Unpaid state salaries deepen economic pain in Yemen’s war

public workers crowd post office to receive salaries

By Noah Browning

DUBAI (Reuters) – Already suffering grievously under nearly two years of civil war, many thousands of Yemeni state workers now face destitution as their salaries have gone largely unpaid for months.

The immediate reason is a decision by the internationally-recognized government to shift Yemen’s central bank out of Sanaa, the capital city controlled by the armed Houthi movement with which it is at war.

Underlying the bank’s move to Aden, the southern port where the government is based, is a struggle for legitimacy between the two sides. The result is to deepen economic hardship when four-fifths of Yemen’s 28 million people already need some form of humanitarian aid, according to U.N. estimates.

“I sold everything I have to cover the rent and the price of the children’s school and food. I have nothing left to sell,” said Ashraf Abdullah, 38, a government employee in Sanaa.

“Salaries have become a playing card in the war, and no one cares about the fate of the people who die of starvation every day,” the father of two told Reuters.

At least 10,000 people have been killed in the fighting while millions face poverty and starvation. Saudi Arabia intervened in March 2015 to back President Abd Rabbu Mansour Hadi after the Houthis, who are aligned to Riyadh’s regional rival Iran, pushed him out of Sanaa.

The administration in Aden says it had to move the bank in August because the Houthis had looted the funds to pay soldiers and fighters waging war against it – a charge the group denies.

It has promised to pay salaries to public servants even in the main population centers which are mostly in Houthi hands. Prime Minister Ahmed bin Dagher said it had sent off a payment on Wednesday but banking sources say this covers only December, and four months of wages remain unpaid for most employees.

The crisis has affected tens of thousands of employees in Sanaa alone, a source in the Civil Services ministry said.

It is unclear how many of the 250,000 employees registered nationwide before the Houthis seized Sanaa in 2014 have received incomplete salaries – as a large proportion in government-held areas have been paid.

Nor is the number of public workers appointed by the Houthis after their rise to power, estimated in the tens of thousands.

The government denies it is trying to undermine support for the Houthis – whom it calls “coup militia” – by impoverishing state workers living under their rule. Instead, it accuses the Houthis of obstructing the payments and insists they be the ones to disburse the funds.

“The coup militia … (is) refusing to hand over lists of employees’ salaries in institutions and government agencies in the capital Sanaa and the provinces they control,” government news agency SABA quoted an official as saying.

(For a graphic on battle for control in Yemen, click http://tmsnrt.rs/2jV4tDI)

NATIONAL AUTHORITY

While the Houthis still control the main towns and cities in the north and west, they have steadily lost ground to government troops backed up by thousands of Gulf Arab air strikes.

Still, the government struggles to extend its influence over the land it nominally rules. It also faces a southern secessionist movement, restive tribes and Islamic militants, while many services such as electricity and water are scarce.

In the struggle for legitimacy, both sides appear keen to deprive the other of any mantle of truly national authority which paying salaries across the battle lines would confer.

Current and retired soldiers demanding their dues have even regularly demonstrated in Aden’s streets in recent days, suggesting the non-payments may not be strictly political.

Diplomats and analysts worry about the consequences of transferring the bank away from its veteran staff in Sanaa.

“The new central bank in Aden remains unequipped – on the basis of manpower alone – to handle the duties that its predecessor institution did,” said Adam Baron, a Yemen expert at the European Council on Foreign Relations.

The new bank denies this and says it is committed to working impartially and overcoming wartime confusion to do its job.

Meanwhile, many Yemenis can no longer wait for a solution.

“This is our fifth month without a salary, and we live by borrowing from the corner store, but now they are refusing to give us anything are calling in their debt, said Abdullah Ahmed, 50, a soldier in the interior ministry. “The landlord is demanding rent for the apartment … we’re dying, not living. Every door is being closed in our faces.”

(Editing by Tom Finn and David Stamp)

U.S. military strikes Yemen after missile attacks on U.S. Navy ship

FILE PHOTO - The USS Nitze, a Guided Missile Destroyer is pictured in New York Harbor,

By Phil Stewart

WASHINGTON (Reuters) – The U.S. military launched cruise missile strikes on Thursday to knock out three coastal radar sites in areas of Yemen controlled by Iran-aligned Houthi forces, retaliating after failed missile attacks this week on a U.S. Navy destroyer, U.S. officials said.

