Armies of Liberation

As the state runs out of money, this is the latest in a series of clashes with soldiers and tribal fighters prompted by overdue salaries.

News Yemen: Security forces have clashed with some fifty protesters, who supported the army in the war against Houthi rebels in northern Sa’ada and wounded during the conflict, near the 1st Armored Division in the capital Sana’a.

Protesters demand the government to pay YR120,000 (almost $600) for each as compensation for injury. Protesters said the government promised to pay them the money but it did not fulfill the promise.

Eyewitnesses said protesters blocked the highway against the 1st Armored Division with iron barriers and big stones and threw stones at security forces. Protesters have also attacked a police car and assaulted a security officer.

Security have opened fire in air to disperse protesters and unblocked the highway, eyewitnesses said. But they said that three soldiers were seen laying on the ground and ambulances were seen rushing to the scene. Sixth war in Sa’ada came to end last February, but many people still suffer post-war consequences.

CBY already injected 20% of its reserves as purchasing power shrinks amid continued public insecurity. A Yemeni economist earlier postulated that excessive money laundering has had a negative impact on the value of the riyal.

Yemen Observer Yemeni riyal fell further against the US dollar as the central bank pumped $57 million into the exchange market, the latest of a series of cash injections to support the tumbling currency which hit a record low this week. (Read on …)

In 2005, Yemen made several repeated announcements that it was going to cut its bloated diplomatic corps in order to reduce expenses. I think it was around the time they were angling for Millennium Challenge Funds. But of course it was all propaganda and the only embassy closed was in Romania. Ambassadorships are quite lucrative, and often used as rewards or to get outspoken people out of the country. The embassies abroad are frequently centers of corruption and sometimes crime and often have networks that spy on Yemeni expatriate communities.

Republican Decrees appointing ambassadors issued
[25/يوليو/2010] SANA’A, July 25 (Saba) – Six Republic Decrees issued on Sunday appointing Yemeni ambassadors to a number of countries:

1- Decree No. 143 for 2010 appoints Yahya al-Sayaghi as an ambassador of Yemen to Cuba.

2- Decree No. 144 for 2010 appoints Abdul-Qawi al-Eryani as an ambassador of Yemen to Turkey.

3- Decree No. 145 for 2010 appoints Shaiy al-Zandani as an ambassador of Yemen to Jordan.

4- Decree No. 146 for 2010 appoints Jamal Nasir as ambassador of Yemen to Algeria.

5- Decree No. 147 appoints Zaid al-Wareeth as an ambassador of Yemen to Iraq.

6- Decree No. 148 appoints Mustafa Numan as an ambassador of Yemen to Spain.

Isria

Yemen – Saleh: My visit to Russia to discuss military deals’ debts

President Ali Abdullah said he discussed with Russian Prime Minister Vladimir Putin Yemen’s debt of military purchases which exceeded USD 2 billion. (Read on …)

The tribal paramilitary hasn’t been paid, violence ensues. I believe this happened in the last wars as well, likely the money got pocketed if it was paid at all.

Yemen Post: An army officer has been killed and three soldiers and unidentified number of tribesmen injured in the clashes that are still continuing between the army and tribes in Al-Ashah district in Amran Province. (Read on …)

Nice. But they got a good chunk of funds already via this pipeline.

AlawasatAsharq Al-Awsat – Al Qaeda revealed on Thursday the identity of one of the most dangerous women in the organization who was detained by Saudi security forces last February. Sources told Asharq Al-Awsat that Haylah al Qassir was arrested as part of a group of 113 terrorists for having links to Al Qaeda in Yemen. The arrests were announced last March.

An audiotape attributed to Al Qaeda was released on Thursday in which Saeed al Shehri, a deputy leader within Al Qaeda, called for kidnapping Saudi government officials in revenge for Haylah al Qassir’s arrest that was carried out by the Saudi authorities in Riyadh. Al Qassir is described as one of Al Qaeda’s most dangerous women. (Read on …)

SANAA – Fuel subsidies and tax evasion are the biggest strains on Yemen’s finances and need to be dealt with swiftly to allow the impoverished country to turn its economy around, the Yemeni finance minister said. (Read on …)

Yemen Observer – The General Labor Union in Yemen (GLU) called all workers in Yemen to initiate a general strike starting on Saturday, May 15. (Read on …)

Lets see who gets the contracts and if anything ever gets built.

TML: Yemen plans to build six beach resorts over the next five years to change the image of the war-torn country and draw tourists. (Read on …)

The cost of diesel in Yemen is about 60% under world consumer prices, and the two million spent on the subsidies primarily benefit smugglers. The cut in the subsidies should be incremental and accompanied by an increase in the social safety net and firm anti-corruption measures.

WaPo: The Yemeni government, struggling to turn around its economy, raised the price of gasoline to 70 rials ($0.339) per liter from 65 rials, while the cost of kerosene was raised to 45 rials per liter from a previous 40 rials, officials from the Yemeni Oil Ministry told Reuters. (Read on …)

Yemen Times

Dr. Mohamed Jubran, professor of economics, to the Yemen Times:
Money laundering is responsible for the devaluation of the Yemeni riyal

He is often quoted by local newspapers and television channels on economic issues, and is well-known among economic reporters and business editors. He used to be a member of the Islah party, but now only focuses on the economy.

In his sitting room at the week-end, he finishes writing up a research paper on his laptop and scans a study about the economy of Yemen. This is Dr. Mohamed Jubran, professor of economics at Sana’a University and he is the person who always finds the courage to speak his mind on any activity related to the economy, business or banking. (Read on …)

What is that, about 400K US? And the story is the Health and Education Ministries withdrew the 400K for salaries from a bank in Zanzibar, Abyan and were driving back when they were highjacked and robbed, and no one could call the nearby military camp because the phone lines were cut by the state earlier in the month. There was an earlier bank robbery in Aden.

Yemen Observer Unknown gunmen seized a car carrying the salaries of the Education and Health Ministries in Loder District in Abyan on Wednesday in the biggest armed robbery operation. (Read on …)

Yemen Post: Yemen has said that it needs $ 44 billion to implement its fourth five-year economic and social development plan for 2011-2015 and urged donors to release their pledges made during the 2006 donor conference in London. (Read on …)

A government that operates so far above the law that it doesnt pay its own electric bills is going to have difficulty with reforms. Yemen Observer

YEMEN – The Ministry of Electricity, in collaboration with the Ministry of Finance and Justice, has a plan to reduce its debts, collecting more than YR20 billion from individuals and institutions, said Awad al-Socatri, Minister of Electricity and Power at a press conference in Sana’a Sunday evening. (Read on …)

I lost the link! I think its from the Yemen Times, I have to check it.

Governmental offices’ corruption cases are totaling to more that YR1.5 trillion in illegal transfering, equivalent to the current state’s budget, said a first draft report by Yemen Journalists Against Corruption (Yemen JAC), in collaboration with the Journalists Without Chains Organization.

The report registered 126 corruption cases last year. The oil sector, registering 19 cases, was at the top of the list, with more than YR700 billion in corrupt deals. Aden Oil Refinery Company illegally bought oil products worth YR300 billion alone without announcing bids. “This contradicts the Bid Act by which all companies should abide,” said Nabeel Abdurab, one member of Yemen (JAC). (Read on …)

An in depth profile of Yemen’s ambassador to the US at Time today fails to note that Abdulwahab Abdulla Al-Hajjri is President Ali Abdullah Saleh’s brother-in-law.

Time: The reason his bosses have kept him there so long, he says, is that “they think it’s an investment, because they think you develop experience and an understanding of how the system works.” Yemen’s ambassador to the UN is also a relative of the president.

In Yemen, the concentration of power in the hands of Saleh’s family goes beyond their control of the instruments of force (military and security forces) and extends to the national economy. The NYT noticed recently that many of President Saleh’s relatives are top security commanders.

(Presidential son) Ahmed Saleh is head of the Yemen Republican Guard and the country’s special forces. The president’s nephews — sons of his late brother — include Amar, the deputy director for national security; Yahye, head of the central security forces and the counterterrorism unit; and Tarek, head of the Presidential Guard. The president’s half brother is head of the air force.

As the following listing I compiled in 2006 demonstrates, Saleh’s relatives also control a large segment of the Yemeni economy in addition to their duties as military leaders. They also “own” much of the land. One trigger for instability in Southern Yemen is widespread land theft by the ruling family. The corporations listed below are huge monopolies in various business sectors.

President Saleh’s Relatives’ Economic Interests

Ahmed Ali Abdullah Saleh, Special Forces and Republican Guards Commander, Eldest Son, Al-Haj Company For Heavy Equipments and Cars

Ali Abdullah Saleh, President, Partner of Tawfick Abul-Raheem, Sole Distributor of Gas and Petroleum Products

Ali Mohsen Al-Hamar Military Commander Northern and Western regions, Hawan For Petroleum Services and Alraida Group for Engineering.

Khalid Alarhabi Deputy Chief of The Presidential Palaces, Son in-law ,Yemen Space Company

Mohamed Saleh Al-Hamar, Air Force Commander, Half Brother, Alhashidi Petroleum Company

Yahya Mohamed Abdullah Saleh Commander Of Security Central Forces, Nephew, Al Mas Company For Petroleum Services and Ha Wi Cable Chinese Company
(Read on …)

After years of delay during which this bill was brought forth and then rejected by Parliament, Yemen passed a counter-terror financing law. The argument against the law was that it would hamper efforts to fund “legitimate resistance” movements like Hamas and other charitable giving. Also recall in 2005, when the UN circulated a list of 144 bank accounts associated with al Qaeda and/or the Taliban, Yemen closed one and took no further action in subsequent years. See also my category Parliament.

SABA: The parliament ratified on Tuesday the International Convention for the Suppression of Financing of Terrorism.

Concluding its second session for the second term of the seventh annual round, the parliament also approved a law draft against money laundering and terrorism financing as well as a law draft of amending some articles of the civil procedures law.

Ratifying the International Convention for the Suppression of Financing of Terrorism by the parliament comes within the state efforts to combat terrorism in all its forms.

The Yemeni government traditionally skimmed a lot of oil revenue by under reporting both the volume and price of oil sales, and large amounts of subsidized imported diesel were smuggled abroad. Efforts at economic diversification were hampered by massive corruption, bureaucratic infighting and ineptitude and the lack of political will or perhaps comprehension. Its hard to see how they are going to make the civil service and military payroll going forward. The government payroll is the main reason why people in the north aren’t protesting, like those in the south. Jobs are very scarce in Yemen.

Yemen Post Yemen’s oil revenues sharply fell during the past ten months by 65 percent to $ 1.473 billion compared with $ 4.149 billion in the same period last year, government reports have said. (Read on …)

The inability of small businesses to get a credit line is actually a huge issue, dull perhaps but consequential. It impedes the diversification and growth of the economy by region, product and ownership. As the recent tightening of credit globally stunted the world economy, in Yemen negative result of the failure of banks to grant credit to small and medium businesses is magnified by other economic factors including corruption and the lack of infrastructure including electricity and roads. At the same time the banks make a wide range of inappropriate loans to “influential persons”, a practice that lead to the seizure of the Watani bank a few years ago.

Micro-credit has been one of the most effective methods globally of raising poverty stricken groups to self sufficiency. When people have an opportunity to better their future, they usually do, and work very hard doing it. The heart of a healthy economy is small businees, and in Yemen there are so many monopolies and unfair practices. Factionalism and identity politics are the norm, with marginalized groups also excluded from credit and therefore economic opportunity. Its another detrimental offshoot of the unipolar configuration of the political landscape and the increasing consolidation of economic structures (including land ownership) in the hands of the elite (Saleh and his gang). The Yemen Post reports on a study by the IFC:

The Yemeni banks are unwilling to grant credits for small and medium enterprises or they may give conditional credits for high profits due to high risks, a study has said.

The study conducted by the International Finance Corporation also noted that most of the small and medium enterprises in Yemen are not much qualified for loans because they don’t have enough guarantees. The ratio of credits to deposits is very low, about 33 percent, it finds, adding that only 4 percent Yemeni people have bank accounts. (Read on …)

The problem with the diesel subsidies is the vast majority of the money dedicated to supporting the low oil price actually helps the smugglers not the poor. About a third of the entire government budget is spent on subsidies.

SABA FM: Govt supported oil derivatives with $ 3.5 billion in 2008

SANA’A, Nov. 15 (Saba)- Government supported oil derivatives with $ 3.5 billion last year, Minister of Finance said on Sunday.

In a meeting for the technical committee of ministerial office for priorities, the minister Noman al- Sohibi said that such support made a big burden on the general state budget, adding that the government also supported the sector of electricity with $ 1.1 billion in 2008.

He affirmed importance of decrease the support of the government for oil derivatives in order to insure continuing funds of the state.

This is very close to the model needed for Yemen. Sec State Clinton called for a major crimes tribunal in Afghanistan, and an official described Afghanistan as a “criminal mafia state”™. They should take a closer look at Yemen! Its the same paradigm.

