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The Fine Line: African Attire & African Leaders

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“…traditional attire express our relationship with out communities, societies and our continent.”

Almost 11 years ago, Nov 17, 2007 to be exact, I met an incredible individual at the African Union (AU) Diaspora Ministerial Conference in Johannesburg, South Africa. We were there in different capacities but on the same mission, to review and consolidate the draft Programme of Action in relation to the AU decision to recognize Africans in the Diaspora as the Sixth Region. Agenda items included Peace and Stability; Historic socio-cultural and religious commonalities; Women, Youth and Vulnerable groups and Economic Cooperation amongst others. Thirty-nine member states including Benin, Ghana and Ethiopia were present along with CARICOM representatives. Unlike most Ministerial meetings, Diaspora Communities and Civil Society organizations fully participated, even presenting papers. I was one of such.
I remember being seated next to the then Honorable Minister of Health, Dr. Dlamini Nksozana Zuma, who would go on to serve as AU Chairperson 2012-2017. I prepared with laser focus to present on Women and Youth to a room of distinguished African representatives who, sad to say, were almost indistinguishable, as most were in suits. I was dressed in traditional Ethiopia attire at this august event and began by giving a history of African Diaspora engagement, referencing Ethiopia’s track record as evidenced by Ethiopian World Federation who raised funds and awareness to end Italian occupation in the Diaspora. I also spoke of the defeat of foreign forces under the direction of Emperor Menelik II with Empress Taitu by his side, yielding victory at the Battle of Adwoa, a watershed moment in the history of Pan Africanism.
After my presentation, I had the opportunity to meet the Head of Delegation for Ethiopia. While moved by my presentation, the crux of the conversation was also on my attire, habesha libs. I imagine it was strange as most such meetings find men and women in 99.9% Brooks Brothers type suits. Beyond that important exchange on culture and attire, the Minister expressed interest in our advocacy for re-integration and offered to meet with me upon return to Addis Ababa. The Minister’s word was kept and the good Office was open for us to voice our concerns on the status of People of African descent, Rastafari in particular, living peacefully in Ethiopia, most undocumented, including children turned adults born in Shashamane.
I would see the Minister occasionally, who always recalled my name and face amongst the sea of people dealt with daily, much more over a decade. Respect. We even ran into each other a week ago and tried to catch up in a sweet 2-minute exchange, as we were both with other parties. But back to African leaders and cultural attire… What is the message and significance, if any, about cultural attire worn or not worn by Africa’s representatives at meetings in Africa? In a time when Africa is rising and borders are collapsing, allowing for free movement of trade and commerce, is not the movement of art, ideas and culture equally important? Does not our cultural attire have a place, making a statement as to our history, identity and trajectory? Should leaders not have an inclination or at least the conscience to wear the expressions of our artisans and designers, often? Haven’t our artists provided African designs and clothing that speak to our resources, processes, creativity and narratives? Doesn’t our traditional attire express our relationship with out communities, societies and our continent? Most of all shouldn’t our attire give leaders a sense of strength, comfort and connectivity to the people they represent?
Eleven years later in 2018, update on the Diaspora integration: a majority of African countries have offices for Diaspora affairs; Benin and Ghana have issued citizenship to scores; and Ethiopia has granted over 250 ID’s to Rastafari of African descent as Foreign National of Ethiopian Origin. Sadly, I cannot report that African Leaders are wearing cultural attire more often, but can report that the AU encourages traditional wear on Friday. Side Note: In the West corporations offer dress down day to jeans and such on Fridays, this cannot compare to Traditional attire, but I think the intent deserves credit. I therefore leave it to our esteemed leaders to decide when to wear traditional clothing but urge consideration to honor and promote the creativity of African artists and designers while sharing culture, history and identity. Photos speak volumes and what will generations to come think as they reflect on these optics a hundred years from now? Shall our children see so us today and in turn love their culture and clothing tomorrow and not beg for brands that fuel other people’s economy?
This splendor of African attire from kente to kuba cloth and ashoke to saba is unlimited. And just as our weavers prepare these cloths with great care and pride, let us wear them proudly as we promote our country, continent and diverse cultures. By the way, the Minister I keep referring to is none other than our newly appointed President of the Federal Democratic Republic of Ethiopia H.E. Ambassador Sahle-Work Zewde, who wore cultural attire to her swearing in ceremony.

