tawakkol karman's women journalists without chains 2nd media monitoring report on corruption in...

8/3/2019 Tawakkol Karman's Women Journalists Without Chains 2nd Media Monitoring Report on Corruption in Yemen 2008

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Women Journalists without Chains

2nd Report On Corruption in Yemen

http://womenpress.org/news_details.php?lng=english&sid=1693

Media Monitoring of cases of corruption in the Yemeni press in 2008:

Oil and Minerals:

1-News reports based on a parliamentary report revealed corruption cases in

the Aden refinery government occurred during the years 2006, 2007, resulted

in the embezzlement of about $ 200 million. The parliamentary report

clearified the forms of circumvention to acquire funds to spend on items that

are not supported in addition to the over-charges, as expenses amounted to

Aden refinery reached per 99% of revenue in most years.

2-The report revealed that the "Aden Refinery" purchased some oil products

from abroad by direct order violating the law of tenders, with a focus of

refineries in the import process on three companies, namely the Independent

Petroleum Group , the "Fall" and "Vitol", without explaining that the

procurement of other refiners of petroleum products during the year2005

more than billion dollars in excess of a billion and a half in 2006. Also it

imported oil products at one billion and a half billion dollars without tenders

during the year 2007.

3-Reports said on the process of corruption and waste of public money tt in

the Aden refinery that it wasted quantities of crude oil from 2003-2006 ,

amounting to $ 351.4 million dollars (70.2 billion riyals).


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4-Press reports indicated that losses to the sea as well as in imports of refined

oil Marib and accessible via the sea by the ship "Breqa" where in the year

amounted to 29311 tons in 2003, equivalent to 233,418 barrels, worth $ 5

million (billion rials).

5-Press reports based on the report of the Parliamentary Committee for the

study of the final accounts for the state budget during the year in 2005

concluded that a number of irregularities took place in the Department of

Aden Refineries Company during the examination and review of the final

accounts and financial statements of companies, including implementation of a

number of acquisitions of fixed assets in violation of the law of tenders. That

led to the amount of (502,022,188) rials.

6-As press reports mentioned the non-compliance of Aden Refinery

management of laws and regulations and not rationalizing spending .. For

example, the purchase of cars for the company in direct order value

(119,818,905) rials in addition to a shortage in the procurement process

implemented by the company and the non-completion of legal proceedings by

or approved by the Procurement Committee .. And including the purchase of

units of measure density of (19,169,214) rials.

7-According to press reports that the Department of Aden Refinery sold

cargoes of crude oil allocated for domestic refining companies to foreign

directly.In addition to the exceeding of the exchange within the appropriations

approved budget, including the excess of expenditure for the amount of the

item (1,360,896,912) rials and by (341%).

8-Press reports based on the report of the Central Organization on the Aden

refinery talked about a number of imbalances, including the emergence of a


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number of assets and accounts in the financial statements which do not reflect

reality or the real balance as reflected in the accounting system automated at

31/12/2005 . One of them is the balance of accounts receivable debtors and

the balance of the accounts creditors .The credit balance at the expense of

the Ministry of Electricity delayed reaches the amount (139,506,314,744)

and the calculation of creditors debit balance for the account of the

distribution of petroleum products is in the same amount.

9-Press reports also talked on the implementation of a number of projects in

the Aden refinery in the presence of deficiencies in the studies and they are

implemented outside the framework of the draft budget, including networking

refinery and are implemented in violation of the law of tenders and auctions.

10-Department of Aden Refineries Company forced the company to pay the

cost of the materials lost in the amount of material imported from abroad. It

has been proven that, rather than under the present articles are obligations on

the importer and the claim of its value they will be closed in the calculation of

costs within a year without disbursements to seek compensation for the losses

of companies in violation of the law of tenders The value of missing items that

did not reach the company's stores reached (43,934,667) rials and it has

formed the highest percentage in excess of 1026%, adopted in the budget.

11-As there were reports that revealed the irregularities which are not to

rationalize expenditure in relation to the donations and assistance both for

company employees or other personnel and the absence of legal controls to be

paid .. Where the actual use to calculate the donations and assistance reached

(338,635,711)rials with an exceed of the capacity of (33,813,711) rials and that

represented 11% to the approved budget in 2005. The company has spent

from the account, for example, monthly contributions to maintain progress

over the governor's office . That reached (19,200,000) rials and $(3,600,000)


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rial to the staff of the governorate . (27,442,352) rials were paid as law firm

expenses in the case of installations of Joheaif by the direction of the Minister

of Oil, as reported by the company as well as the amount of (60,000,000) rials

to complete the lighting project of Square marches in Breqa .. Where the

payment was made to the governor's office while the agency responsible for

implementation of this project is the Ministry of Works which has its own

budget in the ministry.

12- Press reports talked about additional irregularities committed by the

administration of the Aden Refinery Company such as that the Department of

the company during the year in 2005 formed the composition for doubtful

debts in the amount of (1,377,330,786) rials without any connection to

support this account. The proportion of this allocation formed about (27%) of

the total debt of doubtful debts of that reached (5,059,323,144) rials as the

provided list by the company's branch to the Central Organization for

accountability and auditing.

13-The Ministry of Oil collected about $ 31 million for a fee of using a tube by

the companies producing and exporting oil, as set aside by a special account

and disbursed in a contrary manner to the Constitution and financial law.

14- MP. Mohammad Alhazmi revealed that the Minister of oil ordered the

offer of approximately 430 million riyals as rewards for him and some officials

in the ministry.

15-A newspaper report revealed that the total expenditures from the accounts

of oil reached (6/26.368.524) dollars. The disbursement is accompanied of

many of the observations. The ministry paid amounts as credits for each of the

Geological Survey Authority and the exploration and production of oil as

incentives and fuel allowance and bonuses in violation of established controls


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officially. The same report mentioned that the Ministry of Oil and Minerals

Corporation paid to Abu Alrijal the amount of $ 9,470 for the purchase of a

generator to the minister's home "under the direction and the adoption of oil

minister, without any legal basis that the Minister authorizes the adoption of

the purchase of an electric generator for the personal use of ministry funds."