The problem with this concept, a well trained and driven corruption task force, in Yemen is that foreign intervention even in the form of training will create more tension, and none of the actors will agree, but the basic principle is correct. There needs to be a drastic intervention to clean the upper echelon of the Yemeni government of their corrupt practices and networks, a caretaker government perhaps.

Not a foreign intervention, no I’m not calling for any sort of invasion, but an authentic effort at accountability would significantly reduce tensions nation wide. Not dialog, not war, not symposiums, not arrests, not bombing, and not military aid. And please don’t talk to me about SNACC or COCA, they are way too weak. At the same time, per some insightful discussion, the issue of amnesty is critical if any restructuring is to occur, for obvious reasons. I’m glad at least the US is recognizing the heart of the issue, a criminal mafia state™ and the resulting loss of legitimacy and efficiency, even if it is in a different country.

Guardian: Nato taskforce to form ‘Afghan FBI’ and root out high-level corruption

Clinton calls for ‘major crimes tribunal’ as west loses patience with Karzai government

Western soldiers are to begin investigating high-profile Afghans suspected of involvement in what one American official describes as a “criminal mafia state” in a sign of the growing international exasperation with Hamid Karzai’s failure to crack down on corruption.

A taskforce being established by Nato in Kabul will consist of a small team of anti-corruption officers, as well as a criminal investigator and prosecutor who hope senior generals will be able to stop cases being derailed by opposition from the Afghan government.

Details of the body emerged as the US secretary of state, Hillary Clinton, said Washington had called on Karzai to create a “major crimes tribunal” and an anti-corruption commission. (Read on …)

For years, the fishing statistics never added up for me, and finally we have an official recognition of the issue. The figure is 40,000 tons annually or about 20% of total production, but its a rough number. That the statement was made by the Fisheries Minister and published by SABA is encouraging but only to the extent that the corruption is countered in an effective way. There has been public disclosure of many organized criminal activities, but little meaningful efforts to disrupt them after. There are a few potential non-oil industries that could be developed to replace the rapidly depleting oil economy and one of the most important is the fisheries.

SABA 40000 Tons of Yemen Fish Trafficked Annually, Minister Reveals
(Read on …)

The gas, like the oil, is in the south. With the EITI agreement about to fall flat on its face from a lack of transparency about oil sales, prices and volume, one would expect the proceeds from the LNG sales to be stolen at a similar rate. Click here for my 2006 write up of some of the issues associated with the LNG project.

Yemen Times On Oct. 15, Yemen Liquefied Natural Gas (LNG) announced the Company started producing from its liquefaction terminal in Balhaf, on the Gulf of Aden.

The Yemen LNG project is the largest and most important investment ever made in Yemen with an investment of around USD 4.5 billion. It consists of supplying gas from Block 18, located in the Marib region in central Yemen, through a 320 kilometre pipeline to the LNG plant located at the port of Balhaf on the Arab Sea, south east of Yemen.

The plant started production with the first train while the construction of the second train is being completed. The total production capacity will reach 6.7 million tons of LNG per year.
Launched in August 2005, the project shareholders are TOTAL (project leader) (39.62 percent), Yemen Gas Company (16.73 percent), Hunt Oil Company (17.22 percent), SK Energy Co., Ltd. (9.55 percent), KOGAS (6 percent), the General Authority for Social Security and Pensions of Yemen (5 percent) and Hyundai Corporation (5.88 percent).

Who owns the ECY? No one is sure. The ECY used to be the EMC, tasked with military procurement, and it expanded into other fields. There’s no oversight on its practices or review of its balance sheets. Yemen Herald

SANAA, 25 Oct — In a stormy session, members of parliament Sunday demanded clarification on the ownership of the Economic Corporation of Yemen (ECY), and called for investigation into claims of corruption committed by the corporation. The members refused to vote for a $21.0 million dollar loan for ECY and Trade Minister, Yahya al-Mutawakil told the assembly “the ECY is not part of my ministry and not subject to our supervision,” adding “we have our own reservations about its management and the parliament has the right to hold violators accountable.” (Read on …)

Another story thats nearly beyond belief. After most of the other public corporations were “privatized”, the Aden refinery remains an attractive target. Yemen Post:

The Aden Refinery is facing another challenge as economists warn about the bids to privatize it, after the refinery, one of Yemen’s most crucial economic facilities, survived a sale bid that came within a drive targeting most institutions in the south.

Under the resisted privatization attempts backed by influential figures, the refinery would have been handed over to the National Petroleum and Gas Company. (Read on …)

The Yemen Observer is an English language Yemeni government mouthpiece in disguise, as is obvious from their reporting, ownership and associates, but every now and then the paper gives a factual account when it works to the advantage of the regime. Russia’s Mig upgrades added a lot to the Yemeni debt. The potential Russian use of Yemeni ports has been thrown around as a possible offset.

Yemen’s foreign debt has increased from $8.9 million to $5.9 billion since July 2009, according to the report on banking and currency developments issued by the Yemen Central Bank. (Read on …)

Companies habitually defaulting should be blacklisted, but its important to determine if this is a political move. Very few government actions in Yemen are politically neutral. Yemen Economist:

Central Bank of Yemen tends seriously to develop about 58 trade companies and exchange offices and shops on the blacklist of the bank, so as not honoring their financial obligations to commercial and investment banks operating in Yemen and abroad. (Read on …)

al Sahwa

To read the assessment of the Government’s report on its performance over the past year ..
إقتصادي يمني: الحكومة أضاعت 146 مليار ريال من القروض والمنح Economic Yemen: The government lost 146 billion rials in loans and grants
20/08/2009 الصحوة نت – مصطفى الصبري: 20/08/2009 Sahwa Net – Mustafa Sabri:

انتقد الدكتور/ محمد جبران ـ Criticized Dr. / Mohammed Gibran أستاذ المحاسبة والاقتصاد في جامعة صنعاء ـ تقرير الأداء الحكومي 2008م الصادر عن رئاسة الوزراء والذي قدم لمجلس النواب خلال الشهر الماضي. Professor of Accounting and Economics at the University of Sanaa on the government in 2008 issued by the Prime Minister and submitted to the House of Representatives last month.

وقال جبران: إن التقرير يفتقر إلى المنهجية العلمية والمهنية كما تفتقر الأرقام التي احتواها إلى أي مصدر Gibran said: The report lacks the scientific methodology and professional and lack the numbers to the issues contained in any source
رسمي كبيانات الحساب الختامي، وتقارير الجهاز المركزي للرقابة والمحاسبة، وتقرير البنك المركزي السنوي، وكتاب الإحصاء السنوي. Official data of the final account, and reports of the central control and accounting, and the annual report of the Central Bank, the Statistical Yearbook. (Read on …)

SANAA, Aug 20 (Reuters) - Yemen, beset by internal strife and tumbling oil income, expects economic growth of 5 percent in 2009, with delays to gas exports putting an earlier 7 percent target beyond reach, a central bank official said on Thursday.

Ibrahim al-Nahari, sub-governor for foreign banking operations, told Reuters in an interview that gross domestic product (GDP) had expanded 4.66 percent last year…

Hisham Sharaf, vice minister for planning and international cooperation, told Reuters the unspent funds (ed-from the 2006 donors conference) total $3.2 billion, aside from aid from bilateral donors with existing programmes…

Oil revenue dropped 75 percent to $665 million in the first six months from the same period last year due to the combined impact of lower prices and declining production, Nahari said. (Read on …)

Update 2: from the YO The News Yemen website cited the Manager of the Administrative affairs at Arab Bank Headquarters in Sana’a, Mr. Mansour Ghazi, as saying that the entire news report is baseless and that there was a misunderstanding about the entire issue. Oh well that explains it.

Update: Yes the money is missing, the robbery took place next to a police station by persons wearing police uniforms who fired into the air, also in custody bank officials, Saba

Original Post: Did they get away with the money? This could be anybody pulling this stunt.

London Free Press Yemeni authorities arrested half a dozen men, whom they say are affiliated to al-Qaida, on suspicion of robbing a bank’s armoured car, a security official said Wednesday.

The men are accused of a brazen daylight robbery of $500,000 from an armoured car of the Arab Bank that took place Monday in the port city of Aden.

The official said the militants were seeking to finance their operations and recruit fighters around the country.

The six men are now being interrogated, the official added on condition of anonymity because he was not authorized to speak to the press.

Jakarta bombers tied to Mid-East militants, The Age

TIES between Middle Eastern extremists and the terrorist cell that launched suicide bombing attacks on two hotels in Jakarta are emerging after the arrest of an alleged financier of the plot who lived in Saudi Arabia… Noordin, South-East Asia’s most wanted man, remains at large, with police in Bekasi, outside Jakarta, saying they have begun inspecting women wearing burqas, believed to be a favourite disguise of his.

Financial links between Noordin’s cell and Middle East militants, including al-Qaeda, are being closely investigated by Indonesian police, according to counter-terrorism sources….As well as the reported arrests, there is another apparent Arab connection to Noordin’s cell.

Saifuddin Jaelani, an Islamic cleric who allegedly recruited at least one of the suicide bombers for the hotel attacks, spent four years in Yemen as a student.

Raising further suspicions about his activities in the country, where al-Qaeda has had a significant presence for more than a decade, Saifuddin did not register as a student while he was living there.

According to the Jakarta Post, he received several large payments from Yemen in the lead-up to the bombings.

The information could not be verified, but Indonesia’s Centre for Financial Transaction Reports and Analysis has detected 68 financial transactions possibly linked to terrorism between 2004 and 2009.

Yemen Post

Informed sources at the Ministry of Electricity revealed that the official launch of the gas-powered station in Mareb will be postponed for few days due to numerous problems. (Read on …)

Half of Yemeni children are stunted from malnutrition. That’s a stat from 2006, things are much worse now. A third of Yemenis are malnourished, and children suffer the most. However corruption, economic monopolies, wars and the diversion (and sale) of aid are among the most detrimental factors impacting Yemenis.

World Food Programme appeals for $23 million to help Yemenis women and children 9. July 2009

The World Food Programme (WFP) issued an urgent appeal on Tuesday for $23 million in “financial support from international donors for food aid to Yemen specifically targeted at women and children,” AFP/Google.com reports. (Read on …)

Must adhere to the party line or else… The French maintain the plane was banned; Yemeni authorities insist it never happened. The military aircraft have similar problems with upkeep on their fleet. The maintenance budget(s) are subject to embezzlement, there’s no oversight and the press is barred from reporting on the military. A journalist who did was kidnapped a few years ago.

al Motamar
Aviation Committee is to sue media instruments that offended Yemeni Airways reputation
Thursday, 02-July-2009
Almotamar.net – The Yemeni Higher Committee for follow-up Aviation Incidents has on Thursday on all different media instruments to the necessity of observing the facts about the crashed Yemeni Airbus plane A 310 that crashed offshore Comoros last Tuesday.

The Yemeni Transport Minister called, in a press conference he held at Sana’a International Airport a short while ago, on the media hat published wrong information to correct them , affirming their keeping the right to sue those media instruments that endeavour to target and offend the reputation of the Yemenia Airways Company via publishing wrong information.

The Minister also pointed out that the Committee has established an information centre at Sana’a International Airport for providing in formation and developments on the crashed plane and operations of rescue that would be reported by an official spokesman in the name of the Committee via continuous news conferences.

The Yemeni Transport Minister also confirmed that the crew of the Yemeni plane was of high skill and efficiency and that the Company would remain adhering to safety criteria.

Its very good of the CPJ and RSF and other journalists organizations are staying on top of the assualt on the Yemeni media, but why are the donors so quiet on the issue that is so clear cut?

From News Yemen:

Six newspapers the Ministry of Information have suspended since a month have lost Yr 80 million (almost $400,000) and as many as 200 staff lost their income sources due to the suspension and suppression against those newspapers, said a press report prepared by journalist Mohammad al-Hakimi.

A source in the Aden-based al-Ayyam daily said the newspaper lost Yr 181 million until now, approximately Yr 21 million per a week. He said the paper continues to lose money. It added that 1185 vendors who used to circulate the paper have lost their income resource due to the suppression against the paper.

The Committee to Protect Journalists calls on the government of Yemeni President Ali Abdullah Saleh to end censorship of independent newspapers and to identify and prosecute those who assaulted Al-Jazeera journalists on two occasions in the south of the country.
Fans of the suspended newspapers organized in Karesh district in Lahj last Thursday a protest to the government’s policy against newspapers.

More from the Yemen Post:
(Read on …)

What is that? One office for every newspaper that they want to drive out of business?

Yemen Post

As Ministry of Information has recently been transformed to a new site, President Ali Abdullah Saleh paid a short visit to the new ministry building earlier this week. News about the visit has two different sides.

The state-run news agency “Saba” reported that the President congratulated the ministry employees for the new building, and urged members of various media organs, audio, visual and print media, to improve and upgrade the information content and provide a meaningful messages that help the country towards progress and advancement adding that he inspected the various facilities of the ministry, the ongoing work as well as the work plan of the various institutions and organs of the ministry, however informed sources said that the President’s visit had a completely different aim.

