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Yemen Grapples with Corruption Crisis Amid Ongoing Conflict
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High-Risk Sector for Corruption Identified
Yemen’s customs administration has been identified as a high-risk sector for corruption, with officials regularly accepting bribes and irregular payments. The lack of transparency at the borders and incomplete implementation of international standards have made it difficult to monitor and prevent corrupt activities.
Public Procurement Sector Plagued by Corruption
According to sources, companies operating in Yemen’s public procurement sector face a very high risk of corruption, with government officials often awarding contracts to well-connected companies and allocating resources for personal gain. Favoritism is another widespread problem, with contracts being awarded based on political connections rather than merit.
Natural Resources Sector Affected by Corruption
The natural resources sector is also plagued by corruption, with environmental protection regulations being implemented inadequately and non-transparently. The ongoing conflict has added to the risk of corruption in the extractive industries, as rebel groups have been known to extort money from state-owned companies and impose taxes on goods passing through their controlled ports.
Limited Effectiveness of Anti-Corruption Laws
Yemen’s legal framework for combating corruption is in place, but it has not been effectively implemented. An anti-corruption law criminalizes active bribery, but does not explicitly mention passive bribery or extortion. High-ranking officials are immune from prosecution unless a two-thirds majority in Parliament agrees to initiate criminal investigations.
Threats to Civil Society and Media Freedom
The country’s civil society is also under threat, with freedoms of speech and press severely restricted. Journalists face physical attacks, threats, and interference in their work, while internet censorship is widespread. The media environment in Yemen has been deemed “not free” by international organizations.
Limited Freedom of Association
Freedom of association is also limited, with rebel groups cracking down on peaceful protests. Despite these challenges, there are reportedly many non-governmental organizations (NGOs) that focus on human rights abuses and corruption.
International Organizations Identify Yemen as High-Risk Country
The World Bank, International Chamber of Commerce, and other international organizations have identified Yemen as a high-risk country for investment and trade due to its corrupt practices. The ongoing conflict has further exacerbated the situation, making it difficult for businesses and individuals to operate in the country.
Sources
- Bertelsmann Foundation: Transformation Index - Yemen 2016
- World Bank & IFC: Doing Business 2016
- Know Your Country: Yemen – Risk & Compliance 2016
- Breitbart News: ‘Al-Qaeda Still Making Big Money From Yemen Oil’, 29 May 2016
- Reuters: ‘Exclusive: Yemen’s food crisis deepens as banks cut credit for shipments’, 4 March 2016