible school food provider and to some university students who used to serve as primary teachers before joining university.

Press had reported that many infringement cases were witnessed within the Public Authority for School Equipment in Aden. Moreover, the report of the COCA had indicated that the Authority has violated the tendering and bidding laws No (3) of the year 1997 in many of its tender process like ignoring getting different quotations. One of the financial breaches which were reported amounted at 4 millions 996 thousands YR. in addition, the authority is incapable to collect its revenues which resulted in the high debts for the Authority which were not paid during the 2002 amounted at 158 million and 814 thousands YR which has increased dramatically compared to the debts of 2001 which valued at 53 millions and 881 thousands YR.
The Ministry of Education didn’t settle its debts to the School Book Printings Authority which amounted at 6 billions and 237 millions and 584 thousands YR up to the end of 2002. Press reported that the Printings Authority has studied the possibility of calling off 1 billion and 593 millions and 524 thousands which represent 25.5% of the total debts owed by the Ministry. However, the COCA report considered that as illegal practice by a state body because the Ministry could have allocated the debts within its budget.
Since the establishment of the School Book Printings Authority in 1992, the Printings didn’t get its debts paid by the Ministry of Education which reached to 586 millions and 393 thousands YR from 1992 to 2002 as per the COCA report.
An additional amount of 61 millions and 617 thousands YR were paid by the School Book Printings Authority to the Various Industries Company which was contracted to print 8 books
The Aden office of School Book Printings Authority had violated the tenders law when it had issued a direct purchase order of an amount of 26 millions and 830 thousands YR. Moreover, the Authority didn’t claim its debts which valued at 7 millions and 956 thousands YR during 2002 while the advance and civil insurance payments amounted at 327 millions and 743 thousands during the same year.
Parliamentary report revealed that the Researches and Educational Development Center had issued payment of 4 millions and 244 thousands YR without providing supportive payment documents. Another payment breach was valued at 305 thousands YR as financial reword paid to one of the supervisory committee of the Center in 2001 without payment attachments. In addition, an amount of 4450 USD was paid without justification of payment, 4600 USD spent as costs of plans and agreements related to science and math project and an amount of 800 USD was spent as cost of mobile lines and 810 were paid to the financial officer as costs of procurement of books for the library of the Center.
An amount of 1400 USD were paid to the director of the Researches and Educational Development Center to cover his transportation costs as he had not car during that time, 750 USD were spent to buy 2 mobile phones for the director and his deputy, 1760 USD were spent on computer spares, 1500 USD spent as transportation allowances for the director of the Center to attend a conference for education in Algeria and illegal payment of 3000 USD as the cost of the revision of two school subjects (Science and Math) which were paid against the law and payment procedures.
An amount of 2200 USD were spend as a reword for an employee at the financial department of the Center, 1762 USD were spent as an overtime allowances for 6 employees, 2217 USD spent and food and local transportation allowances for the designers of the two school subjects and s sum of 5400 USD were illegally paid as a reword to a couple of employees.
An amount of 2000 USD was paid to the science subject coordinator of the Researches and Educational Development Center, 1000 USD as travel allowance for the director of the center, 6000 USD as an advance payment for the a curriculum sector staff, and 10.000 USD paid to the technical staff involved in the revision of the two above mentioned subjects. All these amounts were paid twice as the original contracted body to conduct this revision was the Curriculum Composition Team who already paid to do all revision work. Another amount of 565 USD was spent on the design and printing of the vice minister book which should be paid from the budget of Ministry of Education.
An amount of 500 USD were paid to the Center’s cashier to cover the costs for rehabilitation of the garden of the Center without attaching any payment documents and paying another amount of 3348 USD to the same person to cover the costs of purchasing a computer and curtains and carpet for the office of the chairman of directors board, head of the Center and his deputy without attaching supportive payment documents.
An amount of 783 USD were paid by the Researches and Educational Development Center as costs of printing the study of the future bridge, 572 USD as an advance payment to the head of the Center and 400 USD as cost for a organizing a workshop without any payment attachments. Moreover, various amounts valued at 14000 and 851 USD were also spent from the loans granted to the center and not from the budget of the center.
50 teachers of Al Jawf had complained that some cashiers of the education office have deducted from their salaries between 600 to 2000 YR without any justifications.
In a clear violation to the law, the administration of Ibb University had spent an amount of 3000 USD from the account of the students’ activities to cover the costs of visas for other students to get outer trainings.
The total sum illegally deducted from the salaries of the teachers of October 2007 in Ibb amounted at 34 millions of which is 4 millions YR was deducted from Al Odain district teachers. The teachers called for investigating with education office and to refund them the deducted amounts. Moreover, in Al Mashanah district of Ibb, the teachers were subjected to illegal deductions of 240 YR from their salaries on monthly basis on the grounds of life insurance without their approval or knowledge.
About 2000 teachers of Dhamar also subjected to illegal deductions from their allowances which varied between 600 to 900 YR.
The head of the Hodieda Education office has supported the robbery and allied with another person to illegally seize a land, about 50.000 meters, which was specified as a location for building a public school in Al Rabassa zone, Hodieda.