Sources at the Ministry of Information said that during his visit to the ministry building, the President directed the ministry leadership to vacate the new building of the Ministry.
“Due to the huge size of the building compared with the small staff number of the ministry, President directed that the ministry should be moved again to the previous building giving no more details about any other body that might receive the building instead ” the source said.
The new six-store building of the Ministry of Information was inaugurated in March 19 2009 at a total cost of YR1, 899,984,000.

The building contains 142 offices; set In 264.43 square meters .It includes a kindergarten for the employees’ children, a hall for events, activities and workshops, in addition to two gardens, inside and outside car parks for more than 300 cars.

Yemen Post

Yemeni economists considered raising the prices of oil derivatives a political suicide, emphasizing that there are no realistic justifications for such a critical decision by the government.
Dr. Mohammad Jubran, Professor of Economics at Sana’a University, said that the 2009 general budget included an increase in some materials’ prices among which were petroleum products.
Jubran pointed out that, raising prices of oil derivatives in such circumstances might lead the citizens’ living conditions even worse.
He stressed that, any justifications for increasing oil prices would seem to be pointless as oil prices are within safe limits, for the time being.

Moreover, Jubran warned that taking such a step would create many problems and unrest for the country. Confirming that not more than 50%of oil derivatives are consumed locally while the rest 50% is smuggled abroad, Jubran said that Yemeni government is not obliged to support foreigners while Yemenis are deprived of their country’s wealth.

Subsidies exceed USD 4 billion, Yemen Post:

Head of Foreign Affairs Circle at the ruling General People Congress (GPC) Mohammed Al-Qubati revealed the government has no plans to increase the prices of oil derivatives on what it known among locals to be a new Jur’ah (dose).

In an interview aired by Al-Saeeda Satellite Channel, Al-Qubati stated that Yemen spends about $4 billion in supporting oil derivatives, stressing this huge sum does overburden the country’s state budget.

The governmental subsidy on oil is a huge structural problem; the subsidies are supposed to be reduced a little at a time and in conjunction with increased social support so the poor is not unduly burdened. Equally important steps include a reduction in military spending and firm anti-corruption measures. Two billion a year of public funds is diverted into the blackmarket with the subsidies, and thats just one vein of corruption in a vast web.

Land dispute, maybe disgruntled businessmen, leads to soldier’s death at the ZincOx mine.
Yemen Post

A soldier from the Republican Guards forces, led by President Saleh’s son, was killed and an officer was injured in fresh clashes with Al Al-Dhahak tribe from Al-Jawf’s Nihm district. (Read on …)

Half of Yemen has no electricity and summer is here. There’s already some deaths reported. Black-outs are several times a day. It all goes back to corruption and mismanagement.

The National

Yemen’s total production of power is 650 megawatts, and the electricity ministry purchases about 200 megawatts from international companies to address part of the shortfall, according to the ministry. (Read on …)

Its just an absolute zoo in every area. The primary problem in Yemen is the state does not obey its own laws.

Yemen Observer: The Commercial Court in the capital, headed by Judge Nabil Abdul Habib threatened to force the Parliament, represented by its Spokesman Yahya al-Ra’ai, to comply with the court sentence that orders the parliament to pay the amount of YR 340 million in rent and compensation to Mohammed Hassan al-Matari. The court, in a letter to the parliament, called for speedy implementation of the sentenced fine, and payment of rent without failure within the legal time limit of 45 days. (Read on …)

How innovative! The impetus is coming through the tourism office of which Yahya Saleh is the national head.

Yemen Observer Yemen plans to establish the first hang-gliding club in Amran province 56 kilometers to the north of Sana’a. The general director of the tourism office of Amran province Mohammed al-Moafa said that his tourism office has been constructing the first gliding platform on top of Maswar mount after the province’s leaderships have approved the studies and technical designs of the first gliding platform in Yemen.

Al-Moafa said that two French glider flying teams had flown from Maswar mount two times and decided to launch gliding flights from Maswar mount annually. “The French gliding club members have flown from Maswar mount two times and have published tourism pictures and reportages about Maswar district in addition to pictures for the members of the French Gliding Club flying over Maswar mount,” said al-Moafa.

He added that Amran province leaderships have been planning to establish the first gliding club in Yemen and within this plan a number of the Yemeni youth are to be sent to France to have gliding training so as to be the first Yemeni gliding team.

Al-Moafaf added that his office is planning to organize international gliding competitions after finishing the gliding infrastructure.

Hang-gliding is a new sport in Yemen where only one Yemeni hang-glider has practiced this kind of sport. Mohammed al-Maqalih is Yemen’s sole hang-glider though he took part in several international hang-gliding activities.

(This is one of those out of sequence posts I referred to earlier.) The MAZ Corp is huge and is headed by Yahya Saleh, contrary to the law. But many large companies are headed by military personnel, and this fact is one of the fundamental distortions of the Yemeni economy. Yahya Saleh was also recently “elected” to head the Tourism Board. (Read on …)

(Reuters) – A government report showed on Saturday that the proceeds of Yemen’s exports of crude oil saw a record drop of 74 percent in the first quarter of this year to reach 254 million dollars, compared with 998 million in the corresponding period of 2008.

PSA: There may be some odd, boring and entirely out of sequence stuff popping up over the next week, as I move private posts and drafts from the back to the front. The internal search function works more completley on posts and I need to be zipping at the moment. The stability of Yemen’s banking system is actually rather important, and its distorted, as all systems in Yemen are, by corruption.

YO 5/22,

Hafez Mayad, the Chairman of the board of Cooperative and Agricultural Credit bank (CAC Bank) confirmed that Yemeni officials, sheikhs, and well-known people are indebted YR5 billion to CAC Bank. He said that during the press conference, held last Wednesday during the ceremony for the launching of their e-banking product.

Mayad stated that this indebt came as result of the absence of follow up mechanisms in the previous time. He clarified those people (plunderers as he called them) who are indebted to CAC bank are the main factor of its failure. Mayad was responding to claims by Mps that the CAC Bank abandoned its main role related to support agricultural sector.

He said that CAC Bank will not be a resource of enrichment for plunderers anymore.
In terms of implementing government policy related to supporting the agricultural sector, Mayad said, “We work on supporting this sector by governmental money only, not by money of depositors. I mean that it is not allowed for any one to use money of depositors to support any one.”

The e-banking product is a banking system which allows you to make most of your banking transactions at anytime wherever you are through the internet, Mayad said. CAC Bank international e-banking is considered to be the first system in Yemen and in the Middle East which generates different functionality related to banking services, high technology and security, Mayad said.

Mayad said CAC Bank occupied the first rank in the financing of economic sectors during 2008 according to the report issued by Central Bank of Yemen, achieving the growth rate of 46.5 percent and contributed to the financing of the economic sector by 35.6 percent at the level of the banking sector.

Thats good stuff indeed, and yes the ruling family has billions in the UAE. More on Yahya Saleh and MAZ below the fold, but there’s so many criss- cross relations between the Yemeni adminstration and corporate misconduct that its mind boggling.

Yemen Post

With the passage of time, the democratic project has turned to be a family one and “Al-Saleh” name has started to label all government, charity and officials activities, with wide media coverage financed by state funds as well as money obtained from businessmen. This clearly indicates that the state is following the Gulf family model.

Even the ruling party, the General People Congress (GPC), has turned to be a tool in the hand of the ruling family leaderships who control its policies, decisions and financial affairs.

Political Control through Economy
General Ahmed Ali Abdullah Saleh has started to show up in mass media as paying visits to some Gulf countries to meet with these states’ kings, Sheikhs and crown-princes. The last visit was made to Bahrain on April 25 and Ahmed had meetings with the crown prince Salman bin Hamad Al Khalifa.

The recent issue of Al-Maz Company, which works as a subcontractor for Total Yemen, Total drivers revealed the way in which the sons of the ruling family obtain agency contracts from the largest oil companies. The company receives $1200 for each driver; but it just pays each one of them $225. Thus the company’s profits from the salaries of 100 drivers reach $97,000 a month.

Commissions of Protection and Partnership
Informed sources revealed that two sons from the ruling family received $40 million in commission for buying modern weapons from Dubai during the recent Russian Weapons Exhibition.

A military and economic affairs observer noted that a military leader from the ruling family got over $20 million in commissions for military deals over the years 1996 – 2005.

A Yemeni expatriate in United Arab Emirates quoted a senior Emirate official as saying that Yemeni officials from the ruling family invested over $15 billion in his country.

Land Plots and Farms
Feeling their importance, the ruling family sight has been directed towards lands and farms being one of the easiest ways, towards speedy enrichment. It is known that an influential from the ruling family owns over 150,000 Lebnah (Lebnah = 56 square meters).

Sheikh Tareq Al-Fadhli distributed plots of lands to senior officials; the areas of some plots come close to the area of a small country. They also have larger farms in Abs, Hajjah, Al-Hodeidah and Hadramout.

Army: External Gate
An observer reviewing the map of army and security will easily find that the leaders of these institutions belong to the ruling family or the areas neighboring the family’s homeland. They are assuming the leading posts in the Republican Guard, Special Guards Forces, Central Security, Air Forces, Military Areas and Brigades.

Informed sources also speak about thousands of soldiers enlisted in the payrolls but they never exist and their salaries, in millions, go to the leaders of military units in which such names are enlisted.

(Read on …)

The EU apparently has given up hope of Yemen passing that stalled terror financing law. (The law may inhibit contributions to “legitimate resistance” like Hamas, Yemeni MP’s say in explaining the inaction.) And now the strategy turns to asking other countries to strengthen monitoring of transfers by expat Yemenis and others into Yemen. The FSAT report was quite detailed in demonstrating that its a question of capacity as well as will; Yemeni investigators wait for a completed report to land on their desks. The conclusion was Yemeni money laundering efforts are in their infancy; that was 2007 I think, and not much has improved. The financial transfers to Fahd al Quso were proof enough of that. Tightening up on the external remittances is an obvious step when the internal controls are literally non-existant. Border control is another area of deficiency, especially with the Yemeni Coast Guard and Border Guard getting into frays on a regular basis.

UK News: Gulf Arab countries should help Pakistan and Yemen bolster security in the face of rising militant violence that could spread their way, the European Union’s anti-terrorism chief said Monday.

Gulf authorities should also tighten controls on possible transfers of funds to militant groups through Pakistani and Yemeni expatriates living in the oil-exporting region, Gilles de Kerchove told Reuters.

“It’s a question of knowing if we can together work with Gulf countries to try and avoiding Pakistan and Yemen becoming what we commonly call ‘failed states’ and gradually safe havens for al Qaeda organizations,” he said on the sidelines of a conference on terror financing.

“We are witnessing a regionalisation of al Qaeda, in North Africa, Iraq and the Arabian peninsula,” he said, referring to various groups using al Qaeda’s name. “It’s urgent that we help Pakistan and Yemen strengthen their anti-terrorism apparatus.”

—-

De Kerchove said Gulf countries needed to do more to combat money laundering that could benefit militants…

He said Saudi Arabia should tighten control along its long and porous border with Yemen…”Much of the anti-terrorism campaign has been led by the Pakistani army, an army that has not be adequately trained to deal with an insurgency,” he said. “In Yemen, there is a huge amount of work to be done (and) a weakening state apparatus.”

The CBY is another mess. Counterfeiting of Saudi Riyals is another concern.

Yemen Times

The political situation remains challenging. A concerted government campaign has succeeded in suppressing Al-Qaida activities but the group retains the ability to engage in sporadic incidents such as a recent attack on Korean tourists. The Government also reached an agreement with the opposition to delay parliamentary elections for two years, thereby averting a major political crisis. Finally, demonstrations in the South have become less frequent and violent. Concerns remain, however, over the fragile peace accord with the Houthis signed in July 2008, which is threatened by intermittent clashes and mutual accusations of breaches. (Read on …)

Drops 8 points in first quarter, News Yemen

Governor of Central Bank of Yemen Ahmed al-Samawi said on Tuesday that the rate of inflation was decreased to 2.1 percent last February compared to 10.2 percent at the end of last year.

In a meeting with the delegation of the International Monetary Fund, al-Samawi confirmed that the condition of the banking system in the country is safe and was not affected by the global financial crisis as there is not local stock market and measures adopted to avoid such crisis in the banks.

This is from Munier’s article below (google translated) and this is an actual oversight committee, Faris al Sanabani and all… I checked to make sure he wasn’t being sarcastic and no, the president’s son and nephews are actually the officials entrusted with foreign investment oversight.

The advice given by the son of former President is still in my list, and are justified because the President’s son, headed a commission unconstitutional oversees all investments of the country, is the most prominent members of this Committee the following brothers:

Ahmed Ali Abdullah Saleh
Tariq Mohammed Abdullah Saleh
Yahya Mohammed Abdullah Saleh
Yahya Abdullah Saleh Doid
Khalid Al-Akwaa
Fares Alsenbani
Salah Al-Attar
Hafez Maiad
Jalal Yacoub

A case of the fox guarding the hen house.

