Armies of Liberation

Jane Novak's blog about Yemen

Two important Yemen economic reports

Filed under: Corruption, LNG, Oil, Yemen-Economy, govt budget, non-oil resources — by Jane Novak at 9:11 am on Friday, May 9, 2014

That ” ‘Yemen’s PUBLIC TREASURY is mainly relied on OIL and GAS production that constitutes 60-65 percent of government revenues in recent years is not the shocking news’; however corruption state in the Ministry of FINANCE and of OIL is the fresh issue revealed by specialized committees of the Public Shadow Authority* affiliated to Revolution Salvation Front (RSF)* in 2 separate monitoring reports:

Monitoring Report on Finance

Monitoring Report on Oil and Minerals

Protocols Of Corruption In Yemen, via The National (updates continue)

Filed under: Corruption — by Jane Novak at 6:58 am on Wednesday, April 23, 2014

Good analysis! The breath and depth of corruption in Yemen is hard to fathom. Usually reports are all about “influential people” or “important Sheikhs,” which doesn’t highlight to the international community that its their “partners” that are looting Yemen.

الاثنين، 14 أبريل، 2014

Protocols Of Corruption In Yemen National Yemen/ By Mohammed al-Absi

Hamid al-Ahmar and Shaher Abdel Haq have acquired an operator license for a mobile phone company costing 20 million dollars. In Sudan, the same license costs 150 million dollars, and in Lebanon it costs one billion dollars. In this way only, most of the country’s wealth, resources and fisheries are sold.

Many sheikhs of the second and third degree—not sheikhs of first category—receive monthly payments ranging from ten to twenty thousand dollars a month from Yemen’s oil companies. These payments are listed on balance sheets under the item “Security Consulting.” The funding for these payments comes out of Yemen’s share of oil profits, and thus from the state treasury, and Yemen’s revolution was not enough to put an end to these payments.

These corrupt payments are delivered solely to sheikhs. The sons of military leaders also take a cut through their positions at the head of security companies inside the oil market, known today as the “security trade.” Yahya Saleh, Mohsen Ali Mohsen, and Nagel Ghalib al-Kamsh are just a few examples!

In general, there is no state sector able to recoup these losses. This stands in particular contrast to other oil-generating states in the region.

In Morocco, 24% of GNP is accrued from taxes; in Djibouti 21%; in Lebanon 17%. In Yemen, taxes only constitute 6% of GNP.


Because of the relative marriage between power and commerce.

All of the involved parties are traders and officials, and all of them are relatives to each other. All of them work only for their personal interests.

Wasted resources and oil wealth can free Yemen from begging from donors. But what should be done under such corrupt rule? It is impossible to use our dwindling resources on the interests of the country given the controlling hands of the tribes, sheikhs and traders.

It is difficult to list Yemen’s sheikhs’ according to the privileges and industries claimed by each. If Sheikh Mashreqi supplies the tents for Yemen’s Armed Forces, what about Sheikhs al-Shayef, al-Kader, Mkassa, Iboulihom, and al-Awadi?

Al-Ahmar Group investments for Trading weren’t just a big enterprise on their own, but they were also processing and establishing private and public shelters for the army. These investments gave the al-Ahmar Group power through their agents, the TEMETOY Finnish company. Of course, this arrangement occurred under the direction of the former president.

The number of arms traders among sheikhs and military leaders cannot be imagined. Some of the most famous are the owner of the Peace Conference and al-Houthi Governor Fares Manna.

Even the media’s favorite officials have fault, like Secretary of the Capital Abd al-Qader Helal—who spent almost 320 million dollars repairing roads and building bridges that did not fix congestion but simply relocated it. Helal said that he was having trouble finding projects without declaring any tender. So what about the fifty bridges given to Helal’s company without any tender declared?

The worst kind of corruption in Yemen is the lack of administrative efficiency among officials when contracts are signed. This is like selling a kilo of gold at the price of a kilo of zinc.

As another example, Saudi Arabia doesn’t buy its natural gas as a raw material because some gas derivatives are very expense. It’s better to sell derivatives instead of selling the raw gas.

Every time I write, I promise to write optimistically, to avoid frustrating the people. But what can I do?

There is no electricity or fuel in Sana’a, and every day and night officials crow about false achievements. In fact, they are destroying our future as they spread the corruption of the past and present.

Related: Half of Yemen government employees don’t exist

Atlantic Council Minister of Industry and Trade says half of public sector workers are “ghosts”

In an interview with the newspaper al-Hayat, Yemen’s Sa’ad Ad-deen bin Taleb talked through the economic and energy crises plaguing the country. He spoke at length about the government’s decision not to lift fuel subsidies as a result of the outcry from citizens and the burden it would impose on them. Bin Taleb called on donors to invest in alternative energy in order to ease this burden. He revealed that more than half the number of public sector workers are “illusory,” with salaries going to people who do not exist or who do not engage in their work. Bin Taleb was speaking specifically about the military and security forces but remarked, “There are other sectors that have this problem; we call them ghosts.” [Al-Masdar (Arabic), 4/15/2014]

More: A 2014 Yemeni parliament report on the country’s oil sector stated that foreign oil firms operating in the oil-producing regions of Hadhramaut, Shabwah, and Marib paid a total of US$238 million each year to Yemeni army generals for ‘security services’. The report stated that the commander of an armored brigade in Hadhramaut was directly paid over US$2 million a month by a Canadian oil firm to protect its operations. These payments were made without oversight from the Yemen Defense Ministry.