Dr. Desta Meghoo is a Jamaican born
Creative Consultant, Curator and
cultural promoter based in Ethiopia
since 2005. She also serves as Liaison to
the AU for the Ghana based, Diaspora
African Forum.

Practicing Machiavellian strategy

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Now I feel like writing about two books which I have been reading time and again till this very day. These books are among the important ones lined up in the shelf that stood abreast of my bed. They are named the ‘Prince’ and ‘the 48 Laws of Power’. Nicolo Machiavelli wrote the Prince and Robert Greene authored the 48 Laws of Power.
I usually hear several educated individuals saying that leaders of every nation in this world keep the Prince beneath his/her pillows. Nicolo Machiavelli (1469-1527) was an Italian political philosopher, historian, musician, poet and romantic comedic playwright. He wrote the Prince in 1513. Robert Alan Dahl, a political theorist and scientist at Yale university in USA, says that ‘…the most influential book ever written on the characteristics of men in politics is the Prince’. I have two copies of the Prince, which was translated by George Bull in 1986. They are the 28th editions.
The other book, the 48 Laws of Power, is also wonderful and worth reading. It is on sale at World Book stores here in Addis. This book was published for the first time in 1998. I have the one which was printed in 2013; the eighth edition. Greene, an American, is said to be the modern Machiavelli. He has a degree in classical studies.
By the way, I have a piece of information to share with book worms. Please heed what I am saying. Whenever you want to buy books, say from a book shop or wherever you go…street sides…, take a close look at the reprint section of the book. If you see that book which you happen to hold in your hand was reprinted many times, don’t hesitate to peel out your money from your purse and pay for it.
The 39th law of power according to Greene declares that if the prince or the ruler who took hold of the rein of leadership needs to survive in his throne, he should ‘stir up waters to catch fish’. He further enlightens, ‘…The waters are clear and calm, and fish are well below the surface. Stir the waters and they emerge. Stir it some more and they get angry, rising to the surface, biting whatever comes near-including a freshly baited hook.’ The essence of the law is that ‘when the waters are still, your opponents have the time and space to plot actions that they will initiate and control. So, stir the waters, force the fish to the surface, get them to act before they are ready, steal the initiative. The best way to do this is to play on uncontrollable emotions-pride, vanity, love, hate. Once the water is stirred up, the little fish cannot help but rise to the bait, the angrier they become, the less control they have, and finally they are caught in the whirlpool you have made, and they drown.’
Greene observed the practice of this particular law by the Ethiopian Emperor, Haile-Silassie. He said that Haile-Silassie defeated his arch foe, Ras Gugsa using the ‘Stir up waters to catch fish’ technique. Gugsa is the husband of empress Zawditu who was the heir of the throne of the famous emperor Minilik II. After the death of the emperor, Haile-Silassie weakened the warlords who were feared to be stumbling blocks on his way to the throne. The remaining ‘obstacle[s] stood’ in his way were the empress and her husband, Ras Gugsa. ‘…[Haile] Silassie knew the royal couple hated him and wanted to get rid of him…’. So, he stirred the pond and caught the big fish. What he did was that ‘he goaded [Ras Gogsa] in to rebellion by offending his manly pride, asking him to fight people he had no quarrel with on behalf of a man he hated’. This way he stirred up the water. On the other way around he staged a battle ground in which his enemies involved. Gugsa thus made to partake in the fighting in which he was left alone through an intrigue made by Haile-Silassie who bribed several key allies of the Ras (Gugsa) not to show up for the battle. ‘Refusing to surrender, Ras Gugsa was killed in the fighting’ to the relief of Haile-Silassie who immediately announced his new emperorship.
I should bring up my argument that Machiavellian strategies have thus been practiced in this country. I have some testimonies to strengthen my argument. But first… it is good to say a few words about Machiavellian strategies. Machiavellianism derives from the views of Prince Machiavelli. It states that a prince or a ruler ‘should only be concerned with power and be bound only by rules that would lead to success’. It is further ‘defined as a manipulative strategy of social interaction and personality style that uses other people as tools of personal gain’. Prince Machiavelli deduced the rules from the political practices of his time. He stated that ‘morality and ethics are for the weak; powerful people should feel free to lie, cheat and deceive whenever it suits their purpose’. He is rough; is he not?
