1st post-unity nationalization [Archives:2003/04/Local News]

January 27 2003

Yemen’s cabinet had adopted on 10 August 2002 a decision nationalizing the Ardh al-Ganatain Dairy & Beverages company in Sana’a and to be affiliated to the Yemeni Economic Establishment without compensation and without a pledge to preserve its stockholders rights under pretext that the company is indebted to the Yemeni Bank. During all the time till this date owners of the company have been engaged in discussion with the government on the issue but failed to reach agreement reversing the decision whose implementation has now become imperative.
AN economic source told Yemen Times that the council of ministers decision was taken even without consulting the company’s officials to the reality and without giving genuine reasons for the nationalization. The source added that when Dr Abdulkarim al-Eryani was a prime minister he had given his directives to form a committee for solving the dispute between the company and the bank but the bank. However, the bank continued in driving its plan until the issuance of the cabinet decision of nationalization last October.
The source has made it clear that ” I think the reason behind the nationalization is that the Paris Club exempted Yemen from debts as 65% of the factory’s debts was exempted”
“The company in question is a stock company shared by a number of businessmen from Sana’a, Aden and Taiz and employs around 600 workers” he added.