That ” ‘Yemen’s PUBLIC TREASURY is mainly relied on OIL and GAS production that constitutes 60-65 percent of government revenues in recent years is not the shocking news’; however corruption state in the Ministry of FINANCE and of OIL is the fresh issue revealed by specialized committees of the Public Shadow Authority* affiliated to Revolution Salvation Front (RSF)* in 2 separate monitoring reports:
NYR | DP World sold Thursday its 50 percent stakes at the Port of Aden just four years after taking over operational responsibility.
The Dubai-based terminal operator has received around $27 million for its share in the Aden Container Terminal (ACT) from its joint venture partner Yemen Gulf of Aden Ports Corporation, according to the JOC. (Read on …)
Not to mention the grievances of the workers at Port Aden, the mismanagement of Aden port by DPI is thought to be a deliberate corporate strategy, because Aden is the direct competition to Jebel Ali Port in Dubai, also managed by DPI. Kuwait actually had a better bid and many including myself warned against awarding the contract to DPI in 2005.
Yemen Times: : ADEN, Sept. 5 — An official source at the Ministry of Transportation said the Dubai Ports International Company (DPIC) is planning to file a lawsuit against the Yemeni government because of the termination of their contract last month. The source said Yemen’s government could compensate the company an estimated $30 million if DPIC wins.
The source said the company’s evidence and claims are unsubstantiated, considering the company did not keep pledges with regard to operating Aden Port, in addition to its neglect toward the port. The company was not alert to heed Yemeni government cautions, the source said, adding that Aden’s port used to receive 160,000 ships annually under DPIC’s operation of the port; however, the port received 800,000 ships in 2007, prior to the start of the government’s contract with DPIC.
The source said the termination came after a team from the Ministry of Transportation travelled to Dubai in August to inform the company about upcoming procedures, but they didn’t respond. So, the agreement was terminated.
Abdullah Al-Khawlani, director of the Arab and International Economic Department, said in an interview with Al-Thawra newspaper that Yemen should avoid getting involved in international trials with DPIC because trials usually take a long time. He said the cost of the trial could cause more losses than gains for Yemen.
Al-Khawlani said Yemen has to solve the problem amicably, particularly because it could cause a political crisis with the United Arab Emirates, the support of which Yemen needs.
Al-Khawlani said DPIC’s argument could be stronger if they used the pretext of a lack of stability because of the political turmoil in Yemen at the time when they started to work in Aden.
He said DPIC has professional lawyers in maritime disputes, while Yemen doesn’t, giving the company an advantage should the issue require court involvement.
Selling the Port: In a stunningly blatant act of economic malfeasance, the Yemeni government recently entered into a 30 year contract for the port of Aden with its largest competitor, Dubai Ports International (DPI). World Bank documents state that Dubai is in direct competition for container transshipment business with Aden. The port of Aden is located along international shipping routes, giving it a strong advantage over ports in Dubai which are 1600 miles away.
The majority owners of DPI also are the managers of the Jabal Ali free zone in Dubai. DPI will pay 83.5 million US dollars as a rent over 30 years for the Aden free zone, an area of 32 million square meters, effectively paying less than one penny per square meter in monthly rent. A Kuwaiti firm’s substantially higher tender was rejected in favor of DPI. (Read on …)
Just saving some references:
Donor countries and organizations pledged to provide $6.4 billion in aid to Yemen during the transitional period 2012-2014, the Yemeni official agency Saba reported on Tuesday.
Other countries and organizations said they will announce their pledges the Friends of Yemen meeting which will be held on September 27 in New York, the agency said.
Yemen is undergoing the two-year transitional period under the power-transfer deal which was brokered by the GCC countries and backed by the West after the 2011 turmoil.
It is seeking about $11 billion to bridge the financial gap based on the transitional program for stabilization and development 2012-2014 as the country is reeling from the unrest that has deepened its woes.
In May, Friends of Yemen held a meeting in Riyadh and pledged $4.24 billion in aid to Yemen but that will be officially given in the New York meeting later this month.
Prime Minister, Muhammad Salim Basindwa, said the Yemeni government will take special measures to use the external aid including the establishment of an international fund to channel and oversee the spending aid on investments and development.
On the margins of the conference, Yemen and Saudi Arabia signed three accords including one under which the Saudi Fund for Development will deposit $1 billion in the Central Bank of Yemen to stabilize the national currency and help the government cope with economic challenges.
The two other agreements were for giving $26 million from the Saudi kingdom, $20 million to help Yemen build a 60-megawatts power plant in Taiz province and $6 million as contribution to the Yemeni health sector.
At a news conference after the first day of the 4-5 September conference, Saudi Finance Minister Ibrahim Al-Assaf said the pledges should be released soon to help the country overcome all challenges at the moment, according to Saba.
A Yemeni economist, Dr. Mohammad al-Afandi, has expected that the Yemeni government will succeed in absorbing donor’s financial pledges to be provided to Yemen during the donor meeting held on Tuesday in Riyadh.
He affirmed that the government has good program, pointing out that aids presented to Yemen will help implement the political settlement.
He warned that the delay of supporting Yemen will lead to worsening economic problems and impediment of the settlement.
Saudi Arabia had pledged US$3.25bn in aid at a meeting of Friends of Yemen held in Riyadh in May during which a total of $4bn were pledged.
Yemen’s Planning and International Cooperation Minister, Mohammed Al Saadi, said last week that his country needs $11bn in foreign aid.
In order to restructure the military, the transitional govt needs to know what exists and where; a US congressional report in 2009ish found that the Yemeni CT forces and military could not account for or locate some equipment granted as US military assistance. Furthermore, direct and brokered Yemeni arms purchases are sometimes sold in bulk to the black market, and individual soldiers (who sometimes aren’t paid for months) have been known to sell their weapons.
In reality, all ministries and government offices should be subject to an inventory (including cars). However, considering the gargantuan levels of corruption and mismanagement at all levels, a secondary audit is imperative. Asking the people responsible for the embezzlement to count the inventory is a recipe for more subterfuge.
A secondary audit of the inventory would be a good job for the revolutionaries, many of whom have accounting and computer degrees. As outsiders they would be independent, and its a good method to enfranchise them in the transition process while generating trust through transparency. International assistance by experienced accountants of the process may also increase the Yemeni auditors skill levels and employ-ability. Of course the US will be embarrassed by how much of its intended CT aid was stolen, diverted and/or resold, but sunlight is good for everybody.