The ministry of oil has bought from the accounts of oil a car for gas director

for about 37,000 dollars without complete supporting documentation to the

benefit and in violation of fiscal law No. 8 of 90 as the support is not attached

to complete the inspection and receipt of exchange among the priorities of the

vehicle and not attached the confirms of the ownership of the Ministry and

failing to be delivered in store and inspection and then delivered to the

beneficiary as a credit. The report said that the ministry bought a new car in

the presence of delivered cars recovered from the oil companies supposed to

meet their needs . According to the report the ministry exaggerated in bonuses

disbursed from the accounts of oil that reached in 2006 (71/2.079.487) U.S. $

stressing that the award is unjustly and repetitive.

16- The company's board of Yemeni Company of Natural Gas with a consent

of the leadership of the Ministry of Oil issued the amount of $ 450 million

without any justification. This came in a memorandum addressed to Dr.

Ahmed Alaawash the general attorney on behalf of public funds (402/4/98/29 /)

on 1-30 / in 2008 to the Minister of Oil, speaks to receive communications on

behalf of public funds .

17-Cousion fees, estimated fees of one dollar on each barrel is placed only at a

petrol station, or may, although collected by government offices, but have not

supplied to the cashier of the state for years.

18-A parliamentary report revealed that foreign oil companies operating in

the country are not under the direct powers of taxation and customs, but by a


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third party which is the oil ministry and the report explained that the taxation

authority is not authorized to acquaint and to examine the declarations made

by oil companies as well as regarding the quantities of production and oil cost

or tax calculated on the oil companies except through the oil ministry to

oversee and control of oil exports, according to what is authorized by law. The

parliamentary report pointed to a difference in the income tax on oil

companies that appear in the final account of the public budget in 2005,

compared to the recognition in the declarations made by oil companies. The

difference was around $ 355 million, equivalent to 68.600 billion riyals.

According to the report, the volume and value of the declarations made by

other oil companies through the Ministry of Oil to the taxation authority is

about (628) million dollars or the equivalent (190) billion riyals.

19- Reports talked about breaches of occupational safety and

environmental standards and that will have serious implications in the oil

section and the U.S. company Occidental Petroleum (OXY) of oil have many

leaks in equipment and tanks used in the S1, in addition to the intense

combustion of the gas leak.

* Health:

20-Press reports pointed out that the Ministry of Health receive a cash bribes

and kickbacks in violation of the law from building contractors directly by 3%

allowance for supervision of the value of each extract completion of the

contractor and the distribution of funds for engineers and staff in the Ministry

of Health.

21 Reports talked on the process of corruption in the Ministry of Health as to

transfer the global aid alliance of vaccine (GAVI) for non-allocated and


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disbursed bonuses, including exchange rate for the general manager (12000

dollars per month).

22- Reports talked about corruption in the bidding process for equipment and

fixtures concluded during the years (2004 - 2007 ) . That amounted to 12

billion rials .It has been reporting that the equivalent of 6 billion is not in

conformity with the specifications of the World Health Organization and the

remainder is not supplied.

23- Reports talked on the process of corruption in the Ministry of Health

which was the duplication in funding local and foreign funding for projects

and programs financed by the Ministry and donors and the seizure of most of

the foreign funding was taken by some of the powerful.

24-Press reported the process of corruption in the ministry mentioning the

tender to repair Althawra hospital in Ibb province for $ 560 million riyals in

direct order.

25-Reports talked about the exaggerations in expenses incurred by the

Ministry of Health in violation of what has been observed in the estimated

budget amounts for supervision and amounts of expenditure reached more

than 320 million during the year in 2007.

26-Reports said that the Ministry of Health vacated procurement for the ten

years prior to 2008 under the written submissions and receipt of purchases by

people who do not have anything to do with the subject and after passing by a

decade.

27-Reports focused on the process of corruption in the Ministry of Health

accompanied the tender of insecticide in the amount of 6400000 six million


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four hundred thousand dollars while the real value is $ 3200000 which was

purchased with funding from the Global Fund and in violation of the

agreement with the Fund . Fund Convention stipulates that the real price of

per mosquito at 3. $ 2, while the rate was 6.4 dollars per net. That increases of

100% of the real value . Reports pointed out that the process of sharing of the

amount happened between a group of influential in the health sector.

28-Reports focused on the process of fraud in the Ministry of Health to take

over more than 180 million riyals, under the pretext of the expenses of the

medical camps during the years 2004-2007 which were fake camps as there is

no mention of the establishment of a refugee camp and not treatment of any

case.

29-Reports talked about the confiscation of the Ministry of Health of the

amount of (60) thousand dollars which was allocated for the disabled since

2004 such as the adoption of the financial status of the disabled by the

government and the International Organization for the disabled, although

there was an agreement between the two sides of Yemen and the International

Organization for the Disabled and the centre was submitted to the Yemeni

side and the agreement called for consistently adhered to support.

30-Reports based on an official document mentioned that the Minister of

Public Health and Population ordered the amount of (101,334,126) rials to one

of the commercial furniture to the hospital for maternity and childhood in

Ibb, in violation of the law of tenders and before the delivery of any piece of

furniture, and contrary to the law which prevents the purchase by direct

order .

31- Reports based on the report of the Central Organization for Control and

Accounting for the second quarter and third in 2006 mentioned numerous


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violations and abuses occur in Jiblah Hospital for tens of millions, in addition

to the receive of the hospital for an amount of 14,082,453 rials as a foreign

aid provided by the Baptist Mission as the value of medical supplies and

equipment and spare parts for hospital . They are not shown or recorded in

the assets and property of the hospital. The report by the Central Control and

Auditing said that those charged with implementing tenders had done the

purchase of medicines and medical supplies as well as other purchases in the

total amount of(25,946,844) rials . All bills are fake and also the attached

documents, in addition to establishing four operations on purchase of

medicines on fictitious company that does not exist (Al Samaha) . The

amounted to what has been disbursed is (1,010,255) rials.

32-A report based on a news report by the Central Organization for Control

and Accounting revealed that in Hajjah Province the spending of more than

two and a half million in 2005 illegally by the hospital director and a number

of hospital staff for personal purposes. The report said that it was paid about

(756200 rials) to the former director of the hospital from the proceeds of

community participation in hospital to retrieve the rays of the hospital in

addition to withdrawing the amount (819600 rials) from (revenues of the

hospital) and the allocation of fund for the purpose of the former drug, while

the report indicated that it had been disbursed (754280 rials) to meet the

purposes of - described in the report - far from the purposes of exchange of

those resources.

