Private Investment Companies out of the Blue: Life and Death for the People’s Money [Archives:1999/42/Business & Economy]

October 18 1999

By: Imad Al-Saqqaf & Farooq Al-Kamali
Yemen Times, Taiz
The people in charge in Al-Monked Company stated that this verdict was illegal. The verdict has made big controversy among the people. The Yemen Times contacted Sheikh Hamood Hashem Al-Tharihi, member of the Highest Organization of the Islah Party and deputy of Al-Monked Company who said the following: “Al-Monked Company for Investment and Trade Investment was established after the unification as there was a national call to speed up national investment. Many people rushed to invest their money in the company so as to gain fair and legitimate profits. It started pursuing its projects after the war of 1994. Furthermore, a Cabinet law was issued in 1995 to organize activities of investment companies. We were vigorously going on investing the money of shareholders in different parts of the country till we bought some lands in Celtics, Aden. We bought these lands and we have lawful, official documents that vindicate their legacy. These documents were signed by official organizations including the prosecution, state registration, Lawful Administration concerned, etc. Then, Aden was declared a Free Zone and these lands consequently became part of the Free Zone. People in charge in Al-Monked Company tried their best to contact all institutions concerned as well as top officials in the country to have due compensation in accordance with the constitution and the relevant laws. The stand of our company is crystal clear and we still endorse that the company was established with the shareholders’ money Their money is not at all going to be lost due to some ignorant and high-handed persons.
With regard to the verdict given by the Public Money Court, I would like to make clear the following:
1) The verdict as well as the trial made were illegal according to the law. It is so because the Estimate Committee’s final decision can not at all be challenged in accordance with the law for the public benefit.
2) What has happened is a violation of judicial provisions,an apology to escape the fair, legal and constitutional compensation.
3) The president has given the following assurance to shareholders from Mareb, Noham, Ghawlan, Goham, Taiz, Ibb, Sana’a and Al-Gawf sheikhs : “Justice will be done to you.” The president has also gave instructions to the vice president as well as the brigadier general Ali Mohsen to suggest appropriate ways and means for a solution. However, the mafia of Aden went on to take a quick decision after holding regular sessions of consultations to subvert the process.
4) The verdict was a partial judgment for only the poor owners of these lands, some employees, and the legitimate owners of these lands.Those found guilty, such as Anas Al-Ahdal and Mohammed Ismail were sentenced to prison. However, the judge and the prosecution dared not bring the errant manager of the Area Authority and that of State Registration in Aden to book, those who signed and sealed the legacy of selling of lands. Nor could they penalize those influential persons who tampered all the procedures in the two authorities. This goes to prove that the trial made was a discriminatory one done to exercise pressure on legal owners so that they would restrain from asking for compensation.
5) All the underlying mysteries deliberately covered up in this trial should be disclosed and uncovered in a press conference. We would appeal against this verdict and all allied illegal actions and expose all who have twisted facts.
6) This tangled verdict cannot confiscate the money of 20,000 shareholders from all the governorates of Yemen. Their rights for compensation according to the Estimates Committee will never be lost. Nor will we dispense with the shareholders who have been patient for five years. Their money can not go with the wind by a certain whim of some crooks.
8) If officials have a clandestine design of putting some employees in prison, how does one explain the role of Mohammed Ismail, the ex-manager of Al-Monked Company and Anass Al-Ahdal, the current manager of the company who bought the lands according to official legal documents? Moreover, these lands were recommended to Mohammed Ismail by some influential officials. Even the procedures were carried out by them and the prosecution dared not hold them accounted for.
We request the president on behalf of 20,000 people including those who live in abject poverty and those who have put all that they had in life in the company, to put an end to this imbroglio and to order for payment of compensation to the company in accordance with the law and constitution.”
This is Mr. Altharehi’s comment on the verdict of the Public Money Court in Aden.
With regard to the Al-Emad Company the, shareholders concerned have filed a case against the company in the Trade Court through lawyer Abdullah Abass Al-Molayki. We asked him to shed some light on the case filed against the company and he said the following: “I was present five months ago in the Trade Court and saw the victims with the Manager of Saba Company Taiz and Al-Emad branches. I stood by the victims and took all the cash receipts, purchase shares documents and other documents as well. I tried to protect their rights and submitted to the court to imprison the manager of Al-Emad Company Ibb branch, Abdoh Mokbel till he brought guarantee. Besides being the manager of Ibb branch, he was also the Cashier, accountant and financial manager. He used to give people profits from the assets of the company, from their deposits. As matters stand now, we are still collecting shareholders documents. The court has released Abdoh Mokbel on condition that he attends the sessions held in the court. However, the point is that the judge himself avoids attending these sessions. Al-Emad Company is a fake company that was floated to swindle people’s money. If it was a a true company then the question that pops up is “where is the fulfillment of the government condition according to the law No 34 for the year 1991 with regard to trade companies and the role of the government observance? This law stipulates the following:
1) Clause No (a) of article (184) of this law states “Trade and Supplies Ministry conducts observation to make certain that these companies are carrying out articles stated in this law.
2) Clause No (b) of the same article states “The Ministry has full authority to have at any time inspection and to check the company accounts, commercial records, documents and all its activities. It has also the authority to ask for any information, data, clarification from the administrative council as much as it has the right to appoint at any time an account auditor to carry out and make a report on this task.”
3) Clause No (c) of the same article states “The Ministry has to inform the concerned judicial department of any illegal action that do not adhere to this law.
However, this what has never been applied to Al-Emad Company and Saba Exchanging Company. Consequently, the non-existence of the government observance has posed the people to these swindlers and frauds. Had the government done what it should be done and carried out this law, it could have saved these poor with their money. However, what we find is that our government is excellent in passing laws that never see light.
The situation of shareholders is horrible. One of them has invested around 1,300,000 riyal and now he can not afford the expanses of filing a case against the company. Another one has invested around 800,000 Saudi riyal which was all he had in life. Now he has not got transportation fares from Ibb to Taiz so he could attend sessions held at court.
I on the behalf of all these shareholders ask the President, the Supreme Power, in the country to have mercy on his people and to give orders to put an end to such suffering and miseries and to hold those swindlers accounted for their crimes. Poor shareholders highly rely on him to act as they could not find justice where it should be found.”