What we witnessed recently here in Addis Ababa is the ‘stir up waters to catch fish’ style of thing, which still gets the wide coverage of local media. The individuals and political leaders who got together for their common agendas came up with a bone of contention type of announcement that startled citizens. On the other way around they stirred up the pond and let the fishes come out to the surface. What happened then after is crystal clear to everyone of us. Many young Addis Ababans were arrested and sent to prison without due process of law. My point is that such is a picture of the strategies of Machiavellianism being implemented here.
We are saying that the present incumbent seems to be reluctant in taking measures against wrong doers. Yes, actions should be taken as soon as possible before the enemy gets out of control. Supporting this argument, law 15 of Robert Greene states the following. ‘All great leaders since Moses have known that a feared enemy must be crushed completely. (Sometimes they have learned this the hard way.) If one ember is left alight, no matter how dimly it smolders, a fire will eventually break out. More is lost through stopping halfway than through total annihilation: The enemy will recover and will seek revenge. Crush him, not only in body but in spirit.’
NIcolo Machiavelli has also touched on this same issue. ‘People should either be caressed or crushed. If you do them minor damage they will get their revenge; but if you cripple them there is nothing they can do. If you need to injure someone, do it in such a way that you do not have to fear their vengeance.’
I am also surprised to hear some people saying that certain politicians who were once imprisoned and hailed by the entire nations for their bravery were happened to change their coat all of a sudden and act differently in a different scene. This was reiterated by many citizens in general and some inmates in particular with regret. I personally feel these innocent compatriots should have expected such betrayal from the side of politicians who once acted as friends. Robert Greene is telling us not to ‘…put too much trust in friends…’ but rather to learn how to use enemies. ‘Be wary of friends-they will betray you more quickly, for they are easily aroused to envy. They also become spoiled and tyrannical. But hire a former enemy and he will be more loyal than a friend, because he has more to prove. In fact, you have more to fear from friends than from enemies…’ I hope, by now you are thinking of the renewed relation we have with neighboring Eritrea, which was once designated an enemy.
I think it is common to witness in our real lives such betrayal of intimate friends. By the way, some people who read the 48 Laws of Power think that Robert Greene is evil. But he claims that he is not. He says he is just a realist. “I am not who people expect me to be… I believe I described a reality that no other book tried to describe… I’m not evil-I’m a realist.” – Robert Greene.
Fellow countrymen are also crying aloud that the incumbent has shown negligence in defending attacks foisted by armed opposition elements. But… what if the incumbent is thinking of things related to patience or capacity or other similar political alternatives? As for me, the thing seems to be like one of the laws stipulated in the 48 Laws of Power. ‘If you are unsure of a course of action, do not attempt it. Your doubts and hesitations will infect your execution. Timidity is dangerous: Better to enter with boldness. Any mistakes you commit through audacity are easily corrected with more audacity. Everyone admires the bold; no one honors the timid.’ My point is that…what if the negligence was done deliberately by the government on the basis of this point?
The two political philosophers claim that acting up on Machiavellian strategies should seriously be taken by all leaders of nations as an alternative and best way to get out of political quagmire. They stress that being soft and kind in the political sphere will have bad consequences. Therefore, Nicolo Machiavelli and Robert Greene are of the opinion that leaders should never think of morals and ethics. Machiavelli put this in black and blue. ‘…Politics have no relation to morals… Morality and ethics are for the weak…’ It is harsh; is it not? Yes, it is. After all, is this not politics?

