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Cablegate: Pl-108-7 Transparency and Accountability Report

This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS SECTION 01 OF 02 SANAA 001091

SIPDIS

PLEASE PASS TO EB/IFD/OIA

E.O. 12958: N/A
TAGS: AMGT EAID ECON EFIN EINV ETRD YM EPTED ECON COM
SUBJECT: PL-108-7 TRANSPARENCY AND ACCOUNTABILITY REPORT
-YEMEN

REF: SECSTATE 100294

1. (U) Below is Post's response to the information requested
in ref A.

A. Does host government publish national budget in a timely
manner?
Answer: Yes, with minimum delay.

B. Where Subnational levels of government are significant,
are their combined fiscal position published.
Answer: No, not relevant.

C. In what form is the National Budget published?
Answer: In newspaper and private media.

D. Please rate the quality and comprehensiveness of fiscal
data published.
Answer: 2. Limited System of budget reporting, monitoring
with limited classification system. Some payments arrears and
deviations between actual expenditures and amounts budgeted.

E. List up to 5 key laws and/or regulations governing public
disclosure of revenues and expenditures in the national
budget.
Answer: The Financial Law No. (8) of 1990 and amendments
Central Statistics Organization No (28) of 1995
Law No. 3 of 1997 regarding Government Tendering, Auctions
and Purchases.
Central Bank of Yemen Law No. (14) of 2000
Note: Each Fiscal year budget is issued by a law, and each
development plan is issued by a law.

F. Assess adequacy of those laws and regulations establishing
fiscal transparency and accountability requirements.
Answer: 3. Detailed Comprehensive.

G. Assess extent to which laws and regulations on fiscal
transparency and accountability are implemented or enforced.
Answer: 2. Sporadically/unevenly enforced.

H. How would distribution of tax powers and expenditure
responsibilities of central government be described?
Answer: 2. Currently being clarified.

I. Does a national audit body or equivalent organization
independent of the executive provide reports for the
legislature and the public on the financial integrity of
government accounts?
Answer: No.

J. How would the link between nonfinancial public/state owned
(e.g. extractive industries) enterprises and general
government be described?
Answer: 2. Limited independence of spending/procuremement

K. Are privatization processes transparent and published?
Answer: 2. Moderately transparent.

L. How would the reliability of budget revenue and
expenditure estimates best be described? Answer: 2.
Moderately reliable.

M. Short description of host government committment to fiscal
transparency and accountability.

Answer: The Central Bank and Ministry of Finance are
committed to fiscal transparency and publish their statistics
on the internet, in bulletins and in local media. Local NGOs
have been active in anti-corruption issues, and the World
Bank began a program in 2001 working on judicial reform and
corruption issues.

While Yemen has fundamentally sound investment laws, labor
laws, customs tariff regulations and tax laws, transparency
of implementation and enforcement is elusive. The next steps
required in Yemen's civil service and administrative reform
process are to clarify procedures, create implementing
regulations and build a mechanism to enforce these standards.
The formal judicial system is widely regarded as inefficient
and corrupt. Parliament has not passed a pending financial
disclosure law, and Central Bank oversight of government
accounting practices is considered weak. End Answer.


N. Please list U.S. goernments-sponsored programs and
activities that promote accurate disclosure of revenue and
expenditure in the national budgests of your host country.

While post has no specific programs that promote accurate
disclosure of revenues and expenditures in the national
budget, post works to promote transparency and accountability
of budgets and expenditures in all the assistance programs
provided by the USG.
HULL

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