Monitoring Corruption Report on Technical Education

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Committee on Vocational Education &Training, Public Shadow Authority Revolution Salvation Front

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Monitoring Evaluative Report on

Performance of Ministry of Technical Education

and Vocational Training

Issued by

Committee on Vocational Education &Training,

Public Shadow Authority

Revolution Salvation Front (RSF) Tuesday Apr.13, 2014

Translated version




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Work Team:

The committee on vocational education CVE, affiliating to RSF's Public Shadow Authority, relying

on standards of expertise, professional and scientific competency, established to monitor and assess

performance of Ministry of Vocational Training and Education, with its affiliating institutes and

colleges, and to consequently correct violations ensued from mismanagement . The CVE abide by

principles and regulations on organizing activities and trends of Shadow Authority and RSF

objectives, along with all peaceful mechanisms and legal procedures that can profit the committee tohighly effective achievements of tasks.

The current report is a contribution by the executive team affiliating to The Public Shadow

Authority (PSA) a non-profit and non-political anti-corruption commission, works on monitoring andevaluating the government performance. It was established in January 2013 by the Revolution

Salvation Front (RSF), a civil non-governmental pro-change movement established in 2011 tostruggle for social change, good governance and national participation towards a modern democraticstate . Monitoring and lobbying government, PSA activities focus on the civic engagement of public,activists and professional specialists in the public sectors, and in partnership with the governmentalentities. It aims to combating corruption in all government agencies and promoting standards oftransparency and integrity.

Established under Public Shadow Authority are 8 effective committees tasked with monitoring andobserving activities, lobbying and raising awareness of public opinion. These 8 are the committees onfinance, justice, the legal affairs, the education, the media, the oil and minerals, the committee onvocational education and on the rights and freedom. They have issued 8 reports since start of NC till2011 up till now. The other three under est. Committees to be declared soon are the committee on public health and the committee on power and energy.Each of the Shadow Committees is concerned with a government sector, analysis of performance and provide solutions and national strategies, through legal and media advocacy, and civil resistance.The legal committee receives complaints and wrongdoings on corruption, and human and civil rightsviolations, especially defending public opinion issues before court. The number of issues that have been filed by the committee are up to 47, most importantly is the question of peaceful Revolutionwounded people.

Spotlight

In an event that may be the first of its kind in Yemen, the Deputy Minister of Technical Education satnext to the members of PSA assigned committee last April 15 to listen and comment on themonitoring corruption report on his ministry during a press conference held in Sana'a, accepting thePSA's invitation to the Ministry after refusing seven invitations directed to other Ministers, in someevents PSA reports enclosed to the invitations were ripped by Ministers in ire, holders of invitationswitnessed. Date of Report Issuance

The report was declared Tuesday Apr.13, 2014

Timeline

The report tackles the period starting from establishment of National Consensus Government Nov

2011 through early April 2014.

http://www.yemenat.net/news30331.html








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Objectives

The goals are to brief and disclose to the monitoring and accountability apparatus on violations and

encroachment at the sector of vocational training and education in Yemen to enhance engagement in

accountability and fighting corruption.

Overview

The significance of vocational training and education VTE lies in the pivotal role it plays in social

and economic life, as a key tool to human resources development and to follow-up of combating

poverty. It can highly affect variables of labor, unemployment rate and of civilians standards of living,

as such education is considered to be suitable for job opportunities created by various economic

sectors that keep pace with needs of labor market and increasingly transforming technology

revolution.

Abstract

The report on technical education and vocational training highlight a great deal of corruption in theuse of grants allocated in the budget and funded by donors; budgets included appropriations for a

number of business investment up 20 % of the actual cost of transactions, how did the ministerdouble-covered his housing allowance from public money, the lack of educational curricula that keep pace with the labor market, the ineligible staff, and scarcity of equipment . The management of inputsand outputs is poor and ineffective, for instance, resources are wasted for low priority projects,compared with urgently needed development at vocational sector. The internal monitoring is alsoweak. Conclusions

The poor supervision and absence of enough information required for planning and appointing

leaderships, indicate the consensus government CG has no administrative and systematic procedures

to supervise performance, resulting to several imbalances including VTE services in rural and urban

areas among male and female components.

Imbalances involve VTE and secondary education inputs and outputs from one hand, and the

technological and academic education from the other, causing ill-confidence in available data on such

education and total lack of vocational training and education indices. Educational outputs are fragile

as a result of dominance of theoretical studies and focusing on specific disciplines, to the absence of

other top prioritized specializations, along with marginalizing students desires, insufficiency of

teachers for applied subjects, and badly qualified students, which combine to an inverted pyramid in

favor of university education and departing vocational training.




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First. Ministry's Violation of Government Program

Being critical for economic advancement of developed countries, vocational training requires an actual

progress, improved curriculum and programs to ensure effective students competency that meet needs of labor

market. The upcoming period of government would be directed towards a larger capacity for such education

through completing the already under-construction institutes and supplying required finance, as well as the

following:

1- Furnishing and equipping new institutes and updating existing ones, in accordance with labor market

needs and training material designed for such purpose.

Given this promise, the VE committee observed the gov. had presented in 2003, a draft plan to the

cabinet with a 15% increase of capacity for fresh secondary school leavers through 2003-2012. Such a

plan is associated with good governance that cares for all factors contributing to such inputs but

remains falter till now.

A remarkable weakness is noted in profiting from the public budget allocated to projects, and in loans

and donations management, which is proved in the WB's loan that it did not approve. No amounts from

the State's budget are allocated to the institutes' equipment item, as 38 institutes have not even a single

furnishing. Implementing the ministry's plans is mainly obstructed by admin. bureaucracy.

Those already completed buildings made by a loan from Saudi Arabia in 2002 through 2014 remaininoperative, rather are in need to rehab, in the meantime, the 50 million dollar donation intended to furnish 18

institutes was manipulated. A new project to be funded by the Saudi loan, on establishing a printing press for

Vocational Training Ministry, submitted to the cabinet which orders that:

1- Forming a committee to be headed by Civil Service Minister and membership of Ministers of Finance,

Intel's Cooperation, Education (general), and of Vocational Education, in addition to the cabinet's

secretary general.

2- The committee shall undertake establishing vocational training printing project with all relevant

technical, legal, financial aspects, and studying possibility of benefiting from the school book printing

corp. to operate the new institutions , referring the results to the cabinet within a week as of the date.

3- The decision shall be effective as of May 5, 2013 and invalid when results are transferred to the

cabinet.

Though the Gov. program includes a promise to provide and rehab teachers and admin. personnel

needed to the new institutes, supply the operation costs and enhance the existing staff members, the

civil service has ordered a 4-year long employing pause, to cover a 60 thousand incumbents had been

approved by former regime, despite the fact that staffing is the most important agent to make education

a success. The ministry has no plan to keep pace with an increasing social demand for education and

the presented program that spoke about providing 5520 professionals and 3750 teaching staff in the

first phase of 2003 through 2005, which is not fulfilled.

The gov. promised to develop training material and curriculum, in conformance with local and regional market

variables and to forge actual partnership with private sector and labor market that aim at recruiting male and

female upcoming graduates of vocational and technical education and providing relevant organizing

legislatures and regulations.

The committee observes that the curriculum was manipulated several years ago by a group of

employees who have nothing to do with education. Instead of stating actual definitions and concepts

that define curriculum as both a method, activity and education, consisting of guiding principles,




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information, suggestions and recommendations that help the teacher perform his tasks successfully, this

group divided the curriculum into units of so-called Kifaiat or (intended) adequacies, which is not

suitable for such a bad economy. Such teaching material also remains inoperative so as to be benefitted

and assessed by teachers, students and researchers yet they are replaced with handouts directly copied

from the web.

1.

The gov. talked about enhancing capacity of vocational institutions to ensure quality outputs, while theground reality requires a number of guiding principles to improve training institutions, that can be

summarized as follows:

2- Supply buildings and equipment in consistent with correct procedures and proper maintenance.

3- A well-trained cadre with regular periodic refreshments in educational and admin. aspects.

4- Involving the private sector and employers in performing related tasks ( preparing curriculum, tests and

equipment)

2. Taking into consideration the gov. promise to enhance quality of training institutions in harmony

with local and regional labor market needs, ensuring depicting a technically and behaviorally good

image for Yemeni nationals, the local and regional markets need surveys to study their requirements.

The ministry is actually not being involved in conducting studies in traditional and modern professions

and careers. The committee confirm that developing conditions and social reputation of vocational

education especially through media means, necessarily entails improving vocational teaching staffskills and providing required finance to perform their tasks, in addition to a strong propaganda to

marketing the outputs for all potential beneficiaries.

Second. Vocational Education Reality

Among several distinct shortcomings of Yemen vocational education include small seating capacity,

bias towards gender, the institutions situating in cities in favor of rural areas , insufficient financial

allocations that target training and qualifications, slow adaptability to technological quick

advancements and informatics , newness of the national vocational education, and lack of monitoring,

besides inflexibility and boredom that characterize existing programs, with traditional and theoretical

methods of teaching being adopted. The graduation certificates and licenses offered to private institutes

are not properly processed through followed criteria, among other negative points.

Such challenges facing education in Yemen made it backward for past decades pose a gap between

vocational education outputs and needs of labor markets, though the country with a 24-thousand

populations is in urgent need for the most basic components of knowledge. Absence of good planning

cause many complications spread at various areas , whether be financial, human-related and

methodological ones. Such a problem is a result of politicization which made education part of conflict,

in addition to burden of private education that add insult to injury.

A- Technical Education Drawbacks

- Intentional negligence of the ready buildings made by a loan from Saudi Arabia, that are still

ineffective and are in bad conditions.

Mismanagement

- Violations to general orders by the government on banning appointments in higher administration

and power.

