This success story has been provided by the Yemeni Anti-Corruption Authority and is posted on this site in its original form.
Dated 7th April 2009, the website of American Department of Justice published confessions of Latin no De inc Company before the Court of Northern Florida. In case number: 09-20239cR-Houk.0 50 wvA
Latin no De inc Company violated practicing the foreign corruption law no. 78DD2-us-c-15, items (e), (f) and (a), by giving commissions (bribes) directly or through its partner in Yemen. The accused: bribes were given to public employees, working in the Yemeni International Telecom Company (Teleyemen) and the Ministry of Telecommunications, during providing its telecommunication services by using the internet protocol technology (voip), from January 2004 – 31 July 2005; Latin no De inc Company paid amounts reached $ 1,150,654 (one million one hundred and fifty and fifty four USD).
1. Case no. 09-20239cR-Houck. 0 50 wvAN against Latin no De inc Company
The above mentioned case was held before the Court of Florida, and there were discussions regarding confessions of the payments given as bribes to Yemeni Officials in Teleyemen Company, which is considered as corruption crimes according to the Yemeni law of anticorruption, no. (39) item (30/ paragraph 1,2,6 and 9) for the year 2006; it is considered one of the crimes which effects the national economy, public jobs, fraud crimes, money laundry and it eases steeling the public money as mentioned in the Yemeni law of crimes and punishments, no. (12) For the year 1994, items (151, 152, 153, 154, 155, 156, 159, 2/ 162, 212 and 218). The Yemeni law of crimes and punishments no. (151) sentences the employee with bribe crime with 10 years in jail, for accepting a bribe in order to complete or refuse to complete a work; The Yemeni law of crimes and punishments no. (153) mentions that if the public employee receives a bribe after completing or refuse to complete a work should be sentenced to 7 years in jail; The Yemeni law of crimes and punishments no. (154) mentions that an individual who offers a bribe to a public employee should be sentenced to 3 years in jail; item no. (155) sentenced the bribe intermediate to jail with a period determined according to crime degree. The Yemeni law of crimes and punishments sentences a 3 year in jail, the individual who is assigned by both parties to receive the bribe, and did not have the bribing characteristics but he is aware that it is a bribe; The Yemeni law of crimes and punishments, item no. (159) sentences with the bribe degree (10 years in jail) mentioned in item (151), the public employee when taking advantage of his position and authority to steal or ease stealing the public money for himself or others in order to receive a financial benefit; it also sentences to 5 years the fraud crimes reported in official reports as mentioned in the Yemeni law of crimes and punishments no. (12) items (212 and 218) for the year 1994.
2. SNACC’s involvement in the investigations regarding what was published in the website of the American Department of Justice regarding the above mentioned case
According to items (8/5, 7, 24, 30, 32, 33, 34 and 35) of the anticorruption law no. (39) for the year 2006, which authorizes the investigations authorities, to track the accused individuals, collect and return the money received from corruption crimes, the SNACC conducted an investigation once receiving all information from the Telecommunication Ministry, dated 02 May 2009 until 02 May 2009 and for four months, it contained the investigation procedures conducted with a number of local banks suspected of receiving transactions and a number of accused individuals who has connections with the foreign companies in Teleyemen Company and the Ministry of Telecommunication and Information Technology. - 22 suspected persons had been investigated. - Investigation was conducted with the accused partner of Latin De inc Company and a number of accused individuals in official positions in the Ministry of Telecommunications and Teleyemen Company; the SNACC restricted them from leaving the country and had been suspended from their jobs as public employment, during the investigation period.
3. Results of the Case Investigation Procedures
The investigations in the case conducted by the SNACC for four months, revealed some important and critical points about the case, as following:
a) Latin no De inc Company, paid bribes by bank finances via Florida bank to the National Bank in Yemen under the account of Bari Group, with the amount of ($ 646469), and this amount was paid as a bribe to employees.
b) Bari Group International, made money transactions during the beginning of 2004 and till 2008 from America through New York City Bank to four banks in Yemen which are The National Bank, The Arabic Bank, The Yemen and Gulf Bank and The Yemeni Commercial Bank to special accounts of the Company and other accused ones, which was discovered that they were involved with the Company and who were taking advantages of their authorities, with the amount of ($ 9,958,898), of which ($4,370,000) was paid as invoices for Teleyemen Company, and the rest of the amount ($ 5,588,898) were paid as bribes to a number of accused individuals in Teleyemen, the Ministry of Telecommunications and representatives of Bari Group International in Yemen, who took advantage of their positions to Bari Group, in order to eases its transactions with Teleyemen with a lower price 9 cent per 1 minute to Yemen. Damage against the public money due to this crime is ($ 8,356,489), this amount is considered as corruption crimes, bribes, stealing and ease stealing of the public money, fraud and money laundry.
c) Accused individuals in this case reached 17, one Deputy Minister, five General Managers in Teleyemen Company and Ministry of Telecommunications, one Manager of a newspaper institute, a former member of Parliament and three public employees with a level Administrative Managers in Teleyemen Company.
d) SNACC referred the case to the public prosecutor; in order to pursuit the procedures of criminal accusation. e) The case is currently referred to the court of public fund in the Capital Sana’a, in a according to law (39) item (37) for the year 2006 in regards to studying corruption cases and declare final statement.
4. Main Obstacles and Challenges which Faced the Investigation Procedures of the Case, Take Preventing Measures to Judiciary Tracking and Recovering Money Collected from this Crime
a) The is no agreement between the SNACC in the Republic of Yemen and the Law enforcement Authorities as well as Anticorruption in the United States of America regarding information sharing and law referring in seizing and recovering the amounts which damaged the public money and the money collected from the crime, by tracking the accounts in New York City Bank and Miami Florida Bank of Bari Group International and Latino…. as a prevention and legal measurement, in order to recover the money collected from this crime, according to provisions of international cooperation between the countries and what is mentioned in United Nations Convention against Corruption.
b) Weakness in gathering information sharing between the investigation sector in SNACC and Authorities in the United States of America during the period of investigation procedures of the case.
c) One of the attachés of an Arabian Embassy in the Republic of Yemen, of which the main accused person belongs had mediated and influenced the Yemeni Diplomatic in order to release the accused and allow him to leave the Republic of Yemen.
5. Investigation Effect on the National Public Opinion in the Republic Of Yemen and the Ministry of Telecommunications
According to what was published on most of websites and local newspapers and to was published on the website of the American Department of Justice about the case and the investigation procedures conducted by the SNACC, suspension to most accused in High Administration positions in the Ministry of Telecommunications and Teleyemen Company and restrictions from leaving the country had an effect on the employees of these authorities and made them reconsider contracting and financing with Telecommunication company which carries telecommunication services with Teleyemen and place profit tax fees for the benefit of the public treasury. It also had an influent in achieving a great income for Teleyemen which follows the Ministry of telecommunications in Yemen, where law no (17) for the year 2010 was issued regarding the incoming tax and it says in item (63/.) to apply profit taxes of 50% on the local calls for GSM and profit taxes of 35% on the international calls.
Mohammed Ahmed Sanhob Member of the SNACC, Chairman of Investigation And law Traking Republic of Yemen
Source: The World Bank Department of Institutional Integrity