33-Ministry of Health and Population accepted the tender of "cyclosporine. It

was exaggerated and reached up to one million seven hundred thousand

dollars and that was contrary to scientific opinion of doctors that original

treatments do not exceed the annual requirement of seven hundred thousand

dollars.


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34- (34) health projects failed in province of (Hadhramaut - the Valley and the

desert) varied between units ,centers, hospitals and health institutions . They

were under construction or under implementation.

35-News reports based on studies and specialized research revealed that the

percentage of drugs entering the Yemeni lands by illegal channels up to 60%

of the total of formal import .The estimate of the informal import of medicines

ranges between 37-50% of the volume of supply on the market.

36-The Ministry of Health and Population insists on the completion of the

tender procedures (9 - 12) for 2007 with the company (Julfar) that belongs to

United Arab Emirates for the provision of medicines for growers kidney, liver

and heart. Although it might result from the consequences after the

confirmation of doctors on the need to adhere to treatment using the original.

The consultant and head of Department of Nephrology in the Hospital of

Umm Al Quwain, United Arab Emirates directed a memorandum to the

Ministry of Health asking for the provision of the original treatment, stressing

the need to use the original real drug Spclauspourin Neoral only and not as

alternatives, such as (Sigma Aspourin).

37-The outcome of the examination of paper trail of documents procurement

of medicines and medical supplies of the drug from medicine fund account in

2006 from the local market referred to that it had been spent (25,469,700) rials

for purchase through split tenders announced for the purchase of medicines

and medical supplies for the Fund of medicine, where the procurement was

made by some applicants to those bids, violating the provisions of the

Financial Law No. (8) for the year 1990 and its executive regulations, and the

law of tenders and auctions, warehouses No. (3) for the year 1997, and do not

include the payroll specifications.


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38-Report of the local Gabal Habashi Department disclosed that it had been

disbursed funds for projects not exist on the ground like the project of

building a health center in Bilad Alwafi the where they disbursed

5139667 before 2007 and the adoption of 3 million riyals for the same project

in 2007 and the project does not exist. Also it has been paid more money than

the amounts approved as is the case in the health center Ghazaliyah in Wadi

Bani Khawlan where the adopted was as the 6 million riyals in 2007 and the

outgoing was 9 million rials during the same year.

* Water:

39-MP Mohammad Alhazmi revealed that the Minister of Water and

Environment gathered a monthly support of the ministry that is estimated for

5 million 500 thousand riyals from the institutions of "Water and local

institutions of Sanitation" in violation of the law under the pretext of the

functioning of the ministry.

40-News reports based on the reports of the central organization of control

and accountability revealed that the former President of the General

Institution for Water and Sanitation seized the number of 4 cars While there

are still 33 cars belonging to the institution are missing.

-Foundation of the public water announced a tender (no. 20/2005), especially

for the purchase and supply of steel pipes + Canutail + Gelovnayz with

accessories, at 306 million riyals, and laid on 12/9/2005 for the Foundation of

Saleh Altam for full trade and general contracting, but on the report of an

international company which is (Cansbact) Canada, it was revealed that a

large quantity of these substances are totally unacceptable as they do not

apply to contract specifications.


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41-Media reports talked that indebtedness of local insitution for water and

sanitation in Hodeidah Governorate with the government offices , executive,

local and some influential exceeded 950 million riyals, of which more than 650

million rials distributed to local councils, government offices and the largest

amount distributed to some people and executive personalities of those

who are able to repay is more than 300 million and the insitution did not

work to recover debts and to draw benefits.

42-News reports based on the reports of the Central Organization of control

and accountability revealed that violations and abuses in the organization of

local water and sanitation in Hodeidah reached more than four billion and 24

million rials. According to these reports a number of irregularities by the

Foundation are: the existence of deficiencies in internal control system , the

absence of a comprehensive inventory of the land of the Foundation and a

shortage of pumps, pipes, bearings ,power generators and counters , air

conditioners and computers with printers and furniture , the existence of

different varieties which have been inventoried and have no inventory

balances in the accounts of stores and the presence of static items in storage

from previous years which have not been addressed for a cost of finance more

than 68 million and 88 thousand riyals. In addition to the supply of some items

not meeting the specifications of the oil supplied through the national

institution.

43-Press reports indicated to further violations by the authority of local water

and sanitation in Hodeidah, including the purchase and supply of submersible

pumps with accessories for about 205 thousand and 334 dollars, and not in

conformity with the specifications and the supply contract in violation of the

law of tenders ,auctions, warehouses and governmental stores. The


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Foundation also to meet some of their supplies and spare parts it purchased by

direct order and purchased three suction pumps with spare parts for 75

thousand and 74 euros without a tender.

44-As shown in many reports of irregularities committed by the management

of the authority of local water and sanitation in Hodeidah . Reports said that

the company has purchased a number of vehicles exceeding the appropriation

of 54 million and 880 thousand and 612 riyals, and the purchase of 13

computers at 15 thousand and 700 dollars the equivalent of three million and

26 thousand and 489 rials through "Delta Technology". The acceptance of the

tender and procurement was in violation of the provisions of the law of

tenders and auctions.

45- Also reports revealed the violation of the institution of local water and

sanitation in Hodeidah with the provisions of the law and its implementing

regulations because of imbalances in the contractual procedures and

operational procedures for projects in 2005 which valued for about two

billion, 83 million and 18 thousand riyals.

46-Transforming of the existing management of water project in Bani Hamad

(which was carried out by UNICEF) of its own by trading with the Qat

farmers and contractors since the completion of the project three years ago, in

addition to the manipulation of tubes of the project and the replacement of

another large volumes of small. It was shown that the switch had no

transparency and clear, but there are residual sums of money where the price

of a barrel of water in the region reached to 16,000 thousand riyals.

Agriculture

47-The Committee of Agriculture, Irrigation and Fisheries in the Parliament


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revealed the process of corruption that worthed over one billion and 800

million rials which happened to the General Company for the production of

vegetable seed in Saioon in Hadramout . The committee said in its report that

the company was sold with its installations with the land to the investor

Mohamed Alhaddad for about 87 million and a half million riyals.

48-Agriculture office in the province of Albaidha committed infractions and

abuses, including manipulation of many specifications and standards for the

construction of a number of dams and barriers to the province and

specifications differ from the real.

