“A big scandal.” A Yemeni parliamentarian reveals a corruption case, fining the state more than $16 million

Today, Monday, a member of the Yemeni House of Representatives, former Governor of Taiz, Ali Al-Maamari, revealed a “corruption case involving government figures,” in which the state is about to lose more than 16 million US dollars.

Parliamentarian Al-Maamari said on his account on the “X” platform: “In a clear corruption case for which we have documents, the state is about to lose more than $16 million in a corruption crime involving government figures.”

He added, "Al-Rehab Company, which failed to complete the Taiz University College of Medicine project on time before the war, instead of paying a fine of up to $4 million, will receive $16 million in compensation."

1- In a clear corruption case, the documents of which we have, the state is about to lose more than $16 million in a corruption crime involving government figures.
Al-Rehab Company, which failed to complete the Taiz University College of Medicine project on time before the war, instead of paying a fine of up to $4 million, will receive $16 million in compensation.

- Ali Almamari Ali Almamari (@almamri1alii) August 5, 2024

He pointed out that "those responsible for this were government figures (former and current) who subjected the case to arbitration procedures outside Yemen, in which nepotism played a major role," stressing that "the arbitration proceedings are a major scandal as they relied on a Jordanian expert who does not know Yemen and did not visit the project site."

The documents published by Al-Maamari included a complaint from the President of the University of Taiz, regarding the looting of the equipment of the College of Medicine and Health Sciences project - Taiz University, and an initial experience report on the arbitration case for the liquidation of the College of Medicine and Health Sciences project between the University of Taiz and Al-Rehab Engineering, Agencies and General Contracting Company Limited.

It also included a detailed statement from Al-Rehab Company of the looted equipment from the Faculty of Medicine project at Taiz University, a request to dismiss the arbitration committee at the Commercial Court of First Instance in Taiz, a memorandum from the President of the Commercial Court, and the arbitration ruling between the contracting company and the University of Taiz.

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Those responsible for this were government figures (former and current) who subjected the case to arbitration procedures outside Yemen, in which nepotism played a major role.
The arbitration proceedings were a major scandal as they accredited a Jordanian expert who did not know Yemen and had not visited the project site. https://t.co/OPsu0KmU40

- Ali Al Mamari Ali Almamari (@almamri1alii) August 5, 2024

The documents confirm that Al-Rehab Company, owned by the leader of the General People’s Congress Party and former minister, Ahmed Soufan, failed to complete the project and deliver it on time, as it only completed 70% of it and received all its dues, and this was before the outbreak of war in early 2015 AD.

The cost of the College of Medicine project at Taiz University, which was financed with a 49% loan from the Saudi Fund in 2011, amounted to more than 21 million dollars. According to the contract, the company committed to delivering the project on February 20, 2015, that is, before the outbreak of war, but the company had stopped work in July 2014, without any reason.

The documents indicate that the company submitted a request for compensation for construction equipment, supplies and tools, which it claimed were looted during the war, with a value amounting to more than 10 million dollars. The President of Taiz University, Dr. Muhammad Al-Shuaibi, and demands from the Governor of the Governorate, Nabil Shamsan, decided to conclude an arbitration agreement with the company.

According to the documents, a jury was chosen consisting of three people, including a Jordanian, and this committee is headed by the former governor of Taiz, Amin Mahmoud (who is related to the company owner). The arbitration committee ruled that the company was entitled to more than $16 million, while the company was required to compensate the university approximately $4 million, according to the report of a technical expert commissioned by the university.

Following that ruling, the university’s Legal Affairs Department intervened and sent a letter to the Commercial Court demanding the dismissal of the arbitrators, but the university’s president, Muhammad Al-Shuaibi, sent a contradictory letter in which he demanded that the ruling be continued and implemented and that the university be charged with fines approaching 35 billion Yemeni riyals.

At the beginning of last June, the Saudi Development and Reconstruction Program for Yemen laid the foundation stone for the project to establish and equip the College of Medicine at Taiz University, which includes establishing and equipping three colleges: the College of Medicine, the College of Pharmacy, and the College of Nursing.

In mid-2022, Saudi Arabia announced a package of projects for Yemen worth $400 million, including “the project to establish and equip the College of Medicine in Taiz Governorate.” Since then, the Saudi program has faced obstacles to starting the project, including demanding compensation for the company that failed to complete the project.