Ministry of Fishery Wealth
The Ministry of Fishery Wealth had opened a new accounts and withdraw an amount of 133 millions and 430 thousands YR without attaching any supportive documentations. This action is a clear violation to the article (203) of the financial executive bylaws no 8 for the year 1990.
The Ministry did not clear the budget balance of an amount of 48 millions and 364 thousands YR until the end of 2003 which is an evident violation of the 242 of the financial executive bylaws.
The Ministry of Fishery Wealth has spent an amount of 66 millions and 901 thousands YR without having the supportive documents completed.
According to the ministry fishery operations auditing committee, the Ministry didn’t take the necessary measures to insure efficiency in collecting the revenues from fishing companies which work in the Yemeni regional sea-water during the season of 2002-2003. The uncollected revenues amounted at 10 millions and 200 thousands USD.
The cases filed by the Ministry of Fishery Wealth against the fishing companies according to the list of the legal department of the Ministry valued at 6 millions and 12 millions YR and 635 thousands USD.
The lack of determination of the Fishery Marketing Services Authority in Hodieda collecting the state revenues which led to high debts for Authority which amounted at 110 millions and 474 thousands YR until the end of 2004.
Illegal endorsement of spending from a project’s budget in a Fishery and Agricultural Project in Hadramout by the governor of Hadramout. The project was financed from a loan and not from the state budget.

The Ministry of Oil
The Aden Refinery had been fined an amount of 2 billions, 343 millions and 516 thousands YR as a fine for payment pledge delay towards some foreign companies. However, the Refinery has failed to collect its revenues from some other oil companies which estimated at (38, 608, 489, 411) YR.
The Aden Refinery did not follow the rules and regulations in terms of rational spending policies when it had purchased directly some vehicles valued at (119, 818,905) YR as well as purchasing the intensifying unit which cost the company 19 millions and 169 thousands YR . In addition, the company suffers from procurement deficiency and commitment to the rules of the procurement department
The donations and the financial support paid to the Aden Refinery employees and to the Non-Refinery employees amounted at (338, 818, 905) YR. in addition, the Refinery of Aden had paid monthly sums which amounted at (19,200,000) YR from the donations’ account for the interest of the governorate office and an amount of (3, 060,000) was paid to the employees of the Aden Governorate.
The Aden Refinery had paid an amount of (27,442,352) YR as costs of the trial and attorney in the case of Juhaif establishments upon the directives of the former Oil Minister and an amount of (60,000,000) YR to the governorate office for the lightening of the Parade Square in Buraika while these amounts should be paid from the Public Works Ministry.
The Aden Refinery had purchased some oil derivatives to meet the local market need while it directly sells many shipments of the crude oil, which were supposed to be locally refined, to some foreign oil companies.
The Oil Ministry, Taiz Office, had suspended the head of procurement department, Mr. (Abdullah Mohammed Al Haj) from his work and moved the head of auditing department Mr. (AbdulTawab Al Shameery) to the insurance department after he refused to endorse the illegal payment of more than 155 millions YR to Mr. Tawfeek Abdulraheem
Press reported what had been disclosed by the report of the COCA that millions of oil revenues were looted and huge quantities of oil were disappeared in the Taiz Oil Company branch which resulted in high budget shortage in the company amounted at (31,021,640) YR.
Taiz Oil Company branch had paid an additional amount of (155,176,104) YR to a supplier who dealt with the company. As a result, the company has suffered a huge loss which was reflected negatively on the state budget.
The Oil Company has illegally paid the amount of (13,904,233) YR to a supplier.
The oil company had lost an amount of (90,973,351) YR as cost difference in the transportation of petroleum materials in 2006.
Press reported that the state budget had suffered a shortage of (47,494,224) YR as a result of illegal commissions.
An amount of (1.250.000)YR were paid to a contractor to build a rest house for the borders guards but no supportive documents to ensure any plan of monitoring the fulfillment of this contract.
In a clear violation of the law, a joint committee of the Finance and Oil Ministries had exempted the US-Oil company (Hint) from the payment of 100 millions USD as unpaid taxes of the foreign labor working with the company from 1991 to 2002.