49-A report by the Arab Organization for Agricultural Investment and

Development revealed the negligence in the Yemeni Ministry of Agriculture

resulted in depriving the country of 13 agricultural and fish projects in an

estimated cost of millions of dollars. The report of the investment activity of

the body in Yemen in 2008 revealed that the Arab Organization dropped the

13 projects due to mismanagement, negligence and corruption.

50-According to press reports based on the reports of parliamentary

documents it said that corruption in the organs of the state in Yemen caused

the stalled internationally funded of agricultural projects worthed 25 million

dollars. It has been revealed by a parliamentary report the financial

embezzlement of 25 million dollars in the development of spate irrigation in

Wadi Zabid in Hodeidah coastal province and Toban in Lahj, the agricultural

province .

* Finance

51-Reports talked about the process of financial and administrative corruption

which caused the State to loose more than (150) billion riyals in the Office of


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tax in the Secretariat of the capital as extensive embezzlement of Qat tax

collection , and the concomitant illicit financial dealings began in nineties and

sources put the total of what was looted from this funds, and losses incurred

by the State until the end of June 2008 were more than (150) billion riyals.

52- Press reports talked about corruption in customs as it did not collect debts

owed to the authority where the customs debt amounted to 300 billion in

2007.

53-Reports talked that the tax officer in the Directorate of Beit al-Faqih in the

province of Hodeidah used to bring tax outside of the framework of applicable

law (the law of the flat tax in 1999). The documents revealed that the officer

ordered to raise taxes by 10% as legal increased to more than 150% and in

some cases reached to 1040% without being based on the law.

54- The Customs Department revealed the existence of the largest fraud of its

kind in the country in Alterpietk bills and calculating the customs value and

manipulation of model cars in tax authority in Taiz province, 258. Customs

sources said that the incurred by the Customs Department is about (33) billion

riyals by the customs exemptions during the year 2007 and lost for about 165

million dollars of which 4 billion riyals under the temporary admission

system.

55-A report by the auditing organization revealed the accumulation of tax

cases pending before the courts and the prosecutors which were (78) . (62)

cases disputed about (4.2) billion riyals. The report also pointed to delays in

tax appeals committees of senior public administration in charge to decide on

tax issues for older taxpayers, and the number (49) issue with an estimated

value of the disputed tax of about 4.2 billion riyals of which (19) cases were in

the previous years worth 3 billion riyals. The report pointed to study the final

accounts for the budgets of the State during the year 2006 to the low affinity


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for the tax declarations submitted that the percentage of the target by about

23%, while the total were (622,451) acknowledgments . The report said that

the percentage of completion accounting, tax assessment on the level of

interest and their offices did not exceed 26% of the total target in the year

2006 to fiscal issues that have been decided by only 17% of the total cases

referred to .

* Electricity

56-An official report revealed that the electricity sector would cost the public

treasury more than 6 billion riyals due to the loss in electrical power failure to

extend the random distribution of electric power.

57-A formal report on structural reforms in the electricity sector reveal that

the total debt of electricity until the end of December 2007 amounted to (15.8)

billion riyals, of which 128 million debt owed by the 21 social figure and the

amount of 305 million rials debt owed by the personalities and defiant

violation of the law, while the indebtedness of the major contributors ,hotel

owners farms, factories and other business entities amounted to 1.1 billion

riyals for the number of 46 participants. Government debt reached to 4.2

billion riyals to the number of 24134 government facility.

58-A parliamentary report said that Yemen lost 700 million dollars annually

because of not use of gas station, and the use of diesel-powered stations,

government-subsidized.

59-A report issued by the Central Organization for Auditing and Accounting

of the Ministry of Electricity in 2006 on the analysis of data on the final

account pointed to the lack of transparency in the presentation and

compilation of the final account, and calculating the price of diesel fuel

purchases for less than sales prices calculated by the distribution company of


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petroleum products and a decline of 45 riyals per liter, which resulted in a

shortfall in the current activity and the lack of at least 42 billion riyals.The

report noted that there are many irregularities that caused tens of billions in

wasted fuel as well as in violation of the provisions of the accounting system.

On the other hand the report revealed on the results of audit and examination

conveyed to the Director General of Inspection and Control in the Ministry

dated 7.11.2007 on the tender of industry and buy of electrical materials in

violation of 353,466 thousand dollars were in 7/10/2007 . There is a coupled

with a fragmentation of the auction in order to change the procurement

method in violation of the law of tenders.

60-A report by the Central Organization for Auditing and accounting pointed

to the financial wrongdoing that there were tens of millions in an institution of

electricity. The report of financial irregularities in the sale of copper wire at

auction in mid-July of 2007 was 34 million and 634 thousand and 500 riyals.

The report said 11 million rials was embezzlement and 354 thousand riyals

and the equivalent of 7874 kilograms of copper wires of 12.700 meters . It was

the amount earned by the process of auction.

61-News reports based on a detailed memorandum brought to the Minister of

Electricity from the Department of censorship, No. 64 dated 20.11.2007

revealed the existence of irregularities and abuses in the process of tenders

and supply contracts for equipment and electrical transformers and indicated

that the tenders are cut and broken down in stages to purchase by direct order

instead of asking for the tender process, in violation of the law of tenders.

* Technical Education

62-The Central Organization of Control and Auditing, which followed the

performance of the Ministry of Technical Education and Vocational Training

for the fiscal year in 2006 revealed that many of the stalled construction


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projects failed. The report noted that the savings resulting from a lack of

commitment to the implementation of projects by the ministry allocations and

non-exploitation of some provision is evident in the amounts approved for the

acquisition of furniture ,equipment offices , factories and possession of heavy

machinery was supplied as a saving amount for about (43,469,167) rials. It was

shown the presence of the 6 projects stalled at a cost of contractual amount

(2,377,411,600) rial and the total amount spent up to 31/12/2006 was

(410,172,660) rial The report said that there were a number of approved

projects within budget and with co-financing (local and foreign) not been

implemented . They were 8 projects with a total value of (589,962,000) rial.

According to the report, the net savings in foreign financing accounted for

60%. The Ministry was not working on the implementation of approved

projects within the plan, but resorted to the implementation of some projects

approved and had no earmarked money . The report also noted that some

contractors assign the implementation of projects that have been decided for

them to the subcontractors. The ministry did not move or did not take any

legal action against it. The number of such projects 7 projects with a

contractual value of about (3,629,560,602) rial .