- Marginalizing and eliminating the appointments made by ministerial or republican decrees.

- Assassinating several expertise education staffers and replace them with partisan figures with little

experience.






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VE staffers have no minimum needed accommodation compared with general education system, under pretext

that teacher law issued in 1998 is restricted to general education teachers GET. Though holders of diploma

and secondary school certificates among other PE affiliates are often promoted to top classes of promotional

scale as per years of service, holders of technical diplomas and minor vocational degrees stay in sixth class

even if they are about to retire, besides being deprived from the annual remunerations granted to their

counterparts as of Apr. 2011.The VE teacher guides and admin. personnel are also denied other allowances

that are usually provided to general education affiliates.

D- Vocational Education OutputsAs the student is the most important factor in educational process among other inputs, and the quality of

production in the ministry is judged based on his performance, the vocational education outputs are

deteriorating mainly due to following reasons:

1- Educational milieu overall deterioration.

2- The shortages of competent and highly qualified education staff.

3- Lack of flexible management that appreciate professionalism.

4- Systematic curriculum is only partially available, and its content is both daunting to the students and do

not keep pace with labor market requirements.

5- Widespread of so-called good offices and favoritism that hinder pursuing vocational education.

6- Absence of effective academic and educational solutions capable to cope with problems of failed

students, especially those dubiously joined to vocational institutions, besides high costs of enrollment.

7- Though the ministry established new institutes in all of Taiz, Sana'a and other cities, students dislike

admission to studies of commerce, hostelling and agriculture, however, a Hostelling Studies Institute is

already on verge of collapse.

8- No motives and activities with its various forms (sports, arts, extracurricular events and annual

exhibition) are available.

Thus, students graduate usually unarmed with practical skills that qualifying them for labor market, as a

result of absence of practice, and the equipment that should have been provided to the state-run

institutes are either sold to black-market or overwhelmed by rust in warehouses.

Educational Wasting

A. Institutional squandering spread as a result of traditional ineffective legislatures due to:

1. Students-related provisions are in need to educational, social and psychological considerations.

2. Repeated failure of students remains unsolved through studying reasons behind.

B. Social wasting

1. Students inability to pursue study due to loss of paterfamilias and soaring costs.

2. Feelings of insecurity or anxiety about a possible unemployment after graduation.

3. Challenges of administrative wrongdoings , such as counterfeiting, exercising of

oppression on students by professors and the administration, which may result in a deliberate failing of

students.

F) Limited Female Students Admission

As per relevant reports, percentage of female students in VE is up to 11%, yet the ground reality may not

exceed 8% as a result of an environment that is not fit for women integration in educational premises, such as




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lack of specific water-closets at coeducational institutions, of women specialists and separate classrooms.

Excluding the commercial education and the Nuqum-based institute belong to Nuqum Charitable Society, no

special facilities for female students exist.

Third. Performance of ministry of Vocational Education

a) Eid Holidays

Under pretext of searching cooperation with officials in Lebanon Ministry of High Education,a duty that is legally assigned with Yemen's Ministry of High Education instead, a visit, which

has no official purpose , was paid in Oct 30 by the minister Abdul-Hafez Noaman during an

official holiday of Eid in both two countries, and returned in Nov 2. The cost suffered by the

government reach 3.5 million YR, of which one million YR was the minister's share incurred

by the delegation, according to Brakish news website reported.

b) Employees demanding protests

On Apr. 4 2013 several workers of the ministry of vocational training and education waged an

open-ended strike to denounce so-called bad conditions in the ministry, widespread corruption,

and chaos under lack of monitoring, according to them. These employees accused Noaman

with monopolizing the budget, including transport and travel allowances, causing depriving

them out of such basic rights. They called for settlement based on principle of longevity.

They also demand boycotting dealing with the personnel brought from outside the ministry, redesignate fund of

skills development that previously labelled as vocational training fund, and advocate equal opportunity among

staff members in terms of on-job training , traveling, avoiding elimination, and activate law of duty station

relocating. They threatened to rise ceiling of demands and ouster of Noaman for his failure to guide such an

important educational sector, deemed as mainstay of the country betterment.

c) Non-dispatching Pioneering Students

Protesting against annulling of scholarships program, a group of higher and vocational

education graduates have marched Sept. 2013 in front of the higher education ministry head

office based in Sana'a, demanding an equity with their excelled counterparts. The marching

students had been nominated to study in Lebanon, yet upon responsible bodies in Lebanonapologizing, the program was cancelled and though the ministry promised to provide

scholarships this year, but there is no fulfilment.

d) Arbitrary Projects

There are great amounts of money wasted by the ministry against marginal or bubble projects

instead of other priorities it should have implemented. Among these necessary projects the

following:

Project of establishing a printing press for vocational education, upon the minister's

resolution no 142 and dated Oct 22 2012, who decided on the same date to assign

Sultan Ali Saif as director gen. for the press, however, the memo no 423 on

establishing a printing press belonging to the ministry was referred to the cabinet

which instructed a 4-member ministerial team be formed to undertake reviewing the

project's financial, legal and technical aspects. As per the memo referred to the

cabinet, the payment of the project's first phase is 5 million dollars slumped from the

Saudi loan that had been devoted to furnishing the ministry's institutes.




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Students Life Insurance

A one year long agreement on collective life insurance for students of institutes and

community colleges was signed on Dec. 12 2013, stating a total amount of 52.500.000

YR , with 1500 YR for each student. The problem lies in the fact that the insurance

was signed with a private company, though the state-run Social Insurance Public Corp.

is officially concerned with the task.

e) 2012 Budget Corruption

Stood on a report by the Central Apparatus for Monitoring and Accountability for

2012, the committee observed total resources of the ministry for same year appear as

924.026.331 YR compared with 12.494.786.669 YR and 93% out of a total estimated

13.418.813.000 YR . Upon reviewing and auditing the ministry's uses of resources,

several observations are concluded, as follows:

1- In regard to the investment, a number of reasons are noted, like the following:

a. The ministry employees have allocated amounts against several investment

projects despite they have been obstructed for years without taking any legal

procedures.

b. Financial amounts were allocated by the ministry to cover investment projects

while there are no financial obligations linked to these projects, as they were preliminary and finally accepted.

c. Some investment projects' allocations exceed actual obligations.

d. Approving allocations for projects that are still under study and not approved as

the fiscal year obligations.

2- Approving additional work for several projects against 1.4446.698.351 with more than 20%

increase compared with contract cost, which violate provisions of bids and outbids law.

3- The 2012 closing statement shows 1.518.413.804YR being unsettled till Dec 31,2012

including 1.195.892.196 YR transferred from past years.

4- A 91.903.166 YR paid in fiscal year 2012 against contracting services for several Yemenis,

including a 37.200.000 YR spent from allocations of Services & Property Expenses which

violate 1990 fiscal year law no 8, and the cabinet resolution no 211 for 2007.

5- A 487.014.441 YR spent against as many as 12 projects, with an exceeding percentage of

70% compared with the approved 693.805.000 YR.

6- A 837.091.912 YR spent in 2012 against 7 projects. The amount has no allocation in the

budget.

7- The 2012 closing statement shows 32.951.928 YR as current credit account balance, yet the

amount only represents temporary credit.

8- The 2012 closing statement show actual external transfer account on Dec 31 2012 as

167.043.287 YR with a differential decrease of 124.241.415YR YR in violation to

regulations of the government accounting system and financial law no 8 for 1990 and

executive bylaws.

9- The ministry accepted pay guarantees in advance and execute guarantees for some investment

projects though these guarantees in contrary to conditions provided in routine documents,which make ease for loss of the ministry's rights. The guarantees stood on for 2012 are

estimated at a value of 162.768.666 YR.

10- The ministry take no pledges against good quality of implemented constructions. The value of

these are 58.283.183 YR though the contacts stipulate that these guarantees remain valid till

end of performance.




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11- The committee on bids approved extra tasks to be performed by some investment projects, as

238.835.551YR that should have been annexed, was stood upon, besides a 10% execute

guarantee of the total value that should have been deducted, which violates provisions no 23.

2007 of bids and outbids .

12- The fourth quarterly statement shows balances for some accounts (current accounts-

guarantees- non-financial assets) till Dec 31. 2012 at 5.797.078.397 YR though the ministry's

closing statement did not include these accounts in violation to the minister's resolution.13- Omitting the total uses and resources of the higher council of community colleges, as the

approved uses reach 23.342.000YR versus actual uses estimated at 22.633.265YR , while

revenues are 2.775.000YR compared with 10.326.747 as actual revenues.

14- The 2012 fiscal statement shows financial balance at 14.824.887YR brought forward from past

years without taking legal procedures therein.

15- A 57.000.000YR spent in 2011 fiscal year against purchase a piece of land, own by the Yemen

Intel's Bank, located nearby the Pol-technique . The purchase was not made till Dec 31. 2012.

The allocated amount was not listed in the gov. public statement.

16- No legal action is taken to recover illegally spent amount at 52.683.000YR against so-called

facilitating wages that should be provided the public account.

17- A 4.584.000YR spent in 2012 as accommodation allowances for some employees who do

not meet requirements of such spending.

18- A 227.301.348YR spent against a final payment for Industrial & Vocational Institute by

Ahmed Muqbil Almaqtary Corp. with a total value of 712.328.649YR as per the contract. Following

observations are noted:

a. Additional work value of the project 356.090.148YR with a 49.9% of the project cost

though the supreme committee on bids approved 149.055.618YR to be paid after the final

acceptance while other work were approved by the ministry committee on bids at 207.034.503YR

without consent of the supreme board in accordance with its specialization.

b. There is no an annex to the contract including other work of the project, and no performance

guarantee estimated at 35.609.015YR valid till end of implementing.

c. Though such extra-work are approved, the project remains falter without taking legal

action.