The Ministry of Higher Education
Press reports revealed about the infringements and violations committed in Sana’a University. It was reported that the sums which were spent for other purposes than what was allocated amounted at 22,899,755 YR.
Based on the COCA report, the press reported that an amount of 34,107,926 YR were spent by the University as an illegal allowances for the teaching staff without being eligible for that payment.
The Sana’a University has illegally spent amount of (22,996,080) YR and no supportive documents were attached.
The Sana’a University has illegally spent amount of 98,620,000 YR in some tenders of the university without attaching an validity and supportive documents and an amount of 10,162,468 YR was spent on the final summery of the Faculty of Law building project.
No supportive documents were attached to prove that Sana’a University received the tender fees of 100.000 YR for provision and installation of diving pumps and the amount of 13.500 USD as the tender fees of the construction of the dentistry collage.
The Sana’a University had illegally paid an additional amount of 42,603, 395 YR to the contractor of the dentistry collage which was more than what he proposed in the bidding.
The amounts which were not cleared by the University until the end of 2003 reached to (2,240,157,405) YR.
The health unit officer of the Sana’a University had illegally divided the purchasing procedures of the medicines supplement to escape on the tenders and issue a direct purchase order which amounted at 3,878,550 YR which is an evident violation of the tendering law and executive bylaws.
In the faculty of law, Sana’a university, an amount of 4,567,697 YR were spent without providing any supportive payment and validity documents and an amount of 4 millions YR collected from students were not cleared either.
In Faculty of Agriculture, the administration has violated the law when they had purchased some equipment for the collage valued at 3,309,00 YR and issued advance payment of 6,571,535 YR and 1600 USD without clearance or providing supportive payment documents.
The Student Attorney of Sana’a University Had spent an amount of 360,385 USD for unspecified purposes and 1,729,580 YR were illegally spent as food allowances, spending 1,644,100 YR without providing supportive documents. Moreover, the advance payments and unsettled amounts reached up to 33,747,085 YR and 342,835 USD.
The uncollected fees at the faculty of medicines amounted at 97,650 USD and 314,900 YR.
The Cash amounts unsettled and remained under the responsibility of the medicine collage cashiers estimated at 3,081,935 YR.
An amount of 1,753,600 YR was illegally spent by the collage of medicine without justification.
An amount of 1,906,660 YR was illegally spent by the collage of medicine without supportive payment documents.
An amount of 2,436,505 YR was illegally spent from the Malaria project budget.
An amount of 6,575 USD was spent by the Sana’a University on purposes other than it was allocated for.
The advance payments and credits which were not cleared at the university amounted at 29,073,759 YR and 42,984 USD.
The Sana’a University collects 2500 YR from each enrolled student as a registration fees without bylaw and these collected fees from five different collages reached to 14 millions and 929 thousands YR; 6 millions and 690 thousands from the collage of engineering and 3 millions and 412 thousands from the faculty of medicines.
In Ibb university, an amount of 500 thousands YR were paid to the financial department but it wasn’t cleared or known where it was spent.
In Ibb University, huge amounts of money (unspecified) were spent on the pavement of the sports panorama and on buying a car for one of the rector deputies while the balance account of the students’ activities amounted at 150 millions YR but it was not spent for the allocated purposes.
It was proved that quibbling in official documents of an amount of 2 millions and 42 thousands USD were paid by Dhammar University to supplier company contracted to equip the premises and laps of the engineering collage. Moreover, the equipment provided were not according to the specifications.
Amounts were not included in the final fiscal year and inventory of 2005.
In a letter submitted to General Prosecutor, the employees of Dhammar University had complained that an amount of 451 thousands USD was lost when the proposal analysis committee has given the tender to the General Company but after raising the evaluation mark from 50 to 70 and changing the price scale mark from 30% to 50% which blocked the way in front of the competitor no 6 (Al Mansoor Stores) which was the most likely to win the tender. By plying this trick, the university had lost about 20% from the total cost of the tender which amounted at 1 million and 974 thousands and 417 USD.
Journalist Fikri Qassim, reported that the head of Taiz University security office, who is also a law professor at the University, has gained an amount of 60 thousands YR for the bury of a donkey inside the university yard. The same guy also had received an amount of 241 thousands YR as medical allowances and an amount of 197 thousands YR as costs of buying spare parts for his own car. Moreover, the security personal of the university had received an amount of 533 thousands YR as food allowances on monthly basis as well as thousands of Rials as various allowances for tiny assignments.