63-A report by the control system revealed that the government wasted a

Saudi loan to establish technical institutes. The report said that it was

contracted to finance the project based on old studies, completed in 1998

which led to several conclusions, including: the emergence of a gap in project

financing limit their ability to achieve its objectives represented by the absence

of funding for the provision for machinery ,equipment and laboratories for

technical institutes for the inadequate allocation of available funding of the

loan despite the importance of Saudi loan represented by the item to the

project. The amount allocated to it in the loan agreement represented 55% of

the total loan amount and therefore the project could not achieve the desired

results from without completing the full completion of its main components.


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64- The report said that the lack of good preparation for the project and to put

cost estimates for implementation of the project on the basis of factual data led

to the paying of costs from the state treasury not benefit from them which was

a waste of public money caused by lack of proper planning and realistic

project . It was canceled that the implementation of the Computer

Information Technology Institute of the Secretariat after the spending of

(9,871,885) rial as costs of studies, designs, fencing the site ,imaging and tender

documents in addition to deleting many of the operational work in other

educational institutions which affected their operational efficiency.

65- The Ministry of Technical Education and Vocational

Training implemented the procurement process for cars instead of consulting

offices and contrary to the requirements of supervision contracts that require

consulting offices supplied, in addition to its supply of (18) cars for the total

amount of (386,209) dollars from the Tihama company by direct order and

that was a contrary to the requirements and provisions of the law of tenders

and auctions and warehouses which required the government to declare this in

a public tender. Through the field visit by the group of control system for

some sites of the project it became clear that the vehicles are paid to consulting

firms in the implementation of the project sites for engineers resident

consultants, which confirms that the misuse of such vehicles for the purpose of

overseeing the project and used for other purposes, although the consulting

office was obliged under the contracts concluded with the use of such vehicles

for specific purposes for the benefit of the project only.

* Higher Education

66-There was a manipulation of 21 million per annum in the Faculty of

Education in Arhab and the fees collected from students activities. Also there

is a manipulation of 12 million as fees from newcomers students and millions


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of rials as fine fees of repetition , absence from exams and graduation fees

which was levied in contravention of the law and are spent aside and

disbursed in violation of fiscal law.

67-Detection of cases of corruption associated with the process of scholarship

and distribution of foreign scholarships as a result of bribery

and interventions by the powerful to act away from the actual entitlement

based on scientific criteria and national needs.

68-A report by control committee revealed the absence of a clear vision

strategy to govern the process of scholarship and study abroad and determine

the fields according to objective needs and the report indicated that there was

weakness in the supervision mechanisms of the candidates who studied

abroad. There were a multiplicity of points of scholarship which amounted to

(28) away from the concerned authority which is the Ministry of Higher

Education and Scientific Research.

* Education

69-Press reports revealed the process of corruption involving

misappropriation of Education Office in Sana'a governorate of five million

riyals as receivables for new teachers as the salary of December in 2007. They

also revealed that the Office of Education, Sana'a governorate forced new staff

in 2007 to pay a sum of money of 4500 per employee during the delivery of

recruitment files.

70-A committee of the control system and accounting revealed the involvement

of officials in the Office of Education in Al-Jouf province in irregularities as

they added the names of 386 people illegally in the employees to the lists that

had not been completed by the Office of Education. The office did not finish


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the documents and input to the computer to correct the remaining names since

August 2003 and some staff for the years following the number of 224 staff

members with non-cancellation of fictitious and double names . Reports

pointed out that the cause behind that was the selling of the jobs by the

involving of officials in the Office of Education in Al Jouf and others in Sanaa.

The cost of the job was 300 thousand riyals. In addition to that other

operations are subject to sale and purchase resulted in the transfer of teachers

out of the province or transforming them among the directorates of the

province in contravention of the law.

71-According to press reports it was revealed that the printing of school books

happened by other institutions of printing though that the institution of

government printing have capabilities which are huge. About 25 titles of books

with a quantity up to 81 million textbooks coasted about one billion seven

hundred million riyals and that was paid to the commercial press.

72-According to a report issued by the Central Organization for Control and

Accounting, the amounts collected from the service fees of education to

12/12/2005 amounted to 740 thousand and 962 rials in Jabal Habashi in Taiz.

73-According to a report issued by the Central Organization for Control and

accountability it was revealed that there was exaggeration in the cost of

projects mentioned by the Office of Finance Directorate of Gabal Habashi in

its report such as the restoration of housing teachers in Wadi Bani Khawlan

that reached the amount of 5627508 rials, while the school of Alshaheed Abdul

Rahman Adenh costed 8589000 rial and the restoration of School of Alsabaeen

in Wadi Khawlan reached 9356925 . Also the restoration of Al Manar school

in Alhaqal costed about 12879440 rials. The adopted sum in 2007 was 250

thousand rials as stated in the report and the contract period was one year

only. The wall of Malab Alshabab in 2004 amounted to 18,040,000 rials and


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the wall of a vocational training center in 2006 amounted to 18,718,478 .

* Culture

74-A parliamentary report pointed out to the allocation of 40 million for six

years until the year 2008 to restore the archaeological house of Alqadhi

Raghib . But the archaeological house was not restored up to the June 4, 2008.

75- Ruins in cities such as Braqish, Nashan , Khirbat Hamdan and Nashaf in

al-Jawf province was affected by looting .digging and damaging by ruins

traders with the help of some powerful figures in addition to that the

archaeological sites in the governorate of Marib is not safe from other acts of

vandalism, looting, robbery and random drilling and the ancient city of Marib

was the plundering of stones that are part of the architectural and historical

component, .

Media

76-According to press reports there was a misuse of significant financial issues

in the Ministry of Information during the reservation of a space of the satellite

channel on the Arab satellite Arab sat, as the space reserved on the satellite

with a cost of (two million four hundred thousand dollars) per year, while the

quote submitted by the Arab Satellite Communications for the space of the

educational channel for three hundred and five thousand dollars only, which

meant there was a massive fraud in the case when comparing the amounts ..

* Sports

77-Press reports talked about financial irregularities for the amount of more

than a million riyals in the Office of Sport in Almahwait.