19- A 322.630.852YR spent as per invoice no 716 dated Dec 23 2012 against payments no 7/8,.

Following observations are made:

The cost of extra work reach 418.912.530YR with a 89% out of the project total cost. This work was

approved including work against 344.267.307YR ratified at a new tariff that is not included in the

contract.

Though the supreme committee approved 10 months after actual first acceptance, the project's first

receiving date is March 26. 2011, implying a decorative consent by the supreme board and a

violation to law as a result.

20. A 78.950.185 YR spent in 2012 as per invoices no 721, for Amtech against supply, installation,

operation of technological equipment, without attaching any documents supporting matching

payable fees (receipt an inspection minutes) which confirming a violation to financial law no 8 for

1990.

22- the closing statement also appears a balance of payments paid to some implementing firms,

estimated at 32.024.517YR though the ministry has no guarantees and some of the investment

projects have been preliminary accepted.




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23- the ministry spent 33.271.160YR in the same year as a trust against basic service (electricity, water

supplies and sanitation) for the Sana'a-based Crafts Institute without a general tender being

advertised.

24- imposing and collecting certification fees at 7.236.839YR without a legal invoice, to the violation to

provisions of 24/25 of law no 8 for 1991 with its amendments.

f) Violations in the Accounting Unit

The committee stood on a petition sent to the minister of vocational education by the finance minister that

disclose several encroachments covered in the committee tasked with auditing the VE ministry's accounting

unit, as follows:

a) The delay fine and confiscating the final guarantee was not settled as payable by the contractors who

did not abide by timeline of implementing completion, such as:

b) Providing no duplicate copies of legal guarantees (a guarantee of first payment in advance, of good

implement and of additional work)

c) Lack abiding by renewing some invalid guarantees capitalized projects and procedures of their

accounting settlement.

d) Some capitalized projects received overspending, compared with the limited 20% of cost of extrawork.

e) Some execute guarantees are renewed more than three times, which confirm non-obliging the

contractors to provide a guarantee that remain valid throughout contracting period.

f) Taking no necessary action regarding settling temporary credits, as follows:

1- The trusts pending since past years till Dec 31 2011, estimated at 151.860.225YR

2- The remaining balance of outgone trusts through 2012 is 120.967.393YR which still payable by the

ministry's employees and no legal action are taken to oblige them to supply these amount.

3- The settling procedures are made without observing all legal obligations, in violation to provisions no

241 of executive bylaws no 8 1990.

4- A 14.833.387YR that has not been provided to the central bank, till Dec 31 2012, is found at the

treasurers' as forwarded amounts, which violates article 26 of law 8. 1990. 5- Spending from unapproved allocations in violation to law 8. 1990, article no 43.

6- Spending great deal of amounts as trusts, against training courses, which appear to be lacking

supporting documents confirming holding such courses.

g) A 7.000.000YR spent for the trustee and treasurer Hussain Hassan Khalid, against rewarding

pioneering students in addition to 7.234.000YR granted as a trust to Saeed Alkhulaidi against

rewarding pioneers of 2009 through 2012, with a total amount of 14.234.000YR . This figure is

exaggerated as being against hold such events.

h) Instructions are made by the ministry's leaders to spent against personal matters, in violation to article

39 of executive rules 2012.

i) The financial director gen. did not endorse all settlements of trusts made during 2012.

j) A 33.217.160YR out of the capital projects allocations was granted as a trust, to the manager of the

ministry's office based in Sana'a, against completing the Turkey-Yemeni institute's infrastructural

service (electricity, water sanitation)

k) Keeping no cards of ownership for the ministry's cars (51 cars) nor are they registered as trusts granted

to respective trustees, due to neglecting use of individuals' trusting register.

l) As many as 11 cars granted to former leaderships have not been returned to public ownership, which

violate provisions no 14 of the cabinet resolution no 6, for 2011.




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m) Completing spending procedures without providing supporting documents or attachments of payroll of

some invoices in violation to article no 47, of law 8, 1990. For instance, an 894.426YR spent in invoice

no 195, against implementing training methods program at the institute of Wamdeen district of Lahej,

though no copy of supporting teaching material is supplied.

First. Capital and investing expenses

In the invoice 622 an 8.632.650YR approved to contractor Ali Abdulla Alashmori, against final

guarantee for extending a vocational institute project, based in Alpuraiqa of Aden. Observations on

such spending are as follows:

5- An 8.632.650YR was deducted, in accordance with a resolution, from allocations of Lahej-based

Almaflahi vocational and industrial project, to cover the final guarantee for above project, though a

9.000.480YR is approved in the public budget for 2012 against the project, in violation to the finance

minister decision no 67. 2012.

6- A 12-delay fine was not considered, nor explain legal excuses for the delay period between

preliminary and final acceptance of the project.

7- A hard copy of the contract and terms of reference of the project, was not attached to the spending

invoice.

8- No copies of performance guarantee for the project main duties are attached.9- No copy of additional work annex estimated at 9.315.680YR , with 10% of original contract value, is

attached.

10- No performance guarantee to cover cost of additional work is attached.

11- No copies of extending minutes are attached, as follows:

12- The committee minutes no 17. May 11, 2009, on extending period 238 days.

13- The committee minutes no 7. March 29, 2010, on extending period 229 days.

14- The committee minutes no 19. June, 2011, on extra work at 9.315.680YR.

15- The committee minutes no 27. Nov 11, 2011, on extending period 250 days.

16- The final receipt of the project confirmed the project was free of any construction defects and operable,

while the final receipt should have informed whether the contractor repairs referred to in preliminary

receipt of the project are fitted or not and that all furnished equipment are in harmony with diagrams.

17- In the voice no 710 dated Dec 22 2012, an 87.715.757YR to cover final payment against freeing

maintenance guarantee of Ba'adan Industrial and Vocational Institute construction, received by Amin

Saleh Contracting Corp.

Observations on such spending are as follows:

Most of supporting documents are not duplicate copies.

An annex of extra work contract at an amount of 3.020.200YR

No copy of reports indicating reasons behind delay.

A list of outgone was settled without being signed by the manager of financial affairs.

Tax deducted in favor of Tax Authority and Payable check are not enumerated.

The invoice no 721, a 78.950.185YR granted to Yemen Amtech against supply, installation andoperation of technological equipment. Observations on this invoice are as follows:

1- A 10% execute guarantee was deducted off cost of equipment in violation to the provisions

265b of executive byelaws to bids and outbids law no 23. 2007, which stipulates a 15%

deduction of the cost.

2- The nearly 4-month delay fine was not charged against the supplier, in violation to article 4

of the contract, stating that the project has the right to cut $100 against one day delay.




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3- No copy of the specifications committee minutes is attached.

4- The table on estimated cost of equipment purchase for the higher institute Pol-technique is

not attached.

5- No copy of the tender advertisement stating date of publishing and of opening envelopes is

attached.

6- No copy of minutes of the meeting of envelopes opening committee.

7- No copy of minutes on bidders, and of tendering award is attached.

8- No copy of minutes of the pol-technique preliminary receipt of equipment is attached.

9- No copy of receipt of equipment delivery to warehouse is attached.

10- No copies of purchase document are attached.

11- Amount was spent, though Zakat and tax cards were already expired in Dec 31. 2011.

12- Certificate of sales tax was already expired in Mar, 22.2007.

13- The equipment quality and guarantee attesting certificate was also not attached.

14- The 15% maintenance guarantee was not deducted out of the equipment cost.

In the invoice 314 included final payment no 10 along with freeing guarantee of the Raima-based

industrial institute construction, made for Al-maqtary Corp. Observations to the 147.905.348YR are as

follows:

18- A 4-month delay was not charged as a fine payable by the contractor, in violation to bids law no 23.

2007, with executive bylaws.

19-Costs of additional work 288.087.136RY , 41% out of the project original contract, in violation to

article 266 of law 23. 2007 executive bylaws.

20-Total of additional work approved by the higher board of bids and outbids estimated at

149.055.618YR

21-Cost of additional work approved by the board is 139.031.518YR .

22-No copy of original work contract of the project is attached.

23- Various Legal guarantees are not attached.

24- Tax card expired on Apr.3, 2012.

25- A varying cost of omitted work exist.

26- the invoice no 542 dated May 19, 2012 includes 54.383.86YR

27- On Dec 23. 2012 the invoice no 716 stated 322.630.852YR . Observations to this amount are as

follows:

28- An 8-month delay fine is not charged against the project contractor, in violation to provisions 266 of

executive bylaws for law no Dec 23. 2012.

29- Unit price of implemented work involving Sana'a-based Vocational Institute's project was included

only in numbers, not in words.

30- Several kinds of guarantees are not attached, such as guarantees of original and additional work,

besides no copy of initial study of the project (designs, table of quantities)

31- No copy of minutes on site submission to the contractor.

32- Other invoices, which involve several violations , include no 143; with an amount of 79.396.000,invoice no 715 stating 1.498.500YR against supply of equipment in favor of Higher Council of

community colleges, invoice no 98, dated Feb 27.2012 stating 36.663.709YR , which lacks copies of

supporting documents including bank bonds, commercial registration and qualification certificates

among other demerits, besides invoice no 115 dated March 4.2012, with 200.000YR against payables

of Detergent Company.




14

33- The invoice no 138 dated March 24. 2012 involving 6.091.761YR as due final payment no 3. This

expenditure was not supported by a valid sales tax certificate nor a receipt voucher .

34- Other invoice involves no 283 dated June 4. 2012, a 270.000YR against a month reward for the

minister bodyguard. This spending was made by the minister as a transport allowance though it was a

reward and the correct number of beneficiaries is 8 not 6. The 4 employees topped by Mohammed

Wasel and ended by Abdulla Asanabani are not entitled by the minister or his deputy, among other

several violations stated in the Arabic text.35- The invoice no 349 on approving payments to the committee on exams invigilation, printing material

and the financial committee, with an amount of 6.87.000YR .