The strikes, authorized by President Barack Obama, represent Washington’s first direct military action against suspected Houthi-controlled targets in Yemen’s conflict.

Still, the Pentagon appeared to stress the limited nature of the strikes, aimed at radar that enabled the launch of at least three missiles against the U.S. Navy ship USS Mason on Sunday and Wednesday.

“These limited self-defense strikes were conducted to protect our personnel, our ships and our freedom of navigation,” Pentagon spokesman Peter Cook said.

U.S. officials, speaking on condition of anonymity, said U.S. Navy destroyer USS Nitze launched the Tomahawk cruise missiles around 4 a.m. (0100 GMT).

“These radars were active during previous attacks and attempted attacks on ships in the Red Sea,” including the USS Mason, one of the officials said, adding the targeted radar sites were in remote areas where the risk of civilian casualties was low.

The official identified the areas in Yemen where the radar were located as near Ras Isa, north of Mukha and near Khoka.

Shipping sources told Reuters sites were hit in the Dhubab district of Taiz province, a remote area overlooking the Bab al-Mandab Straight known for fishing and smuggling.

SAFE PASSAGE

The failed missile attacks on the USS Mason appeared to be part of the reaction to a suspected Saudi-led strike on mourners gathered in Yemen’s Houthi-held capital Sanaa.

The Houthis, who are battling the internationally-recognized government of Yemen President Abd Rabbu Mansour al-Hadi, denied any involvement in Sunday’s attempt to strike the USS Mason.

On Thursday, the Houthis reiterated a denial that they carried out the strikes and said they did not come from areas under their control, a news agency controlled by the group reported a military source as saying.

The allegations were false pretexts to “escalate aggression and cover up crimes committed against the Yemeni people”, the source said.

U.S. officials have told Reuters there were growing indications that Houthi fighters, or forces aligned with them, were responsible for Sunday’s attempted strikes, in which two coastal cruise missiles designed to target ships failed to reach the destroyer.

The missile incidents, along with an Oct. 1 strike on a vessel from the United Arab Emirates, add to questions about safety of passage for military ships around the Bab al-Mandab Strait, one of the world’s busiest shipping routes.

The Houthis, who are allied to Hadi’s predecessor Ali Abdullah Saleh, have the support of many army units and control most of the north, including the capital Sanaa.

The Pentagon warned against any future attacks.

A still image from video released October 13, 2016 shows U.S. military launching cruise missile strikes from U.S. Navy destroyer USS Nitze to knock out three coastal radar sites in areas of Yemen controlled by Houthi forces.

A still image from video released October 13, 2016 shows U.S. military launching cruise missile strikes from U.S. Navy destroyer USS Nitze to knock out three coastal radar sites in areas of Yemen controlled by Houthi forces. REUTERS/DIVIDS via Reuters TV

“The United States will respond to any further threat to our ships and commercial traffic, as appropriate,” Cook said.

The United Arab Emirates (UAE), a leading member of a Saudi-led Arab coalition fighting to end Houthi control, denounced the attacks on the Mason as an attempt to target the freedom of navigation and to inflame the regional situation.

Michael Knights, an expert on Yemen’s conflict at the Washington Institute for Near East Policy, suggested the Houthis, fighters from a Shi’ite sect, could be becoming more militarily aligned with groups such as Lebanon’s Shi’ite militant group Hezbollah.

“Targeting U.S. warships is a sign that the Houthis have decided to join the axis of resistance that currently includes Lebanese Hezbollah, Hamas and Iran,” Knight said.

Although Thursday’s strikes against the radar aim to undercut the ability to track and target U.S. ships, the Houthis are still believed to possess missiles that could pose a threat.

Reuters has reported that the coastal defense cruise missiles used against the USS Mason had considerable range, fuelling concern about the kind of weaponry the Houthis appear willing to employ and some of which, U.S. officials believe, is supplied by Iran.

One of the missiles fired on Sunday traveled more than two dozen nautical miles before splashing into the Red Sea off Yemen’s southern coast, one U.S. official said.

(Reporting by Phil Stewart, Mohammed Ghobari, Katie Paul; Editing by William Maclean and Janet Lawrence)