Its very important however to standardized the inventory process regionally and from ministry to ministry–from the beginning. Starting with compatible processes, methods, computer systems and software is essential. For example, Yemen’s years long difficulty in generating stats and paperwork on the Somali refugees arises in large part from technical obstacles generated by using different accounting methods, incompatible databases and different computer systems, both vertically and horizontally. This impending pitfall is easily overcome with a little forethought at this point.
al Sahwa, President directs to count properties of military
Alsahwah.net- Yemen President Abdu-Rabo Mansour Hadi has directed on Wednesday the Defense Ministry to form technical committees to count the properties of the army in a move that precede the reconstruction of the military and end the division.
Meanwhile, the government tasked the Oil and Mineral Minister, Hisham Sharaf, to appoint a new director-general of the Oil Petroleum Company after the resignation of the former director in response to waves of protests by the employees of the company.
According to the Yemeni News Agency, Saba, military commanders held on Wednesday a meeting presided by the Defense Minister Ahmed Nasser Ahmed. The meeting discussed the counting of the military’s properties and how to halt the squandering of the public resources.
Also see “Fixing Broken Windows”: Security Sector Reform in Palestine, Lebanon, and Yemen Carnegie 2009
Where is the actual budget break down posted? These numbers are meaningless. The new law of the land in Yemen (the GCC document) guarantees fiscal transparency, and anti-corruption measures are one important demand of the people. Normally there is an end of the year supplemental that increases spending by about 25%.
Bloomberg: Yemen’s government plans to spend 2,111 billion rials ($9.8 billion) this year, according to draft budget plans reported by state-run news agency Saba. The draft expenditure, which requires the approval of parliament in Sana’a, represents a 17 percent increase over the 2011 budget that was approved Dec. 5, 2010. Yemen has been using last year’s budget for the first quarter of this year as unrest forced President Ali Abdullah Saleh from office last month and repeated clashes undermined business activity.
Government recognizes the state budget for fiscal year 2012 by 2 trillion and 672 billion and 740 million rials
[06 / March / 2012]
Council of Ministers approved in its weekly meeting today, chaired by Council President Brother Mohammed Salem Basendwah the draft state budget for fiscal year 2012, and projects of independent and attached budgets and special funds budgets and the economic sector and laws linked to .. And the allocation to the House of Representatives to complete the necessary constitutional procedures.
The Council instructed the Minister of Legal Affairs and Minister of State for the House of Representatives and the Shura Council in coordination with the Minister of Finance to follow up those actions.
The estimated resources of the state budget at both central and local levels for the current year 2012, the amount of two trillion and 111 billion and 129 000 453 thousand, from various sources or resource for linking resources to the last year of $ trillion and 519 billion and 589 thousand, and an increase of 9.38 percent.
The estimated use for 2012, the amount of two trillion and 672 billion and 740 000 773 thousand, distributed at the gates of various budget, compared to connect to the year 2011 of $ trillion and 835 billion and 956 million riyals, an increase of 6.45 percent. (Read on …)
In the first half of the story, South Korea was paying well under fair market price since 2005 despite opposition and activists strenuous objections.
Yemen LNG and Total Gas LIFT gas shipments redirected to Korea
[18 / February / 2012] Saba
Agreed Yemen LNG, Total Gas & Power to increase the number of shipments transferred by 20 shipments per year to Korea during the years 2012.2013 and 2014 m due to the continued low gas prices in the U.S. market.
Under the new agreement which was signed in Paris on the fourteenth of February, the ongoing presence of the Minister of Oil and Minerals Engineer Hisham Sharaf Abdullah, will be selling LNG to Kogas, according to the current price of the market. (Read on …)
CH: Anti-government protests in Yemen are complicating Nexen’s efforts to renew its licence for the country’s Masila oilfield.
Nexen may lose its licence for Yemen’s Masila oilfield to a local operator, officials in Yemen said, as the Canadian company’s efforts to renew the deal are hindered by political turmoil and the government’s urgent need for cash. (Read on …)
WB Suspends $542 Million to Instable Yemen Yemen Post:
The World Bank suspended hundreds of millions of USD in aid to Yemen as from July 28 due to the political and security situation as the dueling protests and associated severe crises continue across the republic.
Independent sources cited a WB statement as saying that the decision came in harmony with the Bank’s rules that call for such a procedure in complicated circumstances to avoid negative impacts on its programme course in any country.
The Bank is sponsoring 21 projects in Yemen with $882 million, $542 million out of which has not been released yet, the source reported, citing the statement as saying that the Bank will be ready to resume its activities normally in the country when the situation returns normal.
There are many ways to skin a cat apparently. In 2010, South Africa sold about R 8.3 million or over 1 million dollars in weapons to Yemen. However no Ratel armored vehicles were sold. Ratel vehicles shown in Yemen in pictures by Reuters show the pro-change or defected military in possession of them currently. The armored carriers were likely shipped to Yemen in violation of their end use certificates. They appear to be converted versions of the South African Ratel carrier produced in Jordan by the Paramount Group, in co-operation with the King Abdullah Design and Development Bureau (KADDB). Additionally, Saleh opened his own bullet and tank factories in the last few years.
CAPE TOWN — South African- manufactured Ratel armoured infantry carriers have been photographed in strife-torn Yemen, leading the Democratic Alliance (DA) to call for an investigation by the National Conventional Arms Control Committee (NCACC).
The Ratels were apparently being operated in the Yemeni capital, Sanaa, by soldiers who had defected to protesters demanding the end of President Ali Abdullah Saleh’s rule.
The presence of the vehicles either means SA authorised their export or that another country sold Ratels to Yemen, which would constitution a violation of the end- user certificate. (Read on …)
Safer was established as a state corporation after the Yemeni government threw out Hunt Oil. Safer has been a center of mass corruption since then. By dissolving Safer and establishing a new National Petroleum Company, the state is destroying the records proving corruption, embezzlement and smuggling. Next it will be the Fisheries and the Military Economic Corp. (which is known as the Economic Corp now). This can’t go unchallenged. No documents means no trial.
aretaker Govt transmits bill of National Petroleum Co. to Parliament
[29 / March 2011]
SANA’A, March 29 (Saba) – The cabinet of the caretaker government referred on Tuesday a bill of the National Petroleum Company to Parliament for discussion and completion of constitutional procedures for the issuance of the law.
