Yemen has paid $500 million in compensation for foreign companies as these companies won the cases raised against the Yemeni government after the latter abolished effective agreements with them. Most of these agreements were signed under personal interests or big sums of commissions.

There are seven famous cases and still more ahead especially when Yemen Hunt Company has filed a lawsuit against the government.  

French company receives $49 million

The government paid $49 million in compensations to a French oil company though the latter failed to implement oil pipeline from bloc 18 in Mareb to Shabwa's Balhaf, noting the failure resulted from the obstruction of work in some rugged and tribal areas.

However, several Yemeni experts stressed the French Company is to be blamed. The company demanded $180 million in compensations as it was paid $40 million through a Yemeni broker early January.

Free trade losses are $154 million

An official report revealed that the general treasury losses reached $154 million over the years 2005-2007 after it joined the Free Trade Organization, and estimated the losses to reach $30 million by the end of the current years. The losses estimated over the period 2005-2010 are $1.8 billion.

In its report submitted to parliament, the government justified these losses by dysfunction of state's general budget together with the dropping of oil production.  

$27 million for Al-Surimah

An international tribunal specialized in looking into conflict issues relating to investments asked Yemeni authorities to pay an Omani roads company owned by Ahmed bin Farid Al-Surimah $27 million in compensations and warned Yemen will have to pay interest in case it defers paying the compensations. The company won a bid in 2004 to construct Al-Abr Al-Wadee'ah road financed by the Qatari government at $90 million. 

$200 million for Yemenvest Company

Yemen's general treasury was inflicted with big losses as the country paid $200 million in compensations for Yemenvest Company after canceling the agreement the company signed with the General Authority for Free Zones in 1996.

The government signed unfair agreement with Yemenvest Company upon which Yemen was to receive just 15 percent of Aden Port revenues.

The Yemeni-Singaporean company that used to run Aden port was subjected to losses especially after attacking French Oil Tanker Limburg off Yemeni coasts and this prompted the company to offer selling its share for $50 million; however, Yemen rejected to buy the share then.

According to Member of Parliament Sakhr Al-Wajeeh, the story of corruption started when a Yemeni party advised the Yemeni expatriate in UAE and businessman bin Mahfouz to buy the share of the Singaporean company. 

Bin Mahfouz bought the Singaporean company's share equaling to 60 percent at $50 million and later offered to sell it to Yemeni government for $280 million; however, the deal was reduced to $200 million following the intervention of President Saleh.

$6 million for Canadian Licuala Company

Yemeni government compensated Canadian Licuala Company $6 million in settlement of continuous differences that lasted over 14 years. The differences started after the company finished implementing barrier and irrigation canals in Wadi Siham and financed by the World Bank.

In return, the company sought international arbitration and the ruling dictated paying the company $16.9 million, upon which the company resorted to freeze Yemeni accounts abroad; however, both parties reached settlement under the patronage of the World Bank.  

$3 million for Altra and Pacific

The issue of bloc 53 in Hadramout is one of the most notorious corruption scandals and it inflicted heavy losses on the general treasury. The government sold its share in the bloc estimated to Altra and Pacific Companies owned by a Yemeni businessman in Saudi Arabia at 60 percent for $13 million and this means that every underground oil barrel was sold for $10 while the price of oil barrel was $50. 

When parliament rejected the agreement, the company was compensated at $20 million despite the fact that the company made money estimated at about $7 million for selling its share when the agreement was effective. Thus, the company received $27 million resulting from selling its share and concessions.

$2 million as lawyers' fees in Hunt Company issue

The losses paid in fees for the lawyers who represent Yemen before a commercial court in Paris for a law-suit raised against the Yemeni government by Hunt Oil Company and its partner Exon Mobil Company has reached $2 million.

The American company demands $7 billion in compensations after the government cancelled the contract and granted it to the state-owned Safer Company.

Though the agreement is legally correct because the contract came to an end, the proceedings were made upon the promises by influential officials to give five more years to the company who worked in Yemen since 1981 together with initial agreement with the government early in 2004, but it was declined by parliament in 2005.