Ministry of Foreign Affairs
The Yemeni Consulate to Dubai had rented a property based in a contemporary 1-year contract but it was proved that there were two contracts issued in the same date; the first contract valued at 155 Dirham and the second at 220.05 thousands Dirham which indicate an organized forgery and financial corruption with an amount of 105.5 thousands Dirham.
In a letter submitted by the Customs Authority to the Foreign Minister, it was disclosed that the Yemeni Consulate to Dubai collects additional fees of 200 Dirham for each visa to Yemen. Moreover, the collection of these high amounts is against the law which determined the visa fees at 25 USD. However, these amounts were not transferred to the state treasury.
Some diplomatic delegations and international organizations operating in Yemen do overpass the permitted ceilings of customs exemptions scheme both the temporary and the permanent ones. Moreover, it was noticed that these organizations were not abided by the regulations on which they have signed. The total amounts of the exemptions were estimated at 2.8 billions YR with a custom value of 195.9 millions YR.
In a clear violation of the law, a joint committee of the Finance and Oil Ministries had exempted the US-Oil company (Hint) from the payment of 100 millions USD as unpaid taxes of the foreign labor working with the company from 1991 to 2002.

The Cooperative Agricultural Credit Bank
Press had circulated information based on the COCA report that the auditing of the Cooperative Agricultural Credit Bank accounts at the end of the fiscal year of 2004 disclosed a very law level of collecting the credits and its interests by the bank which amounted at 4.594.590.000 YR. However; the amounts collected were only 1.088.946.000 YR which represents about 24%.
The total unsettled loans and credits of the Cooperative Agricultural Credit Bank of the last few years amounted at 3 billions YR.
The embezzled amounts in some of Cooperative Agricultural Credit Bank branches reached to 4.34.542 YR in Shabwah and 527.545 YR in Yareem.
The COCA report on the auditing of the Cooperative Agricultural Credit Bank accounts of 2004 revealed that an amount of 7.119.555.584 YR was credited without attaching credit applications and covering letters.
The COCA report on the auditing of the Cooperative Agricultural Credit Bank accounts of 2004 revealed that the bank had provided credit facilities to the fabric and spinning factory, Sana’a Branch, which amounted at 1.215.606.831 until the mid of 2005, despite the weak financial position of the factory which had suffered from many losses over the past years. Moreover, the credits made available by the bank in 2002 of an amount of 1.073.519.117 YR and an amount of 100.000.000 YR of unsettled credits which were provided by the bank to some associations under the guarantee of the fabric factory.
The Mareb poultry Company did not settle the loan credited by the bank which amounted at 138.737.759 YR with interests while the company is loosing huge amounts for years amounted at 260.170.050.
The Bank did not take any measures towards the one of its costumers which got uninsured loan of amounts of 129.953.150 YR and 19.832.198 USD.
The unpaid credits of the Bank in Ibb branch reached to 229 credits with a value of 12.381.129 YR.
The unpaid credits of the Bank in Baidha branch due to the poor policy of credits collection for years amounted at 23.084.000 YR.
The unpaid credits of the Bank in Lahj long-mid and short terms loans amounted at 21.402.178 YR.
The bank proved to be providing loans to its employees under different justifications like renting costs while the previous loans which amounted at 3.954.384 YR.

The Civil Aviation Authority
The Aviation had directly purchased 8 cars without legal justification or reasonable purpose which is a clear violation to the law.
The Aviation had spent an amount of 54.870.830 YR as cost of flight tickets for some of its employees without attaching legal validity and supportive documents.
Based on the result of the auditing of the fiscal report of Aviation, it was found that the actual invested fund used by the Aviation did not exceed 12.7% out of the allocated budget which amounted at 7.871.109.000 YR.
The Aviation had spent an amount of 123.246.805 YR out of the investment program through moving the funds from an account to another. In addition, it was found that an amount of 6.810.560.000 YR was allocated for the construction of Sana’a Airport but what was really spent on that project was 530.411.759 YR which represents 7.79% of the total allocation.
Press reports revealed many violations and breaches had been committed by the Aviation like the lack of follow-up and collection criteria which led to high debts at the Yemeni Airlines which reached to 1.744.263.212 YR which represents 55% of the total debts of the Aviation which amounted at 3.154.613.129 YR.
Press reported that though the auditing of the Aviation accounts, it was found that the frozen balances transferred from previous years which remained unchanged were 95.712.169 YR as travel credits, 121.311.862 YR as procurement credits, 87.433.147 YR as branches and departments’ credits and 43.846.658 YR as advance salary payments.
Press reported that the auditing of the final fiscal statement disclosed that the credits balance reached to 3.181.146.599 YR.
The unpaid debts of the Aviation which had spent from the Arab Fund and US-Aids credits amounted at 685.252.4447 YR.