Yemen is unable to absorb donor aid in a constructive and transparent manner. A large percentage of aid, grants and loans- beyond the 5.5 bil- have also not been utilized or were diverted. Yemen Post

SANA’A // More than two years after a donors conference in London pledged US$5.5 billion (Dh20bn) to help Yemen, just over $375 million has been disbursed. The challenge now, according to a top World Bank official, is obviously translating those pledges into action.

“We made significant pledges of financial and other assistance in London, but the challenge is now one of implementation, of ensuring that these pledges translate into actual action on the ground, and that the activities we finance are true priorities for the country,” said Daniela Gressani, the World Bank’s regional vice president for Middle East and North Africa. Almost half of the pledges – $2.5bn – came from Gulf states.

Nabil Shaiban, Yemen’s general director of international co-operation at the ministry of planning and international co-operation, said the delay in using the funds was because of the time needed to meet donors’ requirements for allocating the money. (Read on …)

A funky little story about the Marib gas power station project, but not so odd following the scandal surrounding nuclear project and the later Latin Node. No mention of exactly where the 60 mill is at the moment.

Sahwa Net – An Iranian company ( the Persian ) have reimbursed the Yemeni Electricity and Energy Ministry $ 60 million for violating the agreement terms signed with Yemen’s ministry , according to well-informed sources. The sources said that the Iranian firm bought transformers with bad quality, violating the agreement of Marib Gas Power Station Project.

More at the Yemen Post: apparently it was well known that the Iranian firm substituted an Indian generator instead of the agreed upon Sieman’s. (Read on …)

The SNACC is going to bring it to the President’s attention. There is no information if there are irregularities in the forms submitted. Also Parliament is asking for prosecution of officials who stole YR72 billion in 2007 through corruption

Yemen Observer: The Supreme National Authority for Combating Corruption (SNACC) is taking legal procedures to refer 3 ministers, 8 governors, and 40 ambassadors to the judiciary, pursuant to article 24 of the second chapter of Anti-Corruption Law, according to SNACC member Ahmed Qurhesh. (Read on …)

Zawya

16 April 2009
Yemen has been drastically affected by the decrease in international oil prices, which has in turn forced the government to reduce its spending for the 2009 budget by 50 percent.

Yemeni oil export revenues fell by 76.5 percent during January and February of this year as compared to same time last year, according to a report issued by the Central Bank of Yemen (CBY)Central Bank of Yemen (CBY). (Read on …)

Over a quarter of land is planted with Qat.

Yemen Post

A parliamentary report showed that the total agricultural land in Yemen increased to 490032 hectares in 2007, 13.8% more than in 2006. 141163 hectares of this land planted with khat, an increase of 3.9% compared to 2006. (Read on …)

That’s really a shame, predictable though. OpenDocument

Yemen: Fears of flood-affected farmers abandoning agriculture
Source: United Nations Office for the Coordination of Humanitarian Affairs – Integrated Regional Information Networks (IRIN)

Date: 12 Apr 2009

SEYOUN, 12 April 2009 (IRIN) – An official has warned that delays in restoring the severely flood-affected agriculture sector in Hadhramaut Governorate, southeastern Yemen, will prompt farmers to abandon their jobs and seek work in other sectors, affecting food security in the impoverished country. (Read on …)

None of the fisheries numbers line up and they haven’t for years (the exports reported by businessess and the official reports-and the prices reported). Its among the most corrupt for sure, which is saying a lot. The question is where is the leakage going and is the connection to Zindani severed informally as well as officially? Thers’s all the deals with the foreign companies, the diversion of donor aid and the destruction of the marine ecosystem as additional concerns.

Yemen Post

The country has seen a fall in fish production over the last few years. Despite the conflicting statistics of the Ministry of Fish Wealth about Yemen’s exports of fish products, the contribution of this sector is still limited and does not exceed 1.7 percent of the total exports.
According to the ministry, fish production of 2008 dropped to 127,000 tons, from 256,000 tons in 2004 and 230,000 tons during in 2005 and 2006. It fell to 180,000 tons in 2007. (Read on …)

LM

New Delhi: India’s largest power generation company, NTPC Ltd, says its plans to set up power projects and a training centre for local engineers in Yemen—from where it wants to source gas for its fuel-starved plants back home—have run into trouble following a dispute over the cost of maintaining existing facilities in that country. (Read on …)

Update: Now thats funny right there. The Telecommunication Ministry says that what the article actually means is that the fine (which is payable to the US government) is what was paid to the ministry’s officials in exchange for the favorable rates. Nothing to see, just move along…

Yemen Post: Informed sources from the Ministry of Telecommunications told news web site that such report by media outlets is groundless. “Latinode agreed to pay a $2 million fine during a three-year period to officials in Yemen in exchange for favorable interconnection rates,” the source said, calling on all media outlets to be accurate and objective when reporting news.

Al-Tagheer says a government official said in a phone interview that the information was “incorrect” and “false” and designed to harm the reputation of Yemen, and some symbols in the forefront of the son of the president.

Mareb Press: مصدر مسئول في الاتصالات ينفي تورط شخصيات رفيعة في عملية رشوة لشركة أمريكية An official source in communication denies involvement in the process of eminent persons to bribe a U.S. company
الخميس 09 إبريل-نيسان 2009 الساعة 02 صباحاً / مأرب برس – خاص Thursday, April 09 – April 2009 at 02 am / Marib Press – private

نفي مصدر مسئول في وزارة الاتصالات اليمنية ما ذكره موقع التغيير نت Denied official source at the Yemeni Ministry of Communications with the site change Net من تورط مسئول كبير في الوزارة ونجل الرئيس علي عبد الله صالح في عملية رشوة قيل انها قدمت من قبل شركة ” لاتين نود ” الأميركية والمتخصصة The involvement of a senior official in the Ministry and the son of President Ali Abdullah Saleh in the process it was a bribe offered by the company, “We wish to Latin American” and specialized في خدمات الاتصالات. Communications services.

وقال المصدر المسئول لـ” مأرب برس ” ان ما ورد عبارة عن تلفيقات من قبل جهات لها دوافعها الخاص ولا اساس له من الصحة، مؤكد ان الوزارة ستكلف عدد من القانونيين للرد على تلك الاتهامات الزائفة ومقاضاة من ويقف وراء تلك الإخبار الكيدية. The official source of the “Marib Press that” as a fabrication by the private actors motivated and unfounded, confirmed that the ministry will be a number of lawyers to respond to the accusations false and the prosecution of the stands behind the news that malicious.

Miami Internet phone firm pleads guilty to paying bribes
BY PATRICK DANNER
pdanner@MiamiHerald.com
A Miami-based Internet phone company has agreed to pay a $2 million fine after pleading guilty to paying bribes to officials in Honduras and Yemen in exchange for favorable interconnection rates.

Latin Node paid more than $2.2 million in bribes that company e-mails indicate were intended for, among others, the son of the Yemeni president and officials of the Yemeni Ministry of Telecommunications, court documents show. (Read on …)

They don’t name the son but it could be Ahmed Saleh, the son of Yemeni President Ali Abdullah Saleh and the heir apparent to Saleh’s throne. He is also the commander of the Special Forces and the Republican Guard which directs the mechanized units including artillary, the new tanks and rockets. Payments also went to the ministry of telecommunication and other Yemeni officials.

US Department of Justice

Latin Node Inc., Pleads Guilty to Foreign Corrupt Practices Act Violation and Agrees to Pay $2 Million Criminal Fine

WASHINGTON – Latin Node Inc. (Latinode), a privately held Florida corporation, pleaded guilty today to violating the Foreign Corrupt Practices Act (FCPA) in connection with improper payments in Honduras and Yemen, Acting Assistant Attorney General Rita M. Glavin of the Criminal Division announced.

At a hearing before U.S. District Judge Paul Courtney Huck in the Southern District of Florida, Latinode pleaded guilty to a one-count information charging a criminal violation of the FCPA’s anti-bribery provisions. As part of the plea agreement, Latinode agreed to pay a $2 million fine during a three-year period.

According to court documents, Latinode provided wholesale telecommunications services using Internet protocol technology countries throughout the world, including Honduras and Yemen…

In addition, from approximately July 2005 to April 2006, court documents show that Latinode made 17 payments totaling approximately $1,150,654 either directly to Yemeni officials or to a third-party consultant with the knowledge that some or all of the money would be passed on to Yemeni officials in exchange for favorable interconnection rates in Yemen. Each of those payments was made from Latinode’s Miami bank account. According to court documents, company e-mails indicate that the intended payment recipients included, but were not limited to, the son of the Yemeni president; the vice president of operations at TeleYemen, the Yemeni government-owned telecommunications company; other officials of TeleYemen; and officials from the Yemeni Ministry of Telecommunications.

Sana’a, Yemen – A major fire broke out in an oil field operated by the French oil firm Total in south-eastern Yemen Sunday, but no casualties or production losses were reported, witnesses said. “A massive fire engulfed the chemical storage section in block 14,” one witness told Deutsche Presse-Agentur dpa. He said the fire caused explosions.

Block 14 is located in Massila of the Hadhramaut province, some 900 kilometres south-east of the capital Sana’a. It produces 60,000 barrels of crude oil per day.

It was not immediately clear what caused the fire.

The fire destroyed the structure of the storage facility, an oil engineer told

There are several steps that could be taken to stabilize Yemen but pumping foreign aid in is not one of them and will make little impact. The absorption rate for Yemeni aid is under 60%, and Yemen is paying interest on unspent loans. Yemen is unable to coordinate its administrative efforts in productive manner due to corruption, incompetence and institutional weakness. The Planning Ministry hasn’t come up with the plans to allocate the donor’s funds pledged in 2006, and even with a plan, the execution of development projects in Yemen is consistently poor, due partially to the failure of coordination among the ministries and the overall lack of fiscal accountability .

Yemen Observer, interview with former foreign minister:

Donor support
Concerning pledges made by the GCC and several international donors to support Yemen’s development, al-Asali said,” The government should act quickly, and it should realize that times have changed, and the patience of donors and the Yemeni people has run out.”

In November 2006, the GCC and several other international donors in London pledged more than $4.7 billion, most of it from the GCC, to support further development in Yemen.

“Now it has been about two and a half years, and the problem remains. Even the money, which has already been allocated, will be withheld because Yemen’s institutions will not be able to meet the conditions of the allocations,” said the former Minister of Finance. “But the problem is that the government believes it can use the money through Yemeni institutions, but the donors believe that these Yemeni institutions are not enough and unable to use the money effectively.”

He said some of these institutions are effective and some are not, but in general they are not in a position to effectively use the money provided. “So, the government should have agreed with the donors on other alternatives to use the money.”

“I remember when I was Minister of Finance, I suggested that the money from Saudi Arabia should be allocated for electricity production, and the money from UAE for the development of ports, and the money from Qatar for technical education, etc. However, the cabinet did not agree with me,” he said. Al-Asali also expected the global economic crisis to affect the allocation of donor pledges. “They were supposed to hold an asessment meeting two years after the London conference, but they did not hold this meeting until recently,” he said.

This is bad news: al-Tagheer:

Four tourists in Shibam Hadramout killed this evening in a car bomb by a suicide bomber.

He said the correspondent of the “change” in a procession to Shibam for a group of tourists traveling in a vehicle belonging to one of the travel and tourism, one of the persons intercepted a car bomb has exploded cars and a number of dead and wounded.

The correspondent added that the operation took place near a mountain, “Bp” in the Sale of Shibam Hadramout and during the procession of tourists stopped to take pictures of the sunset from the top of the mountain.

The correspondent pointed out that he is still writing, even ambulances transported the injured to more bad in the hospital did not have definitive statistics on the victims of the accident, which, according to preliminary data, which left four tourists from the Korean nationality.

He stressed that the security forces in the region imposed a security cordon at the scene of the incident and prevented from approaching it.

South Korean tourists. This is very sad. Another article says it was remote a controlled device, which if true may indicate prior experience in Iraq or an unwillingness to martyrdom, like the ambush of the Belgians in January 2008.

Updated casualty figures: Four South Koreans, three Yemenis killed, brought to the morgue in Sayoon, four South Koreans wounded.

Military spending and corruption are the biggest leaks of public funds. This period of low prices would be an excellent time to reduce the deisel subsidies though. IMF

Directors welcomed the authorities’ commitment to reduce expenditure in the event that oil prices remain below the benchmark price in the 2009 budget. They stressed the need to strengthen public financial management and further prioritize public spending. This should involve the gradual elimination of fuel subsidies in the current environment of low international fuel prices, accompanied by a public education campaign and strengthening of the social safety net. Directors also called for continued civil service reform and wage restraint to reduce the large public sector wage bill.

The multi-million deal to upgrade the Migs with the Ukranian Defense Ministry was only a few months ago. (Smart bombs in the hands of the Yemeni military…) Russia is Yemen’s largest creditor by far. (The Saudi debt is only around 400K.) But dire national interest takes second place to new toys. Are they for Saada or the South or the black market?

