New business entrants make huge profits from stockpiling and distributing aid
English - Tuesday 12 January 2021 الساعة 04:28 pm
Aden, NewsYemen, Exclusive:
A new economic study said that the war and the weakness of state institutions in Yemen have strengthened the existence of an informal economy - commercial activities that are not officially registered and are becoming more and more competing with officially registered companies - and these two factors have increased the competition of this type of economy to officially registered companies.
The study "The role of the private sector in building peace in Yemen" added that the owners of official projects find themselves neglected by all authorities in all regions and at all levels; where they are not provided with any support or incentives.
The study issued by the initiative to rethink Yemen's economy showed that new entrants with political influence tend to evade paying taxes through corruption channels, and this is done at the expense of officially registered entrepreneurs who do not have access to political authorities.
At the same time, these intruders remain generally unable to attract major international companies, but they have developed their capabilities in reaching local and international civil society organizations, and they are active in businesses centered on international aid.
The study, funded by the European Union and the Embassy of the Kingdom of the Netherlands in Yemen, confirmed that the storage and distribution of aid are two areas prone to corruption.
The study indicated that many sectors have benefited from this poor organization of government institutions by making huge profits.
The study indicated that in such an atmosphere the tobacco trade and the pesticides used in the cultivation of khat grew, as is the case with the fuel trade and the arms trade. As for money laundering, it has become a special phenomenon, especially with regard to the real estate trade.
The study added that due to the dispersion of state authorities, traded goods are often subject to double customs and taxation.
Charges have been brought against the coup authorities in Sana'a and the legitimate government in Aden of taking indiscriminate measures against the private sector and exerting pressure on it.
The study cited an example by saying: the courts, for example, neglect the demands of business owners who were deprived of their dues from the state; both authorities blamed the other.
In addition to the absence of a stable legal framework, procedures for obtaining work permits have become increasingly opaque, and even the cost has become unfair, which has reinforced the presence of the informal sector and corruption.
