Wednesday, September 30, 2026
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The 11th Assembly of Leaders

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The 11th Assembly of Leaders of the African Union member countries convened on Saturday November 17, where Prime Minister Abiy Ahmed (PhD) (pictured in the middle) welcomed participants and delivered an opening statement. PM Abiy said that effective Commission is needed to drive the continental agendas. “The purpose of this Extraordinary Summit is to advance the institutional reform of our Union.” President Rwanda and current Chairperson of the African Union, Paul Kagame (pictured left), on his behalf, said that the goal of reform is to make Africa stronger and give its people the future they deserve. Pictured right is South African President Cyril Ramaphosa.

MeTEC’s lost plane found

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One of the five airplanes bought by Metals and Engineering Corporation (MeTEC) from an Israeli Company, which was declared lost, last week by the Attorney General, was found on Friday November 16, at Bole International Airport The plane, which was said to be registered by an individual Yohannes Megersa, was denied to get an operation license before a year by the Ethiopian Civil Aviation Authority, according to sources close to the case. However MeTEC paid for the plane originally.
“The plane, a Beechcraft King Air, was denied operation service because of its non-airworthiness,” a source at the Authority told capital. “The plane was in the compound of the airport for about a year without any service.”
The plane was brought to the country via Sudan without any custom duty, according to Attorney General Brhanu Tsegay’s press briefing last week. The five planes gave more than 50 years service before entering to the Ethiopian territory.
“The Corporation bought them for a legitimate reasons of following up projects but the officials were trying to get a license from the aviation which was denied” Brhanu said in the press conference. “The government sustains damages close to 25 million birr because of this illegal procurement.”
Yohannes was aiming to get the license in collaboration with one local commercial airline, East African Aviation which is an affiliate company of Dreamliner Hotel, according to a source. Yohannes was also enrolled at the East African Aviation as a Commercials airline pilot.
“However, when the owner of the commercial airline sees the status of the plane they changed their mind” our sources added.
There are two ways of registering a plane in the Ethiopian aviation to get a pass.
Commercial operation license is one whose procedure might take 3 months to a year. The second one is to get an entry to the airspace of the nation for one-time landing. In this case, the plane should land with the said time and leave the airspace after the expiry of the permitted period.
Colonel Wosenyeleh Hunegnaw, Director of the Ethiopian Civil Aviation Authority told Capital that he personally denied the pane to operate in Ethiopia a year ago.
“We even didn’t approve the owners request to demonstrate a flight in Ethiopia,” said Colonel Wosenyeleh. “I don’t know how the plane is still here, and we will look into documents and will brief the public on the detail.”
Corruption, human rights investigation continues
Investigations of corruption and human rights abuses conducted by a special task force made up of the Office of Attorney General (OAG), Federal Bureau of Investigation (FBI) and the National Intelligence and Security Services (NISS) continues as the arrest total has risen to over 70. Over 40 former and active government appointees from the security and police department have been taken down under allegations of violating human rights, according to General Adem Mohammed, head of the NISS.
“We were working on our reform for the past four months and considering the potential arrests and now we have appointed individuals both in the head office and the regions to replace those people,” Adem told Capital. “Even if it is a little early to evaluate the status of our operation now I think we are going based on our plan but we are far from the end.”
The task force is using seven different teams to investigate cases. They include; asset recovery, METEC, human rights violations, corruption and crimes in the financial sector, public enterprises and audit findings by the chief auditor.