By Haile-Gebriel Endeshaw

Humanity First

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A single moment of violence turned the young Ethio-Canadian man into a human rights activist. He has been looking at Ethiopian socio political moves closely interims of humanity. Obang Mato founded the famous movement called “Adisitwa Ethiopia”, The New Ethiopia Movement, which he talks about in this exclusive interview with Capital’s Haimanot Ashenafi.  Obang also shares his views about the current political environment, challenges, and prospects of the ongoing reform in Ethiopia. 

 

 

Capital: Let us start with clarifying for people who have confused you with Umod Ubong, a man who ran from his post in Gambella?

Obang: Some people sometimes confuse Umod Ubong who was once the Gambella region president. But I left my country when I was 16 to Canada with my family. Umod is now in the Philippines, I think. But I have never been involved in any political or government posts, rather i speak for human rights.

Capital:  How did Canada treat you when you were a teenager?

Obang: I was the only dark skinned guy in a school of thousands. I fit in as a human person there and that’s my life principle now. Every person has to know that God created a human, not an African or others in a different way. I lived in Canada for 28 years and it treated me as one of them, that’s why I call Canada home.

Capital: Your academic status is in political science and international relations. How did you become a human rights activist?obang-mato-1

Obang: I came back to my home country in 2000 for the first time since we moved to Canada. I expected the Gambella region to have some development. But the reality was the exact opposite. At the moment there was only one medical doctor for the entire region. The region had a single hospital and the development in the EPDRF was even more backward than the Derg regime. The Derg constructed various water wheels, roads and hospitals. The resettlement known as Sefera was a good opportunity for the region to have a lot of development projects.

Gambella’s fertile land can feed the entire horn of Africa if utilized well. But the marginalization paralyzes the region. The HIV prevalence rate was higher than the nation’s rate. So those were my reasons for me to set up an NGO called Gambella Development Agency (GDA) in 2001. After we established it in Canada, we came back to Ethiopia to work on Health, Water, and Education as a priority. But when we came back to make the project operational there were some serious disputes between the regional heads and the federal government appointed advisories who wanted to rule the region in de facto terms. The clash caused the removal and detention of the regional appointees and the federal government installed its own governors later. The tension would build on and also cause many arrests from the regional powers. There was one incident where an international organization’s car was ambushed and about nine people were killed, in July 2003. Some people say they had evidence that is was the Anuak tribe who did it which led the National Defense Force to kill 424 people from the Anuak tribe. That was the moment which I was flipped into the fights for our Ethiopian people’s human rights.  I was called from different areas to participate in the issue which made us fall into fear. I called for justice at the moment which I am still doing.

Capital: Some people say refugees coming from South Sudan are now affecting the lives of the residents. Some even say the ethnic composition is now overshadowed by the South Sudanese residents. How do you evaluate this?

Obang: The major problem of the Gambella region is the failure of the federal government. The issue of refugees started even before I was born when Emperor Haile Selassie agreed to receive the Sudan refugees, which was a very generous decision. But the current failure of the Federal Government to set the proper channel of screening and security check created the situation. There is no border I can say as anyone can come carrying a weapon and cattle with no immigration, custom or arm check. The federal government is the one which is responsible for dealing with the inter-country matters. I am not surprised by the failure of the federal government as it happens all around the nation. It all starts with the insult of calling the four pastoralist regions as a minority. In which term does the large state of Somali region become the minority while other regional states which in many terms are smaller the opposite become?  They call these regions as underdeveloped, minority and the party arranging is as much as insulting to call them just a partner but not the front. The government receives money from the UN to host the refugees but it doesn’t care about the people. So the people of Gambella are suffering a lot because of the failure of the federal government.

Capital: Do you think the status of the civil war in South Sudan is ethnic cleansing? How is it affecting the Gambella region?