New report documents corruption, mismanagement in Yemen’s Ministry of Minerals including TOTAL gas contracts

Filed under: Corruption, Employment, Enviornmental, LNG, Oil — by Jane Novak at 3:18 am on Wednesday, April 16, 2014

Update: Awesome, its at Yemenat here in proper formatting: Monitoring report on Yemen’s Ministry of Oil and Minerals, a very important report.

Original: Hopefully I’ll find where it is posted on the web but until then here’s the intro and then the report: (Read on …)

Hadramout tribes warn oil companies against corrupt practices, environmental disasters

Filed under: Corruption, Enviornmental, Hadramout, Oil — by Jane Novak at 2:42 am on Wednesday, April 16, 2014

Essentially they are demanding equal access to work as well as the remedying of environmental damage, but the Sanaa oil mafia is very powerful and the foreign companies (TOTAL and DNO) know it:

Warning for Oil Companies

Hadramout Tribes Confederacy (HTC) warns oil companies operating in Hadramout to give any future contracts or duties have been already given to contractors from the concession areas or from Hadramout or outside Hadramout; except for work to remove the remains of the pollution caused by the oil pipeline explosion which damages the local community and the environment.

If this procedure is meant to fulfill one of HTC’s demands, it is not acceptable to be implemented in this way without the knowledge of HTC and without the coordination with HTC. Oil companies have called some contractors from the concession areas, but did not call other contractors, to Sana’a who were given improper and non transparent work contracts. Maybe these contracts were given to concession areas’ contractors in an oblique manner with previous settlement with old influential contractors to continue their business but with Hadrami faces;and this is meant to cause conflict among contractors from Hadramout.

That is why HTC strongly refuses contracts, whether they are already given contracts or potential ones, to be given in this suspicious manner. At least it should be coordinated with HTC to implement one of its demands and to distribute it equally and transparently among local contractors; in order to stop improper agreements imposed on local contractors and protect their rights, and not being blackmailed by the Oil Mafia in Sana’a.

Based on this, HTC alerts these companies to retreat from these improper methods otherwise they have to bear the responsibility of what may result out of it.

Issued by:
Hadramout Tribes Confederacy (HTC)
15th of April, 2014.

More from the HTC:

Hadramout Tribes Confederacy (HTC) official website issued PR No. 50 on 9th of April 2014 regarding urging Hadrami people to take responsibilities

HTC PR talks of the intended escalation of violence in Hadramout carried by Republic of Yemen (RoY) forces and other groups like what happen in Al Shehar city by shooting civilians and governmental services premises by RoY forces; and shooting in a crazy way at the street of Mukalla and hit the head of Mukalla central Jail by RoY forces.

The PR mentions many incidents which took place in the past few days, from the date of the PR, in Hadramout like killing of innocent people, kidnapping, shooting, threatening by official forces or gangs that are supported by frivolous influential groups.

HTC calls all members of the Hadrami community whether they are working in the government or others to stand united against such lawlessness campaign against Hadramout and its people. It also warns influential groups who wage such campaign and that HTC will not keep quiet about it.

You may need to refer to HTC website (link provided below) for more details in Arabic Language: on Challenging Secrecy in Yemen

Filed under: Civil Rights, Civil Society, Communications, Corruption, Media, smuggling — by Jane Novak at 10:10 am on Friday, September 27, 2013

Transparency’s Home Page for Yemen contains the Challenging Secrecy series of short vids, English subtitled, dealing with access to information, a critical topic (click the “Next” button to get it started if it doesn’t autoplay):

Yemen rented electric generators for more than their purchase price

Filed under: Corruption, Electric — by Jane Novak at 10:06 am on Sunday, September 30, 2012

Every ministry is like this, the sums are enormous, but without holding anyone accountable (all crimes were forgiven in the amnesty), there is little incentive to change practices or be more transparent. Also this scam (where generators were rented for greater than the amount of purchase, and the funds allocated exceeded the amount billed) is coming to light via the SEMC not COCAO or SNACC.

The strain on the majority of the populace which lacks of electricity is tremendous. For the origins of the electric shortage, mismanagement and overt theft of allocated funds, see my category Electric. Its also pathetic that all these scandals are only receiving serious scrutiny years after I first wrote about them, whether its the Port of Aden, the oil smuggling, the LNG deal, the diversion of medical supplies; the point being grand corruption was never a secret, and the starvation now is not due to a lack of aid or money but corruption and malfeasance.

Economists and journalists accuse Minister of Electricity and energy of tampering funds allocated for providing power

The Studies and Economic Media center (SEMC) has urged the Yemeni government to uphold transparency in clenching power purchase contracts to offset the electricity shortage across the country.

The Center criticized the violations committed by the government when it bought a total of 60 megawatts over the past few months at the price of of 35.5 million to offset electricity shortage in Aden for two years.

The amount, which is much higher than the real value of the leased generators generating the purchased power, also includes 3.5 million in insurance to be paid for maintenance and fuel, it highlighted. It pointed out that the power bills handed over to Aden port and free zone customs authorities amounted to only 10 million while the value of the purchased power stood at 35.5 million dollars. (Read on …)

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