In June 2008, the US and Yemen signed their first end use monitoring agreement on mil hardware which will allow for the verification of articles and services provided to Yemen under U.S.-sponsored military and security assistance, thus preventing the misuse or illicit transfer of these items and services. We hope. Its not nice when your counter-terror assistance is used to target a civilian population or is sold onto the black market. Russia, China and North Korea have no such restrictions.

Natural Gas came up as a topic. The YLNG presold 9 TCF but there’s thought to be upto 16 TCF. Saleh tried to wrangle a debt write off, but no. And the unending shopping spree will continue as the head of the Air Force, Field Marshal Saleh’s half brother, Mohammed Saleh al-Ahmar, is heading to Oman this month for an industry conference.

Washington, DC – Following the visit of Yemeni resident ‘Ali ‘Abdallah ‘Salih to Russia last week, the two countries have signed a deal worth an estimated $1 billion that would see some very sophisticated Russian weaponry exported to Yemen, the official Yemen news agency SABA reported.

Among the weaponry are a number of MiG-29 fighter jets, attack and transport helicopters, T-80 and T72 tanks and armored vehicles, in addition to modern telecommunications equipment, the news agency reported.

In exchange, the Russian government-owned gas giant Gazprom announced that it intended to invest in gas and oil projects in Yemen.

Among the plans is the construction of a plant that would be able to handle 6.7 million tons of gas yearly. It is estimated that Yemen has a 16,951-billion cubic feet gas reserve. (Read on …)

Yes well I guess after a decade you can presume they are just not going to get completed. Even free land grants wasn’t enough motivation.

Yemen Observer

The government’s investment authority announced Tuesday that it has cancelled 189 projects financed by Yemeni and Gulf investors, including projects that have not yet been implemented after ten years of planning.

The Manager of the Hadramout Investment Authority Khalid al-Sa’di explained that the 189 projects were cancelled as a result of investor negligence, following the grace period of four months given to them by the Hadramout governor. The governor’s actions came from directions issued by the President, which stipulated the cancellation of the licenses for projects after a designated expiry date. He highlighted that these measures were especially necessary for projects where no work has been done in the ten years since the issuance of the licenses.

Last year, the President ordered the cancellation of the land licenses of investors who had failed to begin their investment projects in Hadramout, despite the free land offered to them ten years ago. (Read on …)

Wow this was a long time coming, three years, 25 announcments and two withdrawn investors later, ta da…corner stone. In 2007, the agreement was delayed and delayed until certain issues were worked out.

A 2006 report documented deposits of four million tons of copper and nickel. The zinc deposit in Jabali contains a geological resource of 12.6 million tons of oxide ore, grading 8.9 per cent zinc, 1.2 per cent lead and 68g/t silver. A feasibility study (in 2006) conducted by ZincOx for the development of the Jabali deposit estimated a rate of 800,000 tonnes per annum of ore, with a grade of 9.2 per cent zinc, over a mine life of 12 years. Gold reserves were discovered with one estimated 687,000 ton geological reserve containing about 15 tons of gold. Yemen also has significant quantities of marble and granite.

Yemen Observer
Prime Minister Dr. Ali Mujwar laid the foundation stone for Yemen’s first and largest mine, in the area of Jabal Salab in the district of Nahm, 110km northeast of Sana’a. The giant investment project cost more than $200 million dollars, and was built by the Jabal Salab Company (Yemen) Limited. The project is a joint-venture between the Jabal Salab Company, the ANSAN Company, and the British firm ZincOx.

The mine will provide the country with a large source of lead, silver and zinc; crude ore alone is estimated at being over 12.6 million tones, and contains 8.86% pure zinc.

During the inauguration ceremony, the Prime Minister expressed the state’s desire to support the mining industry as one of the most important sources for Yemeni economic diversification. The state is keen to diversify the country’s economy in order to alleviate the over-reliance on oil exports. During the inauguration ceremony, the Prime Minister expressed his hope that this mine will be the first of many, as many such future projects are planned. This includes possible gold mining in Hadramout and Hajjah, and copper mining in Amran and Taiz.

Mr. Brett Grist, the manager of ZincOx Resources PLC in Yemen said that work on the project had been long going, commencing in 1980, however the project had already brought numerous benefits to the region. He expected exports to commence in the first half of 2010 with the mines first shipment of Yemeni Zinc.

In reference to the benefits this project will provide to the country, Mr. Grist stated that the project is likely to create 400 jobs, and more than 1,000 indirect employment opportunities, through related businesses. He added that Yemeni employees will be properly trained, and amount to 95% of the projects employees. He went on to say that equipment used to search for zinc will be transferred over to the country, allowing Yemeni’s to benefit in the future, through the use of the equipment to search for gold.

The citizens living in the area expressed their hopes for the success of the project, and thanked the companies involved for the opportunity to participate in the projects development. Dr. Ishmael al-Janad, the Head of the Geological Survey Authority said this project represents the development of the second largest sector of the Yemeni economy after oil.

Economists have said this project will have a strong impact on Yemen’s economy, ensuring the country’s future growth and development. In total, the returns from this project will amount to nearly $600 million for the country’s economy.

al Motamar

Almotamar.net – The World Bank WB said Monday that it intends to assist Yemen for facing ramifications of the drop in oil prices for enhancement of efforts and orientations of the Yemeni government aimed to diversify sources of national income and lessening dependence on oil revenues.

Vice President of the WB for the Middle East and North Africa Daniela Gressani, currently on a visit to Yemen, said there is a steady progress Yemen has achieved in implementation of reforms. Gressani added that the WB has raised the ceiling of the annual support to Yemen to $ 120 million and adopted since the last year to offer all forms of assistance to Yemen in the form of gifts instead of loans in order to support the Yemeni government efforts for encountering the world rise in food prices and facing consequences of the floods disaster that hit governorates of Hadramout and Mahara.

Gressani also praised the level of improvement in the government performance in Yemen especially in regards to carrying out the foreign sources-funded projects. She has also stressed the significance of donors meeting of their commitments to Yemen pertaining to completion of allocations they had pledged at London Donors Conference in November 2006. She revealed that the WB would work for urging donors to speed up completing allocations of their pledges.

On the reasons behind postponement of the 3rd consultative meeting between the Yemeni government and donors, scheduled to be held last Sunday in Sana’a, Ms Gressani said the postponement was imposed by coincidence of its convening with the date of holding an international conference of donors for the reconstruction of Gaza Strip. She added, in a statement to Saba news agency on Monday, the Gulf Cooperation Council GCC states proposed postponing the meeting to a later date in order to secure large attendance. And that has been agreed between the Yemeni government and the donors.

According to the National’s souces in Pakistan, Waheshi replaces Zarchawi. So again, still, there’s that AQ Central tie in to that was so hard for some to fathom. Both UBL and Zawaheri agreed to the promotion. If the reporting is correct, Waheshi is designated to plot attacks, collect funds and coordinate training.

Waheshi doesn’t know he’s a stooge, a strawman, probably being set up for assassination. The Yemeni regime, which knows where he is curently, is going to kill him sooner or later and Saleh will be a hero. Maybe some attacks prior against western or Saudi targets, but not the LNG. The West will claim it as a victory, another AQ number 2 bites the dust. Everyone will be happy, something similiar to the actual story of al Harithy, and no still witnesses! Too bad Fawaz al Raibi wasn’t taken alive, he had a lot to say. Where is Abu Bakr these days?

The Nation, PK: PESHAWAR – Abu Nasar Al-Haweshi from Yemen has been nominated as Al-Qaeda’s leader for Gulf Region, The Nation learnt through highly-placed reliable sources on Sunday.

Belonging to Yemen, Abu Nasar Al-Haweshi, also known as Abu Baseer, is active in Al-Qaeda since long. His nomination aimed at filling the office, which had fallen vacant after the death of Abu Zarqavi in Iraq in 2006.

According to the sources, there was no any replacement of Zarqavi since his death. Now both Osama bin Laden and Dr Aiman Al Zawahiri agreed on assigning the task to Abu Nasar Al Haweshi. The assignments of Abu Nasar, beside engineering and plotting, include collection of donation for war from the Gulf region and facilitating the militants in getting training from border areas of Pakistan and Afghanistan.

Abu Nasar was considered fifth amongst leading Al Qaeda commanders like Abu Laith Al Laibi, Abu Zarqavi, Abdullah Kurd and Abdul Hadi. Both Abdul Hadi and Abu Zarqavi were killed in Iraq, Abu Laith Al Laibi in North Waziristan and Abdullah Kurd in Qandahar Afghanistan.

Abu Nasar remained in Duranta training camps during Taliban regime in Afghanistan. He also fought against the Northern Alliance, headed by late Ahmad Shah Mesud in Takhar, Hirat and Bagram regions. He had served Osama bin Laden as his security chief for a couple of months.

During his stay in Afghanistan, Abu Nasar remained very close to both former ministers Maulvi Jalaluddin Haqqani and Mullah Mohammad Hassan Akhund.

They forgot to mention Wahishi was originally sent to Afghanistan by Saleh’s uncle on his mother’s side, Ali Maqasa.

Blaming democracy not corruption.

Yemen Online

Yemen: “We don’t need a country the government of which doesn’t at all respect its own nationals.” A Yemeni tribe in Al-Jawf stated.
YemenOnline. Feb 22 – A number of Al Heridan – Almahashimah tribesmen in Al-Jawf governorate demanded withdrawal of all the government’s troops and military equipment off their land because they do not need a country the government of which doesn’t at all respect its own nationals. “Yemen Government practices all standards of racism and nepotism against us, and we are being marginalized in every aspect of our own rights.” said Al Heridan – Almahashimah tribesmen in a letter addressed to civil society organizations concerned in human rights issues. Calling on Saudi Arabia to embrace the tribe, the letter confirmed that Al Heridan – Almahashimah tribe does no longer need a system that overlooked them.

Yemen Online

Yemen Should be a Kingdome, seriously said Shiekh Mabkhoot Bin Hadhal.

YemenOnline, Special. Feb, 22 – “Yemen should be a Kingdome, and President Ali Saleh should be a king.” seriously said Shiekh Mabkhoot Bin Hadhal, Marib governorate in a special statement to YemenOnline. “My own point of view, which a huge number of Yemeni people share with me, is that Yemen’s democratic system is to be cancelled. We no longer need any political parties or the Parliament itself due to the fact that those parties proved to be just headache and they caused us a lot of troubles at all levels, even at the family level”, he added.”Huge amounts of money are wasted inefficiently on the electoral process which is in turn corrupt.”, he stated, highlighting the fact that Yemen is surrounded by Gulf Kingdoms and it is much better for Yemen to be a Kingdome too.”This is going to make it a lot easier for Yemen to join Gulf Cooperation Council” he added, expecting a strong denouncement among Yemeni political system and even among opposition parties themselves.”An 18-year of failure is enough to prove that the democratic experience is useless.”, he commented.

Global Integrity finds a “huge” gap between the law and its implementation.

Yemen earned very weak scores across the board, from civil society and government accountability to business regulation and the rule of law. The country’s executive, judicial, and legislative accountability mechanisms are among the worst assessed in 2008.

Although there are strong anti-corruption laws on the book, the anti-corruption agency is ineffective. Furthermore, political financing is generally unregulated, while civil society organizations are ineffective in fighting corruption. The media, which is subject to political interference, also receives poor ratings. Several journalists have been arrested, harassed, or imprisoned for their corruption-related investigative stories. Government control over private radio is among the most draconian in the world.

Update: Oh Yay, they are referencing my articles as well as this website in the media section. What happens a lot is the original links to Yemeni papers go down and the only copy is here, which is one function of the site, to provide a historical data base for researchers and others by category. The Yemen Observer trashed their entire archives with the last website upgrade, so the only detailed searchable history in English is at the Yemen Times and here.

Update 2: A very detailed and accurate report with excellent footnotes in all categories.

Links at the main page include scorecard:

Yemen: Integrity Indicators Scorecard

Overall Score: 46 (+/- 2.81) – Very Weak

Category I Civil Society, Public Information and Media 36 Very Weak
I-1 Civil Society Organizations 47 Very Weak
I-2 Media 35 Very Weak
I-3 Public Access to Information 27 Very Weak

Category II Elections 46 Very Weak
II-1 Voting & Citizen Participation 62 Weak
II-2 Election Integrity 65 Weak
II-3 Political Financing 11 Very Weak

Category III Government Accountability 30 Very Weak
III-1 Executive Accountability 45 Very Weak
III-2 Legislative Accountability 22 Very Weak
III-3 Judicial Accountability 17 Very Weak
III-4 Budget Processes 35 Very Weak

Category IV Administration and Civil Service 44 Very Weak
IV-1 Civil Service Regulations 28 Very Weak
IV-2 Whistle-blowing Measures 21 Very Weak
IV-3 Procurement 57 Very Weak
IV-4 Privatization 70 Weak

Category V Oversight and Regulation 52 Very Weak
V-1 National Ombudsman 53 Very Weak
V-2 Supreme Audit Institution 47 Very Weak
V-3 Taxes and Customs 50 Very Weak
V-4 State-Owned Enterprises 48 Very Weak
V-5 Business Licensing and Regulation 63 Weak

Category VI Anti-Corruption and Rule of Law 66 Weak
VI-1 Anti-Corruption Law 100 Very Strong
VI-2 Anti-Corruption Agency 56 Very Weak
VI-3 Rule of Law 54 Very Weak
VI-4 Law Enforcement 54 Very Weak

Yahya to the rescue. The poor Palestinians- 85% of all medicine in Yemen is expired or counterfeit. Yemeni children suffer malnutrition at three times the rate of Palestinian children.