The reports tackling aspects of such expenses are not attached, besides the fact that the performed tasks

are deemed as core responsibilities rather than overtime. There are overstatements on period of exams

listed as 60 days, along with the 4000 to 5000YR as per diems.

36- Invoice no 645 involves 455.000YR spent as reward for human resources dept.

i) The amount was granted to 13 people, though only 12 are officially tasked with auditing the

headquarters' employees rewarding payrolls.

ii) Enclosures are not enumerated at the provided slot.

iii) The head's signature was not approved.

37- The invoice no 135, dated Mar 20, 2012, a 150.000YR described as a payable for Yemen Observer

against a published congratulations of president of the Republic.

The amount was approved in violation to the cabinet's resolution no 87 for 2010 on public money austerity

measures and not allowing such publications.

The invoice no 168, stating 130.000YR against a payable of published cong. to the president of Yemen granted

to Alistithmar journal. This case is applicable with the previous one.

38- The invoice no 167, dated Apr. 11, 2012 stating 390.477YR against phone bill payables.

The amount was spent, in violation to Finance Minister resolution no 67 for 2012, from irrelevant

allocations.

The invoice no 719, stating 288.000YR as due payments to Ashaibani Rest. against a feast to guests of

honor.

Such a figure is exaggerated as (only) 20 people were served, upon a memo stating 195.000YR

approved by Finance Minister, and a 10 thousand for each person is not acceptable. The spending also

violated resolution on austerity measures, the enclosures are not numbered and the head signature is not

put down on the invoice.

The invoice no 71, stating 164.587 against cleaning the minister villa with the premises, as per

approved $770 at an exchange rate of 213.75YR.

The amount was taken from irrelevant allocations, all procedural actions were not in compliance with

regulations and only 70% of the amount was spent.

The invoice no 693, stating 420.000YR against purchase of 7 bottles of honey , as per supporting

enclosures.The purchase was made directly by the minister's office order, without referring to the concerned dept.

and only 6 bottles were purchased as a present to a Lebanese delegation.

The invoice no 74, stating 235.125 against dues of hiring a car that escorted the minister from Jan 4.

2012 through Jan 26. 2012.




15

Though the financial dept. ordered " temporary hiring a car and 50 dollars a day " the expenditure was

made from item of Transporting Tasks, which has no relevance. Neither the renting contract nor the

receipt of money was supplied.

Other invoices with several violations involve 157.500 against a travel allowance, 195.000 against a

travel allowance to Mohammed Almashwali and Abdulraqueeb Alhamadi, 279.000YR against a travel

ticket involving the minister's wife and daughter. The invoice no 126, stating 564.450 against covering

travel allowance for Abdulqader Alilbi and Ahmed Alghabri, who provide no copy of tickets to verifytravel, in addition to the invoice no 677stating 1.348.200 against external travel allowances.

A 5.000.000 described as allocations of Canadian Training Centre though no legal documents relied

upon to process, such as training contract signed between the centre and the ministry, as indicated by

invoice no 288. In the invoice 627 with a 357.975, equivalent to $1665 against car insurance of the

minister as per enclosures. This spending has no specific item and was made from irrelevant

allocations.

Other amounts involves 445.250 against compensating funds presented by the treasurer Hussain Hasan,

though it was spent for personal purposes, a 30.000 was spent against the minister's mobile phone

settlement though actual spending is only 10.000 as per receipt no 7035.

In invoice no 300 a 196.519 spent against overhauling under-secretary of Girl's Education Sector. Thecase lacks supporting documents such as traffic dept. report on the car crash, and the vouchers attached

do not refer to the model and color of the car, among other required details.

A 173.800 spent against overhauling printer no 4200 Allison, though no receipt was enclosed and the

legal tax was not deducted as the amount is a trust.

Second: Current Account

a. A list of current accounts till Dec 31, 2012

Account Name No Dec 31, 2012 Dec 31, 2012

Curriculum 1007.0010315 96729 19277870

Revenues of

productive training

1007.0010315 37393 37393

Short-term courses 1007.0010315 150.088 18.622.038

Securing travel of

Arab national

teachers

1007.0010315 159.848 159.848

Closed Account 1007.0010315 115.000 115.000

Total 559.058 39.212.149

b. a sample of current training

The invoice no 196 stating 648.966 against implementing of teaching programs in province of Marib.

Observations on this expenditure can be summed up as follows:




16

1- All initial attachments are copies, in violation to provisions of the financial law no 47 with its executive

bylaws.

2- The amount above deducted from the 2012 budget though initial documents supplied are related to

2011 fiscal year.

3- Legal deductions are not made.

4- No copy of the attendance sheet for the training participants is attached.

5-

Training material is not enclosed.6- No copy of trainees certificates is attached.

The invoice no 197, involving 908.841 against implementing teaching methods program at Trainers

Institute, Taiz.

This spending lacks supporting documents, and was made in violation to law. The legal deductions

were not processed and the trainers attendance sheet was not attached, among other encroachments.

The invoice no 195, involving 894.426 against implementing teaching methods program at the

vocational Institute, Lahej.

Though the list of participants was attached, the training material, the attendance sheet and a copy of

training certificates were not.

The invoice no 675, involving 500.000 against dues of the committee on a feedback report of the

central apparatus of monitoring and accountability CAMA.

The invoice item was only included as a trust at Mr. Fuad Ragih. The list of associated members is a

reproduction of a previous tasking. An invoice of an involved 400.000 trusted to Fuad Ragih against cost of the

report printing, along with a 150.000 as per invoice 206 against the same purpose, and the same person

involved, though he did not settle the former trust, and a copy of performed duty was not attached.

Settlements

Settlements are often processed without completing required supporting documents, as per law no 8 for 1990

A sample of these incompletely settled invoices are as follows:

A trust involves invoice no 207, dated Apr. 26, 2010, an amount of 1840.500 against rewarding pioneering

students. This amount lacks a copy of spending documents. Though the due is 1712.900 as per enclosures, the

actually settled is 1.840.500, with a 127.545 lacking support documents.

A trust in invoice no 13, dated Mar. 3, 2012, states 3.856.500 against clearing trust of Issam Al-Ofairi, on

exams centers services payments . This amount is repeatedly made as shown by payrolls. Though a differential

amount of 43.800YR has supporting documents, all enclosures lack stamp of (SETTLED). Such transaction

needs to be processed via Alkuraimi Exchange Co.

Stumbled Projects

As many as 50 faltering projects with a total cost of 21.568.535.504 YR are stood upon. Out of which a

12.483.684.214YR has been spent till Dec 31,2012, though most of these projects are planned during the periods 1995-2000 and 2001-2005. Among these projects are establishment of human developments centre and

of the Bilad Alrus industrial institute, and several reasons behind such stumbling are referred to.

Among faltered institutes are the Shar'ab-based industrial institute, the eastern Raida industrial institute, crafts

training centre based in Zabeed, the Zinjibar-based community college and expanding the vocational institute




17

of Khadir, agricultural and vocational institute in Ja'ar, the Ahim-based vocational institute and the vocational

and training institute among others.

C- Externally-financed Projects Unit

These amounts were allocated to the ministry:

39- 50 million dollars by Saudi Fund.40- 80 million dollars from king Abdulla Bin Abdul Aziz.

41- 60 million dollars from Kuwait.

42- 30 million dollars from United Arab Emirates.

43- 15 million dollars from South Korea.

To distribute all these funds a committee was set up labeled as Unit of Externally-financed Projects UEFP. This

unit actually suffers from several corruption cases, most importantly are as follows:

Expenditure is made from the 2013 projects budget, towards the units procurement, equipment and financial

incentives without abiding by correct procedures and regulations, though this budget is allocated to projects,

not for such purposes. The unit suffers overstaffing, and orders are made to purchase equipment to the

minister's office to be financed from projects accounts. The duties are overlapped and some employees, who

receive monthly incentives, do no attend.

The home of Mr. Abdul Kareem Aliriani was hired against $2200 per a month, though the building is not good

for work due to expensive renting, however, a relocation to the official building based at Hasaba would have

been possible after being rehabbed.

Some vocational education projects has no external support despite being locally funded by the 2013

budget, including the following:

1- Education mapping project remains among the ministry's work.

2- Japanese project JICA involving Dhahban cars maintenance.

3- The INTERSOS a project belong to refugee org., about which no available data exist.

4- The French-supported project coordinator, Mr. Mohammed Ashami, refused to submit backgrounddocuments and to settle a former trust.

5- The VE minister instructed 5 million Rials be granted as a trust to Ashami without attaching supporting

documents.

6- The VE ministry's cars are submitted to people from outside the unit and the ministry knows nothing

about them.

Several observations on imbalances and violations at UEFP were discussed and filed. Some of them are

as follows:

1- The violations involved in bids and the Haja-based vocational and industrial institute's additional work,

belong to Saudi project.The financial support was processed without considering these violations.

2- The minister insisted on approving 5 million YR, though being informed about the observations on

violations.

The orders of supply and spending of the polytechnics equipment, are not provided, so as the concerned bodies

can resolve challenges ensued by the 2011 crisis.

The committee stood on memo of the project unit chairman sent to JICA coordinator, in which following

observations are noted:




18

- No attachments for tasks and lists of names of selected trainers and list of spending procedures, or a relevant

demonstrated documents.

- Dues of the students (Nidhal Albared, and Saleem Albushari) are 25.000YR .

- Purchase procedures do not comply with law stipulations no 17, 2007RY.

- Cash invoice listing names of material is not attached.

- The trust was spent as per a minutes with the institute's dean, in violation to law.

