Corruption Piled up [Archives:1999/43/Local News]

October 25 1999

The government decided last Wednesday to liquidate the Yemeni Industrial Bank established 1978. The Cabinet, in its regular meetings, appointed a committee representing shareholders -the general and private sector, each according to their rates and the representative of Ministry of Industry- to finish all the procedures of liquidating the bank. The cabinet, moreover, defined that the deadline for privatizing the bank is the end of the coming December. The government owns 70% of the bank and 30% by the private sector. “The capital of the Bank is around 96 million riyals as a monetary, besides the other assets that may run into half of this sum” reports indicate.
The bank has also other bad debts exceeding over one billion riyals, however, the bank could not get them due to the debtors evasion. “The bank has not been included at the government program for privatization, however, as a result of failing to solve the problem facing the bank in terms of getting the loans from different Yemeni commercial centers, the cabinet passed a decision to liquidate the bank”, a reliable source in the administration of the bank said. It is reported that there are influential powerful sources that stand behind violating the rights of the bank. Therefore, the cabinet had no option except to liquidate the bank so as to cover up the scandal that may be spread. “The debt of the commercial centers for the bank reached to $4,500,000 at the early 1980s after adding up the interest to such loans, reaching to $15,000,000 million up to the minuet”, reports said. However, these commercial centers avoid paying such loans as they found support as well as security from strong powerful centers.