YemenOnline. Feb 16, 2009 – The Palestinian Red Crescent Association received today the relief aid provided by Kana’an Association through Awja Exit, Egypt.

The relief aid consists of about 30 tons of drugs and medical supplies and clothing.

Its going to get hot. But I’d have a lot more sympathy if they weren’t buying missles and upgrading the Migs. Some controls on the smuggling maybe, at some point Abdelrahman is going to have to leave the country.

YT: Finance minister warns of increasing deficit up to 11%

Minister of Finance Noman al-Sohibi warned on Wednesday of increasing a deficit of the 2009 state budget up to 11 percent due to ineffective implementation for decision of decreasing expenditure.

In the opening session of the annual meeting for the directors of the ministry, al-Sohibi affirmed importance of clarifying for employees that decision was taken to reduce unimportant expenditures, not to target their rights. He called on representatives of the ministry in different government bodies to help directors of these bodies to re-organize their budget correctly.

The implementation of the decision during the previous period was unfair and ineffective as employees receive 500 rails as overtime and subjected for deduction of 50 percent in time there are employees who receive 700,000 rails as extra wages and no deduction, the minister said.

He also pointed out to the reality of the national economy – within negative impacts of the financial crisis- reflected negativity on the budget of the state, saying that requires from officials of the ministry to collect revenues and follow up shares of the government in any corporation.

Not paying the military is not a good move…

Yemen Post

Security source confirmed that investigations are still underway with some (70 military soldiers) belonging to the 127 Infantry Brigade of the First Armored Division on the background of a army rebellion last week against the Brigade Commander Brigadier General Jihad Ali Antar, in the camp known as Airport Camp in Gaflat Ethr District of Amran province.

The same source said that the investigation into the incident so far did not show any motives behind the incident other than the rebels’ demands of financial sums; however the source did not rule out.

The rebels together with the commander of the brigade Jihad Antar were transferred to the military police camp in the capital Sana’a. However the rebels alleged financial benefits were confiscated from them by the camp commander.

According to the source, a committee set up by the Ministry of Defense and headed by Major-General Ali Mohammad Salah, Deputy Chief of Staff for Operations arrived in the military brigade camp in Amran after the incident to look into the matter.

A very stark stat that is increasing

Yemen Times To help the over half a million poor Yemenis affected by high and volatile food prices, the United Nations’ (UN) World Food Programme (WFP) is to deliver USD 24 million worth of food aid to eight governorates in Yemen…One in three Yemenis now suffers from chronic hunger, according to the Food and Agriculture Organization’s 2008 State of Food Insecurity report…

The WPF office in Yemen conducted a survey in mid-2008 which showed that poor Yemeni families were forced to spend up to 65 percent of their income of food, at the cost of children’s health and education.

The WFP’s emergency relief program in Yemen will target two groups. First, the organization will provide nutritional supplements to under-fives as well as under-twos and nursing mothers in specific districts. Second, it will ensure targeted food distribution to the country’s poorest families as determined by previous surveys.

The poor people. The state comes, knocks down your house and sells your land for a park, and there’s nothing to do about it because the authorities you would appeal to are the ones driving the backhoe.

The concentration of land “ownership” substantial and growing due to the daily confiscation of private property. Its not just political and commercial monopolies.

Yemen Post: Dozens of families in the western province of Hudaida have been left homeless after backhoes that were guarded by many troops destroyed their homes in a north area in the province. Websites said that the area was largely devastated as the backhoes eliminated everything; the people’s homes along with all properties at them.

The people in the area were shocked because they were not notified before that such measure would be taken.

As the backhoes were accompanied by many troops from the Central Security Forces, the appeals of the people were met by oppression.

Influential officials tried many times before to take over our lands in this area and displace us but they failed and now they came supported by government orders to do so, people in the area said. (Read on …)

YDN Brigadier General Mohamed Saleh Al-Hamar, Commander of the Yemeni Air Force (YAF), has confirmed that he will travel with a delegation of fellow officers to Defence IQ’s Air Power Middle East 2009 conference, to be held in Muscat, Oman. Notification was received today via the British Embassy based in Sanaa, Yemen.

Further details of the delegation that will accompany the Yemeni Air Force Commander are expected in the coming weeks.

In the first quarter of 2007, the Yemeni Air Force signed a formal contract with MiG covering the supply of 32 MiG-29SMT aircraft at a cost of around USD1.3 billion. The successful tender by MiG for the modernisation of 66 aircraft that had previously been supplied was announced at a similar time…Defence IQ is a leading independent organiser of defence industry conferences, training and workshops and a proud member of the defence industry.

1- This is a bad guy.
2- Modernization means smart bomb capacity.
3- 1.3 bil on weapons means more starving kids.
4- Mohammed Saleh Al-Ahmar is the half brother of Saleh and he owns al-Hashdi Petroluem Company

Money laundering is not a topic I know a lot about, but I would assume its important to the overall counter-terror package. There’s the report of the US financial assessment team on the Embassy’s website. The report notes Yemeni capacity is in its infancy and Yemen requires laws, law enforcement and investigative training.

But most of all what Yemen requires is political will or maybe even to finally pick a side. Which leads me to today’s post, where President Field Marshall Ali Abdullah Saleh asks the Parliament to think about thinking about and possibly discussing legislation designed to prevent money laundering that funds terror activity. In the past, parliamentarians have objected saying the measures would inhibit cash collection and flows to Hamas and the resistance in Gaza and other charitable works.

Gov. asks Parliament to consider terror & money laundering draft laws
Monday, 02-February-2009
Almotamar.net, Saba – The Parliament listened in its session held on Monday to the government’s letter over adding a number of draft laws and treaties in its current periods’ agenda.

The parliament agreed on what has been included in the letter and referred the draft laws and treaties to specialized committees for studying them and reporting to the parliament on them.

Kinda like the UN, yes? They’re going to schedule a time to discuss the request to discuss. Meanwhile Parliament is a facade that exists to legitimize Saleh. He decides who gets what leadership position and what legislation will pass. So its just more of the Field Marshal dancing to the terror beat. Actually the Central Bank instituted the practice of stamping counterfeit bills several years ago because otherwise Ali Mohsen would take the forgeries and put them back into circulation. There was some funny story once about bills that were only printed on one side.

I spoke to a knowledgeable, normally skeptical person who said this is a credible figure and a credible scenario. So if we estimate $40.00 per barrel and 40 million barrels excluded from the official accounting, what is that, 1.6 billion, give or take some hundreds of millions?

The other thing to keep in mind is that government owned Safer took over after Hunt lost its PSA, so its likely the diversion of funds out of the government budget is continuing at a higher rate than ever.

Attagammua

Personalities involved in the window of the biggest corruption scandal in the country .. سرقة أكثر من 40 مليون برميل نفط Theft of more than 40 million barrels of oil
الأحد , 25 يناير 2009 م Sunday, January 25, 2009 m

“التجمع”-صنعاء/ خاص “Assembly” – Sana’a / special

علمت “التجمع” ان جهات وشخصيات نافذة في وزارة النفط متورطة في اكبر فضيحة فساد ونهب للمال العام تقدر قيمتها بمئات الملايين من الدولارات. Learned of the “Coalition” the views and personalities in the window of the Oil Ministry was involved in the biggest corruption scandal and the looting of public funds worth hundreds of millions of dollars.
وقالت مصادر حكومية رفيعة لـ”التجمع”: معززة بوثائق خطيرة ان اكثر من 40 مليون برميل نفط خام من حصة الحكومة تم التغاضي عن احتساب قيمتها ولم تستوعب في الدفتريات الحسابية الرسمية كاستحقاقات للحكومة بعد تقاسم حصة الانتاج بين شركة هنت ووزارة النفط اليمنية. Government sources said a high of “assembly”: enhanced documents serious that more than 40 million barrels of crude oil from the government’s share has been overlooked for the calculation of the value was not absorbed into the formal mathematical Aldvtrellat benefits for the government’s share of production-sharing venture between Hunt and the Yemeni Ministry of Oil.
كان انتاج اليمن حينذاك يتراوح ما بين 400 – 450 الف برميل وتقول المصادر: ان الوثائق الرسمية كشفت ان تلك الكمية (40 مليون برميل) تم الاستيلاء عليها على مدى سنوات وكان ذلك قبل بلوغ النزاع بين الدولة وشركة هنت الامريكية اوجه عندما رفضت الحكومة اليمنية التجديد للشركة في استثمار حقول صافر في العام 2005 ولجوء الطرفين الى محكمة دولية للفصل في النزاع وكانت المحكمة اصدرت في منتصف العام 2008 حكماً ببطلان ادعاء الشركة الامريكية وحكمت لصالح اليمن واثبتت حقها في استثمار حقل صافر وعدم التجديد لشركة هنت. Yemen was the production time ranges between 400 to 450 thousand barrels, sources say: The official documents revealed that the quantity (40 million barrels) has been seized over the years and this was before the conflict between the State and the U.S. company Hunt aspects when the Yemeni government has refused the renewal of the company whistling in the investment field in 2005 and by the parties to an international tribunal for the adjudication of the dispute, the court issued in mid-2008 ruling invalidating the U.S. company’s claim and ruled in favor of Yemen and has proved its right to invest in a wheezy and non-renewal of the Hunt.
وكانت “التجمع” قد اتصلت بمسؤولين بوزارة النفط للتعليق وعلمت ان توجيهات عليا صدرت الى وزير النفط الحالي الاستاذ أمير العيدروس لمتابعة هذه القضية ورفع تقرير بشأنها لرئيس الجمهورية, وقالت المصادر: إن وزير النفط وبعد التشاور مع السلطات العليا وجه رسالة رسمية الى النائب العام تطالبه بالتحقيق في القضية والكشف عن تفاصيلها وعن الجهات والشخصيات المتورطة وتقول مصادر “التجمع”: إن النائب العام شكل بموجب توجيهات رئاسية لجنة قضائية رفيعة من مسؤولين في النيابة العامة للتحقيق في القضية وعلى اثر ذلك تم استدعاء عدد من المسؤولين في وزارة النفط ولجنة تقييم الاحتياطي المعنية بالقضية وكان محللون ومراقبون للنزاع بين وزارة النفط وشركة هنت قد قالوا: إن جهات يمنية رفيعة قد لوحت لمسؤولي الشركة الامريكية اثناء جلسات المحاكمة الدولية وصدور الحكم لصالح الجانب اليمني.. The “assembly” had contacted the oil ministry officials for comment, and learned that the guidance issued to the high current Oil Minister Amir ALAIDEROOS professor to pursue this issue and submit a report thereon to the President of the Republic, the sources said: The Oil Minister, after consultation with higher authorities in a formal letter to the Attorney-General asking him to investigate in the case and the disclosure of the details and the actors and personalities involved and the sources say, “assembly:” The Attorney-General under the guidance of a presidential form of a judicial commission of high officials in the Attorney General to investigate the case and then was summoned a number of officials in the Oil Ministry and the Commission assessment of the reserve on the case and was Analysts and observers of the conflict between the Ministry of Oil and Hunt had said: The high points of Yemeni had signaled to U.S. officials during the meetings of the company’s international prosecution and sentencing for the Yemeni side .. ان الجانب اليمني مستعد لفتح الملف الخاص بـ(40 مليون برميل) اذا أقدمت الشركة الامريكية على استئناف الحكم الذي صدر لصالح اليمن وهو الامر الذي يعتقد المراقبون انه دفع مسؤولي شركة هنت الى قبول قرار المحكمة مقابل تغاضي الجانب اليمني عن ملف (40 مليون برميل). The Yemeni side was ready to open the file on the b (40 million barrels) if the U.S. company to appeal the ruling which was issued in favor of Yemen, which observers believe that the payment of officials Hunt to accept the decision of the court in exchange for tolerating the Yemeni side of the file (40 million barrels).
وقال خبير نفطي لـ”التجمع”: وهو على اطلاع بتفاصيل القضية, لو كان الجانب اليمني قد جدد لشركة هنت العمل في حقول صافر لعشر سنوات لما كانت الشركة حصلت على قيمة الـ(40) المليون برميل. The oil expert of the “assembly”: who is familiar with the details of the case, if the Yemeni side has been renewed for Hunt work in the fields of wheezy ten years since the company has recently obtained a value of (40) million barrels.