23/40

78- According to press reports there was a fraud and trading benefits of the

contractors with the Department of Welfare Fund for eligible youth for jobs

and the degrees of contractors with the Fund in 2007. (17) degree were

replaced to persons who were not contracted with the Fund and were not

known, some of them employees at the facilities of other government "double

functional. "

* Ministry of Immigration

79-Reports pointed out to the misappropriation of government subsidies of

communities and schools. inAssistant undersecretary in the Ministry of

Emigrants Affairs insisted that there were large sums of money disbursed

from the Finance Ministry as support for communities outside Yemen as well

as to schools, some communities but not delivered to recipients according to

complaints from communities.

* Trade

80- Reports talked on the sale of (80) sewing machine on the black market and

cheaply available in spinning and weaving factory in Aden .They were not the

first, the factory management conducted the sale of a previous installment of

"70" mid-sewing machine last year for 2,800,000 rials at 40.000 for each.

81-Reports talked about the disappearance of 6 million from the Fund of the

Ministry of Constructions

82-A press report revealed that the revenues and fees for building permits and

improvement of hygiene in Manakha were not delivered to the financial

official, and even get through the branch manager. The report confirmed his


24/40

non-compliance before the Committee in charge to get off the field. Field

report proved that the people of the same region reported the existence of

agreements, including the Director of the Bureau, to build without a permit It

also revealed the existence of a written domestic support of record (75,000)

rials in writing seven thousand five hundred riyals. The report pointed to the

lack of knowledge of the fate of the office expenses related to commodity

,service and maintenance costs with the arrival of complaints from employees

and drivers of non-payment of wages.

* Judgement

83-The disappearance of more than (80) million rials from the treasury of the

Commercial Court in Sana'a. It was a deposit with the court by the litigants.

* Election

84-A report submitted by the Constitutional Affairs Committee of Parliment

on the results of the final account in the consideration of the Supreme

Committee for Elections to the Committee through the report of the Central

Organization for Control and Accounting in 2001 revealed that the results of

audit and examination to the final account of the Supreme Committee for the

election of 2001 resulted in an overrun in the estimated provision of section I

(current expenditure ) of 751 thousand and 810 rials without financial license

from the competent authority.

85- A letter from attorney of public funds to the Secretary-General of the

Election Commission revealed the fraud of staff of the Commission to the


25/40

recieptthat had been traced by the official before the Commercial Court in a

pending case. Sources in the Election Commission revealed that the issue

related to counterfeit the reciept of embezzling about 17 million rials out of

113 million devoted the completion of one of the buildings owned by the

Commission.

* Land

86-According to a report of the parliamentary Committee on Justice and

Awqaf capture some of the characters - not mentioned - occupied the property

of Awqaf in the provinces of Rimah and Almahra.

87-According to official reports, more than 29 million square meters of

endowment lands in Aden were looted in the form of buildings, estimated to be

around 80 sites and Agafia acted in the interest of the land and real estate

authority, with 22 government buildings built on awqaf land with area of

646,115 (thousand meters). According to those reports that those lands were

stolen by the people and agencies, including awqaf lands, located behind the

Saudi project in Almualla and that had been seized upon by some of the

judges, despite the existence of the provisions of bieng waqf as well as the

presence of Awqaf projects vulnerable to looting by gangs. Others territory

and property of awqaf were stopping to be grabed by the (military area) , local

councils ,the Higher Committee to address issues of housing and influential.

88- Disclosure of organized looting operation were launched against the

disabled and had been planned since the founding of the Assembly. 380-

member Assembly absorbed by circumventing the law on an area of 1900

acres, 380 had been absorbed by names as members were a group of officers

and the military. They agreed in advance with the sale, including fake names .

They used other illegal methods, to lead all to the eventual acquisition of a


26/40

group of people, including President of the General (Director of taxation in

Lahj, he was promoted to the position of Director of qat tax in the Republic),

in addition to one of the estate companies and the operation resulted in the

looting of an area of 2500 acres of land.

89- Thousands of tracts of land were seized by gangs resulted in the looting

and illegal seizure of 10 thousand acres (owned by many agricultural

associations) are still being looted, despite the association had all the legal

documents proving ownership of land.

90-Landowners and users in Hodeidah reveal official documents proving their

ownership of land seized by the influential who did not have any

documentation.

91-The private land the staff of the Red Sea Ports Corporation Hodeidah was

hijacked by an armed group and the security authorities failed to protect

them.

92- Waqf properties were siezed in Bani Hosheesh in Saawan in the capital by

the leadership of the secretariat of the capital. It was also the detained of a lot

of land and interes by the camps and the Association for the Air Defense

Department in Shamlan in Hamedan, as well as in Sanhan and others .

93-The Director of the Bureau of Land and Real Estate State Department

Trim was reported that he committed assault and robbery of the planned and

specific land allocated for the reconstruction process for those affected and

afflicted by floods, flood disaster in late October 2008 in Mashtah in Tarim.

The sources said the increased exchange and bookings for residential land

randomly on the sites parts of the Directorate affected the mountainous

highlands ,the floodplain , the private domain and other according to forms


27/40

reservation of situations under the "initial rate" and the overall decline of

these processes to exchange land to influential officials in a variety of groups

including government departments, security - parliamentary intelligence and

military.

* Local

94- Press reports said that Rima governate spent large sums on fake roads . It

was paid as extracts to contractors for about tens of millions .

95-Press reports talked that the Fund of cleaness and improvement in

Hodeidah baught 45 machines designed to clean for 302,264,000 rials with

estimated rate of market value of more than 144% "by comparing the prices

offered by the company supplying approved by the Fund as a cost estimate

with the price of the reality of bills procurement referred to in the customs it

was found that the rates approved as a cost estimate for the auction did not

reflect the prevailing market price with a difference of about (161,316,132)

and the percentage of increase of 144% of the specified value to customs data

after the addition of taxes and customs duties.

96-News reports based on the report of the organization of auditing revealed

some of financial irregularities in the office of Rayma province amounted to

more than one hundred and eighteen million during the years 2005 - 2006 .