Obang: What happened in South Sudan is not well documented and it is hard to know. As you know uranium is peaceful mineral unless you weaponise it and it becomes nuclear. Same is true for Ethnicity as it is a good thing but if you weaponise it, it will become the worst nightmare. In South Sudan, there are lots of people who were targeted just for belonging to some ethnic group. So that’s nothing I regret to call based on what is happening. The Nuer tribe is targeted in the civil war in South Sudan and they are fleeing in large numbers to Ethiopia. There are only a few Anuaks now.  That defiantly affects the political landscape. As the Nuer can escape the ethnic cleansing in South Sudan and as they are not even screened here and live in Gambella. I think hosting refugees is a good thing but unless it is well managed it can lead to one of the most dangerous conflicts.

Capital: Is there a potential of self-determination in Gambella?

Obang: I am not afraid for Gambellan secession. I can only speak for myself. But the government shouldn’t take the states for granted just because they believe in Ethiopia. You can’t say home is home when you didn’t clean it.  Some of the residents in Gambella would say the government just wants our resources but not us and they may abandon Ethiopianism. Who knows if someone from the region pops up and says we need to determine ourselves in another place? The system itself is allowing it to be this way. When I was a kid every day I was proud to stand in front of the flag and sing the national anthem. We were very proud of being an Ethiopian before but now people are proud to belong in some tribes.

Capital: Are you a politician now?

Obang: Politics will be dirty when it is handled by bad people. Politics is a way of life and how people manage things together and that is the thing which differentiates us from an animal. It is a way of living together and headlining a rule of law for us to live together. A political environment like we have here in Ethiopia is dominated by politics of hatred, lies, corruption, and division. And I can’t see myself there for sure. So I see myself trying to play a role to empower people. I believe that tribalism and ethnocentrism are an illness. It is very backward thinking in the world which needs a cure. It is really short of imagination which is going to make you short sighted.

Capital: What you are referring as tribalism and ethnocentrism are rephrased by people as nationalism and empowering people starting from the initial circle. How do you see that?

Obang: Nationalism may be narrow but it will put people as a package and will think of other peoples. But tribalists are the more selfish and narrow ones which think only about themselves. So it is a failed experiment for the past 27 years. And in the globalized world of 21st-century tribalism will not work. Every nation which focuses on their ethnicity failed including Yugoslavia and Rwanda. You can see the effect in the intermixed society of Ethiopia. So ask me where and when the failure story of the ethnocentric system and I will tell you from the Somali-Oromo clashes to the latest Raya and Wolqayit issues. No matter how big was India the British ruled the land of a billion using their differences and the same is happening to Ethiopia. They are using our differences to rule us forever. So the big problem of ethnicity is not happening accidentally rather it was intentional. You can see our constitution which says “We nations and nationalists” which you see in any other countries saying “we the people”. This is the ideology of Wallelign Mekonnen who had a communist copy ideology to lead us. I remember some say we copied this law from developed nations as proud thing. A copy is not original and it is dangerous in politics.

Capital: Some may think that the ‘Medemer’ theory of Abey Ahmed (Phd) cures the hate wound but with unmanaged freedom leading everyone to fight on everything. How did you analyze the appearance of the ‘Medemer’ theory?

Obang: The Medemer thing is not owned by only Abiy, rather that’s the base of existence of every living thing. Coming together will reward you a breed of good thing. I should say that the arrival of Abiy is an opportunity which we should protect. Almost three million people came out in Addis to show their support to him, and the same people will be demanding change from him. If he failed them they will come out also challenging. The word Medemer will not take us anywhere alone. There need to be a change in the structure which might touch the backbone of EPDRF, ethnic federalism. It is the best time for him to change that if he really believes we are one.

Capital: What does the new administration need to do to meet expectations?