The hostages were later released…

BBC

Armed Yemeni tribesmen have kidnapped a German engineer and two of his colleagues, a Yemeni gas firm has said.

The incident involving employees of Yemen LNG happened in Shabwa region, east of the capital Sanaa, on Sunday.

One report said the kidnappers had demanded that the authorities release fellow tribesmen from prison.

It is the latest in a string of kidnappings of foreigners by Yemeni tribesmen. In almost all cases, those abducted have been freed unharmed.

On Sunday, a spokesman for the German foreign ministry said he could not confirm the abduction.

“The ministry and embassy are working intensively to try to establish what has happened,” the spokesman said.

“We are in close contact with the Yemeni authorities,” he added.

Yemen Times

Yemen’s economy highly depends on oil resources, with the country’s oil exports accounting for around 85 percent of export revenues and 33 percent of the GDP, according to Oct. 2007 statistics.

These figures indicate how heavily Yemen depends on oil, although the depletion threatens the oil reserves which are estimated at 116,800,000 barrels per year and 320,000 barrels per day, on average in 2007.

Yemeni non-oil exports accounted for about 27 percent of export revenues in 2007, with little improvement from 22 percent in 2006. This information came from Yahya Al-Motwakel, Minister of Industry and Trade, who reported it in the latest National Exports Conference which was held in Sana’a between November 24th and 25th, 2008.

The total revenue of the non-oil exports rose from around twelve billion YR in 2000 to YR 123 billion in 2007, according to Noman Al-Mulsi, secretary general of the Yemeni Export Supreme Council. (Read on …)

If the projects came to completion, they would have employed 26,000 people

Nearly 78 percent of investment projects in Aden have stalled, says a recent study

Yemen Times: A recent study conducted by the government revealed that 1132 investment projects in the Aden governorate have stalled or are no longer active, accounting for 78 percent of the total projects registered by the General Investment Authority.

The study was undertaken by a team from the branch of the investment authority in Aden and was headed by Mohammed Hilbub, professor of investment and supply in Aden University. The report also received support from the Germen Organization for Technical Cooperation (GTZ). According to the study, between 1992 and 2008, 601 projects have stalled and 531 remain registered by the authority but have failed to proceed as investors were unable to find land and supplies for the projects. (Read on …)

They need to get corruption and spending on military hardware under control, but the people who have to do it are the same ones profiting.

Salaries exempt from 50 percent cuts in 2009 budget
almotamar.net,Saba – An official source at the Cabinet said on Saturday the cabinet has approved 50 percent cuts in the 2009 general budget.

Under the decision No. 467 for 2008, which was approved at the minister council last meeting, salaries are exempt from the cuts, the source says.

The move comes due to the fall in oil prices which slumped down $ 36 for the barrel of crude oil lately, the source made clear, adding the drop in oil prices will consequently lead to financial deficit in the 2009 budget increasing from YR 427 billion to YR 532 billion as the price of a barrel reaches $ 30.

The Russians are Yemen’s main arms supplier and the Saudis are the main financial donor. Related: Yemen may be financially unviable in a year.

Reuters: Jan 18 (Reuters) – The United States is the main foreign backer of Yemen’s counter-terrorism efforts against al Qaeda, according to published figures, but its support is believed to rank behind a large undisclosed contribution from Saudi Arabia. (Read on …)

2009

YemenOnline. March 11 – The Chambers of Commerce Union of the Gulf Cooperation Council GCC officially approved Yemen’s accession to membership of its chambers of commerce.

This step is a reflection of the advanced level of Yemen-Gulf relations and their efforts to integrate the economy of Yemen in the economies of the countries of Arab Gulf Countries, stated Dr. Yahya Al-Mutawakil, Minister of Industry and Trade to Sabanet.
Dr. Al-Mutawakil confirmed that Yemen’s accession to the GCC chambers of commerce will contribute to the promotion of private sector investment of the GCC countries in Yemen, and strengthen the partnership between the businessmen of both sides.

Even worse than Dijabouti

Yemen comes last among Arab states in terms of GDP per capita: report

SANA’A, Dec. 10 (Saba) – Yemen ranked last among Arab states in terms of the Gross Domestic Product per capita with $ 901, a report has said.

The report of the Arab Economic Unit Council, released on Sunday said Yemen recorded the lowest per capita income behind Mauritania whose GDP per capita reached $ 909.

Djibouti came ahead of the two states with GDP per capita of $977.

However, Qatar came in first place with $ 72.376, Emirates was in second place with $ 42.273, Kuwait third with $ 33.646, Bahrain fourth with $ 24.151, Saudi Arabia $ 15.158.

While the per capita GDP in Libya is $ 8903, in Lebanon $ 6243, in Algeria $ 3976, in Tunisia $ 3423, in Jordan and Iraq $ 2343, in Morocco $ 2290, in Syria $ 2136, in Egypt $ 1759 and in Sudan $ 1543.

The report said average per capita income in Arab states for the current prices raised to $ 4661 in 2007, up from $ 4188 in 2006, at a growth rate of 11.3 percent.

following the lead of some commerical carriers that are re-routing

Cruise ship will evacuate to avoid pirate attack

BERLIN (AP) — A German cruise ship plans to evacuate passengers in Yemen and fly them to the next port of call Wednesday to avoid any possible encounters with pirates off the coast of lawless Somalia.

Several other cruise operators said Tuesday they were also shifting or canceling tours that would have taken clients past Somalia, as nations and companies around the world debated how to confront the piracy dominating the Gulf of Aden.

The European Union said its anti-piracy mission would station armed guards on vulnerable cargo ships — the first such deployment of military personnel during international anti-piracy operations in the crucial waterway. (Read on …)

Over 445000 containers unloaded at Aden seaport in 2008

[06 March 2009]

ADEN, March 06 (Saba) – The total number of containers which have been unloaded in the Aden seaport in 2008 were al last 445126 containers from different sizes.

According to statistics issued on Friday by Aden Port Corporation, the harbor of Aden received in 2008 more than 510 ships and supertankers coming from international ports.

The Free Zone Customs at the Aden seaport has achieved a record increase in the revenue in January 2009, through incomes, fees and other various returns, amounting to up YR 1 billion, an increase of YR 246 million over the revenues during the same month in 2008.

Yemeni exports through the Aden seaport during January reached more than YR 517 million, including fish, cotton, coffee, honey and other various national products.

The number of local consumption goods’ containers locally marketed during the month amounted to 4,626 containers, an increase of 854 containers over the number of such containers during the same month last year.

The increase in the volume of exports and revenues followed growth in maritime activity and cargo ship movement at the port.

Since ancient time, Aden has played an important role as an economic and commercial port in the southern part of Yemen and as a destination that serves as a meeting point in world trade.

Over 19000 foreigners worked in Yemen in 2007
SABA

[06 March 2009]
SANA’A, March 06 (Saba) – Newly-issued statistics have showed the number of foreigners who worked in 2007 in Yemen had reached 19155, including 15734 males and 3421 females, while they were 14111 workers in 2006.

The official statistic, issued by the government-run Central Statistical Organisation, explained that Yemen absorbed by the end of 2007 at last 400 Omani workers, 220 Saudi workers, ten UAE workers, seven Kuwaitis and ten workers from both Qatar and Bahrain.

“There were more than 16000 Arabs worked in Yemen in 2007, including 4947 Iraqis, 3082 Egyptians, 1398 Jordanians, 1976 Palestinians, 1506 Sudanese workers, 1125 Somali workers, 947 Syrians, 281 Libyans, 280 Lebanese workers, 160 Moroccans and 80 workers were from both Tunisia and Algeria”, numbered the statistics.

“About 6862 foreigners worked in scientific and caring areas, while 4534 were technicians as the same fields. Meanwhile, 2027 foreigners operated as directors of public and business administrations, followed by more than 1847 workers were engineers. More than 3885 foreigners worked in the fields of sales, services, agriculture, breeding birds and handcrafts”.

The statistics mentioned that the local private sectors embraced 10417 workers and oil companies employed 3613 workers, while universities and education sectors engaged 1611 foreigners, up 1200 were in investment sector and over 2307 foreigners worked for other bodies.

Global crises, natural disaster shake Yemen’s economy
—————————————————–

Jane Novak For the Yemen Times

SANA’A, Nov. 29 — Yemen’s oil-reliant economy is in trouble. Known oil reserves are depleting. Low global oil prices make economic diversification and budgetary rationalization urgent concerns. The outbreak of piracy in the Gulf of Aden harms potential growth sectors including Aden port, off-shore oil blocks and Yemen’s LNG project. Swelling numbers of Somali refugees, as well as Somali pirates, burden the economy. The struggling non-oil economy was dealt a blow from devastating floods in October. These factors combine to create an economic storm brewing on the horizon of 2009.

Dwindling oil supports irrational spending

Oil revenues fund over seventy per cent of state spending. Confirmed deposits are dwindling and will be largely exhausted within a decade. Production decreased from the 2002 high of 460,000 bbd to about 300,000 bbd in 2008 as blocks 14 and 35 begin to bottom out. High oil prices previously offset production declines, but oil prices dropped from over USD 120 in July to under USD 50 in November. The 2009 state budget is based on the expectation of higher sale prices and includes a deficit of seven percent of GDP.

Efforts at fiscal rationalization and budgetary restraint have been weak and inconsistent. Oil subsidies account for a third of spending and benefit large scale oil smugglers as well as the poor. About a quarter of the budget is lost to corruption, but few high officials face legal proceedings. In November, the Al-Saleh Mosque opened in Sana’a at a cost of USD 60 million amid concerns development programs are underfunded.

Yemen is in a water crisis; 2007 spending on the water sector was 1.1% of GDP. With unemployment estimated at 40%, social security funding totaled 1.1%. Health care services cover only half the nation. Health sector spending was 3.1%. Military spending consumes about 7% of GDP, among the highest in the world.

Expenditures for the Sa’ada war (2004-2008) are estimated at over YR one billion. Although a truce has been reached with the rebels, the state is in negotiations with the Chinese firm Chin Shida on new weapons purchases. It also contracted with the Ukrainian defense ministry (Odesaremservis) to upgrade Yemen’s fleet of 47 RSK Mig-21’s at a cost of several million dollars each. The work will enable the Migs and Yemen’s L-39 trainers to deploy precision guided weapons. With the anticipated drop in oil revenue, unabated high military spending will undermine already meager basic services. Transition to a non-oil economy is another urgent concern that faces an array of challenges.

Somalia launches pirates and refugees

Yemen’s coastal location is a foundation of its economic growth strategy. However, instability in Somalia triggered a spike in piracy that is disrupting maritime shipping in the Gulf of Aden. The fourth bidding round for Yemen’s eleven off shore oil blocks was postponed in August in part due to international concerns about security and sky rocketing insurance rates.

High insurance costs also negatively impact Yemen’s USD 4 billion liquefied natural gas project scheduled to come on line in May 2009. Yemen LNG, a consortium led by TOTAL, will have a capacity of 6.7 million tons per year and ship from Bal Haf Harbor, about 75 km from the epicenter of piracy. Likewise the renovation of Port Aden by Dubai Ports World is a linchpin of Yemen’s economic diversification efforts. Security concerns led Norwegian shipping group Odfjell to discontinue sailing through the Gulf of Aden, and others may follow suit.

Chaos in Somalia means Yemen has to deal with refugees as well as pirates. A signatory of the 1951 Refugee Convention and its 1967 Protocol, Yemen provides automatic refugee status to those fleeing war. About 38,000 Somali migrants crossed the Bab al Mendab this year, and Somali refugees in Yemen are estimated to exceed a quarter million. Already burdened with a 43% poverty rate and 46% child malnutrition, the state has little to offer refugees in terms of immediate assistance or economic opportunities. Concrete international aid for Somalis in Yemen is slight.

Floods wash away non-oil industries

In Yemen’s worst natural disaster in recent history, flash floods in October killed 90, damaged over 3000 houses and affected over 650,000 people according to international estimates. The massive flooding in Hadramout and al-Mahara left 30,000 in need of permanent shelter.

Infrastructure damage includes roads, schools, telephone pylons, bridges, health centers and water facilities. Relief efforts focused on humanitarian concerns of food and shelter. Environmental issues were largely unaddressed the first weeks. Consequently, the region is at risk for the outbreak of contagious diseases.

The natural disaster hit the fledgling non-oil sector of the economy. Thousands of farmers, bee-keepers and fishermen lost their livelihood and need both immediate and long term assistance. International agencies estimate damages and loss of income will exceed USD one billion.

The financial shock of the floods by itself would be difficult to absorb, even with generous international aid. The simultaneous occurrences of three shocks – the global financial crisis, piracy and the floods – magnifies their impact, and combined, threaten fiscal sustainability. Immediate and robust action on the part of the state is required to address the looming economic challenge.

Good. Now some follow-up, enforcement and updated laws would be nice.

