Yemen is experiencing a critical crisis which further triggered by the covenant endorsed by the internationally recognized government in Aden to invest in communications. A sector which is considered one of the key sovereign economic assets which recently marred by many controversies and question marks. This comes in light of the deterioration of its condition and its connection with the conflicting parties and the influential powers who seek to monopolize this sector, given it is a major financial resource, and for many security and political considerations.
The controversy continues to escalate since the government of PM Maeen Abdul Malik in Aden, which is facing increasing pressure, approved the project of the Emirati Telecommunications Company (NX UAE), to invest or monopolize this sector by establishing a telecommunications company in partnership with the relevant Yemeni authorities (in areas of the internationally recognized government and the Southern Transitional Council, backed by the UAE).
By investigating the aforementioned company, Khuyut reviewed its website data, to find that the company called NX Digital Technology, which presents itself as a cybersecurity and artificial intelligence company. It was founded by a businessman named Abdullah Al Nuaimi in 2000. The company claims to provide “ICT solutions that leverage technology to address business and organizational challenges. Its approach includes “using hardware, software, and network components to automate processes, improve connectivity, and enhance productivity.”
A parliamentary investigation committee report acknowledged the failure of relocating the control of the telecommunications sector to Aden, but it ignores that the reasons behind this are well known and even before the presence of the “Houthis” and their control over the capital Sana’a, where the former ruling regime in Sana'a, since the launch of modern telecommunications in the country before 2011 events, was keen on the extreme centralization of the operation and management of this sector.
Economic researcher, Rasheed Al-Haddad told Khuyut that this agreement is not the first that Emirati companies have obtained, but rather the third since the beginning of this year 2023. The first was: an agreement to sell the “Qishn Port” on the coast of Al-Mahra (eastern Yemen) for a period of 50 years. According to his statement, the second agreement was signed last May, in the field of electricity and oil, between the government of Aden and Emirati companies.
Al-Haddad stated that all of these agreements have not been abandoned, despite the widespread controversy that accompanied them. The fact that the UAE - in his belief - took advantage of its loyalists against the government of Maeen Abdul Malik. The UAE bartered that government by giving up some demands in exchange for its approval of these agreements, given the Southern Transitional Council’s retreat of its demands to dismiss Maeen Abdul Malik after the government passed the doubtful agreement. Even if the agreement had disturbed some influential investors, it was absolutely disastrous.
Recent years have witnessed the passing off many controversial decisions and agreements by authorities, whether in Aden, which was taken as a temporary capital by the internationally recognized government, or in Sanaa, which is under the authority of the "Houthis", despite of their violation of the laws and legislation in force in Yemen, which is going through exceptional conditions and circumstances due to war and conflict in the country.
However, passing on an agreement of this type - according to informed sources who spoke to Khuyut - represents a serious transgression that violates the constitution and applicable national laws. However, this contravention constitutes a threat to the Emirati investment entities, which may be more careful regarding the legal aspect.
Warning about the agreement
The announcement of the approval of the agreement came in an official news broadcasted by Saba Agency (Aden Version) as: “The Council of Ministers meeting on August 21 discussed a draft agreement to establish a joint telecommunications company to provide mobile communications and Internet services in Yemen.” This is in light of the draft signed between the General Telecommunications Corporation and an Emirati company, which included granting a license to provide mobile phone services and operate and license the frequency spectrum. The news indicated that the Cabinet endorsement was “in light of the discussions of the draft agreements submitted, after the consideration of the comments on the draft presented to them, based on which it was submitted to the Presidential Leadership Council for final ratification.
This development was explained by a statement signed by 22 parliamentarians in the House of Representatives (in its version loyal to the Aden government), during which the signatories denounced “the intention of the government of Maeen Abdul Malik to conclude a contract with the Emirati NX company,” The statement warned against proceeding with endorsing this draft agreement, which violates the laws and regulations governing such government properties, and stipulate that Parliament shall not be disregarded in deciding on such type of agreement and not discuss or approve it before reviewing the report of the parliamentary committee charged with investigating government violations in the telecommunications sector and other sectors.
The expert and legal advisor, Jamal Al-Jaabi, explained that the parliamentary committee’s report acknowledged the failure of relocating the control of the telecommunications sector to Aden, but it ignores that the reasons behind this are well known and even before the presence of the “Houthis” and their control over the capital Sana’a, where the former ruling regime in Sana'a since the launch of modern telecommunications in the country before 2011 events, was keen on the extreme centralization of the operation and management of this sector.