The bill, reviewed by a ministerial committee, consists of 32 articles divided into six chapters, including naming, definitions, the establishment of the National Petroleum Company and determining its functions, powers, capital, resources and board of directors, the advantages and exemptions and the final provisions.
The bill stipulated the creation of a national petroleum company to replace the current SAFER E & P Operations Company. The new company has a legal personality with financial and administrative independence and is subjected to the supervision and control of Minister of Oil and Minerals.
Foreign Minister Abu Bakr Al-Qirbi has urged donors to pump $ 6 billion in aid to Yemen over the next five years to help it meet the demands of the anti-government protesters and sit-inners. (Read on …)
Al Shameri is a very interesting guy, close to Ali Mohsen al Ahmar, with a lot of connections to disparate groups. Supposedly al Shamari was carrying a half million dollars to dole it out to Yemeni students in Egypt but that’s unbelievable.
The desperate scrambling of a desperate man. Tactics that worked before won’t again:
SANA’A, Jan.31(Saba)- President Ali Abdullah Saleh directed the government on Monday to expand the network of social security by adopting 0.5 million cases of families in need in light of the results of the field survey carried out by the concerned body. (Read on …)
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 …)
In plea documents, LatiNode admitted that from about March 2004 through June 2007, it paid $1.1 million to third parties, knowing that some or all of those funds would be passed on as bribes to officials of Hondutel. In addition, from about July 2005 to April 2006, the court records show LatiNode paid $1.2 million to a third-party consultant, knowing some or all of the money would be passed on to Yemeni officials in exchange for favorable interconnection rates in Yemen: Miami Herald
There’s even people in jail. Bypassing the bid process is not hard when you can get people locked up. When al Hubaishi, the editor of 14 October arrives at work, he has drummers precede him in a procession as if he’s a minor king, which he is, and Hubashi junior is a real…
Packaging Essentials: Goss Community SSC press launches color expansion in Yemen
Submitted by Admin on December 21, 2010 – 07:54No Comment
* 14th October Foundation government printing operation enhances color capabilities
* Opportunity to increase circulation of leading daily titles
The inauguration of a new Goss Community SSC press at the 14th October Foundation for Journalism, Printing and Publishing in Aden City, Yemen, was officiated on November 22nd 2010 by the Yemeni vice president, Abdu Rabbu Mansoor Hadi. In a ceremony broadcast via national media channels and reported in the state press, Hadi announced a new benchmark for color and automation in Yemen. (Read on …)
In 2005 it was about a third of all spending was allocated to the military, its a massive swamp of corruption.
Yemen Observer: A recent official report revealed that about 40 percent of the Yemeni budget is spent on fighting terrorism. The terrorist operations have also caused losses in the tourism sector that amounted to one billion dollars, while these operations have negatively impacted development, poverty, and unemployment alleviation due to the allocation of large amounts to of fund to fight terrorism from an already meager budget. (Read on …)
Good! 4.5 billion YR is about 220 million dollars US. Another area of enormous expense with disproportionately small return is the foreign embassies, which are used as a mechanism for getting outspoken politicians out of the country. For example the actual winner of the al Jawf governor’s election and the first member of Parliament to resign in protest of corrupt practices were both shipped abroad in diplomatic positions. In 2005, Yemen made repeated announcements that it would be closing unnecessary foreign embassies and reducing staff at others in an effort to cut costs. In the end, after months of hullabaloo, one Yemeni embassy was closed, Oct.11, 2005, Romania.
Academic scholarships abroad are important for Yemen’s future but are largely an entitlement to the sons and daughters of influential persons, bypassing much more qualified applicants. Furthermore, hundreds of thousands are on the military payroll but perform no military service, including some al Qaeda. Military commissions are often awarded by tribal sheiks as patronage and the sweeping exclusion of applicants by region (especially the south) during recruitment has triggered riots. The state also has trouble collecting what is due, whether taxes or the millions are owed in electricity bills by high profile persons. There’s really a lot that can be done to rationalize the Yemeni governmental budget, but it remains to be seen if its Romania all over again.
SANA’A, Dec. 3,2010 – SABA: President Ali Abdullah Saleh ordered last Thursday to reduce the proportion of fuel spending given to senior officials estimated at YR 4.5 billion annually. The order comes within the austerity plans, economic and financial reforms and plans to reduce the public budget deficit.
Other measures Saleh has urged included rationalizing the public spending, limiting funds given for medical treatments outside the country, parties, hospitality, advertisement and other unnecessary activities.
The decision could save the budget about YR 10 billion a year.
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 …)
Update: YOL: Dec 13,2010
Parliament approved on Monday a bill on opening an additional appropriation of over YR 287.3 billion in the State’s general budget for the fiscal year 2010. The parliament also approved to direct a number of recommendations to the government in this regard, after the discussion of the Financial Affairs Committee’s report on this subject.
In this regard, the parliament emphasized the commitment of Finance Minister to these recommendations, which asserts that the government must comply with the provisions of the Article No. (89) of the Constitution and must not expend outside the State budget framework, only after the parliament’s approval.
The parliament urged the government to perform its functions so as to stop the phenomenon of internal and external smuggling of oil derivatives.
The recommendations stressed the need to hold government agencies accountable for the negligence in the use of foreign aid provided to them, which led to loading the State financial burdens, and to oblige those agencies to not do that again.
The parliament instructed the Finance Committee to study the causes of the escalating rise in the quantities and value of oil derivatives consumed locally for all sectors.
Moreover, the parliament obliged the government, when discussing the draft budget for 2011, to add allocations of stalled road and electricity projects in light of what has been agreed by the Committee with the government side. Saba
Original: I was waiting for it, because it happens every year. The Yemeni government’s end of year emergency supplemental this year totals 287 billion Yemen riyals, about one billion dollars US, a minor miscalculation. And although Jalal Yaqoub, deputy finance minister, spent yesterday at the Chatham House event insisting, “Every aspect of government expenditure is transparent and available on our website …. how could we do otherwise …. our IMF friends are watching us closely and are very pleased,” its a total crock. While the IMF may be pleased, Yemen has done little to implement meaningful structural reforms. The Yemeni state budget is looted on a grand scale, as are the oil resources and donor aid. The IMF’s discussion of Yemen’s predicted 8% growth in GDP is equally disheartening, especially if its based on projected revenue from the overtly corrupt LNG deal. Who are we trying to kid here, and why? Its blatant malfeasance.