Corruption investigations include mega government projects, huge procurements, Illegal financial transactions, illegal institutions, and public enterprises
The investigation is using internal and external audit reports and comparing them with the appropriate legal frameworks. Only the violation of human rights and corruption in the Metals and Engineering Corporation (METEC) was discussed during the press briefing given by the attorney general last week and he indicated that there are ongoing investigations which will be soon concluded.
MeTEC
Originally the Defense Corporation was established in June 2009 with 10 billion birr permitted and 3.1 paid up capital. Its mission was to design, maintain, install, and capacitate the Defense Force in technology, engineering, and technology capacity building, and manufacture spare parts to expand the industry.
According to the investigation report, in just the six years it operated, from 2011 up to 2017, it conducted more than USD two billion in international procurements without any bid announcement but instead using private relationships.
The government admitted that its defense corporation embezzled billions of USD which is millions less than the national foreign reserve the nation had at the end of the 2016/17 fiscal year. Ethiopia was reported by the International monitory fund (IMF) to have a foreign reserve of only two months of imports, or 3.2 billion USD.
Corruption
Higher officials would participate in transactions where a single company was awarded purchases 50 times at a profit rate of 400%, with no competition, According to Brhanu Tsegaye, Federal Attorney General.
Also, he revealed that there were agents who had double tasks of negotiating between global firms and METEC would then launder money illegally to other countries. The agents were close relatives of top METEC managers.
“There was an illegal trend of picking local companies as a partner and giving them many procurements and contracts,” said Brhanu. “One crane was lost after being bought by the corporation and we now have obtained evidence that it is still in the hands of one individual.”
The partner companies are alleged to have supplied goods and services at a much higher price than the market. The companies would be awarded billions of birr projects with a phone call. In one case a single company with a single transaction was awarded 205 million birr.
The illegal purchase of ships, Abay and Andenet, which served more than 25 years and were marked as not seaworthy were purchased by METCH to be used as a scrap. Unfortunately, the ship was used for other purposes including the withdrawal of hundreds of millions for a claimed maintenance, in Dubai. The ships were used to carry USD 500 million worth of items from Iran to Mogadishu.
“No money was deposited to the METCH coffer and the act was not hampered against the orders of the former Prime Minister Haile Mariam Desalegn,” said Brhanu. “After they cost the nation aggravated damage and carried out many illegal carriage services they finally sold the ship.”
Airplanes and hotels were also purchased illegally, according the AG. The airplanes were bought from Israel after serving for more than 50 years. Four of the planes are out of use now and we have not been able to locate any, the AG said.
Torture
The AG also revealed inhuman and degrading treatment committed by government officials; especially the National Security, Federal Police, Addis Ababa Police, and other government institutions all over the country.
He, for the first time, admitted that government officials would violently commit homosexual rape on male detainees. He also mentioned that there were various methods of torture including electric shock, throwing a naked detainee in a forest, threatening them on the edge of a grave and many other horrifying acts. Evidence included victim’s statements and documents obtained from hospitals, courts and police stations, although the courts need to verify them.” The detained security officials are also suspected to have participated in the latest ethnically based violence which erupted in different parts of the nation. Ethiopia became the country with the highest number of internally displaced people. “There are disappearances and murders that were uncovered by our investigation,” said Brhanu.
The arrested suspects include leaders and experts from government offices. He also mentioned the suspects are innocent until proven guilty. According to the Attorney General the head of the NISS collaborated with a woman named Genet, who lives in Kenya.

