Armies of Liberation

Yemen Post: Republican guards killed a 14-year old boy in Yemen’s Taiz province on Wednesday, where a massive demonstration was held coinciding with protests in other cities to urge the youth-led protesters to finish their revolution and to refuse external mandate or interventions.

Locals at Street 60th at the city’s entrance said republican guards fired at passengers inside a bus killing the teen and injuring others. The incident took place amid insecurity in Taiz, which saw deadly clashes between the army and armed tribesmen in the past weeks.

In other Taiz related news, Haykel Saed Corp is negotiating between the families of the protesters killed by forces under the supervision of lunatic security chief (transferred from Aden after several bloodbaths) Abdullah Qiran. There’s no resolution yet as the families are demanding a trial. Qiran was also charged with the murder of Ahmed Darwish tortured to death in Aden jail. One major outstanding protesters’ demand is the purge and reformation of the security forces.

Its like watching a slow motion car crash and everyone is shouting, turn the wheel.

Yemen’s Economy to Collapse within Two Years – Gulf Official Warns
Yemen Post Staff

Yemen’s economy is expected to collapse within two years in case the inflation and job rates continue to increase amid a sharp decline in oil production whose revenues bring in about two thirds of the country’s income, a Gulf official has warned.

Abdul Aziz al Owaishiq, Director of the Economic Integration Department at the Gulf Cooperation Council, was quoted by Al-Hayat Newspaper as saying in a lecture in Saudi capital Riyadh on Tuesday that the GCC and donor annual aid to Yemen, about $ 1.2 billion, is now frozen because of the ‘administrative inefficiency and weaknesses’. (Read on …)

General Ali Mohsen al Ahmar: the Avis of Yemen

YP: BY DIONNE SEARCEY- Wall Street Journal (For the Yemen Post)
New documents have emerged relating to possible bribery in Yemen by global oil-services giant Schlumberger.
Internal company documents reviewed by The Wall Street Journal show that Schlumberger employees raised concerns in 2008 about payments for cars the company rented from Yemeni government officials at above-market rates—including $6,000 a month for a Toyota Camry and two Toyota Corollas. Employees also cited a contract with customs broker Dhakwan Management Petroleum Co., whose chairman had ties to Yemen’s president. (Read on …)

GAN
Yemen (Aden) – Aden Free Zone (AFZ) and the International Center for Auction Co., Ltd has signed a memorandum of understanding to set up a trade and storage complex and a global complex to organize and manage all kinds of auctions, Global Arab Network reports according to Saba. (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 …)

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 …)

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 …)

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 …)

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 …)

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 …)

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 …)

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 …)

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 …)

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 …)

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 …)

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.