Government recognizes the open adoption of an additional budget of 2010 of $ 287.3 billion riyals
[02/نوفمبر/2010] [02 / November / 2010]
صنعاء ـ سبأنت : Sana Saba: Government approved on Tuesday to open an additional appropriation of the State budget for fiscal year 2010 a total amount of 287 billion and 385 million riyals, in the light of its discussion of the memorandum of the Minister of Finance for the increase in the actual implementation to support oil derivatives, and local benefits. And directed to refer the project to the House of Representatives to complete the constitutional procedures regarding that matter.
But then the vote was delayed. Its almost time to declare the emergency supplemental to the 2010 budget.
SFD’s 2011 budget of over YR 30 bln approved
[24/October/2010] SANA’A,Oct.24(Saba) -Board of directors of the Social Fund for Development (SFD) approved on Sunday the draft budget of the Fund for the fiscal year 2011 at a total sum of YR 30.9 billion, by an increase of 17.9 percent.
It is expected that the budget will cover 1,274 projects nationwide, distributed between the sectors of education, water and environment, training and institutional support, agriculture, health, and roads.
In addition, the budget will also cover projects within the integrated intervention program, projects for people with special needs, and projects for addressing the effects of rising food prices, as well as the cultural heritage projects.
They are demanding that new workers hired by Safer are afforded the same treatment as HUNT’s former workers. Their claims and the right to strike are supported by law, however they were arrested.
Yemen Observer: 47 workers at the Safer refinery in Marib province were arrested last Tuesday and are being held at al-Qatta’a prison after demanding better working conditions, better hours, and higher pay. The workers of Marib refinery launched a strike on October 10 to demand financial equity between new plant workers and the former workers of the Hunt Oil Company. (Read on …)
The economic crisis hits across the board.
al Masdar: As explained Hattar in response to a question by Deputy Abdul Malik Algosos on the reduction of bonuses allocated to the preachers from 10 thousand to 5 thousand riyals per month, he explained that the global financial crisis prevented the government’s ability to adopt the ten thousand riyals 6000 preacher in the various governorates of the republic, where distributed the same amount, which was based in the year 2008 of $ 720 million riyals by 5 thousand riyals for each speaker.
وتمنى الهتار على مجلس النواب الوقوف مع وزارته في الحصول الاعتمادات المطلوبة لصرف إعاشة 27 ألف جامع. Hattar and wished the House to stand with his ministry to get the appropriations required for the disbursement of subsistence 27 thousand inclusive.
من جانبه اعتبر النائب القصوص في تعقيبه على وزير الأوقاف أنه من المعيب استقطاع إعاشة خطباء المساجد وهي مسماة بإعاشة رئيس الجمهورية والتي جاءت أثناء الانتخابات الرئاسية 2006م ، مشيرا إلى أن خطباء في المحافظات الجنوبية ليس لهم سببا للعيش سوى هذه المخصصات. For his part, MP Algosos in commenting on the Minister of Awqaf and it is shameful deducting subsistence preachers Biashp is named President of the Republic, which came during the presidential election in 2006, pointing out that the preachers in the southern provinces have no reason to live apart from these provisions.
Late every year the Yemeni government submits an emergency supplemental to the budget that adds about a third more spending onto the original budget. The supplemental is even more vague than the original. Today we learn that 66 gov’t institutions never submitted their year end statements for 2009 including the YEC which buys and sells hundreds of millions for the state annually. It used to be the Economic Military Corp., but it branched out into a variety of other commodities including wheat, thus the name change. One time Burns said that everyone says to increase humanitarian aid, but no one says how. And its a good question in light of the rampant corruption and the elite’s seizure of donor funds.
al Sahwa- Yemen’s Parliament formed on Saturday a committee to investigate what is alleged about the government’s disregarding of closing accounts for dozens of corporations and funds in budget of the 2009 fiscal year.
MP Akram Atia revealed that over 66 government corporations such as the Yemeni Economic Corporation and the Yemenia Airway have not offered their closing accounts of 2009 fiscal year, affirming that the government’s closing statement contained a significant lack of data for dozens of economic units and their economic calculations. He also said that this omission is annually repeated by the parliament as dozens of government corporations do not end its closing accounts and that is disrgarded in the government’s closing statements.
We’re going to be seeing more of this as the budget crunch hits. There are hundreds of thousands of tribesmen who have military ranks and paychecks but never perform service. These protesters though were state employees in the literal sense. Also the YP confirms two were wounded (not killed) yesterday.
Yemen Post: Tens of the public security personnel closed on Monday the international transport link in Yemen’s Southern Province of Abyan in protest against salary cuts, informed sources said.
Central security forces could not break up the protest and convince them to leave reopen the route because the personnel were armed, the sources said.
Separately, two people were injured in the clashes that erupted when police dispersed rallies organized by the secessionist movement in the cities of Dhale and Lahj.
The rallies coincided with a large-scale strike paralyzing the life in a number of the districts in both cities. Stores were closed down in response to the strike call by the movement.
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.
Lets see who gets the contracts and if anything ever gets built.
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 …)
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 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 …)
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 …)
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 …)
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 …)
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.
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.
Aviation Committee is to sue media instruments that offended Yemeni Airways reputation
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.
What is that? One office for every newspaper that they want to drive out of business?
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.
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.
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.
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.
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 …)
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.
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 …)
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:
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.
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 …)
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.
Blaming democracy not corruption.
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 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…
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.
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
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.
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.
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 …)
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 …)
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.
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.
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.
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.
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.
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.
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).
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.
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.
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 …)
Is the budget suplemental 66 Billion or 660 Billion? Its a different figure in every paper.
In its recent meeting, the council of ministers approved a project for an additional credit during the current financial year at YR 66 billion.
Even with the profits in oil and other resources the country has been getting, it still relies on donors to finance the different development projects as loans and donation packages to the country have reached $800 million, according to the annual reports presented by the Central Administration for Control and Auditing (COCA).
As to the crimes of wasting and pillaging the public money, COCA listed over 1165 crimes of waste for public money over the last three years. The total amount of money wasted during the last three years are as follows: YR19 billion, $14 million, 3 million euros and 2 million marcs, together with 18 cars and large areas of lands. (Read on …)
Ukranian, (like the tanks?)
