Yemen's anti-corruption body has called for the cancellation of a contract with DP World, the Dubai company that operates the Port of Aden.
The Supreme National Authority for Combating Corruption urged the country's cabinet to cancel the contract, citing a breach of contractual obligations, the state news agency Saba reported yesterday.
The decision came after a panel found that DP World failed to carry out the first phase investment plan to develop the port of Aden "within the scheduled time frame".
The Dubai ports operator established a partnership with the Yemen Gulf of Aden Ports Corporation in 2008, at the time committing some US$220 million (Dh808.1m) of investment over five years.
"DP World rejects such unfounded and misleading accusations. We have met all contractual commitments with respect to the Aden port operations," DP World said in a statement.
The anti-corruption authority has asked the Yemeni government to provide funding to implement what it describes as the stalled development works in the port and select a new operator. DP World owns a 33.4 per cent stake in Dubai & Aden Port Development, according to regulatory filings.
Yemen's Aden container port has suffered a series of setbacks as a rising number of pirate attacks has diverted some container and tanker traffic to other locations. At the same time, industrial action by port workers has also disrupted operations. Last month, the port was paralysed by a strike lasting at least 10 days, Reuters reported, citing a union official.
DP World's expanding footprint in the rival port of Djibouti may also be a factor in deteriorating relations.
DP World is 80 per cent owned by the Government of Dubai through its Dubai World conglomerate.
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