- A 15.803.980YR moved from JICA project account to the benefit of the projects units and spent outside the

project's purposes.

- violations at vocational education externally-financed projects.

- wasting public money in Yemen-Korean High Institute.

- An agreement on Yemen High Vocational Institute project was concluded Mar.15, 2009 with a total cost of

US$19.700.000, the Korea contribution (a loan) is US$15.380.278, and the government contribution stands at

US$4.319.713. such a project aims at benefiting from South Korean educational experience to improve various

specializations at vocational education and training, with purpose of meeting increasing labor market needs.

The committee stood on several documents that demonstrate the corrupted tender unlawfully passed by both

resolutions of the minister of planning and intel's cooperation MPIC, in violation to Bids Monitoring and

Corruption Fighting Authorities. These documents can be summed up as follows:

1- On Nov. 22,2011 the ministry of vocational training and education received a memo of Higher

Bids Committee HBC, involving pausing approval of the above draft agreement till a legal

action is taken by Higher Bids Monitoring Authority HBMA on the Korean SIH Co.'s

complaint.

2- The tender was annulled by HBMA as a result of being full of violations and corruption

throughout its processing.

3- The memo no 268, dated Mar. 19, 2012 sent to MPIC by the minister of VE states the

procedures of the Korean loan allocated to the Yemen-Korean high technical institute project,

such as:

1- The agreement was biased towards the Korean party in favor of Yemeni party.

2- The specifications presented by the consulting firm was oriented to a competitive

importing co. which violates law on bids and outbids.

3- The estimated cost prepared by the consulting firm exceeds 100%, compared with similar

estimated portfolios supplied by the ministry which, however, are considered as

overstating.

4- The consulting firm allocated close to 4 million dollars for Training Entry, which is high

compared with the world bank's similar allocations during the first vocational training

project.

5- The consulting firm demanded assistance of a separate technical and financial analysis

committee (sub-contract), in violation to, both, the agreement signed with the CF and the

law.

The higher anti-corruption board HACB decided, in a meeting on Mar.3,2012, headed by Mr.

Ahmed Mohammed Alanisi, to refer ten of senior Vocational Education Ministry officials to the public

fund prosecution.




19

The HACB asked VE Minister for inquiring a number of the ministry's officials, regarding

violations of preparing tender no 1, 2010, on supply of equipment for high Yemen Korean technical

institute. The HACB demanded an end to this tender, as some imbalances committed by the responsible

Yemeni and Korean figures that would harm the country's interests were observed. A $2.042.490,

104% out of the loan value would be a heavy burden on Yemen's public treasury shoulder unlawfully.

The HACB also addressed the ministry of vocational training and education to put an end to contracting

with the tender-awarded firm and to implement the HBMA decision on annulling the tender.

On Apr. 10, 2013, the specialized public fund prosecution sent an address to the VE minister involving

corruption cases represented by Alwai Mohammed Abdul kadir and others who started sabotaging the

country's interests.

The VE minister and the MPIC violated the HBMA decision through their mutual consent on the

disputed supply of equipment by EC co. without forcing it, to use the loan, in violation to the loan

agreement.

On August 27,2012 the HBMA head confirmed the VE minister the HBMA board annulment of the

tender, and on Oct. 9, 2012 the HBMA informed that all complaints about the Korean project were

malicious. On Nov 10, 2012 the PIC's minister sent an address to the cabinet in solidarity with VE

minister, and the violated tender was passed.

III. Abu Dhabi Implementing Unit

The project aims at fostering the country's economy, via technical employees qualifying at various

disciplines in order to meet labor market needs. The project, signed on Dec 16, 2009, was financed only

by Abu Dhabi Development Fund. The 146.920.000 Dirham, equivalent of US$40.000.000, and was

reduced, without reference to the reasons behind, to US$20.000.000. The project intends to qualify 20

institutes in various cities of Yemen.

The committee on VE observed the report of the committee tasked, by the finance ministry, with a field

survey for the VE ministry's projects and presented, on Feb 11,2013 to the deputy accounting sector,

which unveils the following corrupted areas:

The project spending was not in harmony with the activities and purposes included in its

budget for 2012 supported by the ministry of finance. The bank list shows that the remaining balance, after due amounts were lavishly spent against

all activities in 2012, was 6.162.941YR .

A 1.913.393YR was granted on Jan 8,2013 to Abdullah Sanabani without consulting the

finance ministry, as the amount was a 2012 credit. The details of such law-violating

expenditure cover a travel allowance, a personal mobile bill settlement, an unneeded feasts, a

trust on spare parts, an unbudgeted chamber for a generator and other purposes, and

purchasing stationery.

The internal aids public dept. should scrutinize all demands provided by the projects to ensure

a safe and legal expenditures, in harmony with the allocated items at the previous minutes

signed by the Aids Dept. and the project, as these violations are observed:

a- A 3.000.000YR was approved as salaries, rather as incentives on a monthly basis, though

contracting shall be signed with (only) gov. bodies employees who are allowed to unpaid

leaves.

b- A 3.340.000YR was approved against a locally published advertisement, only 240.000YR was

actually spent, meaning the former approved demand was overstated, and a 765.000YR was




20

spent against some obligations, when the allocation of the second half of 2012, a 2.255.000 was

asked for, to cover the same purpose.

c- A 855.000YR demanded for the first and second halves of 2012 against tea and coffee breaks

for less than 20 employees of the project is deemed as exaggeration.

d- The 3.114.600YR against internal travels was not exploited fully, rather only 1.510.000YR .

e- The 4.761.000YR approved against incentives, remunerations, per diems and overtime is an

overstatement, as it represent the highest portion of the total of allocations.f- The spending demands are submitted to the financial manager, instead of the project manager

who must review them, not planning how to exploit the project's allocations•

g- The first half's overtime payments were made without reference to attendance sheets.

h- A 909.00YR was spent under so-called operation expenses, and actually distributed as rewards

and incentives to the projects employees , in violation to the finance ministry's support.

IV- Saudi Project Implementing Unit

The project aims at prepare and develop technically-qualified personnel to ensure meeting needs

of labor market at various fields, industrial, service-related and agricultural professions, via

establishing as many as 35 technical and vocational institutes.

The total finance of the project by Saudi Development Fund reach US$100.000.000 (loan

+donation) with 187.500.000 Saudi Rial, equivalent to 100.000.000 as a loan.Following are key observations the committee's report tackled:

1- The implementing unit of the Saudi project did not keep records of financial operations, as per the

chairman's statement, as spending is made a credits which are returned as supporting documents to

the financial dept. after being spent.

2- The project progress was reviewed, especially settlement lists no 112, and 232 to clear credits

associated with the project for 2011 estimated at 7.138.000YR as dues payable to the staff

members, and a 360.000YR granted to Nabeel Al-azani. Against the 2011 sundries whose details

do not exist.

3- List of settlement shows 6.235.300YR as due payments for the project staff members, though

(only) 300.000YR was spent to Nabeel Alazani against processing the 2010 first half financial

support. The amount was spent as incentives to some affiliates and non-affiliates figures, only

under his signature, in violation to law.

4- The committee did not manage to stand on the 2012 second half expenditure documents as they are

at custody of Mr. Nabeel Alazani.

5- The committee also did not manage to review foreign component due to scattered invoices exist at

the old building situated at Al-hasaba.

D- Corrupted Appointments

Challenging all valid regulations, several peoples with no relevance to administrative work are brought

to the ministry's headquarters by Mr. Abdul Hafez Noaman.

Though sacked by the minister, the executive board chairman of community colleges was reinstated

later.

Though community college vacancies advertisements and shortlisting are made by the minister, some

colleges whose former deans are incompetent are ruled out.

Though the minister instructed the deans of community colleges to shortlist deputy deans as per

regulations, the minister unlawfully endorsed appointments of some deputy deans who are holders of

bachelors only, instead of holding PhD's as stipulated.




21

A resolution on tasking Mr. Ahmed Saleh Al-Faqih with a 4-year long strategy for vocational education

ministry for 2013-2016, though a strategy prepared by World Bank for 2005-2014 already exists, and

the task was entrusted with a non-specialist.

The minister assigned all of Dr. Mohammed Alqahry; professor of political sciences, Fuad

Asalahi; professor of sociology, and the writer Ahmed Saleh Alfaqih, to identify areas of

relations between the ministry and private sector, and the donors and aspects of improving

educational milieu (teachers qualifying and curriculum), though these figures have nothing todo with vocational education.

The minister replied on the memo of executive board chairman involving appointing a dean for

Sa'ada community college that preset regulations must be respected, he himself returns to

appoint the same figure without advertising or criteria.

The minster annulled the Korean loan, though he later on apologized for the Korean co.

considering the annulment was incorrect and signed the agreement.

Though the minister set up a committee of the ministry experts to address the urgent issues and

hold weekly meeting for such purposes, he later on marginalized the committee into a single

person.

The minister appointed a wide experienced director gen. of the projects dept. he replace him

afterwards.

The minister sacked the manager of Korean project and the Haja-based Poli-Technics Maqbul

Ali Alsanabani, he later on appointed Alsanabani at the same position of community college

based in Socotra, and on June 23, 2013 he issued resolution no 124, on appointing a technician

for the externally financed technical unit, which is out of the organizational structure of the

ministry.

The VE minister discards providing the sectors with qualified expertise to keep abreast with

current sensitive situation, rather his dealing with his employees is partisan-based, as indicated

by appointing Albaida office manager; a holder of bachelor of biology.

Mohammed Saeed Shalabi was tasked as a director gen. on Apr. 4, 2012 and he was appointed

on Feb 17, 2013 as director gen. for public dept. of students activities.

Adel Abdullah Alkhalidi received 3 appointments, the first by the minister as a director gen. for

HR, the second as inspector of students' activities, the third one made by the prime minister asa director gen. for examinations.

