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 …)