The Government Expenditure Administration and Control Standing Committee has urged the Ministry of Justice to launch a thorough investigation into former leaders of the Metals and Engineering Corporation (METEC), following revelations of significant financial mismanagement and operational failures. The call comes amid a reported budget deficit exceeding 4 billion birr at the Ethiopian Engineering Group, the institution that succeeded METEC four years ago and now operates under Ethiopian Investment Holding since December 2024.
An audit report presented to Parliament revealed a staggering revenue shortfall: between 2021 and 2023, the group earned only 1.267 billion birr from product sales, far below the expected 5.538 billion birr, leaving a deficit of over 4.27 billion birr. Production outputs were alarmingly low, with only 8-12% of planned transformers, fuses, and substations manufactured during this period.
Committee Chairperson Yeshiemebet Demissie condemned the losses, stating, “The leaders of this country must be held accountable when this public asset was destroyed in vain.” She called on the Ministry of Justice to ensure legal action is taken.
Current Ethio Engineering Group CEO Colonel Shegaw Mulugeta acknowledged the crisis, attributing it to previous leadership failures, COVID-19 disruptions, foreign currency shortages, and organizational reforms. Efforts are underway to improve revenue by selling stored products, enhancing quality control, and modernizing asset management.
The audit also highlighted weaknesses in procurement, customer relations, environmental management, workplace safety, and asset disposal. Deputy Auditor General Abera Tadele emphasized the need for better production capacity assessment and adherence to procurement guidelines.
The Ethio Engineering Group manufactures power generation equipment, including electrical transmission cables, transformers, and solar power stations. This investigation marks a critical step toward addressing longstanding issues linked to METEC’s legacy of corruption and inefficiency.