The report issued by the Central Organization for auditing and accountability

said that it was through that process of examination and revision based on all

documents submitted to the audit team found that the abuses and

irregularities had accompanied the exchange damaged the state treasury with

the amount of (118.820490) .That sums was distributed those on

disbursements and expenses of the illegal , unjustified and lacking in the

documents that show the validity of disbursement. The report said that more


28/40

than 39 million rials was spent for hospitality such as the monthly salaries of a

number of governerate leaders without legal justification while more than 4

million was spent for the movement of some of the leaders without legal

justification, and four million and eight hundred thousand rials were spent for

rent of coordination offices for the secretariat of the capital whereas it had

been proven to the branch the absence of any headquarters of the secretariat

of the Coordinating Bureau of the capital. The report pointed out that 28

million rials were spent under the name honests and found not to control the

absence of the cleareance of those amounts at the time of preparation of the

report in September 2007.

97-The local council for the city of Mahweet revealed the financial

contravention of more than nine hundred thousand rials from the investment

program of the Directorate spent rewards and rebounds for the Office of

Youth and Sports.

98-Press sources revealed that the governor of Marib province acted in

violation of what was decided to him for two million and 500 thousand dollars

delivered by oil companies as part of the compensation to the people of the

province of environmental pollution for the years 2006, 2007, as well as to

assign a contractor close to the governor in implementing a project for

directorates of the grid to province for 11 billion riyals within one year, with

the mentioned contractor had failed to implement the Electricity of Madghal

Directorate .

99-Press reports based on a parliamentary report by the services committee in

the Parliament provided on the results of field visit to a number of provinces

talked that the governors of some provinces and departments of the funds of

cleanliness in these provinces spent the sum of (905,912,325) rials

illegally outside the specific goals for assistance , rewards hostelity, festivals


29/40

and travel allowances.

Common issues in more than one official *

100-Press reports talked about on the process of a wide blackmail in the

province of Rayma during the distribution of grades repeated every year

through the coordination of most of its offices in the deduction of grades as

they reach the royalties provided for each job to 700 thousand riyals for each

applicant to apply for a job and were distributed among the service , Office of

Finance and the local council in the province.

101-News reports revealed that the Director General of the Directorate of the

Wisab , the Secretary of the local council and the Director, of Office of

Finance had comitted some financial irregularities as they purchased two

Poclains for 30 million riyals by direct order and in violation of the law of

tenders.

102-Committee on Agriculture and Irrigation in the Parliament revealed

that the involvement of officials of the Ministry of Agriculture and Customs in

Hodeidah by allowing shipment of banned pesticides that traded in violation

of the law through the customs port of Hodeidah to the number five containers

contain a 58500 liter to the storage of one of the institutions imported

(institutions in the capital Sanaa). The committee said in its report: "This

shipment contains toxic chemicals pose that represents a risk to humans and

damages the environment.

103-Manipulation of job degrees in the province of Lahj in the Directorate of

Almqatrah by the local council and the Office of Education and there was

obvious the poor conditions of education and the distribution of social security

for non-eligible.


30/40

104 Ten Power transformers were in the government building of the

Directorate of Arahab were stolen with the complicity of staff in the

government building with executives leaders in Sanaa province in the theft

and sale of electric transformers.

105-The report of the branch of the central organization in the province of

Sanaa on the results of examination and review of the Office for the fiscal year

in 2007focussed on the discussion of the complaint of some staff of the Office

of falsifying signatures confirms he s the documents of a financial nature

confirming the seizure and to financial irregularities and criminal damage

caused serious problems for public money.

* Other issues

106- Reports talked about major irregularities in the process of privatization

of the company of manufacturing and marketing of salt and gypsum in

Alsaleef in the province of Hodeidah for staff and workers of the company

and the value of shares was given as a credit which would be paid from the

company's profits. The surplus of the company during the first quarter of this

year, in 2008 reached the amount of 82 million and 459 thousand and 323

rials after deducting the expenses and the Chairman of the Board did not

direct to pay the value of shares of the surplus profits, which are still bound by

them as acredit..They did not mention the surplus since the beginning in 2004

with the knowledge that the total value of shares reached the amount of 53

million riyals.

107-Press reports considered the decision to extradite Aden Free Zone to

Dubai's port company, citing a suspicious transaction to the application and

documents submitted, which confirms that the Kuwaiti company had made an


31/40

offer of up to 892 million dollars to run the Aden container port and part of

the Maala then raising its offer to $ 924 million in the second round .Yet it had

been to ignore the offer of Kuwait in phases, although it was the strongest

financially.

108- The involvement of a group of State officials and a minister in the

government in the biggest corruption case in the province of Hodeidah and the

exploitation of their powers and their roles in seizure amounts of money

belonging to compensation for the land of Hodeidah International Airport.

109-There were 28 economic institution owned by the state.No one knows

anything about them or about the profits for those who managed them, where

it was referred in a parliamentary report that these institutions were not

under the control of the Central Organization for Control and Accounting.

110- A censorship report revealed that four officials involved in the issue of

corruption that had cost the treasury millions exactly more than three

hundred million rials and procurement procedures included many

irregularities and abuses of technical, financial and legal issues.

111- Public utility charges did not get delivered to the state treasury and

university fees, clinics and government offices through all the Republic did not

get their fees annually supplied to the public treasury.

112-An international tribunal in Paris specialized in view of disputes relating

to investment issues forced the government to pay (27) million dollars in

compensation for the company line Assarar Gulf International.

113-The public treasury of the State lost the amount of about $ 200 million to

compensate the Yemenevst for the failure of free zone project, which was

signed with the General Authority for Free Zones in 1996. The government


32/40

has signed an unfair agreement with Yemenevst provides access to Yemen for

15% per year from the proceeds of the port.

114- A parliamentary report revealed that the indiscriminate use of foreign

grants and loans, made the country lose access to the resources of these grants

in development projects and vitality, indicating that the user of the loans

during the years of the Second Five-Year Plan 2001-2005 amounted to 18%,

and noted the report of the parliamentary committee charged with examining

the accounts of State Budgets in 2005 to the absence of full absorption of some

of the loans and make the most of them and cancel parts of its value ranged

between 22-50%, as well as the amendment in the target components as

projects and restructuring from time to time and the development of new

components and the implementation of some of them and spending allocations

to others. According to the report, irregular withdrawal mechanism of loan

amounts have a negative impact and led to the downloading of the public

treasury additional burdens of commitment in commissions on amounts not

withdrawn, which provides most of the loan agreements, some of which may to

67% of the loan interest rate. The report said that according to the reports of

the control organization, the result of our assumed application of the terms of

commissions commitment which was introduced in 2004 with the consent of

the government side which had reached during the years 2004-2005 about

4,755,297 U.S. dollars, or 19.4% for the International Development

Association and that was paid by our country, plus the interest paid during the

two years by 46.4% of the total benefits for the user of the loans contracted

during the second five year plan.