The Miracle MiG Makeover
October 14, 2008: Egypt and Yemen have hired a Ukrainian firm to upgrade most of their MiG-21 fighters. Egypt has 62 MiG-21s, while Yemen has 47. Egypt had earlier upgraded some of its MiG-21s with British electronics. The Ukrainian firm (Odesaremservis), will install a modern, digital, cockpit (flat panel color displays and far fewer switches and buttons to deal with). Installed under the aircraft will be a laser designator and camera so that the aircraft can deliver smart bombs.
The 9.5 ton MiG-21 is a 1950s design. Poor flight controls and lousy visibility limited what a good pilot could do with this aircraft. But few good pilots flew the MiG-21, as it was built for poorly trained pilots who mainly followed instructions from someone on the ground. It can carry two tons of bombs and missiles.
After the American experience with smart bombs over the last two years, most air forces have accepted the fact that the more expensive (starting at $30,000 each) smart bombs are more effective than the much cheaper ($500 or less) dumb bombs. This potentially makes the MiG-21 a much more effective aircraft.
The Ukrainian firm also offers the Sura targeting helmet, which enables the pilot to look at the target and fire a Russian R-73 heat seeking missile, that will then go after the target the pilot is looking at. If the MiG-21 is facing roughly equivalent aircraft, the Sura helmet makes the aircraft a much more effective dog-fighter.
The Ukrainian cockpit and targeting upgrade costs several million dollars per aircraft.
Cabinet approves adding over YR660 bln to 2008 state budget
Almotamar.net,Saba – In its weekly meeting, Cabinet approved on Tuesday a draft law proposed by Finance Ministry on opening an additional appropriation of the state general budget for the current financial year 2008 amounting to YR 660,448,032,000.
The meeting chaired by Prime Minister Ali Mujawar submitted the draft to the Parliament for discussion and approval.
Parliament has postponed discussions of additional credit draft law for the 2008 budget mounting to YR 660 billion after several MPs demanded the government to promptly decide the volume of money required for reconstructing the flood-affected areas in Hadramout and Al-Mahrah to be inset within the additional credit.
They also considered several government officials to be responsible for the immense extent of losses especially when the disaster was forecasted a week ago by media outlets; however, they gave no attention to such warnings.
MP Abdu Bishr threatened to reject the project of the additional credit unless relief costs are included within it, hinting that disasters and floods have become a season for officials to ask for aid from abroad.
Other MPs demanded a transparency as for the way through which aids are distributed so that these aid can reach all the affected people. Some MPs also asked for postponing the parliament sessions until the government officials are summoned to respond to the inquiries of MPs in matters relating to relief and reconstruction processes.
For his part, Head of Freedoms Committee at parliament Mohammed Naji Al-Shaif demanded summoning the officials at the General Authority for Civil Aviation and Metrology (GACAM) to investigate them into the reasons that prevented them from forecasting the disaster.
He also asked MPs and members of Shoura Council to donate one-month salary for the sake of the flood-affected people, together with removing the GACAM officials from their posts.
The drop in oil prices will undermine the government budget and the system of payola. Yemen Post
Economy professor Abdullah Al-A’dhi told the Yemen Post that the current financial crisis across the world, especially in America, will directly affect the Yemeni economy which is directly tied to the U.S. Dollar.
Al-A’dhi continued that the disengagement from the U.S. Dollar could reduce the direct effects on the country’s economy as the value of dollar is falling before European currencies, particularly the Euro, stressing that we should diversify our basket of currency.
“Yemen will get directly affected by the fall of the U.S. dollar because the country’s exports, mostly oil, are sold in this currency. Any forced devaluation of the U.S. Dollar will devalue the exports,” said Al-A’dhi. (Read on …)
Of Yemen’s 5.9 billion in external debt, Yemen owes Russia about one billion for military hardware including the Mig 29’s.
Preparations at Yemeni Foreign Ministry are underway for President Saleh’s expected visit to Russia in which he seeks to buy large quantities of weapons.
Diplomatic sources announced that Saleh’s visit comes at a time the region witnesses complicated developments together with Russia’s differences with western countries and America over the last Russian-Georgian conflict.
The same sources further indicated that Yemen has balanced stances of world powers, hinting the visit comes within the frame of the developed relations between Yemen and Russia.
Observers note that Saleh seeks to buy modern Russian fighters and reinforce the military arsenal after a four-year war in Sa’ada that exhausted the country’s both budget and military armament.
Workshop on failure of investment projects in Aden to be held
[29 August 2008]
ADEN, Aug. 29 (Saba)- Economic sources said on Friday that a workshop would be held in Aden province next Saturday for reviewing and assessing unimplemented projects.
The sources affirmed that 200 projects have been faltering in the province as well as some projects have been transferred from investment projects to housing purposes.
The workshop will be organized by the General Authority for Investment (GAI) in collaboration with German Technical Cooperation (GTZ).
The sources added that the workshop would be attended by about 60 investors and representatives of the General Authority for the Lands, the Chamber of Aden Commerce and Industry and other government bodies to assess the causes of the failure of those investment projects in Aden.
Military spending is a line item in the budget.
Uganda 2.2% (2006)
Ukraine 1.4% (2005 est.)
United Arab Emirates 3.1% (2005 est.)
United Kingdom 2.4% (2005 est.)
United States 4.06% (2005 est.)
Uruguay 1.6% (2006)
Uzbekistan 2% (2005 est.)
Venezuela 1.2% (2005 est.)
Vietnam 2.5% (2005 est.)
West Bank NA
World roughly 2% of gross world product (2005 est.)
Yemen 6.6% (2006)
Zambia 1.8% (2005 est.)
Zimbabwe 3.8% (2006)
First report from Mujawar’s government
Prime Minister Ali Mohammed Mujawar read a statement at a Parliament’s session attended by most of the ministers on the state of the Yemeni economy and the security situation. The report said that Yemen achieved a rate of 3.2 percent in economic growth during 2006, which increased to 3.6 last year, despite the drop in oil production. The non-oil sectors achieved development rates during the two previous years of 4.7 and 5.5 consecutively. (Read on …)
Theres corruption and then theres grand corruption, elite capture of the vast majority of national resources and wealth on an organized and methodical basis. The best report ever I think was the Journalists Against Corruption report Available here. This YO report is a tad confusing on what the numbers mean:
Tender corruption is currently costing millions of dollars worth of public wealth. This came in a statement for the Supreme National Authority for Combating Corruption (SNACC) manager, Ahmed al-Anisi, at a debate organized by the al-Saeed establishment last Thursday.