Yemen intensifies measures on combating money laundering
Tuesday, 25-November-2008
Almotamar.net – The Central Bank of Yemen CBY has embarked on taking a bunch of additional monitoring and preventive measures and arrangements on financial, organisations and private federations aimed at fighting money laundering and financing terror and protection of the banking establishment in Yemen against any dubious financial activities.

A source at the CBY told almotamar.net Tuesday that taking those measures by the CBY comes after suspecting a number of cases concerning money laundering in some banking dealings between a number of financial establishments and foreign sides , indicating that the CBY has lately begun entrusted a number of specialised monitoring committees to make field visits and assess all banking and accountancy procedures of local financial establishments in order to asses extent of their commitment to controls issued by the State Security Council regarding money laundering. In addition the committees are to report to the Central bank by those establishments on any suspected banking dealings pertaining to individuals or entities banned for dealing with them on charges of funding terror or supporting suspicious activities.

According to the source the CBY has made a list of obligatory instructions directed to local banking establishments. These are part of measures for fighting money laundering and financing terror.

The source maintained that the Central Bank forces all banks to create unit for gathering information on money laundering operations and to appoint specialists in them in addition to forcing banks to conduct accurate investigations in all banking operations and dealings.

It was my impression that Saleh paid for this out of his own pocket from his stash, where is it Germany? The articles seem to imply its state money. But then again, Saleh’s money is state money.

In suffering Yemen, a brand-new mosque

SAN’A, Yemen: The inauguration of an enormous new mosque named after the authoritarian president of Yemen has bewildered the people of this impoverished Arab country – especially when they learned it cost a staggering $60 million.

It is a massive sum in a country that ranks as the poorest in the Arab world and is beset by internal armed conflict, terrorism and severe malnutrition.

“We need schools and hospitals,” said Salem Ahmed, a government employee. “Many Yemenis have to travel abroad for medical treatment. This is hypocrisy.” (Read on …)

Military spending is VERY HIGH, about a third of the total budget. This report notes the high degree of centralization and low health and water spending among other important statistics. The health ministry is one of the most corrupt anyway.

Yemen Times

SANA’A, Nov 18 — A delegation from Civil Society Organizations Network for Development held a meeting with the Parliament’s Budget Committee and presented a study entitled The Equitable Distribution of Expenditures in the Public Budget from a Social Perspective.

The analytical study examined the final accounting report for 2007, draft budget plan for 2009 and the distribution of expenditures in the public budget from a social perspective. It was prepared by Dr. Mohammad Ali Jubran Professor of Accounting Sana’a University for the Civil Society Organizations Network for Development.

The study indicated that a substantial amount of the state budget was channeled towards governmental central offices at the expense of local authorities. (Read on …)

When you factor in the flood and the impact of piracy inhibiting the growth and diversification of the economy, things look really bad. The end of oil is coming but the drop in prices (124 to 55) is going to have an immediate impact. The failure to rationalize government expenditures is pathetic. Saleh recently was a shopping spree with Russia and China and just upgraded the Mig’s to enable the delivery of smart bombs.

Beeb

Yemen is facing an economic and political crisis as the country’s oil resources near exhaustion, a report by a London-based think-tank says.

The Royal Institute for International Affairs warns that instability there could expand a zone of lawlessness from northern Kenya to Saudi Arabia.

It describes Yemen’s democracy as “fragile” and points to armed conflicts with Islamists and tribal insurgents.

One diplomat says that the country’s prospects get worse every month.

The World Bank predicts that Yemen’s oil and gas revenues will plummet over the next two years and fall to zero by 2017 as supplies run out.

Given that they provide around 90% of the country’s exports, this could be catastrophic.

An unnamed energy expert is quoted in the report as saying that this points to economic collapse within four of five years time.

Democracy ‘distorted’

Although Yemen was the first democratic nation on the Arabian peninsula, its democracy is described as fragile and distorted by what the report calls the northern tribal system of patronage around President Ali Abdullah Saleh.

The president is already facing Islamist insurgents as well as conflicts with tribal groups, and must stand down in 2013 after 35 years in power.

The report concludes with a grim warning that a failed state in Yemen could threaten stability across the region.

It says it could open the way to piracy, smuggling and a flourishing jihad with implications for the security of shipping routes and the transit of oil through the Suez Canal.

HT: Eagle Speak, the best maritime themed blog out there on 1) Iranian mystery ship, clean of CW, docks in Rotterdam and 2) shipping patterns re-routing to avoid Gulf, just as DPI takes over Aden port.

III: OSLO, Nov 17 (Reuters) – Norwegian shipping group Odfjell will stop sailing through the Gulf of Aden to avoid pirates and will reroute its vessels around the Cape of Good Hope despite the higher costs, the company said on Monday.
Piracy off Somalia has plagued the shipping lane linking the Middle East Gulf and Asia to Europe and beyond through the Suez Canal. On Monday the U.S. Navy said pirates seized control of a large Saudi-owned oil tanker off east Africa — the first oil tanker to be taken by pirates in the area.
“We will no longer expose our crew to the risk of being hijacked and held for ransom by pirates in the Gulf of Aden,” Odfjell Chief Executive Terje Storeng said in a statement.

“The re-routing will entail extra sailing days and later cargo deliveries,” he said. “This will incur significant extra cost, but we expect our customers’ support and contribution.”
Odfjell, which specialises in chemical tankers and has a fleet of 92 vessels, is one of a handful of companies which, according to experts, have already decided to reroute around the Cape, while several others are thinking of following suit.
The moves reflect the escalation of attacks from one every couple of weeks to as much as four in one day. Last week Somali pirates captured three ships including a chemical tanker chartered by another Norwegian shipping group, Stolt-Neilsen .
Odfjell said it was frustrated that governments and other authorities were taking a “limited interest” in the problem.
“Several chemical tankers have been hijacked at gunpoint, and although hostages up to now reportedly have been released seemingly unharmed, we do not know if this will be so in the future,” it said.
“The efforts that are being made do not seem to put an effective end to what can best be described as ruthless, high level organised crime,” Storeng added.
The company said it would resume sailing through the Gulf of Aden and the Suez Canal once sufficient protection is in place or action is taken to prevent pirate attacks in the area.

Winner for run-on sentence of the day:

The US financial assessment team said efforts to counter money laundering are in their infancy in Yemen, (quite a bad spot for that) because not only of the absence of a legal framework (the law pending in parliament might impinge on contributions for charity purposes. lawmakers claim) but also because of the lack of awareness of standard investigative proceedures themselves.

al-Motamar

Almotamar.net – An official at the Central bank of Yemen (CBY) on Tuesday disclosed 11 cases of suspected money laundering in Yemen director of banking studies institute of the VBY Yassin Sharaf al-Qadasy said, at a symposium on money laundering and its dangers on the on the national economy organised today the centre for studies and economic information in collaboration with the banking magazine, that two of the suspected cases were referred to the prosecution to take legal measures about them.

While al-Qadasy accused the present law of money laundering of shortcoming as it is confined to certain crimes under the globalization of the crime he looks forward to a draft law still under consideration at the parliament and that draft law was drafted according to international criteria. He added that Yemen fully committed with regard of money laundering.

Its going to get a bit crunchy.

Impoverished Yemen oil revenues up in third quarter

SANAA (AFP) — Yemen, one of the world’s poorest nations, has earned 3.8 billion dollars from oil revenues in the third quarter, an increase of 86 percent over last year, a central bank report published on Saturday said.

Yemen produced 35 million barrels of crude oil between July and September, an increase of 11 percent compared to the same period in 2007, according to the report published by Yemeni newspapers.

It said that the average price of a barrel of crude oil was set at 112 dollars against an average of 66 dollars in the comparable period.

The impoverished Arabian Peninsula country of around 20 million inhabitants exports more than half the oil it produces.

Yemen is neither a member of the giant oil cartel OPEC nor of the Organisation of Arab Petroleum Exporting Countries (OAPEC).

OGJ

LOS ANGELES, Nov. 11 — Pirates off Somalia have hijacked a second vessel chartered by chemical tanker group Stolt-Nielsen, this time taking the MT Stolt Strength in the Gulf of Aden, despite a coalition of 10 countries, including Russia, that have naval vessels patrolling the waterway.

“The ship was en route to Kandla, India from Senegal and was carrying phosphoric acid,” said Andrew Mwangura of the East African Seafarers’ Assistance Program, which monitors piracy.

According to Mwangura, there were 23 Filipino crew aboard the Philippines-flagged carrier, which is managed by Manila’s Victoria Ship Management and on long-term charter to Stolt Tankers BV.

Seizure of the MT Stolt Strength came nearly 2 months after pirates hijacked the MT Stolt Valor, 60 km off Yemen.

That vessel, which carried 22 crew members, was en route from the Suez Canal to Mumbai and remains in the hands of the hijackers.

Busy, unsafe waterway
The Gulf of Aden, which connects the Red Sea and the Indian Ocean, is one of the world’s busiest waterways, with some 20,000 ships passing through each year.

The waterway also is an important energy corridor, especially for Persian Gulf oil westward bound for the Suez Canal or Suez Mediterranean (Sumed) pipeline.

Tankers carrying 3.3 million bbl of oil—about 4% of daily global demand—pass through the Gulf of Aden each day, according to the US Energy Information Administration.

The International Maritime Bureau says 199 incidents of piracy or attempted piracy were reported worldwide this year from January to September. Of these, 63 were in the Gulf of Aden or off the Somali coast.

According to Stolt Tankers, charterers of MT Stolt Strength, “the vessel was within the recognized Coalition corridor at the time of the seizure.”

But that is no guarantee of safety, according to IMB, which has issued an urgent warning to ships to take extra measures to deter pirates even while sailing in the corridor patrolled by coalition naval forces.

Do they really have money for more weapons purchases? The rationalization of the government budget is not going well I see. Its about 7% of GDP on military and less than 2% on health care. (And even what is spent on health care is largely stolen and sold. )

Yemen, China discuss security cooperation

[11 November 2008]

SANA’A, Nov.11 (Saba) – Yemen and China held Tuesday talks on the aspects of security cooperation between the Interior Ministry and the Chinese company Chin Shida specialized in the exportation of military and security products.

Deputy Interior Minister Saleh al-Zawari affirmed here with assistant director of the Chinese company the importance of developing the bilateral cooperation between the two countries in areas of security cooperation.

Update: from the Yemen Times:

In Yemen, the Chinese firms started their businesses in 1956 with the construction of Sana’a-Hodeida Highway. And, during the time period (1979 – 1995), nearly 12 Chinese construction contractors implemented projects in Yemen. In the final days of 1995, China signed contracts with Yemeni firms for a total value of $ 800 million, and currently there are more than 16 giant firms in Yemen.

Meanwhile Port workers are on strike.

YahooDUBAI (AFP) – The Emirati DP World group said on Thursday it has officially taken over container operations at the Yemeni port of Aden in a joint venture partnership with the Yemen Gulf of Aden Port Corporation.

“The agreement includes the lease of both Aden Container Terminal and of nearby Ma’alla Container Terminal, and a commitment by the joint venture to invest around 220 million dollars in further developing the port,” it said in a statement. (Read on …)

Prices are down to about 60 in November from over 120 in July. Where they stabilize or when is an ongoing question, as is whether the oil revenue reliant Yemeni state can weather the storm.

Yemen Times

SANA’A, Nov. 5 – With a total of 1.5 trillion Yemeni Riyals the Yemeni government approved the budget for the fiscal year 2009 in an exceptional meeting yesterday. The public expenditure was estimated at YR 1.9 trillion, yielding a 7 percent of Domestic Gross Product as a net deficit of the budget.

The government had apologized earlier to the parliament for delaying the presentation of the public budget for the upcoming year, which is typically due two months before the end of 2008. Demanding a chance to review the financial plan, the government attributed the setback to the importance of reconsidering budget projects due to the global financial crisis.

Parliament members Sakhr Al-Wajih and Nabil Basha stressed the importance of determining a deadline to present the budget, as parliament members would be on a long vacation beginning from December to the end of January. Al-Wajih added that the government’s demand is logical, as the budget was drawn up on the basis of the old high prices of oil and should be reviewed again as oil prices have decreased notably during the past few weeks. In a related matter, the parliament discussed the financial committee’s report on the global financial crisis and its consequences on the Yemeni economy, summarizing the effects of the crisis and decrease of oil prices on the country’s revenues, payments and trade scales which witnessed a surplus this year due to high oil prices that exceeded USD 146 a barrel. The committee also expected that foreign support and loans will be reduced.

The committee’s report said that the Yemeni monetary reserve is safe as it was deposited in various world banks. In addition, it said that the monetary reserve deposited in the U.S. is safe from the financial crisis as it was invested through the Federal Reserve Bank, and pointed out that the amount of money in the U.S. represents only 1.7 percent of the total monetary reserve of the country.

European countries in which the Yemeni monetary reserve is invested have assured the Yemeni government that their deposits are safe in the banks. Up to 69 percent of the Yemeni reserve is in U.S. dollars, 20 percent in Euros and 9 percent in British pounds and the rest in other currencies, according to the report. (Read on …)