The Customs Authority
The exemptions of customs duties have caused loss of 12.3 billions from the state budget in 2006 and 11.7 billions in 2005 while the loss in 7 years reached to 26 billions YR. the reports attributed that to increasing bodies and entities which got freed under top level directives.
An amount of (98549956) YR were collected illegally via Haradh customs office.
The financial breaches in Hodieda, the customs office had collected in 2004 an amount of (17.747.310.968) YR which 10% less the amount should be collected is (1.774.761.096) while the illegal exempt customs estimated at (15.138.409.041) and the total taxes freed amounted at (12.575.076.320) YR.
More than 70 millions were seized in two customs statements of the water authority in Hodieda.

Lands and Properties
A corruption case related to the farm planted with grass belongs to the Meats Foundation which later owned by the Yemeni Economic Foundation according to the presidential decree issued in 28/4/2002. before that, the governor of Aden had given some beneficiary contracts to some people between 1995-1996 and then to possessed by them according to the approval of the Agriculture Minister in 31/3/1997. Based on that, the local trade company (former Meats Foundation) had distributed living contracts to the employees of the foundation within the grass farm. In return, the Lahj properties office had issued renting contracts within the lands of the former Meats Foundation. Some of lands owners had sold their lands to others who had in turn built on it. As a result of the repetition of possessing the lands to different people, it was discovered that the size of the lands given to people under the different contracts is much more than the actual size of the farm.
The people of Mahweet had submitted a complain to the head of COCA against the local council in Mahweet who assisted an employee of the Jumhori Hospital to loot a part of the hospital public land and built on it which is a clear violation of the law.
In Lahj, the disabled people and the graduates of Agriculture Collage had filed a complaint against the head of taxes office who had seized a land sized 105 hectares which was granted to them by the president in 1998.
In Shabwah, 17 government officials were involved in the seizer of about 36 pieces of lands which were marked as public service areas.
Some state influential entities had looted a huge size of Aden military camp lands which is about 72 thousands square meters built on it vegetables and fruit refrigerators which were once rented to a Yemeni investor with an amount of 300 thousands YR per month for 15 years.
The Military police in Aden had seized the land of Al Nasser planned living complex in Aden. The State Properties Authority in Aden had granted in 1997 renting contracts to some officials and police officers in the complex although it had granted the same land in 1993 to 57 citizens.
Press reports had revealed that about 918 cases off illegal land granting in Aden of which military leaders and officials had benefited. However, top level directives issued to the Attorney to close the file completely.
About 65 millions and 500 thousands YR were the amounts of reimbursement of 125 people against the losses of their houses in Kaltex area in Aden. These amounts still not released by the reimbursement committee headed by Abdulkareem Al Shaif, the Aden governor deputy since 2006.
Armed people backed by security forces in Aden had seized forcibly a land of 250 yokes owned by a citizen called Faress Taha Hussien located in Beer Ahmed. The owner was arrested and illegally imprisoned and was subject to threatening by some security officers to surrender the ownership of his property and hand in the lands certificates or stay in prison.
The heritors of the late Mr. Haidar Hussein Al Wessabi had urged the president of the country to interfere in solving the problem of their land located 16 km out of Hodiedah which was seized by the vice parliament speaker, Mr. Yahya Al Rae (current Speaker of Parliament now). They reported that Al Rae had rejected the court verdicts for the interest of Al Wessabi heritors and went on to the extant that he had threatened the executive authority in Hodiedah if they stand by the heritors.