No much time passed before the parliamentary committee’s report was issued, as it was published last Saturday, and “Khuyut” obtained a copy of it; The report included details regarding the discussions and questions posed to the government side regarding the telecommunications sector, and questioning the draft agreement with the Emirati company, based on understandings signed in December 2022, between the governments of the two countries, allowing the UAE side to invest in the telecommunications sector in Yemen.
According to the report, the government side confirmed to the parliamentary committee that the measures taken regarding the joint investment project with the Emirati company have not led to any written agreement yet, including the draft memorandum of understanding, which “expired two months after the legal validity period specified for it, and now it is considered as invalid."
In addition, the government replies confirmed that “the agreement is still in the context of discussion and negotiation between the two parties, and that any agreement concluded in this regard will be in accordance with the applicable constitutional and legal grounds,”. This was the government’s clarification to the parliamentary committee. However, signs of the government disregarding the authority of Parliament was obvious, through the news of the cabinet meeting more than a week ago, during which the draft agreement was approved and submitted to the Presidential Leadership Council for ratification, while it did not refer to Parliament as a competent body to decide on such agreements.
Logically, there is no country in the world that sells 70% of a government company and grants the foreign operator the right to manage and control communications in a number of southern governorates. Therefore, according to his statement, it is better to “call the agreement a name: the deal through which the Emirates will be handed over privileges that will have major security and economic consequences on Yemen in the future.
The report of the parliamentary committee - which consisted of eight PM members, namely: Hamad Saleh Ali, Ensaf Ali Mayo, Fouad Obaid Waked, Abdullah Al-Maqtari, Abdul-Rahman Moazib, Abdul-Khaleq Al-Barakani, Ali Mohammad Al-Maamari, Abdul Rahman Al-Asha'abi - included a set of recommendations stressing on urging the government to cancel all procedures regarding the contract between the Ministry of Communications and the Emirati NX company.
The parliamentary report confirms that the Council of Ministers’ approval of the draft agreement without following the constitutional and legal procedures, especially Article 13 and Article 18 of the Constitution and the laws in force, and their consequences, is considered not binding on the state in all legal, financial and administrative aspects. The committee noted its observation of “the violation of legal administrative procedures in the conduct of contracting in this agreement,” and in particular, regarding “the lack of transparency and withholding the details and documents of the agreement that was prepared, which includes all legal, technical and administrative details.” In addition, “the absence of standards that were followed in the procedures of this agreement without any institutional approach that maintains the acceptable limit on the application of laws related to investment aspects or launching a tender that ensures the availability of the foundations of fair competition.”."
Parliament and the Constitution
Moreover, the report of the Parliamentary Committee referred to the two key legal articles in this regard; Articles 13 and 18 of the Constitution stipulates that, concluding concessions related to the exploitation of natural wealth resources and public facilities cannot be concluded except by law, and the law shall specify cases of limited importance in which concessions are granted in accordance with the rules and procedures it contains.
The law specifies the conditions and methods for free disposal of state-owned real estate, the assignment of its movable property, and the rules and procedures regulating that. The law also regulates how to grant privileges to local units and dispose of public funds for free.
The Yemeni Constitution also stipulates in Article 15 that the House of Representatives - based on a request signed by at least ten of its members - may form a special committee, or assign one of its committees to investigate facts on a matter that conflicts with the public interest, or examine the activity of one of the ministries or official agencies, public institutions, public or mixed sector units, or local councils. In order to carry out its tasks, the committee may collect whatever evidence it deems necessary, and request to hear whose statements it deems necessary, and all executive and private authorities must respond to its request and place at their disposal for this purpose all relevant documents or data.
However, the report of the House of Representatives Committee (most of the members of the committee charged with preparing the report are officials of the former regime), according to Al-Jaabi, ignored this fact and accused the Houthis at the first place, and then the current government, even though the former president knew this and did nothing. Nor the two governments that preceded the current government, and therefore "accusing the current government in Aden of violating the constitution and laws represents an unjustified outbidding by those who also contributed to reaching this situation."
In addition to the contradiction in the report regarding the Emirati Telecommunications Company, as Al-Jaabi confirmed, there is - before talking about the Emirati company - a disregard for the status of Aden Net, the legality of its establishment, how it was created, and what is the contact number that the Aden Net code carries. He also pointed out that "Talking about the government's violation of contracting procedures with the Emirati company ignored the fact that the complementary and counterparty party to the Emirati company is Aden Net."
Al-Jaabi continued, saying: “This is if we know that (Aden Net) was intended to disconnect the Central Bank in Aden and the rest of the banking network from Sana’a, and after securing this, a limited number of Aden Net sims were sold to the public but without including the rest of the services related to communications, like phone calls or SMS messages, and other services provided by the rest of the telecoms companies".