Al-Anisi said that they cooperated with other authorities to issue cabinet resolutions to cancel all private authorizations. Al-Anisi helped in controlling some important corruption cases, pointing out that both public and opposition press were their source for discovering some of the corruption cases, mentioning the atomic energy case as an example. He reviewed their achievements as realized in the discussion of the scholarship case and the deductions on the students’ bursaries at the higher Education Ministry.
He ensured the recovery of YR 2 billion and YR 600,000, with several cases being referred to prosecution following long tedious procedures…. (Read on …)
The government approved in its cabinet regular meeting held on Tuesday a budget of youth summer camps for 2008 and its general program to be launched on July 17th across the country.
The camps are 31 and contain 718 centers, 382 for males and 134 for females, 48 centers for educating religious duties, 30 for female scouts, 34 for vocational training, 34 for educating in computer science and languages, 58 for sports and 8 centers for university students. More than 200 thousand male and female participants will make use of these 40-day long camps.
There are also 600 centers for educating 100 thousands students on memorizing the Holy Koran in the capital Sana’a and in other governorates around the country.
USD 143 million? Its low. Maybe thats just new investment.
Yemen allocates $143 million for defence and security
Almotamar.net – An official report mentioned Sunday that Yemen has allocated $143 million and 370 thousand for defence and security, as part of an investment programme for the year 2008.
According to the report obtained by almotamar.net the process of financing is allocated to implement a number of institutional projects aimed at strengthening capabilities of the Coast Guard by installation of new security observation centres in the border areas, improvement of the level of services offered to crossing of ships of the Yemeni coasts in addition to enhancement of protection of security and military positions. The programme includes also the purchase of mechanizations and equipment and the development of communication networks of the security apparatuses besides the establishment of residential buildings and police stations in various governorates.
Military is about 25%
However, Yemen’s health allocation in its national budget is only 4.6 percent, as compared to 18.4 percent for education, while the child protection allocation is negligible; therefore, much more attention must be attached to these issues in terms of budget and efforts.
There’s one billion (US) in loans, accruing interest, unspent.
SANA’A, Feb. 04 (Saba) – Minister of Civil Service and Insurances Hamoud Khaled al-Sufi held talks with a World Bank delegation headed by Director of Poverty Alleviation and Economic Development Sector, on cooperation aspects between Yemen and WB.
During their meeting in Sana’a, al-Sufi and the WB officer discussed the program of administrative and institutional reforms and future support horizons to Yemen’s efforts in this regard.
Al-Sufi evaluated WB’s support for Yemen over administrative and institutional reforms, saying that the Bank’s continuous support to the country has been positive impact to achieve big successes. (Read on …)
Thats good if the government can pay for it, maybe cancel some of the weapons deals
Government raises salaries of state employees and raises social security by 100%
Almotamar.net – The Yemeni government approved Tuesday granting all government employees at all levels an increment in the salaries amounting to YR 3 thousand as allowance in addition to granting pensioners 50% of the decided increment.
In its weekly meeting chaired by Prime Minister Dr Ali Mohammed Mujawar on Tuesday the cabinet decided raising assistance to social security by 100% and instructed the ministry of social affairs and labour to continue determining the new cases and study them and decide them in accordance with operative mechanisms.
The cabinet considered directives of President Ali Abdullah Saleh concerning alleviation of the impact resulting from the rise in prices of basic stuffs. It urged intensive and strict monitoring prices and taking strong legal measures against those who violate and manipulate prices.
The cabinet also stressed the importance that the Yemeni economic establishment encourages the focus on its commercial activity in the area of wheat, flour, rice and other necessary stuffs. The cabinet asked deputy premier for economic affairs, the minister of planning and international cooperation Abdulkarim al-Arhabi to communicate with donors for providing easy opportunities for the establishment in order to enhance its activity in the area of wheat and flour through building of grain silos of the establishment.
The cabinet stressed on the ministry of industry and trade to activate its role in watching and controlling prices in the capital and the governorates and to refer violators of prices to specialised judicial authorities quickly, affirming the importance of these apparatuses in the speed of deciding the cases referred to them by the ministry of industry and trade and its offices in the governorates.
sounds like the fisheries
In addition to the kidnapping cases, the Parliament also formed a committee of MPs Mohammed al-Khadim al-Wjih, Mohammed al-Hawri, Abdullah al-Maktari Ali al- Amrani, Abdulrazaq a-Hajari, Nasser Arman,
and Fuad Abdl-Karim to investigate the Yemeni Economic Establishment accounts and report on them to the Parliament.
Prime Minister Dr. Ali Mujawar explained that the Establishment is an affiliate of the Ministry of Defense because the Ministry owns 75 percent of its capital whereas the other 25 percent is owned by the interior ministry.
The Establishment’s capital was YR4 million at its conception, but has now been raised to YR10 billion. Profits in 2005 were YR157 million and rose to YR191 million the next year, according to final accounts. The Establishment employs nearly five thousand people, in addition to providing annual job opportunities for 1500-2000 temporary employees.
Under particular investigation by the committee is the use of the Establishment’s poultry and slaughterhouses. The Prime Minister stated that he should not be asked about the slaughterhouses because such issues do not concern the PM, and are under other Ministries’ responsibility.
Committee member al-Hajari responded by saying that he had practiced his constitutional rights because he did not know to which authority the Establishment was linked, so he had to direct his summons to the Prime Minister. He inquired into the Establishment’s financial practices when, in 2005 it had YR10 billion in capital, while gathering such low profits despite its commercial activities which included trading in textiles, meat, oxygen and companies.
The Establishment’s manager answered, saying that the Yemen Economic Establishment is a service and not for profit. He explained that the companies which were annexed to it were bankrupted and were under liquidation, assuring that their profit was not zero in 2005 and confirming that the final accounts are accessible.
The Public Money Prosecution managed to recover YR1 billion in embezzled public funds in 2007.
Dr. Abdul al-Malik al-A’wash, a lawyer with the Public Money Prosecution, declared that YR1,000,248,747 was recovered in addition to $284,000 and 2300 Euros, due to sequestration and attestation rulings in embezzlement cases in the same year.
