So much has happened recently that it’s hard to remember that this year started out with great apprehension. Less than a year ago words like state of emergency, unrest, and Internet shutdown played big roles in the nation’s lexicon. Who would believe that now we are talking telecom discounts, Eritrean ports, reunited Diaspora, peace and reform. (See our year review on page 34)
To be sure there are still problems crying for solutions but this year seems different. To be sure there are cynics but at least there is a new effort toward inclusiveness and dialogue. Even though many are struggling, there are hopes the economy will improve as forex is starting to come into the country and the region appears headed for stability. Did anyone think that Ethiopia would be reuniting with Eritrea or that former prisoners or the estranged would return? A lot can happen in a year.
Sudden Hope
Assets of Chinese Company frozen
The Large Tax Payers Office (LOT) of the Ethiopian Revenue and Customs Authority (ERCA) froze the liquid assets of the well know Chinese construction firm because they owe nearly four billion birr in back taxes.
ERCA has asked China Communications Construction Company (CCCC) Ltd, to settle profit tax and other related sums amounting to over 3.9 billion birr. Sources said that the construction firm has agreed to pay the tax but has not done so on time.
Hirut Mebrate, head of the branch office, told Capital that the LOT has frozen the assets of the Fortune 500 company.
“They were given a month to settle the required sum which is what the law stipulates, but the deadline passed on Tuesday. As a result, the tax authority is responsible for taking action to collect the money so we have frozen their assets,” she added.
According to Hirut, the company is expected to settle the accrued profit tax, reverse taxation, withholding and vat for the last two years.
Hirut said that the accounts the company held in several accounts were frozen as of the middle of the week.
CCCC, which was also known as China Road and Bridge Corporation (CRBC), is one of the oldest Chinese construction firms involved in Ethiopian business. It has been well known for projects it runs like the capital city’s first ever ring road which began in 1998 and consumed USD 98 million. It has also engaged in the first toll road of Addis-Adama at a cost of USD 800 million. Currently the company has projects including the USD 345 million Bole International Airport expansion project besides the 220 km Woldiya-Mekelle electrified rail project.
Recently China Civil Engineering Construction Corporation Ltd (CCECC), the other Chinese construction giant settled a bill with ERCA of over 446 million birr after the authority accused the company of forging receipts and evading taxes.
Self-Inflicted
The joint investigation team, formed by Federal and Addis Ababa Police, which was set up to investigate the death of Semegnew Bekele, manager of the GRED, concluded last Friday that he committed suicide. Zeynu Jemal, the Federal Police Commissioner revealed that the manager was struggling with himself prior to his decision to take his own life.
The team discovered eyewitnesses who saw the engineer at Mesqel Square, before he died.
The engineer returned from the site of the Dam on July 19, 2018, and attended meetings at the Ministry of Water, Irrigation, and Electricity on 23rd of July.
He reportedly visited the Metals and Engineering Corporation (METEC) in the Nifas Silk Laphto Sub city a day before he died.
“On the last night of his life he gathered his children and told them to study and stay strong,” said Zeynu.
“The next day, he woke up early and only had a cup of coffee and went to his office. The cleaners watched him going to the toilet again and again. He gave one letter to his secretary and two to his drivers to deliver at different places”.
The engineer left seven letters in general which police said have his signature proved by forensic tests.
He sent one of his drivers to the Government Communications Office the day he died where he was expected to meet with journalists to take them to the GERD and give a brief press conference on the trip.
“The letter shows that he wanted to go overseas but he could not,” Zeynu told Journalists. “The letters also implicates that even if he went outside he felt like he has nothing to explain to the people. Unfortunately, there was nothing in his letter giving a sufficient explanation for his death.”
The special team organized to investigate the death of the manager of the most expensive project in the country started its job of analyzing the autopsy report from the hospital.
The next step was investigating the gun used, a Colt 38, which was registered in his name in the Addis Ababa Police commission ten years ago.
The car was the third item to be investigated by the police. According to expert evidence which was obtained from the MOENCO the Toyota V8 car couldn’t be centrally locked from the outside part while the engine was working.
Police revealed for the first time that the engineer was found while having a seizure and his motor was on while the car was centrally locked.
Also, police investigated Semegnew’s two cell phones found in his car. He called his son only nine minutes before his death. He also called his secretary who has a close relationship with him and the family and told her to call his elder child and take care of him.
The GERD was launched on April 2, 2011. It was expected to be finished in six years. The dam was expected to be the largest on the continent. Eighty billion birr was allocated for the dam’s construction. It is expected to generate over five thousand megawatts of power.
According to an investigative report released this week by Walta TV and Fana TV 70 billion birr was spent on work related to this project as of the end of August.
“Salini, civil works contracting company, received 17.54 billion birr in 84 payments which is 79 percent of the entire payment,” narrates the report. “Unfortunately METEC received 16.79 billion birr, which is 65 percent of the total payment for 25% performance.”
The Federal Police Commissioner inferred that the letter written by Semegnew shows that he was under difficult pressure because the dam’s construction had not gone as expected, because he is the one who signed the payments.
METEC received five billion birr for work that was undone and Salini requested additional payments because the electromechanical work done by METEC was delayed.
The commissioner said the manager was under a lot of stress.
The team also investigated the break-in of one of the bedrooms in his house on the day of the funeral. The arrest of one individual was reported. The robbery targeted the properties of Semegnew’s relatives who came from the overseas.
Semegnew was the one who signed every check for the dam. As you know the payment made for METEC and the performance of the dam didn’t match. He was observed by the people around him as being disappointed.
Zeynu revealed that investigations on the circumstances of causes which pushed Semegnew to end his own life are still being investigated by the team.
“The mismanagement of the GERD is also under investigation and police will bring the suspects to face justice,” said Zeynu.
Saint George art gallery opens after disagreement settled
The new Addis Ababa Culture and Tourism Bureau head, Assistant Prof, Nebyu Bayu has allowed Selmawit Alene, to open her St. George Gallery at Mussei Kachik Bogossian House, located at Golla Park after a two year dispute.
Five years ago the Lideta Culture and Tourism Bureau (LCTB) agreed to lease a historical home to St. George Art Gallery for 50 years. After the agreement, Selmawit Alene, who owns St. George Gallery, invested five million birr to renovate the registered historical landmark.
However, last year LCTB closed the house, saying that a ‘technical mistake’ was made and the house would be leased to another person.
The 372sqm, 107 year old, wood and brick, Mussei Boghossian House is located in Golla Park and was built by Armenians during the reign of Menilik II. It has 19 rooms, 31 doors and 22 windows. Previously it was used as a Kebele office and youth center.
In response, the federal government stepped in; ordering the Addis Ababa Cultural and Tourism Bureau (AACTB) to allow St. George Art Gallery to use the house.
“I did not conquer the place, they approved my request to renovate the house and create a business there. The letter from the woreda office suspending our lease agreement came after I spent a lot of time and money renovating the place. So my question is why would they allow me to do all this work if they though the house should not be given to a third person,” Selamawit said.
Selmawit said she is happy with the decision although her justice was delayed.
“We received the house legally but for some reason the people who allowed our gallery to open, decided to close it and we wasted a lot of time trying to convince them. Now we are happy the gallery is open and soon we will sell our paintings to customers.’’
The Minister of Cultural and Tourism Bureau wrote a letter to the Bureau in favor of Selamawit and ordered the gallery to open but he was ignored.
However, the new head who assumed power two weeks ago allowed Selamawit to open the gallery.
This is her second art gallery, her first is near the Sheraton Addis Hotel. The house was used for youth and women in the past and during the Derg regime it was used for a prison.
