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Any cheques now require drawer’s confirmation before clearing a

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The state owned, Commercial Bank of Ethiopia, in an attempt to halt an increasing amount of forged Cheques, is now requiring confirmation form the person writing the cheque even if it is for a small amount.
The imputes for CBE’s action is the recent event that involves 14 million birr fake cheques being found in their Shola branch, according to a source familiar with the issue.
It was previously uncommon in most CBE branches to request confirmation for cheques under 50,000 birr. Under the new system the bank cashier must ask for confirmation even the cheque is 50 birr.

Belehu Takele, CBE Communication head told Capital that the new rule is meant to protect customers from fraud.
“CBE has come up with a set of guidelines for banks to ensure preventive measures to lower cheque frauds. One measure aims to employ mobile technology in the form of SMS alerts to be sent out as soon as a cheque is received for clearing. Another step is to scrutinize large value cheques is to alert customers via phone calls and obtain confirmation from the drawer/payer of the cheque so we are doing this just to protect our customers.’’
He added that the bank would consider complaints if the system is not working.
Some bank customers say the new system could make their transactions more difficult.
“Cheques are used to make transactions easier but if the person who signed the check has switched off their phone or is out of the country the bank will be unable to reach them and that means the bank will not allow the cheque to clear. There needs to be a way to speed up the transaction,” a bank customer said.
According to the banks there are more and more fake cheques incidents happening every day.
In more peculiar cases, fraudsters have been successful at furnishing and enchasing cheques while the original cheque was still in possession of the customer. This was done by obtaining and using details of the customer obtained through fraudulent means.
In the next few weeks the Council of Ministers is going to forward a new regulation to the parliament that will allow a payee to withdraw money from the drawer’s account without waiting for a certain amount of time for the cheque to clear. Under this rule postdated cheques wouldn’t matter. In the current working system the payee withdraws the money from the banks starting from the day written on the check. The new rule has been drafted by the National Bank of Ethiopia and needs an endorsement from the parliament. It is expected to go into effect before the end of this fiscal year.
A year ago the National Bank of Ethiopia (NBE) and the Ethiopian Bankers Association (EBA) introduced a system that would help control fake cheques and provide homogeneous bank cheque payment services.