Al-A’wash said that they received 1,758 cases in all governorates last year, and 589 of them were considered serious.
Al-A’wash added that verdicts were passed on 202 of these cases, 832 are still undergoing investigation, while 20 were dropped due to lack of jurisdiction. Decisions of absence of right were passed on 204 of the cases. He added that they received 68 cases from the Central Organization for Control and Audit (COCA), asserting that the Capital Secretariats in Aden, Taiz, Hodeida, Hadramout, Lahj and Ibb were the worst offending regions in the public money cases.
Oil subsidies at work.
The director of security in Shabwa Hamoud al-Harithi said police arrested a group of people while they were attempting to smuggle a quantity of diesel abroad.
“The smugglers were trying to take away tanks containing 150,000 liter of diesel through the see,” said al-Harithi. He said owners of some fuel stations and some oil companies working in Yemen have offered assistance to smugglers.
Through looking at the other side of the corruption cycle, the different levels of governance have varying degrees of involvement in corruption, ranging from the baselines to middle and high-level officials. However, the recent formation of the Supreme National Authority for Combating Corruption has raised hopes in the sincerity of government’s efforts towards enhancing transparency and battling corruption.
However, spectators indicate that the anti-corruption commission will have limited success in any anti-corruption reforms, quoting that the commission has distributed over 3000 applications for the disclosure of net wealth to high ranking government officials, while less than 300 officials cooperated with the commission and disclosed their net worth. Challengingly, a source who requested to remain anonymous indicated that the president himself refused a request from the commission to take the lead and disclose his own net worth in order to influence other officials, but the presidential office turned that request down.
It is obvious that the anti-corruption commission will be facing a serious challenge if it is to succeed in its anti-corruption mission; however, the hope relies within the support of the international community and donor organizations such as the World Bank and USAID.
Original Post: The article doesnt mention how many declaration forms were sent out, I think its around 2000. Its a good system. As with everything else, the key will be enforcement. Publishing the names in the newspaper is not enforcement; legal action is. The state cannot be above the law, but it is.
Almotamar.net – The Supreme National Anti-Corruption Authority (SNACA) in Yemen has on Wednesday threatened to refer all those who are lagging behind in delivering their financial declarations to prosecution to be accounted on heir properties and to be tried on charges of corruption cases in case they did not deliver those declarations as soon as possible.
Head of financial declaration sector at the SNACA Mohammed al-Matari told almotamar.net that the authority would in the next three weeks prepare statements of the names of those who failed to present their financial declarations and sending them to prosecution and trial.
The SNACA has earlier defined a date for all those involves in financial declarations in 60 days from receiving the form but many of those included have delayed in committing to that and that impedes the authority work. Al-Matari said the number of those who delivered their financial declarations from ministers, directors general and government officials is so far 592 persons, indicating to almotamar.net that all the ministers have handed over their declarations while many of directors general still have not delivered their declarations.
This measure comes at a time the authority has revealed that of investigations carried out by officials at the authority in 54 cases of corruption.
Its just going to get worse as oil revenue continues to decrease. From the Yemen Observer
News of a British company’s intention to cut off the electricity supply to some governorates was denied by Dr. Mustafa Buhran, Minister of Electricity and Energy. The Minister confirmed that the published news goes back to a previous dispute, and was obtained by a newspaper correspondent who either negligently published it, or published it with the intention of creating public unrest.
The Minister declined to speak about the agreement’s details, yet he mentioned that the agreement regarding electricity lease contracts was signed by the previous government, adding that the issue of debts had been dealt with.
Sources from the electricity corporation spoke of contracts with a temporary, off-shore electricity company for the sum of $3.5 million per month, to deal with current shortages.
Media news said that the British electricity-generating company had threatened the Yemeni electricity ministry with disconnecting the supply to six cities if they did not pay the outstanding amount owing of $7.5 million. Reports spoke of a British company by the name of Jericho, that has been supplying parts of Aden governorate, Hodeidah, Hadramout, Amran, Taiz and Sayoun with electricity according to a contract between the company and the ministry for the past year.
Sources attributed the company’s measures to the Yemeni corporation’s failure to pay the sum of YR1.5 billion ($7.5 million) for electricity supply for the months of December and January.
Some reports disclosed that the Yemeni Ministry of Electricity and Energy and its corporation are suffering hard times, as evidenced by their failure to pay the British company, which sells huge amounts of electricity used in lighting and operating industrial plants in the previously mentioned areas.
Critics of the electricity ministry said that it could have supplied these cities with power by building two generating stations at the cost of $60 million, instead of paying that same amount to the British company for a one year supply.
Yemen suffers a 30 percent deficit in electricity supply, due to the expansion of urban areas in addition to the demand for energy from rural areas and projects. It signed a contract with the British company in mid-2006 to supply the six areas with power.
Dr. Buhran told the Parliament that the Ministry’s revenues do not cover the cost of electricity production, because the revenue rate is less than 25 percent of the cost. “The government pays a subsidy to cover this deficit,” the Minister said.
Wow. I have to say its impressive Mujawar admitted the gross theft of Yemeni public money in the form of smuggling subsidized oil. The World Bank said it first though.
1) Why not end the smuggling first then do the reduction in subsidies?
2) Reduction in subsidies should be accompanied by a rational government budget not one where 25% of public funds goes to administrative maintenance and 25% goes to military spending. Subsidies are another 25% of the public budget.
3) Beyond misappropriation of funds, corruption control is another component of economic reform. It should be accomplished before raising prices on diesel.
Following Prime Minister Mujawar’s presentation to the parliament regarding the economic achievements of his cabinet during 2007, parliament members expressed fury and anger at the poor performance of the government, given the record inflation experienced during the year. The prime minister started his presentation by highlighting the economic growth and developmental achievements during the last three years, but he also stated that economic growth has declined from 3.6 % in 2006 to 3.2 % in 2007. He also explained to the parliament that the government is suffering from immense pressures due to the decline in oil production and in turn revenue.