The legal expert Al-Jaabi wonders: “Why are the procedures for establishing Aden Net considered correct while the Emirati company are incorrect? And why was sovereignty not violated in the case of Aden Net even though the call code for it is for a Saudi company and a number with a Saudi code.”
In fact, the level of risk in investing in disputed sectors is very high, so the goal is not an investment as much as it is related to an Emirati desire to impose economic influence on a number of key sovereign sectors, such as communications, under contracts and agreements that allow it to expand in the southern governorates.
Moreover, Al-Ja'abi pointed out that, according to what was stated in the report, the committee relied on a file of documents submitted by the businessman Ahmed Saleh Al-Eisi! If we consider a number of observations about Al-Eisi, the results reached by the committee will be understandable. Thus, Al-Eisi's information will also lack credibility, for reasons including that he is the deputy director of former President Abdu Rabbuh Mansour Hadi's office, whose powers are transferred to the Presidential Council, so everything that was happening was under their supervision and with their knowledge but without the interference of the Parliament.
Further, and according to legal expert statement, the businessman Al-Eisi has bought a share of the (Y) mobile phone company, and seeks to operate it in Aden, in addition to his public clash with the government of Maeen Abdul Malik.
Serious accusations and consequences
In this context, the agreement, which the government of Aden approved to draft with the Emirati telecommunications company, topped the concerns and comments of Yemenis, in light of recent developments, including the statement of the prime minister of the internationally recognized government, who confirmed the progress of the agreement, despite the opposition it faced and before the issuance of the report and recommendations of the parliamentary committee in charge of investigating the case.
For his part, economic researcher Rasheed Al-Haddad believes that there is popular and official rejection of this agreement, which was used as a cover for the (Aden Net) company, which he considers to have been in trouble for five years.
Al-Haddad said that: “Logically, there is no country in the world that sells 70% of a government company and grants the foreign operator the right to manage and control communications in a number of southern governorates. Therefore, according to his statement, it is better to “call the agreement a name: the deal through which the Emirates will be handed over privileges that will have major security and economic consequences on Yemen in the future".
What is also striking is that Maeen’s government denied all demands to suspend the agreement and freeze or reconsider it. In addition, the Emirati company’s insistence on taking over the management of (Aden Net) has nothing to do with investment, especially - as this economic analyst confirms - that “the level of risk in investing in disputed sectors is very high.” Therefore, the goal is not an investment as much as it is related to the UAE’s desire to impose economic influence on a number of important sovereign sectors, such as communications, under contracts and agreements that allow it to move freely in the southern governorates with an investment cover for decades, instead of direct military movements.
The Prime Minister of the internationally recognized government, Dr. Maeen Abdul Malik, had resolved, during a press conference held in Aden, Monday, September 4, the doubt with certainty, by confirming that the agreement would proceed and that it had been subject to reviews, and its fate had been decided by the highest authority in the state represented by the Presidential Leadership Council. The Prime Minister has also opened fire on his arch rival, Ahmed Al-Eisi, and accused him of creating obstacles and failure to launch Y Telecoms Company, which he had been promising to launch for years.
In his speech, Abdul Malik focused on economic affairs, stressing that the issue is merely economic, not political, as the government obtains, according to the agreement, a share estimated at about 30%, which he considered an attractive deal in light of the government’s failure to provide the necessary funding to establish a national telecommunications company of this size, which covers the communication needs in the areas out of the control of Ansar Allah (Houthis).
In his comment, parliamentarian Ali Ashal considered that the Prime Minister’s questioning of the legitimacy of the formation of the parliamentary fact-finding committee and its report was “shameful and shows terrible ignorance.” He also considered that his accusation of political polarization of the Parliament when dealing with the telecommunications agreement was “shameful discourse.” Ashal pointed out that Abdul Malik "He was deceptive, pedantic, and talked about transparency while knowing with certainty that his deal was made in a dark room,” and this means that “the committee’s report hits the nail on their heads.”
Furthermore, Ashal also considered the inclusion of the Minister of Justice by the Prime Minister to respond to Parliament’s letter and report, as a strange and weird matter, as well as “a critical precedent for distorting the purity of the judiciary and the significance of the independence of its employees, as it is the body that can be resorted to in adjudicating corruption cases.”
It is worth noting that the power struggle has overshadowed the issue of communications agreements which may provide an answer about the consequences that the citizen pays for; as Yemen Mobile company was prevented from providing 4G services in Aden and other governorates, just as the Y company was completely banned in Aden before it. All this in light of repeated complaints by citizens about poor Internet services and coverage of telecoms networks, whose towers need updating and upgrading. Even the SabaFon mobile phone company, which announced its separation from Sana'a, was not allowed to expand and improve its services.