Exporters call on MoTI to speed up prosecution of unethical traders

Exporters are expressing their frustration with the Ministry of Trade and Industry (MoTI), for failing to correct mistakes with marketing sesame seeds and white pea beans.
Even though, MoTI was expected to take actions against illegal activity regarding sesame seeds and white pea beans, businesses have complained that the ministry has not taken any steps, and that this has affected the health of their trading.
Early in December 2018 the ministry wrote a letter warning those trading the two crops illegally. Officials of MoTI met twice with the crop traders a few days before the official letter and the second time about three weeks ago.
Initially the ministry accused the illegal traders of trying to export sesame seeds under the price of purchase listed at the Ethiopian Commodity Exchange (ECX). Others are being accused of buying white pea beans at the primary market when it is supposed to only be traded at ECX.
The ministry says that the illegal activity affects the sector’s activity, other legal business and the country’s hard currency revenue in addition to affecting people exporting the crops at the price set at ECX.
Exporters were expecting big changes because MoTI often said it would prosecute those trading the crops illegally. However, the ministry has not taken any action to improve the situation. As a result, the illegal activity is continuing and their businesses and reputations with international clients are suffering.
They say that the warnings issued by the ministry are insufficient and that tangible action must be taken to improve the sector.
Three weeks ago, 95 people suspected of illegal trading met with Misganu Arega (Amb), State Minister of MoTI. He told them the ministry would begin taking legal action. They responded by begging for more time to turn the situation around.
“We have frequently insisted you stop the mal-operation but you haven’t so, now we have decided to take action against you,” Misganu told exporters at a meeting held December 28, according to attendees.
“We assumed the case would be solved after that meeting on December 28 at the ministry hall, but so far we have not seen any changes,” exporters that Capital interviewed said.
In November before the official warning letter officials at the ministry called a meeting of 95 business people involved in exporting sesame and white pea beans including the board of directors of the Ethiopian Pulses, Oilseeds and the Spices Processors and Exporters Association (EPOSPEA) to consult and warn about illegal trading against ECX.
Sources who attended the November meeting told Capital that the officials have clearly indicated that the export price of sesame seeds are lower than the value that exporters purchased them from ECX and some of the exporters have suspended or defaulted the contract of their export. This is happening at a time when other exporting countries like Sudan and Nigeria are expanding their exports and boosting their production, according to sources who attended the meeting. The source adds that, MoTI officials say Ethiopia is losing its major sesame seed market in China, which consumes 70 percent of Ethiopia’s production.
The sector experts said that even though it is the peak season for sesame seed production like other export items traded at ECX the price has sharply increased every day. A pulses and oilseed trading consultant, who requested anonymity, also said that even though the price has gone up at ECX some of those exporters are exporting the seeds at a lower price than the rate that they paid at ECX. “This has confused the market,” he added.
The officials have told the exporters that they consider this to be under invoicing, which is illegal.
Experts said that some new exporters are joining the export business in order to access hard currency, which is severely scarce, for their other business.
The officials also stated that there are exporters buying white pea beans outside of the trading floor. Sources said that some of the exporters are engaged in buying the bean from primary markets like Adama.
Association sources recently told Capital that the current move from the government is the right decision otherwise the sector will be crushed in the coming few weeks since most of the regular exporters are buying and selling the products in connection with a loan scheme from banks.
In a letter issued on Monday December 3, and signed by Mesfin Abebe, Crops Marketing Director at MoTI, stated that the ministry has been made aware of the latest illegal practices and that it would take action against those engaged in illegal activity, while exporters are expressing their frustration because the delay of the legal measure.
Sesame seeds are the second largest export earner after coffee, while white pea beans are also the other major export product in Ethiopia, which is still highly dependent on agricultural commodity exports. Ethiopia is considered one of the two of big sesame producers and exporters in Africa and up to fifth in the international market until recently but some African countries are now expanding their production and market.

Sleeping in the Stars

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Ethiopian will soon inaugurate its uniquely designed aircraft shaped hotel. The 5-star Skylight Hotel consumed USD 65 million. The airline footed the bill for 35 percent and China’s EXIM bank loaned out the remainder.
The airline built the hotel to increase the conference tourism in the city. It will employ 800 people and accommodate 373 customers. There will be six types of bedrooms to choose from, four restaurants, two bars, swimming pools, shops, and many other world class services.
The conference hall can hold 2,000 guests at a time and should help attract more tourism to Addis Ababa.
Constructed by the Chinese China National Aero-Technology International Engineering Corporation (AVIC) the hotel took two years to complete.

Imperial Hotel owner argues for release

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Eleven people, including Ermiyas T. Amelga, have been charged with corruption at the Federal High Court’s Lideta Division Bench under the file of M.G. Kinfe Dagnew. They are being accused of illegally procuring items. Ermiyas is being accused of selling the Imperial Hotel to MetEC at an overvalued price.
As he appeared before the court Ermiyas argued that it was unnecessary for the police to have more time to investigate the case. In fact, he argued, he did not need to be in custody because he voluntarily brought all the documents in question to the police, had been cooperating with investigators for a long time and was banned from leaving the country.
MeTEC paid 75 million birr to Ermiyas for the hotel in two instalments. MeTEC bought the hotel from Access Real Estate two years prior at a cost of 47 million birr from the family of Afaw Tefera.
Prosecutors also charged Ermiyas in another court case. At the 15th criminal bench he was charged along with 10 defendants including Alem Fitsum, owner of Alem Genet Factory for allegedly causing 415.2 million birr in damages to the Public Interest through an irregular contract containing deceitful facts. He is being charged along with six alleged co-conspirators in this count.
On January 14, M.G. Knife and 12 other individuals were charged for corruption in the purchase of two ships that prosecutors think cost the country 548 million birr. In addition B/G Tena Kurendi was charged with allegedly violating human rights.