Obang: There is one man on whom everything depends on, Abiy. And this man’s time is running up. He has to reach the problems fast before it’s too late. Words are not enough. We need a real genuine reform. It’s been six months since he came and that is enough time to get things together and give real reform. Abiy needs to draw where he wants to take the country. The era of experiment has to come to an end and we have to get the better policy and roadmap to be the best of ourselves. He should work with the election. The army needs further arrangement. Security agencies must take their hands out of ethnic issues. We had enough of an empty bottle feeding. Our stomach is empty and we need a real thing.  We have been told we have the double digit economy and we have the most harmonious and united nation, which was deceptive. The change that we had with Abiy was amazing. We were in the darkness and now we see a light but the darkness is not completely gone. You and I will not be talking like this unless it is for him. Many brothers also paid sacrifices for this change, which I will be thanking them every day. But their sacrifices must be respected and paid off.

Capital: What would be your priority now? Is the New Ethiopia Movement institutionalized or an ideology?

Obang: Our priority will be helping the youth have self-esteem, humanity and to respect one another. Adistua Ethiopia is in the process of being registered now as a civil society. We want to focus on reconciliation because a lot was done to us. There were so much blood, pain and hate. Our motto minimally focuses on promoting the civil discourse in a way that can help us to have a national consensus. Our new Ethiopia movement is not changing the map or flag of Ethiopia rather our thinking. The thinking which looks down others because of their skin color, gender, ethnicity, language or any other things which they didn’t create is a threat to our survival. People have to have the rational thinking of bringing humanity in the front.

Capital: What would be your message to those who doubt nationality and being Ethiopian can’t co-exist?

Obang: The nation was there for the past 3,000 years accommodating both, so we don’t need another proof is my short answer. Our grandfathers lived in this country walking with both. God creates every human being into his image but doesn’t make one better from one other. So this thinking has to be changed. I consider every nationality as a flower. A single color flower is less beautiful than a pot filled with a mixture of different ones. That’s the case each and every nation in Ethiopia are a single flower. Each and every other group in Ethiopia makes the nation this beautiful. It is trouble to see students in higher education fighting with ethnic issues to one another rather than studying hard. It is a result of what they have learned but we need to draw a line. Some people In Gambella attack the third generation highlanders just because they have a little bit lighter skin color shade. Being a human is not just eating and walking.

Capital: How do you want to reach society in your New Ethiopia Movement?

Obang: I am suggesting that our curriculum be restructured in a way that promotes love, affection, humanity, and unity. Also, the media is a crucial means to access the majority. Beyond all public dialogue is mandatorily to leave behind things that were eating us alive for three decades. We are pushed to the level where you treat a man based on his name. We failed to see humanity and we just see ethnicity. Putting our ethnicity on the ID cards is the worst case scenario. Your ethnicity will give you a job or will just make you a criminal. Not what you learn is going to count or your skill but your ethnicity will make you a favor. This will be changed through love and education. Loving each other is the only help.

Capital: Do you think the opposition political parties have any platform to solve the problems which you are mentioning?

Obang: The opposition political parties didn’t have the platform how to love anyone other than their ethnicity, which is dangerous. Someone who doesn’t have principle will settle for everything when someone with principle will die for anything. The main challenge of the oppositions is they have no ideology they stand for and they just oppose. They had to take the lesson from EPDRF who let the nation in this status. It was once founded with liberation fronts whose initial aim was liberating ethnicity from Ethiopia. And suddenly they get the chance to take over the nation which they want to be liberated from and they put it in a current situation. And beyond having the ideology they have to become ten times better than the ruling party if the people have to vote for them.

I see people saying I am this ethnicity first but they are human first.

Capital: How are the advanced relationships between the opposition and the government helping the people?

Obang: There is no opposition. Abiy is the government Abiy is the opposition. He used a good language while calling them competitors and brought them here. They stay in their hotel and just have a vacation. These parties are doing nothing and he paralyses them. They are just sitting on time and election is just ahead. If the election is not going to be extended, EPDRF will keep walking even without a real challenge. I always wonder about how they mushroom in such numbers. Few strong parties are enough to build this nation. I didn’t see them talking with the people rather than having a good time here.