Jihad Jameel was appointed as director gen. for public dept. of professional safety though the

position is not included at the organizational structure.

Mohamed Qassem Ali was assigned as acting deputy minister though a deputy minister is

already appointed as per a republican resolution. On June 23, 2012 the president Abdurabo

Mansor instructed the prime minister to abolish the decree because the position requires a

republican resolution. Mohamed was later on appointed in accordance with resolution of the

Sana'a community college dean as a professor of business admin. and the minister's no 27

dated Feb 28, 2012.

Forth, Affiliating Institutes and Offices

A- Sana'a-based Vocational Office

Documents published by Alola daily journal on Jan 23, 2014, disclose violations committed at the Sana'a

based office, that waste millions of rials of the office budget, with its affiliating institutes, such as the

Yemeni Chinese Applied Sciences Institute YCASI, the technical industrial institute based at Baghdad St.,




22

and that based at Dhahban, besides manipulated and overlapped budgets and expenses of the office though

it has a special operational cost.

These documents unveil arbitrary dealing with several staff members of the YCASI, for which the ministry

spends big budget for training and qualifying outside Yemen.

Among these disclosures are experience certificates that, as Alola reported, were given to peoples who are

not graduates of the technical institutes, and intend to attach them as supporting documents for jobs outsideYemen, which is deemed as counterfeiting of the official certification, or may exceeding this law

classification with its consequences.

The violations of the VE Sana'a office director gen. as per documents, cause the educational process to

decline. The director has not provided financial trusts clearance and past credits, while other trusts are

arbitrarily spent and financial reallocations, including the evening educational shifts, reallocating money

of construction projects ; basically devoted to development project, to operational costs. Another aspects

involve approving biddings without consulting the concerned bodies, imposing tuitions without vouchers,

and charging big amounts against stock-taking, however, some employees suffer salary deductions and

pending their material rights.

Admin. Encroachment

The VE office director gen. committed a number of mistakes and illegal action, as per a memo

presented to the VE minister, by the YCASI, which briefed on following:

Relocate a number of good professors to other institutes, and to the headquarters as per a

resolution lacking consent of the institute's admin, as they have unsettled trusts of up to dozens

of millions of rials.

Relocating staff members to admin. position, though they received training at technical fields

in China, and should be teachers instead.

Providing several incompetent teachers for technical specializations the institute needs.

The students' seating capacity is decided to be increased from 25% to 50%.

The YCASI due rights; estimated at $8000, were transferred from the Yemen Liquefied GasCo. to Dhahban Institute.

The raw material required for morning shift is not available.

The office manager addressed the Cooperative Credit Bank on May 27 2013, demanding

suspending salaries of employees.

Financial Violation

In a statement by Capital Secretariat Representative Abdul Kadir Ali Hilal, a number of financial violations

were reported to the Sana'a VE Office. The CAMA's report no 273 dated June 8, 2013 shows results of auditing

the VE Sana'a-based office, including lots of imbalances, for fiscal year 2012.

Another statement calls the Sana'a VE Office Manager abidance by law, and to clear an estimated trust33.271.160YR, which was allocated for basic service delivery for the Turkish Institute, and spent on Sep

5,2012.

Other statement by Finance Ministry disclosed financial corruption on 70.438.255YR spent under evening shift

due rights, though the parallel morning shift due amounts do no exceed 11 million YR.




23

The vocational education office leadership, as per documents, demanded an allocation of the investment project

budget, and replacement of due amounts of the evening shift. The amount was reduced to a 50%

70.438.255YR.The finance office consider such replacement of the amount as violating, for several reasons

including lack of supporting legal documents.

Another spending without enclosures involves 18.982.573YR which was deemed as a trust the office manager

did not clear, and a 25.640.500YR wasted on stock-taking team.

Documents show counterfeiting at the office, including collecting fees for applicants of professional certificates

exams, without official receipts.

The address of Finance Manager unveils results of the auditing committee on the VE students nutrition, which

includes the following:

1- Violating financial law no 8,1990 and its executive amended bylaws, and law on tenders and

procurement no 23, 2007 with its executive bylaws.

2- The Sana'a office provides no nutrition tender advertisement.

3- Illegal financial replacements among the office and accounting unit at Alwahda District, without

follow-up of tasks performance.

4- The people involved in approving amounts against undue foodstuff (exceeding No of beneficiaries) arenot held accountable.

5- The office in question signed a sub-contract with foodstuffs contractor to increase value of 284YR to

426YR without neither a bidding nor consent of the tender committee.

6- The dean of Baghdad Institute does not abide by public post filling regulations and relevant resolutions.

7- The food items demanded by nutrition supervisors are not matching lists referred by the contractor.

Projects Finance Expenditure

The invoice on replacing 70 million and 400 thousands includes strategic projects of a training

workshop and a store for the Hada-based industrial institute, among other things, are replaced with so-

called (due amounts of evening classes), a bubble project, let alone absence of dues that require all

projects to be canceled to meets its needs.

In invoice no 20, involves approving transposing of the 2013 budget's 4th column, with a70.438.255YR on condition of avoidance of any obstruction to the original project.

b- Makala-based Industrial Institute

Among observations are high fees for students admissions to the institute, besides low quality outputs

and financial and admin. corruption. The enrollment procedures are manipulated by the deanery and

only limited number of students are allowed to join, due to problems of seating capacity.

A number of corruption cases are either being investigated or pending at prosecution, such as the case

in which former operation dept. Mr. Reyadh Bazara'a is involved by taking illegal amounts, estimated

at 1.800.000YR against admitting students to the institute.

Another case involves applied bachelor education project supported by the Netherlands project.

to Aden students, based on admitting minimum 25 students.

The deanery violates this condition by accepting 60 students at the bachelor study, leading to great demand

for teachers, due to benefitting from high amounts required by bachelor students.

The students receive no receipt against these amounts, a challenge that need to be addressed.

Practical and training evening sessions for students of engineering are held against 20 thousands for each

student.




24

Students increasingly suffer wide-spread corruption at several vocational colleges, exercised by the dean

and some staff members. For instance, tuition charges for internal sections is only 1000YR though

2000YR is charged.

The internal sections have broken doors, smashed windows, uncovered power sockets, and scattered

rubbish despite great deals of financial collections.

Students rallies and sit-ins

The students of Aden-based Industrial institute waged several protests in front of the dean's office, calling

for improved accommodation, better nourishment and fighting corruption, as well as unveiling lack of

equipment. This comes while the institute internal sections budget is 4.400.000YR , per a month, under

supervision of the legal affairs dept. that plays no effective role.

Take control of wide area of the premises of Khur Makser-based commercial institute.

The building of coop. and agricultural institute at Shikh Ottoman has been inoperative since 90s and

was rented to an investor.

The curriculum are not standardized and sometimes uncomplimentary.

The Hosteling institute, though it has a strategic location and importance of such education, is

inoperative.

c- Vocational Education in Taiz

The aspects of corruption at VE lies in disabled educational process, wide-spread financial and admin.

imbalances. The teaching staff receive consecutive painful beats till confiscating their legal rights. The

admin. of Hawban-based industrial institute has violated resolution of Minister; Abdel Hafez Noaman,

on registration fees, declared as no more than 300YR though de facto charged is 1000. Further

encroachment as follows:

1- Coordination fees are 1100 and delivered to post office.

2- The registration fees at Hawban industrial institute HII are collected without receipts indicating the

amount.3- Opening an account at the post office in violation to Finance Ministry law.

4- The collection is entrusted with students Affairs Dept. instead of the legally authorized treasures.

5- The HII dean demands the VE provincial office of Taiz, to separate operation expenses from local

authority represented by Finance Provincial Office.

6- A memo was referred to HII dean to not intervene in authorities of the finance manager represented

by the provincial finance office.

7- Training material are not provided on a timely

basis, and students advantage of practical lessons remains ineffective, meaning strategic goals and

visions of establishing such institutes are not properly maintained, resulting to weak outputs .

8- The appointment of the dean of Asaeed Institute was not legal, as he is already retired, and already

a headmaster of Khatwa school. Though he is an educational expert, he has no official resolution of

appointing.The staff members have been calling for due financial rights since 2003, and summer centers dues

have not been released since 2008. The legal resolutions on chairmen's of depts. have not been

issued, including financial allocations for these positions.

The HII has old equipment that are no longer in effect, as per German experts who visited the

institute. The outputs are not in harmony with labor markets. Internal monitoring is absence, and a




25

procurement team purchased a car engine against 400.000YR though de facto value is 180.000YR ,

with the differential amounts taken by corruptors.

Al-Haseb Industrial Institute

This institution is in a very bad condition, and no longer suitable for education. The public

prosecution charged the dean, his deputies and control committee, with counterfeiting official

documents involving diplomas programs in favor of excellent students, as per a source.

d- Vocational Education in Raima

The students and the employees of Vocational Institute, along with local people of Raima province demanded

on May 2012 the VE minister to quickly consider their complaints against financial and admin. corruption.

The reports of the CAMA no 125 reveal looting more than 35.339.761.03YR and monopoly of operational

costs of the Raima-based vocational institute RVI for personal purposes, and direct facilitation of loss of

equipment and belongings of the VE office and the institute, resulted to depriving the city from its projects

allocations. The competent staff members are marginalized and educational milieu remains absent.

A general school is allowed to use the institute, and a part of it is used as a health center for one of the locals

and the outdoor square hired to parking heavy instrument belong to Misa'a Salab Co.

e- Vocational Education in Hodeida

The VE students of Hodeida complain of postponing study calendar under pretext of not declaring

results of first semester exams, as the institute admin does not know the failed students who would be ruled out,

as per the complaint.

