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In December 2024, the Houthis introduced what they termed the \u201cLaw on the Temporary Exceptional Mechanism to Support the Salary Bill of State Employees and Address the Issue of Small Depositors\u201d. According to their claims, this law aims to tackle the issue of disrupted salaries for public employees and ensure equitable distribution of monthly income among public service sector workers.<\/span><\/p>\n The mechanism is designed around establishing a dedicated account at the Central Bank branch in Sana\u2019a, controlled by the Houthis. This account serves as a repository for financial revenues managed by the Ministry of Finance, under Houthi authority. Revenues are deposited from the general government account after covering mandatory monthly obligations. Additionally, contributions are imposed on various government entities by a decision from the Ministry of Finance.<\/span><\/p>\n The mechanism also redirects resources from the Teacher Fund, previously established by the Houthis, into this account. Furthermore, it allocates a percentage not exceeding 20% of monthly expenses and reinforcements designated for public service units, as well as up to 10% of the cost of investment programs for public sector units. Any surplus funds returned from the mechanism\u2019s account itself are also included.<\/span><\/p>\n The resolution outlines the following provisions:<\/span><\/p>\n The law mandates that salaries be disbursed, based on lists approved by the Ministry of Civil Service and aligned with job discipline records. Once paid, the government is absolved of liability, and the amounts provided by government entities and units are not considered loans to the government. The law also nullifies any conflicting legislation.<\/span><\/p>\n This mechanism echoes the Houthi decision in 2017 to pay salaries via commodity cards \u2014 a policy that ultimately failed.<\/span><\/p>\n This mechanism, which is both improvised and unlawful, carries numerous risks and repercussions, including:<\/span><\/p>\n This mechanism contradicts constitutional and legal provisions, as well as the principles of justice and transparency in salary disbursement. It appears to have been introduced in response to the Houthi group\u2019s concerns about the potential collapse of the Bashar al-Assad regime and the weakening of Iranian influence in Syria. Additionally, it seems aimed at preempting the growing public discontent, which could escalate into mass protests following the end of the war in Gaza.<\/span><\/p>\n The mechanism is designed to exploit the rights of government employees, creating disparities based on the importance of the institutions they serve to the Houthi agenda. It also serves as a tool for the group to tighten its control over companies and government sector units, enabling the appropriation of their resources. However, like previous attempts, this mechanism is likely to fail.The Concept and Objectives of the Mechanism<\/b><\/span><\/h4>\n
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Consequences and Risks of the Mechanism<\/b><\/span><\/h4>\n
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Conclusion<\/b><\/span><\/h4>\n
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