Government policies waste 69 percent of grants [Archives:2007/1068/Local News]
SANA'A, July 14 ) Yemeni government did not make use of 69 percent of grants and donations provided by donor countries over the period 2001-2005, according to a report released by the Economic Committee at the Consultative Council last June.
The report indicated that Yemen received, over the years 2001-2005, about $565 million; however, the government exploited just 31 percent and this caused donors to cancel the free donations and reduce the upcoming grants after they lost their trust in the Yemeni government.
It also indicated a discrepancy in the volume of exploitation at the level of different sectors. Fish wealth sector just made use of four percent of a total sum mounting to $43.8 million and this means that 96 percent was wasted. The same thing applies to constructions, transport, and highways sectors which utilized just five percent. Electricity, suffering continuous cuts, exploited 16 percent out of a total sum equal to $2.7 million. In addition, water and sanitation sector wasted 60 percent of grants with a total sum of $198 million.
A relative utilization was recorded in the Ministry of Education and the Ministry of Higher Education and Scientific Research, with a percentage of 51 percent totaling $91.6 million. The conflict over the ownership of the Community College in Socotra, donated by The Emir of Kuwait, between both Ministries caused Kuwaitis to halt their finance, and such conflicts have prevented Yemen from many similar and free projects.
Such situation was attributed mainly to the lack of an objective government policy that aims to direct the grants and donations in a way that fits into the society's needs.
The report further criticized the concentration on buildings while disregarding training, together with a total absence of legislations that ensure an efficient exploitation of donations and grants.
Loans too
Similarly, an official report by the Consultative Council revealed late June that there had been a total of $2 billion, over the years 2001-2005, as loans, most of which remained unexploited.
The report hinted that just 18 to 19 percent, mounting to $255 million, have been used while $1.5 million remained unutilized. It also indicated that Yemen repaid over $10 million in debt services and interests for loans unutilized.
The frozen loans reached 18 out of 48 developments loans with a total amount of $669 million.
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