The 33 students , who do not study for the second year, called on VE Minister Dec 2,2013 to consider the delay

of exams results of 2011-2012 calendars, confirming they completed subjects successfully , and demanding

holding accountable whoever is involved in obstructing study progress and discarding their future.

f- Vocational Education in Shabwa

Though consisting of 17 admin. districts, and among provinces rich in minerals, gas and "black gold" , Shabwa-

about 480km east of Sana'a- has no effective vocational training, and its citizens suffer high rate of

unemployment due to lack of education opportunities which would help them join public or private sectors

represented by Shabwa oil investing cos.

The vocational and industrial institute locating at north of Ataq, built with an estimated cost of 3 million dollar

remains inoperative and suffers severe shortage of requirements, equipment and training material, though its

construction designs are modern. The mayor of Shabwa promised to operate an industrial workshop and to

form an independent admin. for the institute.

The local authority have already decided to abolish the provincial VE office, and to redistribute its 40 staff

members to offices at other cities in case vocational teaching is not launched by end of 2013by the ministry,while hundreds of students study at other remote cities and sustain heavy tuitions and accommodation fees

The establishing of 3 institutes at Maifa'a, the current institute's furnishing, equipping and walling are not

enlisted at the 2013 budget. The local authority evacuated buildings that had been hired for instruments storing,

so as to serve the purpose of industrial institutes.

Fifth. Higher Executive Council of Community Colleges




26

The council was established as per law no 5 for 1996 involving community colleges along with establishing a

higher board based in Sana'a as per article no 7.

The council though affiliated as per above law, to the ministry of education's higher executive for community

colleges, the law has not been amended, the council is actually administered by Vocational Ed. Ministry.

a- Imbalances at Executive Council

The higher executive council of community colleges is concerned with the private and publiccommunity colleges education across all vocational institutions in the country, and follow-up of

technological advancement, yet its role is not devoted to set objectives , rather limited to evacuating

state-run colleges and approving licenses to private community colleges without considering minimum

requirements of buildings and educational premises. Training is in constant deterioration, as a result of

mismanagement, absence of high qualified teaching staff, of monitoring and follow-up. Several

colleges which have been operating for years, have no first licenses, and less than 30% of the set

courses are implemented.

Attagheer news web reported that several encroachments were disclosed by the committee set up by

law 136, on financial auditing of community colleges executive council. Major of them are as follows:

a- The council role is only licensing and collecting charges of certifications, which proves the "

incapability of the council head".

The report noted that great revenues of the council were spent as rewards for persons, namely "the

council head, the financial manager and the accountant". As for legal part, several licenses are

endorsed without considering conditions set by the bylaws. The committee, here, recommends

replacing the current head with a more qualified leadership, to review all existing staffers, in terms

of demonstrated qualification certificates, and to probe into people behind corruptors.

b- Imbalances at Private Community Colleges

The violations revealed in this regard, as per the report of the committee assigned by the minister to

review documents of the private community college, are the following:

1- Most documents are unstamped and unendorsed.

2- Several scratches on documents are observed.

3-

Handwriting is used instead of typed characters.4- Some students mainly at nursery dept. are promoted or are unjustifiably given high marks.

5- There are deletions and insertions for names of some students at various levels.

6- The committee could not determine for several students whether to consider them succeed or

fail, due to incomplete data.

7- There is no professionalism, instead, poor archives and no systematic documentations for

educational progress of the college students, rather unstamped documents.

8- The organizational structure (deanery, depts. chairmen) are not known, as their names are not

included on endorsements.

As for the executive council of community colleges, the committee observed also poor

archiving and documentation for the colleges, weak monitoring and solving students

challenges, and regular assessment.

The committee recommended to re-exam the failed students, to complete studying courses or to

refer students who were absent due to locking the college up, to other private colleges.

c- Corruption at implement of 2012 budget for HECC

Stood on the report by the CAMA on auditing the of community colleges for fiscal year 2012, the

committee observe following:




27

1- The legislatures of these colleges are not complete, such as amendments of law no 5 for 1996,

along with preparing its bylaws.

2- Weak monitoring and follow-up of the HECC on state-run and private colleges.

3- Noncompliance with conditions of jobs filling set by the prime minister law no 338 for 2009 on

organizational structure of the HECC, for appointing officials and employees of the executive

council.

4-

The 10297400YR collected in 2012 fiscal year as admin. charges violates law 13 of theconstitution, and contradicts provisions of article 51 of financial law 8. 1990 with its bylaws.

5- No enclosures supporting due rights and legal collections are usually attached. The CAMA

keeps correct data pertaining to 2012 fiscal year.

6- A 978200YR spent against rewards of collecting revenues though monitoring weakness and

absence of strict data remains.

7- Monthly rewards are regularly approved to the executive council chairman in violation to law.

An 827000YR was noticed here.

8- Spending travel allowances to the executive council chairman without identifying tasks

undertaken. 1171000 was an unlawful here.

9- No supporting documents for 701420YR spent against furnishing for the EC chairman.

10- A 3012147YE spent for several purposes in violation to law.

11- A 4151739YR spent without supporting documents.12- Revenues are not transferred to the bank on a timely basis.

13- A 192000YR against assistance and travel allowances for external officials.

14- No available data on expenditures till end of 2012 fiscal year, and the CAMA reports about a

total of 11019000YR. moreover, the HECC has exempted these colleges from legal charges.

The executive council discards several tasks and duties specified by article 5 of the prime

minister resolution no 338 for 2009, including the following:

1- maintain a database for community college education.

2- Prepare visions and plans for improving community colleges systems.

3- Suggest developments for curriculums, human resources to ensure meeting labor market

needs.

4- Provide researches required for aspects of finance, expand areas of community colleges

education, and encourage innovations.

5- Study and assess curriculum of state-run colleges, and identify good programs.

Specialists attribute such failure by the HECC to shortages of resources and budgeting,

and lack of human staffing.

The vocational education minister (chairman of the higher council of community colleges)

made a ministerial resolution no 61 for 2013, on assigning an under-secretary for the

HECC, though the job title is not included at the organizational structure.

Internal Monitoring

Some of weaknesses at this aspect are as follows:1- The community colleges regulations and bylaws are not updated, such as amendments of law

no 5 for 1996.

2- Supporting documents of several spending operations are not completed.

3- Legal violations on purchase and supply are observed.

4- There are no prior instructions to spending financial operations.

5- Some transactions lack original documents.




28

6- No signatures of several beneficiaries to confirm receiving of their dues.

7- Some officials of executive council did not put down their signatures.

8- Several scratches on storing registers and accounts.

9- Some data entries are not inked, such as the following:

1- Description of gross monthly and annul uses for 2012 current account, registered at

Uses Details.2- Some of ledger entries, such as invoice no 30 dated Apr. 28.

3- All settlements are not stamped by the chairman.

4- Books inventory are not taken at end of year.

5- Budget estimates for current account uses expected through 2012 in violation to valid

laws.

Auditing a sample of expenditures uses of budget account, following is observed:

1- Fixed month rewards approved to chairman of executive council and financial

affairs employees, regardless of works completed in contrary to civil service laws

and bylaws. The amount observed here is 827000YR, e,x. invoices no

96.40.21.148, dated March. 10. 2012/ Apr. 15.2012/ Aug. 7.2012/ Dec. 10.2012

respectively.

2- A 258000YR was stood upon against overtime wages, as follows: No official orders for overtime hours.

No attendance sheets for overtime are attached.

No explain of number of day and hours of overtime.

No reports of tasks undertaken are attached.

3- A 1803188YR spent as per invoices no 1/ 90/99/ 139/157 against official

employees' salaries for Jan, July, Aug, Nov., Dec for 2012. Following observations

are noted:

No due legal rebates are deducted against absence days, and the executive council officials have

unjustifiably exempted absent employees, which results to more and more absence.

Some beneficiaries did not put down their signatures on pay vouchers. i.e. invoice

no 99 involving a due 27463YR .

4- Spending from irrelevant amounts, such as a 1678800YR in violation to

procedures of budget implement no 8 for 1990. i.e. an observable 213000YR was

spent in 2012 against sundries of a feast to chairman of executive council and

financial affairs employees, without providing supporting attachments.

5- Illegal approving fixed monthly shuttling allowances for a number of employees

without referring to undertaken tasks. An observable 419500YR .

6- A 397761YR spent as per invoice 26 dated March 2012 against external travel

allowance for Abdul Rahman Jamel to attend a conference. This expense lacks a

travel tasking order. Though the conf. date was 25-28 March, the departure was on

March 26. 2012.

7- A $1860 was spent against the 6 day travel allowance, though actual period was only 5 days,

as per entry and depart visas, and extra undue 66294YR was spent. Expenditure was made on

July 24, i.e. after end of the tasks, though the workshop was held 2-4 July.

8- A 200000YR spent per invoice 125 dated Oct. 2012 against travel allowance for several

executive council employees, though no undertaken tasks are set, and the amount was spent




29

on Nov 25 against dismantling furnishing of the old building to move them to the new one,

among other sundries.

A 400.000Yr spent per invoice no 141 against a rental on a monthly basis, of the higher executive

council of community colleges. The amount is an over-estimate and is a heavy burden on the

HECCC budget.

9- A 249975YR spent in 2012 against oil and lubricants for the executive council chairman,

though the attached supporting documents are unstamped.

10- Observations on power and water bills along with landline phones are as follows:

a- No previous instructions to settlements are found. i.e. invoice no 4. 111. dated Feb 11, and

Sep 9, 2012 respectively.

b- No copies of bills are supplied. i.e. invoices no 12/ 132.

