Dispute Over Financial Resource Management Sparks Rift Between Yemeni Prime Minister and Aden Governor

Yemen Monitor / Aden / Exclusive:

A sharp dispute has erupted between the Yemeni government and the local authority in the interim capital, Aden, over the management of the Tax Office, following the appointment of a new director to one of the province’s most important revenue-generating institutions.

Well-informed sources told Yemen Monitor on Friday that the dispute began after a decision was issued in mid-June appointing a new director for the Tax Office. The conflict escalated to the point where an arrest warrant was issued against the former director, before the order was suspended today at the request of Aden Governor Abdulrahman Sheikh.

Attorney General Judge Qaher Mustafa issued a compulsory arrest order for the former Director General of the Tax Office, Abdulhakim Muawin, after he refused to hand over his duties to the newly appointed director, Mohammed Ahmed Obeid Al-Fadhli. The order came in response to an official complaint filed by Prime Minister Shayea Al-Zandani and the Minister of Finance, following the failure to complete the handover process for more than two weeks.

According to the sources, the dispute centers on the management of financial resources. The Governor of Aden maintains that the Tax Office falls administratively under the local authority and that all of its revenues constitute local revenues belonging to the governorate.

Meanwhile, the sources told Yemen Monitor that the Prime Minister and the Minister of Finance insist on implementing the appointment decision, arguing that the authority to appoint directors-general lies exclusively with the Prime Minister. They also stress the strategic importance of the Tax Authority in managing and developing public financial resources under the Ministry of Finance.

Yemen Monitor was unable to immediately obtain an official comment from either the Prime Minister’s Office or the Office of the Governor of Aden.

The sources spoke on condition of anonymity because they were not authorized to speak to the media.