Houthi usury law.. a divisive scandal and a ploy to loot Yemenis' money
English - Wednesday 05 April 2023 الساعة 01:39 pm
Sana'a, NewsYemen, special report:
The Houthi militia, the Iranian arm in Yemen, has begun implementing what it called the law to prevent usurious transactions, which it passed in violation of the constitution, like the rest of the draft laws and amendments issued by it.
This law, which was passed through the House of Representatives under its control in a flagrant manner, is one of the manifestations of the secessionist arrangements that are outside the constitution of the Republic of Yemen, which establishes a separatist entity from Yemen and contributes to the realization of the militias' agendas.
The law represents an extension of the measures implemented by the militias, which contribute to building a separatist entity that is not satisfied with dividing Yemen geographically, but rather extends to dividing it economically and developmentally by building an economic system that has nothing to do with the economic work of the Yemeni state and its relations with the world in this field, not to mention that it will represent one of the most prominent and important The most serious challenge that will face the process of uniting state institutions in the event of a political settlement is the banking institution.
Representatives of Sana'a.. a witness, didn't see anything
Sources in the parliament under the control of the Houthis in Sana'a revealed to NewsYemen the militia's insistence on the parliament's approval of the draft law as it is without any amendments and preventing the deputies from discussing it or expressing their observations or suggestions on it, noting that it was passed without the presence of any government official as stipulated in the parliamentary regulations. Where he forced the president and members of the council to approve the law in a way that threatens that if they reject it, this will have consequences.
According to the sources, the Sana’a Parliament was forced to formally approve the law as it is on the last day of the month of Sha’ban, while the head of the so-called political council of the Houthi militias hastened to issue the law by a decision after only one day, that is, on Thursday corresponding to the first of Ramadan, which is This confirms that the process of issuing this law was the result of an orientation related to the religious sectarian aspect of the militias more than any economic thinking.
The militias preceded the process of issuing the law by arranging a panel discussion about it between the militia leader, Abdul-Malik al-Houthi, and a number of religious leaders affiliated with them under the name of scholars. Where the episode concluded that the law should be issued with allegations of the importance of fighting usury, as this is a religious duty stipulated in the Holy Qur’an.
Journalists and activists on social media revealed that the law as approved is a stolen copy of the texts of a similar law approved by the Muslim Brotherhood government that ruled the Libyan capital, Tripoli, in 2013.
Economic scandal with devastating results
Economic analysts described to NewsYemen the new Houthi law as an economic scandal in which no authority had previously ruled Yemen, whether during the partition or after the restoration of unity and the establishment of the Republic of Yemen, stressing that this law undermines the legislative, administrative and executive structure of the banking sector in Yemen, which was established since the revolution. Yemeni September 26 and October 14, and establishes a new era titled looting on the one hand, destroying the economy and replacing it with new structures such as: exchange companies, as well as its devastating economic effects on investments, economic growth and development in general.
Economic analysts say: The issuance of the law took place without any legislative or legal vision, or any clear executive mechanisms, which is confirmed by the confusion of the militias and their haste to avoid the immediate consequences of it through a meeting held by the head of the so-called Political Council with banking leaders that include representatives of banks and exchange companies at the headquarters Central Bank to talk to them about the law.
They added: That meeting revealed a clear and flagrant ignorance of the militias of the foundations, standards, and requirements of banking work and its relationship to the global economy, which is confirmed by Al-Mashat’s speech at that meeting about the establishment of a stock market, whose first criteria are supposed to be the similarity and similarity of banking laws related to the work of banks and banking sectors in the country with similar ones. In the world, this law of theirs, which forbids interest under the name of preventing usurious transactions, is the first nail in the coffin of any economic development, foremost among which is the issue of establishing a stock market.
Analysts pointed out that the results of this law will reflect negatively on the banking sector by ending any role of banks that represent the foundation of banking work in any country in the world, and that its negative effects will include all economic sectors in militia-controlled areas without exception, not to mention its negative effects that will be reflected Even at the level of citizens, given that their lives are linked to the movement of the economy, investments, economic growth, and development, which ensures the provision of jobs and businesses for people.
According to analysts, investors, traders, large capitals, and commercial houses will be forced to withdraw their money and close their bank accounts in militia-controlled areas after the issuance of this law, which completely prevents them from moving, operating, and investing their capital. As it was before the issuance of the law, which, in addition to preventing it from achieving benefits, would represent a threat to it with the possibility of confiscation of its capital and deposits by the militias at any time.
Analysts revealed that most - if not major investors and traders - withdrew their bank balances and deposits from Sanaa and militia-controlled areas for a long time, whether to areas controlled by the legitimate government or to foreign banks. There are only some bank accounts and deposits left with small capitals that allow them to manage the business of their companies and trade only.
Another door to plunder the Yemenis and their money
In addition, banking sources confirmed to NewsYemen that the law to prevent usurious transactions represents one of the means used by the Houthi militia to carry out the largest looting and theft of Yemeni money under the guise of prohibiting usury.
They pointed out that the law issued by the militias will allow them to steal and loot the interest and returns that people had in banks, especially in the central bank and government banks, under the justification that they are usurious transactions, similar to their theft of people’s money in the case of forgotten transfers that were confiscated by the militias after two months. Not to receive it before that case is revealed to the public.
They added that any investor or trader who had a deposit in any bank amounting to one billion riyals ten or fifteen years ago, he will find himself compelled to obtain this amount only after the Houthi law is issued under the pretext of preventing usury, which is supported by Quranic evidence repeated by the Houthi leaders who issued this law, which is a verse {And you have your capital} without taking into account any considerations related to what the exchange rates of the riyal were against foreign currencies since people deposited their money.
And they continued: The militias will be able to confiscate the balances of interests and returns that were for depositors before the law was issued under the justification of its implementation and validity, and they may also deliberately plunder all capital under the pretext of their inability to provide these funds due to the lack of liquidity. Noting that Al-Mashat tried to evade placing any legal guarantees for depositors to obtain their capital when he told the leaders of the banking sector in his meeting with them that he would personally work with the governor of the bank to follow up processing deposits of commercial banks and depositors in treasury bills, that is, without any legal bond or guarantee, which is This gives an indication that the militias will steal these deposits.
The sources concluded that the militias, in addition to that they will use the law to plunder people's money, will use it on the other hand to extend and expand their control over the economy, investments, recruitment processes, and the appointment of their leaders and members to new positions and institutions, which was preached by the Houthi leader Al-Mashat when he announced that a committee would be formed by a presidential decision with membership. The judicial authority and the Central Bank to follow up on dealing with the problems of banks before the courts and prosecutions. This will lead to the appointment of Houthi leaders whose mission will be to take responsibility for legitimizing looting and seizing people's money and deposits. And that is through the interpretations that it will present to the law, as does the Houthi Endowment General Authority, which has begun to plunder people's lands under the pretext that they are endowment lands.
