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.

Why?

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 …)

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