Aden (South24)

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The Yemeni Presidential Leadership Council (PLC) has intensified its steps to address corruption, after receiving reports from the Public Prosecution and oversight agencies of large-scale financial corruption cases and administrative irregularities.

These include in the handing out of vital project contracts, cases of money laundering, financing of terrorism, and embezzlement of public funds.

Yesterday (January 5), the PLC issued strict directives to complete the investigations, refer those found involved in the corruption to the judiciary, and that the accused be pursued internationally through Interpol.

20 Corruption Cases before the Judiciary

The Public Prosecution reported that it has taken judicial action in more than 20 cases related to the seizure of public funds, money laundering, financing terrorism, and tax and customs evasion, according to a press release by the state-owned Saba News Agency.

These cases included contracts to implement government projects, contracts to lease power generation stations, in addition to attempts to acquire petroleum derivatives illegally.

The prosecution also revealed the legal procedures being taken against a number of banks and exchange companies that operated without licenses or violated anti-money laundering laws. The Public Funds Courts issued rulings condemning these banks and imposed financial fines on them of millions of riyals, obligating them to meet the requests of the Financial Information Collection Unit.

 

Wrongdoing in Government contracts and Electricity project

The report of the Central Organization for Control and Accounting monitored serious financial violations in a number of government contracts, most notably the Aden Refinery Power Plant project. The report also highlighted the issue of facilitating the seizure of lands in the free zone in Aden, where deals were concluded in violation of the laws, which led to the loss of large swathes of state lands in favor of investors without implementing the actual projects.

The violations listed included providing oil derivatives to power stations at inflated cost through contracts worth $285 million in 2022. It was found that the contracting companies preferred to follow their own interests at the expense of the public, which led to inflated expenses and putting additional burden on the public treasury.

Violations in Performance of Embassies and Consulates

The report revealed serious violations in the performance of the Yemeni consulate in Jeddah, where 91.2 million Saudi riyals were spent without legal justification. It also said that 156.6 million Saudi riyals obtained from passport fees were not deposited during the period 2018 to 2022, and only 12.75 million Saudi riyals were deposited to the public treasury.

At the Yemeni Embassy in Cairo, the report disclosed, forgery of the official documents led to the embezzlement of $268,000 in consular income revenues, through the issuance of passports with the profession of "student" to collect fees of $95, while the revenue was recorded at only $27, which created a large financial gap.

The Case of the Floating Power Generation ship

The report highlighted a controversial contract worth $128 million given to operate a 100-megawatt floating power station to Prism Enterprise. The unfair terms of the contract included paying $12.8 million as advance payment without bank guarantees, and the company’s delay in implementing the contract, which forced the electricity sector to extend the contracts of old diesel-powered stations, costing the public treasury more than $107 million annually.

The report disclosed that the contract granted the company tax and customs exemptions, without including provisions for guaranteeing the protection of the marine environment from the toxic waste, which could lead to environmental damage that threatens the fish wealth, the primary source of income for many coastal communities.

Attack on State lands

The Central Organization for Control and Accounting also highlighted the systematic attacks on state lands, as the areas trespassed on exceeded 476 million square meters in the liberated governorates. The violations included illegal encroachment on public lands and government farms by armed groups and influential figures, amounting to 62,844 acres in the governorates of Lahj and Hadramout.

The report revealed that there are 1,929 cases pending before the judiciary, related to the seizing of lands allocated for investment projects that were not implemented, in addition to the sale of government lands with forged documents, and granting lands to non-Yemeni investors with invalid documents.

PetroMasila Violations

In the oil sector, the report stated that PetroMasila, which was established to manage the 14th oil sector in Hadramout Governorate, exceeded its original tasks and invested in other fields, including establishing companies in the Sultanate of Oman and the Bahamas under different names without disclosing their affiliation with the state.

The report indicated that the company's revenues amounted to $1.2 billion from oil exports, while operating expenses were only 25% of those revenues, which raised questions about the whereabouts of the remaining amount. It was also noted that the company does not have headquarters in the interim capital, Aden, but continues to have its headquarters in Houthi-controlled Sanaa.

Steps to Address Corruption

The PLC has directed the assignment of a specialized team to evaluate the performance of the General Authority for Lands and Real Estate, as part of efforts to stop encroachments on public property. The Public Prosecution also stressed the importance of cooperation between ministries and government agencies to expedite the investigations, warning that continued failure to cooperate would hinder justice and foster an environment of impunity.

On the international level, the Public Prosecution confirmed that it had received requests to freeze the assets of entities and individuals involved in money laundering and financing terrorism, including figures linked to the Houthi group. It added that it has addressed the US Treasury Department to obtain additional evidence to support these measures.