Upon reviewing a sample of current accounts expenses, following is observed:

a- No orders of tasking are available, for an observable 978200YR against revenues collecting

rewards.

b- An observable 388420YR against repaying amounts by the treasurer (systematic credits

settling), most of them are aids and shuttling allowances, among others. These expenses

should have been allocated for urgent aspects.c- A 44000YR against a 3-day visit to Socotra by the executive council chairman, was

approved, the amount exceeds supposed limit.

d- A 310000 against field visit, though no previous plan and subsequent reports are supplied.

Non-tasked people are listed at payroll with a total amount of 101000YR.

e- A 241500YR spent in 2012 against move allowances without listing undertaken tasks.

f- A 718000YR spent against shuttling allowances for unofficial employees, including a 157000

spent out of the budget account. Copies of these contracts are not attached, and no evidence

provided to confirm duty fulfilments.

Resources:

As the closing statement of the executive council shows, the actual revenues of 2012 are

10354255YR, including 5083895YR are the budget revenues, and a 5270360YR as the

current account revenues.

Reviewing these amounts shows the following:

1- A 10297400YR was collected in 2012 without a legal basis, and in violation to article 13 of

the constitution, and article 51 of executive bylaws of law 8,1990.

2- The total of budget actual revenues is 5083895YR , with net increase of an estimated

1583895YR , 45% of total approved amount 3500000YR . the reasons behind such increase

are as follows:

a- The increase at admin. entry resulted from absence of precise and scientific estimations,

and such collected revenues are less than actually required, as per the prime minister'slaw no 210/ 2010, stipulating that annual fees of renewing private community colleges'

license shall be 500.000YR . The number of registered colleges by end of 2012 are more

than 30, as specialists stated.

b- The 56855YR increase at penal-deducting revenues is due to lack of a relevant

estimation for such entry.




30

c- The revenues table includes some counting errors, as follows:

7- The amount of the title Budget appears at provided slot as 350000YR instead of the correct

figure 3500000YR.

8- The increase at penal-deducting revenues entry did not appear though a 56855YR increase at

this item is achieved.

9- Though 50% of collected amounts must be provided to public treasury account, as stipulated

by the prime minister's law no above 210, and the other 50% to the council's account, noestimate budget draft for 2012 expected revenues of current account was prepared.

10- The executive council has no information on a delayed due 11019000YR on community

colleges till end of 2012. Though a written inquiry was addressed, no reply was done.

11- The council edited meeting minutes during 2012 on illegally exempting these colleges from

settling some fees.

12- The expenditure is made directly from collected revenues before being deposited to the

central bank, which violates provisions no 65 of financial law no 8 for 1990.

13- Book value inventory is not taken, including collected revenues vouchers, in violation to

article 85 of law 8 executive bylaws.

Sixth. Skills Development Fund

This fund was established by republican resolution no 15 for 1995, to hold fees collected from public and

private employees payrolls, along with daily collections of economic and production institutions, such as

National Tobacco Co., Yemen Cement Marketing Co., a daily 5000YR deducted for each wage contract

involving foreign nationals. These monetary collections are intended to develop curriculums and vocational

training and education to ensure an enhanced competitive quality of local products, to meet labor market needs,

knowledge and technological progress, and to enhance effective partnership and exchange of expertise among

educational institutions towards a prosperity of Yemen economy.

The ministry has the right to manage the fund affairs, as 75% of its revenues are a one percent deduction of

public and mixed sector employees' payroll, and (only) 25% of the revenues are from private sector, at the same

percentage.

Yet, a conspiracy was machinated against the fund to be privatized under baseless pretexts by several parts

including its (former) holders, who mismanaged it and indirectly caused it to be sold to private sector at low

cost, and to change its name from Vocational Training Fund into the present name. Such a financial and admin.

corruption was contributory by all entities including Ministry of Vocational Education, and despite the

parliament oppose of draft resolution, the draft was finally passed.

Demanding Protests

A mass sit-in protest was staged Wednesday June 26, 2013 in front of Skills Development Fund's headquarters

to demand reinstating the fund into the ministry responsibility, calling for holding all involved people

accountable and bringing them to justice, confirming that 90 institutes and colleges suffer shortages of

potentialities and equipment while millions of rials related to the fund remains frozen as private sector deposits

at banks. Being administered by the private sector the fund offers no programs to support graduates ofvocational education.

A statement provided by protestors attributes the fund deviation from its key objectives to a big scaled

conspiracy in which the Vocational ministry and the executive fund manager, and a number of businessmen

were involved, addressing the president to protect public money against all dangers.

Corruption at 2012 Fund Budget




31

The CVE stood on the CAMA's report on final statement of the fund that shows the following:

Fir st: Uses

The de facto uses of 2012 reach 4.290.290.401YR with a net overdrawn of 1.872.421.401YR out of total

approved estimates of 2.417.877.000YR .

Upon observing and auditing these amounts, some key points are as follows:

An excessive 69.309.225YR , 346.5% compared with approved estimated 20.000.000Yr.

Apparent overspending of 2.844.000Yr, 110.2% compared with the approved 2.580.000YR is

due to the fund's approving of sessions' allowances for the boards members.

An overspent 6.092.538, compared with approved estimates 3.000.000 at maintenance item.

Saving of 964.323, 16.6% compared with approved estimates at 5.800.000Yr.

An overspending of 20.018.000YR at shuttling item, compared with approved estimates

10.000.000YR .

The 2012 total training expenses, shown by the final statement of the fund, are

1.112.077.776YR , with an estimated saving of 889.994.224YR , compared with approved

estimates 2.002.072.000Yr, though training actual expenses for the year are only

752.413.264Yr.

Worth-noting is that a 62.4% saving of total estimates indicates the fund's failure to exploit big

resources available for training and developing youth skills, and to achieve hoped objectives,

especially that it has financial liquidity invested as bank deposits.

Second: Resources

The actual revenues of 2012 are 4.290.298.401Yr, with a net increase of 1.872.421.401Yr

(77,4%) compared with total approved estimated 2.417.877.000Yr.

The investment balance are 5.849.041.868Yr with an increase of 1.259.725.500Yr, 27.4%

compared with the Dec 12, 2011, 4.589.316.367Yr.

The deposits increase of 1.259.725.500YR is not altogether credit benefits, as it includes200.000.000 as new deposits for 2012.

In 2012 such benefits are up to 1.059.725.500Yr, though the listed figure is 1.058.419.434Yr

with a differential 1.306.066Yr, as increase of deposits value benefits.

The fund staffers have invested resources as deposits at only the Yemen Bank of

Reconstruction and Development, and National Bank of Yemen, instead of crediting

distribution, which involves bigger risk.

The fund credits at banks are unintendedly increasing from year to another, due to increase of

the fund's revenues versus inability to encapsulate them for implementing its objectives,

meaning the fund is incompetent.

A decrease of 200.554.025 (22,6%) appears at entry of Cigarette revenues, compared with

approved estimates 886.400.000YR , along with a 83.658.364YR decrease at Cement entry,

compared with 123.300.000Yr.

The reasons behind a 448.519.163YR (49.8%) decrease of revenues of Businessmen compared

with approved estimate 900.000.000YR, are due to non-collecting of revenues imposed on

companies and institutions, along with not consulting data on de facto revenues of previous

years, reaching 475.511.357YR , and 418.496.189YR for 2010 and 2011 respectively.




There is an increase of 14.185.141YR at capital revenues entry, and of 25.141.362YR as funds

remaining, which is due to absence of estimating at 2012 estimate budget.

There is no estimation, at 2012 budget of the fund, for current commercial surplus, though the

fund achieved the same surplus for past years. The 2012 surplus, reaching 992.563.949YR ,

due to training expenses savings, and increase of credit profits revenues as a result of increase

of bank deposits of the fund.

Taking no legal action for economic sector units' rejecting of deducting the fund's dues,contributed by the units payrolls' 1%. The observable amount here is 3.175.221.591YR .

Monthly average of revenues collectable by senior taxpayers public dept. are 110.000.00Yr,

while actual average of current revenues is no more than 12.000.000Yr, with a differential

98.000.000 which should have been collected on monthly basis, that totaling a 1.176.000.000

per one year.

The fund's revenues at each branch offices of Hadramout, Hodeida, and Aden stand at 6% /

14% / 23%, is a relatively low percent compared with size of collected revenues from the

fund's Taiz-based office, thus, a review of follow-up process of the contributory revenue is

urgently needed.

A 167.182.946Yr appears as cumulative payables brought forward from past years, by several

institutions of the public, private and mixed sectors, without taking legal action for them to be

collected.

Though the fund approved only 20.000.000Yr in favor of so called support of summer camps a

30.000.000YR was not registered as a debit deducted by Central Bank of Yemen from the

fund's account in 2008.

Thir d. General Observati ons

An allocation of 557.023.271YR was forwarded to training programs during 2013 from 2012 training

account, without a legal support. Another funds were endorsed as deferred dues against training

candidates nominated by the Fund, though they are not payroll-contributors by end of 2012, while there

is no need for training at this time, and agreements were made without reference to contracting

stipulations provided by Bid and Outbids law no 23, for 2007, with executive bylaws, among others

encroached spending.

The fund does not offer allocations to public training centers in coordination with the ministry of

vocational education to ensure being fully equipped and capable to implement programs that meet

market labor needs, to reduce high costs paid by the fund when refunding private training centers, as

well as to fight unemployment, among other purposes.

The fund's admin. plays no effective role on monitoring actual training courses execution, rather

restricted to receiving documents and certifications of training programs. It further lacks a database on

number of man force of each contributing agency and annual activities, so as to refer to when assess

contribution or refunding for employees training.

A 442.980.307Yr was charged, without considering financial ceilings, against a piece of land for the

fund, including a 362.477.000Yr as actual value of the land and construction except final finishes.

The list of references collected by the preparing committee includes trusted news web sites, the report

by Central Apparatus on Monitoring and Accountability, a number of official memos, petitions, which

are provided in detail at the Arabic version of this report.