The local Authority
A Cracker in Abyan was sold by the deputy governor and some sheikhs at the price of 3 millions YR and the Cracker was smuggled Taiz guarded by security forces. When the head of Bridges Authority had informed the police, one person was captured (the smuggler) while the sellers remained free.
It was reported that the local council of Ammran had accused the secretary general of spending 30 millions YR as payments to some people in the end of the fiscal year in addition to other amounts paid as allowances for different purposes without the knowledge of the council.
The local council of Ibb had imposed the payment of 2000 YR on all the power users in Ibb in 2005 for the interest of the Sheikh, the head of the GPC office. These amounts were collected as fines and allowances for the power project implementer who was son of Sheikh.
The governor of Ibb, Mr. Ali Al Qaissi had announced that the cost of the construction of the Parade Area in Ibb was half billion YR spent from the exceptional budget of celebrations. However, the contractor in charge of the project reported that the cost was much higher than 1 billion YR.
The governor of Hajah, Mr. Ahmed Al Harazy, had accused a member of the governorate local council (Mujahed Al Yateem) of looting 4 millions YR and had announced that he would make the necessary measures to get him tried for corruption. In return, Al Yateem had accused the governor of playing with the funds and revenues of the governorate.
The official number of the cleaners in the capital cleaning project is 310 persons while third of the list are delusive names their allocations received by the officials who had created them.
The administrative staff of the Maeen district local council (Sana’a) was involved in financial breaches of projects budget amounted at 62 millions.
An amount of (41.234.648) YR was lost during the year 2003 by Jeblah financial unit, Ibb, which had spent the amount on investment of number of projects in the district.
The local authorities in Lahj tried to sell some shelters specified for the refugees and used to be a military camp in Kharaz. The location was given to the UNCR according to the agreement signed between the delegation and the President office in 8/9/1998 following presidential directives to turn the military camp into a refugee’s shelter.
It was reported that the secretary general of the Shma’ateen district local council in Ibb had illegally used the equipment of the council in the reclamation of his own land since 5 years when he was working as head of the service committee. In addition, the citizens of the district had complained that his son has been using the car of the council in selling Qat.
The students of the Higher Institute for Administrative Sciences in Taiz, had complained that the administration had illegally imposed the payment of 500 YR from each student who file a complain about the result of the exams.
It was reported that an amount of (82.423.110) YR was spent on uncompleted and unfulfilled projects in Shma’ateen district, Ibb..
It was reported that in Shma’ateen district, Ibb, an amount of (30.222.237) YR of the taxes revenues was not cleared by financial officers for years.
An amount of (62.880.000) YR was the uncollected revenues from the local markets renting fees. In addition, an amount of (549.176) YR was collected as fines and local revenues and spent illegally in Shma’ateen district, Ibb.
The properties and assets of the Consumer Associations in most of the Yemeni governorates got looted and used for personal purposes. Moreover, parts of these properties were sold to some executive local council offices.
The water project of Karash district in Lahj was described as a failure after two months of its inauguration by the president of the republic in November 30, 1999. the water tanks were just for show and its new water pipes were sold by an influential sheikh and replaced by poor quality ones.

Other Infringements
It was officially proved by documents that the administration of the Free Zones Authority in Aden had deducted an amount of 155.000 YR from the salaries of 12 employees. Meanwhile, some other departments of the Authority had illegally paid huge sums for different unjustified allowances; 70.000 YR as escorting allowances, 200.000 YR paid to the governor of Aden as allowances for his efforts in facilitating the operation of the free zone and investigating corruption cases. Another amount of 150.000 YR was paid as a travel allowance to Sana’a for the chairman of Free Zone, Mr. Mohammed Hamoud Al Wathan.
The COCA report disclosed many financial breaches committed by the rural development project in Raimah such as an amount of 1 million YR and 1767 USD (15%) out of the total project allocation (012.000.17) USD were not cleared.
An amount of (105.926.238) YR was donated by the UNDP to the Productive Families and Social Development Program but not audited by the COCA.
About half million USD, 500 million YR were misused during the construction of 66 classroom buildings in Aden which were funded by the social Fund.
A cultivating machine was sold by the Sheikh of (Ga’ashen) ,who is a member of the Shoura Council, to a contractor from Ammran at the price of 7 millions. The plough, a public property, was seized by force by the Sheikh from Dhi Sefal district 3 years ago and taken to his province.

Issued by the Yemen JAC Association for fighting corruption

The first Annual Report Team:

Mr. Ahmed Al Zekri

Mr. Nabeel Abdulrab

Mr. Ibrahim Ghanim

Mr. Zakria Al Hussami

Mr. Hamdi Abdulwahab

Mrs. Tawakol Karman

Sana’a, May 2008.