Algeria: Arrest of former industry minister Youcef Yousfi paves way for probes on major corruption cases in energy sector

Posted On 15 July 2019

Number of times this article was read : 324
youcef yousfi

Commentary by Arezki Daoud:  Algeria has been plagued by widespread corruption ever since Bouteflika became president in 1999. All the men and women he hired essentially set out to restructure the legal system to protect their interests, and created bureaucratic practices that enabled them to institutionalize corruption in unprecedented ways never seen anywhere else in the world. 

The scale of corruption in Algeria was (is) such that it is almost impossible to find an official that has been in office from 1999 to 2019 who has clean hands. So much so that while the 1990s are dubbed “the dark decade” due to the civil war that claimed tens of thousands of lives, the Bouteflika reign should be dubbed “the two decades of deep corruption.”  Corruption practices used over the past 20 years include the classic and disgusting practice of demanding a commission on projects, imposing an equity partner on a business created by either another Algerian national or a foreign company, all the way to confiscating the lands and properties legitimately owned by individuals and families for the pleasure of the corrupt official.

Corruption has been widespread, not just at the very top level, with ministers and state-own company CEOs milking the system, but smaller-scaled corruption was the de-facto culture in provincial (Wali) and local governments.  Anyone with power, at any level, had to engage in extortion and other acts deemed criminal in normal societies. If you needed a simple birth certificate, you were at the mercy of a tiny clerk, demand bribes. This was the norm in Algeria. It was instituted by the Bouteflika clan, defended by Grand Viziers like Prime Ministers Ahmed Ouyahia and Abdelmalek Sellal, and practiced by everyone so as to divvy up the oil revenue. As for those small bribes in city halls, they were meant to keep the little people busy.  Normal governance and management were non existent and that’s why Algeria is where it is today, in a deep political crisis.

The current crisis and one of the main reasons why Algerian leaders are not willing to move to the next step is largely due to the fact that many of the men who form the Military Command in charge of the country today, are also deeply corrupt. They cannot fathom or accept the idea of letting it go altogether, or face the same predicament  as those who are now behind bars. Algerian generals have long ruled like emperors in their fiefdoms. The country is divided into several so-called military regions, with each region having its general in charge of security. These men reported to no-one, as if they were warlords. They have always been and still are above and beyond the law. And, as part of the culture, nothing happens in their regions without their consent, and often that means commission payments, gifts, and so many other way to enrich themselves.  In addition to the region’s chiefs there are the commanders who oversee the various branches of the military, from the army to air force, and from the navy to intelligence, give or take 24 of them in today’s Command who are frightened by what may happen to them should the rule of law prevail. 

These men are powerful, unwilling to compromise, and without a reasonable strategy to save the republic. They still think that they invulnerable and untouchable, just like the mighty previous Ministers of Oil thought of themselves.  Just like the Prime Ministers in prison, one of these oil ministers has been sent to the notorious Harrach prison over this past weekend.  Not too long ago, Youcef Yousfi was the king of the industrial sector in Algeria, more powerful than his bosses, wining and dining with the most powerful global corporations, hedge fund managers, leaders of the IMF and World Bank, and government officials around the world. That myth of the all-powerful minister is over.  Yousfi is alleged by Algerian prosecutors to have squandered public funds.  But Algerians are waiting for another notorious figure of the Bouteflika reign, the president’s very own friend Chakib Khelil, ex-oil Minister who has been accused by both Algerian and European courts of corruption. While he was once favored to replace President Bouteflika, Khelil is not in Algeria, having fled, fearing justice. It is unclear whether he is a US citizen or a green card holder, but he is likely in the Gulf, a region that has no problem sponsoring dictators and thugs from Idi Amin Dada to Zine el-Abidin Ben Ali. They used them well. If he is a US citizen, then he may even be in breach of US law banning US citizens from serving another government and he will have to face the US Justice Department on this.

In addition to demanding that the likes of Khelil return home to face justice, Algerians will be expecting from the judiciary to reactivate the cases involving the misdeeds and illegal activities of the many foreign companies that have help perpetuate the state of chaos in Algeria. Canada’s SNC Lavalin and many Italian firms have been named in court cases in Algeria, Italy and elsewhere and have yet to face their accusers in an Algerian court.  But that day will only come after the military command surrenders power to a civilian government.


Algeria ex-industry minister detained in graft probe

Algiers, July 14, 2019 (AFP) – Algeria’s former industry minister was placed in provisional detention Sunday on allegations of squandering public money, state television reported. Youcef Yousfi is the latest among a series of prominent politicians and businessmen to be detained or questioned in connection with corruption since longtime leader Abdelaziz Bouteflika resigned in April in the face of mass protests against his rule.

Yousfi, who served between 2017 and 2019, is under investigation for graft and is suspected among other things of “squandering public funds” as well as “abuse of power and conflict of interest”, the state broadcaster said. He was placed under preventive detention by the supreme court’s investigating magistrate, it said.

Protests have rocked Algeria since February, initially against Bouteflika’s bid for a fifth term.  They have continued even after the ailing president stepped down in April, with demonstrators demanding a complete political overhaul and the departure of Bouteflika-era figures before new presidential elections are held.


 

Youcef Yousfi

Youcef Yousfi (Arabic: يوسف يوسفي) (born 2 October 1941) is an Algerian politician who was the country's Minister of Energy and Mines between 2010 and 2015. He briefly served as Acting Prime Minister of Algeria in March–April 2014. Yousfi was Algeria's Permanent Representative to the United Nations from 2006 to 2008.

Early life and education

Born in Batna, Yousfi graduated from the École nationale supérieure des industries chimiques (National School of Chemical Engineering) in France, and obtained a PhD in physics from the Université de Nancy.[1] He also has a degree in economics.

Career

Yousfi was a senior lecturer, then a professor of chemical engineering at the National Polytechnic School, and then the Houari Boumediene University of Sciences and Technologies, both in Algiers. He was also director of the chemistry institute there. He was also an oil adviser at the Ministry of Industry and Energy.

In the late 1970s, Yousfi was appointed as marketing vice-president at Sonatrach, and in 1985, he became its CEO. In 1996, he became chief of staff to Algerian President, Liamine Zéroual. In 1997, he was appointed as Minister of Oil and Energy and was also first elected as a member of the People's National Assembly.

In early 1999, Yousfi became president of the Organization of the Petroleum Exporting Countries (OPEC). On 23 December 1999 he was appointed as Minister of Foreign Affairs.[2] He was replaced by Abdelaziz Belkhadem in the post in August 2000, when Yousfi moved on to become Minister-Delegate to Prime Minister, Ali Benflis.

In April 2001, Yousfi was nominated as Ambassador of Algeria to Canada, before becoming Permanent Representative to the United Nations in 2006.

On 1 July 2020, he was sentenced to 3 years in prison on corruption charges.[3]

Personal life

Yousfi is married and has three children.

References

  1. ^ "162th Ordinary Meeting" (PDF). OPEC. Archived from the original (PDF) on 2 July 2010. Retrieved 17 February 2013.
  2. ^ "Profile – Youcef Yousfi". APS Diplomat Operations in Oil Diplomacy. 28 February 2000. Retrieved 2 July 2013.
  3. ^ "Algerian ex- prime ministers sentenced to 12 years for corruption during Bouteflika's election campaign". July 2020.
Political offices
Preceded by Prime Minister of Algeria
Acting

2014
Succeeded by

 

 

 

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