Capital: What is your suggestion in such cases, for the government and the parties?

Obang: The country is in danger and I am very much worried. If the opposition political parties have not any better idea they should leave and stop being a road blocker. They have to get a common vision on how to participate in the politics. The current political engineering is so complicated and if they can’t be way better than that, well we will lose and will make the people pay the cost. They have to have a much more sophisticated, visionary harder tool for a better Ethiopia.

Capital: Some divide the power in the nation into different parts. Is there a power competition and division here?

Obang: I see four groups. The one that leads the country and others but we may have other groups. The old guards say if we don’t get the power back this change will collapse, so they are one. There are others which believe Abiy owes them and are demanding favorable treatment. The last will be the opposition political parties who come from abroad. It is very worrisome that we focus on this while we have a real problem to solve that is lack of rule of law. We top the list in the Internally Displaced People globally with 1.8 million. With all the clashes costing lives and the system created that. More than 75% of Ethiopians are youth and they will be demanding. Those forces can force him for good things but unless he becomes stronger it may cost us the change. A sinuous of fights brings the change and this turn must be Ethiopians’ turn. Anything less than a genuine reform to make the nation a fair one will be bad.

 

Turkish company assets frozen

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The Ministry of Revenue froze the assets of Turkish multinational, Yapi Merkezi, when it failed to pay 2.1 billion birr in unpaid taxes. The company undertook the 389km long Awash-Kombolcha-Hara Gebaya Railway Project at a cost of USD 1.7 billion. The Ministry also ordered the Ethiopian Railway Corporation (ERC) to deposit any money to the revenue office that the company claims.
“The project is more than 80 percent completed and the payment is prorated,” Dereje Tefera Head of Information and Public Relation of ERC told Capital. “But we received a letter from the Ministry.”
“During his latest visit to Istanbul President Mulatu Teshome discussed the specific issue with his counterpart Recep Tayyip Erdoğan,” the company’s attorney Abebe Balcha told Capital. “We are expecting a state level decision to be in favor of us,” he said. “We paid our taxes and the issue is the bilateral relationship between the governments.”
Murat OCAL, the country manger of the company in Ethiopia, stated that the current issue is misinterpretation of the Turkish Export Import (EXIM) Bank Loan Agreement between Turkey and Ethiopia. He further expressed confidence that this would soon be corrected.
The Turkish government via its EXIM Bank provided a loan worth USD 300 million for this project, which is the biggest ever loan that the Turkish government provided for foreign government, while the balance USD 1.4 billion dollar is covered by European financers such as Switzerland’s Credit Suisse.
“We are looking forward to the proper consideration and awaiting an executive decision,” Murat told Capital.
The company was asked to pay 2.4 billion birr but after it took the case to the tax appellate bench in the Ministry it was reduced to 2.1 billion birr. The Ministry of Finance and Economic Cooperation in its comment said the audit is correct and must be implemented.
The actions were taken after long negotiations over the last year which involved the Ministry of Foreign Affairs, the Turkish Embassy, and delegates from Turkey.
Yapi Merkezi is among the ten railway and transit contractors in the world.
A month ago the assets of China Communications Construction Company (CCCC) Ltd were frozen because an audit determined they owed back taxes.
The company later paid 760 million birr out of the 3.9 billion birr owed and appealed 1.8 billion birr to the Ministry’s Tax Appeal Committee.
The Ministry found 412 million birr in the Chinese construction giant’s frozen account.
The Ministry gave one month for CCCC to settle the payment prior to freezing the assets. Also when Prime Minister Abiy Ahmed (PhD) went to China he raised the issue to the Chinese Government officials, according to sources close to the case who also revealed that his efforts did not achieve the desired result so far.
The state owned multinational said they would make a payment prior to the seizure but failed to pay on time. The CCCC was asked to settle evaded profit tax, reverse taxation, withholding and vat for the last two years.

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