DARO misses service target but revenue rises

0
30

The Documentation and Authentication Registration Office (DARO), an auxiliary department in the Ministry of Justice, failed to meet its service target by 16.7 percent in the first half of the current fiscal year. The office, which is responsible for authenticating and registering new share companies in Addis Ababa and Dire Dawa City Administrations, had set a target to handle 342,425 new applications between July and December 2014, yet the actual achievement was 285,103 cases or 83.3 percent of the target.
DARO had also targeted to give service for 703,373 customers in the stated period, but it served 607,200 individual customers or 86.33 percent of the target.
This performance is the first in DARO’s record in the last five years.
A new deal made between the Ministry of Justice, Ministry of Trade and other stakeholders regarding the registration of share companies is the main reason for this lower performance, according to the half year report of DARO.
Recently, the two ministry offices and other stake holders had agreed to limit the size of signatory parties that are required to sign on companies’ formation minutes only to company board directors. The agreement was reached with a view to eliminate a cumbersome ratification signature collection process from share holders. Previously, share companies need to get all their founding members to sign on the formation minutes to authentic it.
In its report, DARO stated that the new deal made between the relevant stakeholders is the main reason for the decrement of number of clients and cases.
Even though the office registered a bit lower performance on cases and clients in the past six months, it has collected higher revenue than the projection.
In the first half of the 2014/15 budget year, DARO had targeted to collect 86 million birr from service and stamp charges, however the office cashed in 108 million birr.
During the six months, it has transferred 74 million birr to the public treasury, while the target was 53 million birr.
DARO is one of the successful public organizations that operates on the federal government level. The office is expanding rapidly opening new branches in the capital city.