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 …)