Removal of oil subsidies
The Prime Minister also added that the government will be forced to remove oil subsidies due to the cost of the subsidies on the government budget; he stated that in 2005 subsidies constituted 23.5 % of the budget, dropping to 21.2% in 2006. However, he added that in 2007 the subsidy will exceed 30 % due to the increases in international oil prices. He also added that the World Bank states that less than 23% of the subsidy benefits the population living under the poverty line, indicating that the other 75 % of the subsidy simply goes to smugglers of refined oil products to outside the country. The prime minister also added that the government of Yemen has failed in putting a stop to five oil and diesel smuggles who smuggle refined oil products out of the country. (Read on …)
So if Saleh’s son, Ahmed, head of the Republican Guard, was in control of this land, who is Qatari paying paid for the land, the government or Ahmed? Also how did the Republican Guard get 440,000 square meters of land? It was just there? No one owned it? Yemen Post
The General Authority for Investment signed an agreement with Qatari Al-Diyar Company for Real-estate Investment to implement Tilal Al-Rayan project at Faj Attan area in Sana’a.
Built over a total area of 440,000 m2, the project’s total costs are about $500 million and will overlooks most areas of Sana’a.
In the past, the land that will be used for the project was among the locations where building is not allowed and it belongs to the Republican Guard Forces. The project will be implemented as of next April. According to a release by the company, the project will include a five-star hotel, real-estate areas, commercial offices, luxurious villas and residential apartments.
SANAA, Feb 11 (Reuters) – Yemen has no immediate plans to remove costly fuel subsidies despite budget pressures arising from declining oil output, Oil Minister Khaled Mahfoudh Bahah said on Monday.
He told Reuters in an interview that Yemen’s crude production would drop to 300,000 barrels per day (bpd) this year from an average 320,000 bpd last year, but voiced confidence that intensified exploration would reverse the trend and raise output to 500,000 bpd in the next five years.
The impoverished country on the southern tip of the Arabian peninsula struck oil in the 1980s but production has dipped since 2004 after hitting a plateau of 436,000 bpd. (Read on …)
Al-Anesi, the NSACA chairman, said that reacting in this way was beneath the dignity of the Electricity minister. “We sent a letter to the Cabinet telling them not to commit the country to anything in advance and we are not accusing Bahran of anything,” said al-Anesi. “The NSACA, like everybody else, read what was written in the papers about the deal and it attracted our attention. We called the stock market in the United States and asked for information on Powered Corp. and found that the company has never carried out any business in the field of building nuclear plants and its capital is only $500,000. The deal was supposed to be worth $15 billion,” he said.
According to al-Anesi, all of this information was sent to the Cabinet, which decided to cancel any deals with Powered Corp. He added that it was not in the best interest of the Minister of Electricity to further discuss the issue, as neither his post nor his name were mentioned to the Cabinet.
I first heard this name in relation to diesel smuggling. Then I heard he was President Saleh’s business partner, that Saleh is actually also a business man and openly involved in economic pursuits, and then later that Abdul-Rahim was the distributor for the fuel products. Now it seems he owes the government (the people) 2 billion YR and is getting more government contracts. Does Saleh as his partner openly profit from the government contracts, is it documented?
SANA’A – The Prime Minister gave orders earlier this month to the oil, electricity and trade ministries to sign contracts with the investor Tawfiq Abdul-Rahim to supply oil products to them, according to media sources last week.
The go-ahead comes after much disagreement between the businessman and the government, and claims Abdul-Rahim owes the government over YR 2 billion.
In May 2002 President Saleh ordered the cancellation of a contract signed between the Ministry of Electricity and the investors to supply the ministry with diesel and gas, according to the Al-Sahwa newspaper.
Amr Al-Arhabi, acting manager of the oil company, said that the decision was made in response to reports and recommendations made by the Central Organization for Audit and Controlling (COCA), which criticized the contract.
The paper quoted a statement published by the Al-Thawara newspaper on October 10 2004, in which the president’s directives were welcomed by citizens and workers in the company who threatened to lost their jobs due to the contract.
The paper pointed out that the President had also ordered the general prosecution investigate Abdul-Rahim, who it was alleged had been to blame for work stoppages at the Barah Cement Factory.
The President asked that the investor should also pay losses and damages caused by the mixing of gas oil with other materials. The Prime Minister also gave orders that action be taken to sue Tawfiq Abdul-Rahim.
The orders came after COCA issued a report in which the organization recommended the cancellation of a diesel contact between the Ministry of Electricity and Abdul-Rahim, due to the potential impact if the contract was implemented.
The paper said that executive documents reveal Adul-Rahim owed the government was YR 2,456,465,000.
The documents back up a memo presented by Al-Arhabi to the Deputy Minister of Oil, in which he said that Abdul-Rahim had not paid his company’s debts.
The Al-Sahwa newspaper also claimed another document, presented to the oil ministry from Al-Arhabi and Ahmed Sha’a, the Director-General of the Oil and Gas Corporation, rejected Abdul-Rahim following an agreement between a judge to allow COCA to return money from Abdul-Rahim, in accordance with the President’s directives.
apparently the money is already spent, so they need 2.2 billion US to cover this years expenses.
The controversial supplementary budget, which equals about %45 of the original 2005 budget, had triggered heated debates between opposition and GPC parliamentarians for the last three days.
Some of the GPC parliamentarians expressed their disappointment in the government’s proposed supplementary budget by abstaining in the voting process. Among those was Abdulkareem Jadban, who justified his abstention in the vote by the failure of the government to deliver the promises and commitments it had given in 2004. “By abstaining, I protested the way the government dealt with the parliament as it continues to take it for granted. This is the third time that it spends more than it should and then demands from the parliament to approve and validate its actions by voting for any supplementary budgets it proposes.” he said.
Opposition member Ali Al-Warifi agreed with Al-Baadani and said that those who vote for such a huge supplementary budget without questioning the government are betraying the people who voted for them and are abusing their power ‘without giving a damn about it’.
“This action by the members of the ruling party encourages the government to continue its corruption and embezzlement of public wealth.” Al-Wafiri said, criticizing many of the GPC members of initially being against the supplementary budget in discussions, but contradict this by voting for it when the moment of truth comes.
More: this could put the government in a very difficult position, particularly as it had already spent this amount on “luxurious cars, high per-diem travel allowances, financial awards and aid packages to government officials on the expense of the public”.
Observers noted that surprisingly enough, this is the first time the parliament stood up, with many members of the ruling party, against the ‘rampant’ corruption of the government, which used to take the parliament for granted when it comes to votes on budgets it had proposes.
OK a better one from the YO here, details more of the infighting among the parties.