Insurers look for answers to vehicle claims, unfair competition

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The Association of Ethiopian Insurers is going to assign another actuarial firm to find solutions to improve the insurance industry, primarily by suggesting ways to lessen the blow caused by the high amount of motor vehicle accident claims. They are negotiating with a new company after a Kenyan company failed to come up with a satisfactory result.
The Association of Ethiopian Insurers had assigned an actuarial firm to undertake a detailed study after the financial regulatory body National Bank of Ethiopia (NBE) advised insurance firms to find solutions to the problem.
Ethiopian insurers have frequently complained that motor insurance has slashed their profits due to unfair competition.
Car insurance has been a common problem for the profession. Insurers say the premiums they charge are small when compared with the damage. From the total claims insurers settle every year motor vehicles make up the largest proportion. In their annual report they expressed concern about the growing risk of auto insurance.
Meanwhile insurance firms say that low premiums promote unfair competition and negatively affect their business.
Experts said that the current competition between insurance companies is not based on the service that they provide instead they are pulling the rug from out each other in a race to the bottom by trying to offer the lowest premium payments. Experts said that even though they expressed their concern and agreed to increase premiums during their meeting, nothing happened. “It backfired and this affects them,” an expert explained.
Since NBE made the recommendation in early 2017 insurers have come with concrete solutions via their association. Then they assigned Kenyan based Actuarial Services (East Africa) Limited (ACTSERV) to undertake a detailed study and come up with possible solutions.
However, the Kenyan company assigned to undertake the study did not come up with a satisfactory preliminary result, according to Hadush Hintsay, secretary general of the Association.
He claimed that the actuarial firm did not meet the expectations of the association. “It is new for us and at the same time their output did not match what we expected from their profile,” Hadush told Capital.
The Kenyan company was expected to finish the study within a few months but the preliminary study took over a year.
“Initially we were not ready to provide organized information from some of the insurers which delayed the operation,” he said. The study needs to evaluate the activity of every insurance firm including the premium estimate, income, and expense and management experience of the financial firms.
The secretary general said that they never paid a penny to the Kenyan firm.
According to Hadush, currently the association is in negotiations with another foreign actuarial firm to undertake the study.
“Based on our experience before during the previous actuarial study we were not prepared to provide sufficient information for the company to finish the study within a few periods,” he said.
“So far our current negotiations are positive but we don’t want to mention the name of the firm since we have not concluded the negotiation,” he said. It is a foreign company, he added, because there is not this kind of consultancy firm in Ethiopia.
The study is expected to show ways of alleviating the problem. Experts said that it one possibility is setting a minimum premium rate for different products.
Hadush said that even though the document will be submitted to NBE, who is responsible for ratifying laws for insurance companies, the study will also help Ethiopian insurance companies because the current insurance business in Ethiopia has not been studied by an actuary.
“The study will be a scientific justification for the insurance business,” he added. The actuarial study will also include other general insurance topics.
A year ago the sector leader told Capital that the experience of others is related to the minimum premium rate. “For instance in Kenya the minimum insurance premium amount for motor vehicle insurance is set to three percent of the value of the vehicles but the actual premium amount has grown to 5 percent since the car compensation has risen,” the expert said.
In Ethiopia the premium percentage in the motor sector has been declining due to unfair competition reaching less than one percent of the value.
But the amount insurers compensate has grown significantly every year. Sometimes the motor claim is covered by the premium collected from other policies, according to experts.
Besides the fatalities and other human damage traffic accidents are bleeding the country’s economy and escalating the shortage of hard currency.
Traffic accidents along the Djibouti corridor damage imported products, while maintenance for vehicles requires spare parts imported with foreign currency.
“On the other hand the higher compensation from insurance companies has affected the revenue not only of shareholders but the general public as a whole,” an expert added.
Since the minimum premium was set insurance companies will have better revenue so they can invest more in saving expenses from vehicle accidents as issuers do in other countries.
“In other countries insurers take part in road designs, and even the production of vehicles which reduces traffic accidents,” one industry insider said. “We can engage in such kind of involvement to tackle the problem,” they added.
Besides the motor sector the insurance premiums for project insurance decreased in the past few years, according to experts, for example a few years ago project premiums were about 0.4 to 0.5 percent but now they are less than 0.1 percent.

World Bank team to help make stock market a reality

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The World Bank Group announced that a team of experts would arrive next month to assist Ethiopia in the actualization of a capital market.
The World Bank already is providing technical support for a committee established under the Ministry of Finance to properly implement partial privatization of government enterprises.
In a summary of last year’s economic report and a prediction of the current one, economists stated that Ethiopia’s economy is expected to grow at 8 percent with stable economic conditions. One of the major reasons for this belief is the government’s decision not incur commercial debt which should improve the external debt payment. The economy is also expected to stabilize because new industrial parks have begun operating, inflation has gone down over the past three months and foreign currency reserve has increased.
The World Bank has given its first direct budgetary support since the 2005 election at the request of the government, where half of the 1.2 billion USD funding was given as a concessional debt and the rest as direct aid.
The pillars of the support includes: maximizing the government’s potential, investment and financial institutions simplifying doing business and supporting legal framework developments and accountability and transparency enhancement programs.
Carolyn (Carrie) Turk the Country Director for Ethiopia, Sudan, and South Sudan pointed to positive steps Ethiopia has taken in these three areas, such as opening the economy in Public-private partnerships, energy, telecom and logistics, computational law and investment law and working work with civil societies, and public enterprises.
“The support is given by the unanimous vote of our board members who supported the efforts Ethiopia is making to bring the fundamental policy, economic and social changes it embarked on,” said Carrie.
The country director stressed that there are fundamental reforms in the policy decisions which the WB is grateful to support. Some short-term reforms include, making the logistics sector more efficient to improve the foreign exchange reserve; and opening up the telecom, energy and airline sectors to privatization.
Long-term structural actions involve improving exports which should occur when the logistics sector is improved.