33/40

Table 1 - Total of corruption by the perpetrators of corruption

Extent of corruption in the Aden Refinery

takeover of public money 47464935711

Spending unduly 684944974

manipulation of tenders 1360896912

overrun in expenditure 440883645530

manipulation in the collection of

taxes and public6200000000

Entitlements 90000000000

aside special funds and accounts 68600000000

disbursements unjustified 725394423127.00

spare accounts 70200000000

Total 47464935711

Extent of corruption in the Ministry of Health

Spending unduly 359,310,480

Circumvention of history and

public tenders

12617816544.0

Takeover of public money 316375846.0

Not rationalize spending 340000000.0

Total 13633502870.00

Extent of corruption in the Public Institution for Water and

Sanitation

Spending unduly 4,084,380,000

Tenders 2,445,085,000

Collection of receivables 950,000,000

Total 7,479,465,000


34/40

Extent of corruption in the Agriculture Ministry

Acquisitions and the acquisition

of public money1,800,000,000

Project stalled because of neglect

and mismanagement5,000,000

Seize money 5,000,000

Total 1,810,000,000

Extent of corruption in the TAX

Spare accounts 432,000,000,000

Manipulation in the collection of

receivables240,000,000

The acquisition of public money 582,240,000,000

Total 150,000,000,000

T

Extent of corruption in the Electricity


receivables15806000000

Extravagance and lack of

rationalization of expenditure140,000,000,000

Manipulation of tenders and

auctions70,700,000

The acquisition of public money 45,988,500

Total 155,922,688,500

Extent of corruption in the Technical

Project stalled because of neglect 2,977,245,485


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and mismanagement

Manipulation of tenders 3,706,760,602

Total 6,684,006,087

Extent of corruption in the Higher Education

Spare accounts 21,000,000

Total 21,000,000

Extent of corruption in the Education


rationalization of expenditure

1,700,000,000

Spare accounts 740,962

Total 1,700,000,000

Extent of corruption in the Media


rationalization of expenditure480,000,000

Total 480,000,000

Extent of corruption in the Sport


Total 1,000,000

Extent of corruption in the Industry


Total 8,800,000


36/40

the Judiciary Extent of corruption in the


Total 5,080,000,000

Extent of corruption in the Election

Unlawful expenditure 751,810


Total 17,751,810

Extent of corruption in the Endowmen


Total 750,000,000

Extent of corruption in the Hygiene

manipulation of tenders 302,264,000

Total 302,264,000

Extent of corruption in the localities:


Disbursements unjustified 4,000,000


receivables 28,000,000

To circumvent the bidding 30,000,000

Project stalled 9,909,000

Negligence and the faltering

project3,967,892

Total 11,243,876,892


37/40

Extent of corruption in the Others

To circumvent the bidding 327,000,000

Project stalled because of neglect

and mismanagement 42,228,867,000

The acquisition of aid and loans 4,984,169,000

Disbursements unjustified 46,000,000

Total 47,586,036,000

Total corruption published in the Yemeni press, as the perpetrators of

corruption:

The perpetrators of

corruption

Total corruption proportion

overtaking

Aden Refinery 725,394,423,127 0.48 48%

Health 13,633,502,870 0.009 1%

General

Establishment for

Water and Sanitation

7,479,465,000 0.002 0%

Agriculture 1,810,000,000 0.0012 0%

Tax 582,240,000,000 0.34 34%

Electricity 155,922,688,500 0.104 10%

Technical Education 6,684,006,087 0.0044 0%

Higher Education 21,000,000 -1.4 -1.4

Education 1,700,000,000 0.0011 0%

Media 480,000,000 -3.899 -3.899

Sports 1,000,000 -6.7 -6.7

Industry 8,800,000 -5.91 -5.91

Elimination 5,080,000,000 -2.03 -2.03

Election 17,751,810 -1.19 -1.19

Endowments 750,000,000 -5.04 -5.04


38/40

Cleaning Fund 302,264,000 -3.22 -3.22

Sweeteners 11,243,876,892 0.008 1%

Other 47,584,124,000 0.03 3%

Total 1,512,768,778,286 RY 7.379,359,894$

Table 2 - b: Corruptionby Type

interference with the collection of receivables

Table (2 - A): Interference with the collection of receivables

Aden Refinery 440,883,645,530

Tax 432,000,000,000

Electricity 15,806,000,000

Sweeteners 28,000,000

834,602,144.533

Table (2 - c): Expenditure unduly


Health 359,310,480

General Establishment for Water

and Sanitation

4,084,380,000

Election 751,810

Other 46,000,000

51,955,378,001


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Table 2 - d): Corruption as the excess of expenses


1,360,896,912

Table 2 - e: corruption by private funds and to avoid accounts


Tax 150,000,000,000

Higher Education 21,000,000

Total 224,821,000,000

Table 2 - f) corruption on Disbursements unjustified



90,004,000,000

Table 2 - J) corruption not to rationalize spending

Health 340,000,000

Electricity 140,000,000,000

Education 1,700,000,000

Information 480,000,000

142,520,000,000

Table 2 - H) corruption on Project Stalled


40/40

Agriculture 5,000,000

Technical Education 2,977,245,485


Others 42,228,867,000

45,224,989,377

Table 2 - f) corruption on Loans and tax

Others 4,984,169,000

4,984,169,000

Total Corruption by Type

Corruption Type Amount RY Yemeni

Takeover 97,111,629,346

Collection of receivables 834,602,144.533

Expenditure without the

right

51,955,378,001

Tenders 20,184,571,120

Overrun in expenditure 1,360,896,912

Spare accounts 224,821,000,000

Disbursements unjustified 90,004,000,000

Not rationalize spending 142,520,000,000

Project stalled 45,224,989,377

Loans and aid 4,984,169,000

Total 1,512,768,778,286 RY 7.379,359,894$

tawakkol karman's women journalists without chains 2nd media monitoring report on corruption in...

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