Capital

A FIRST LADY’S BOUQUET

By Groum Abate

Tripartite Agro Pact

By Abiy Demilew

MIDROC adds floriculture to menu

By Muluken Yewondwossen

City Roads Authority utilizes 4.4 bln br

By MulukenYewondwossen

Exporters, farmers agree to cut off middle men

By Tedla Yeneakal

Federation leases land for HQ

By MulukenYewondwossen

“We monitor the executive, not the other way around!” Speaker denounces pressure

By Kirubel Tadesse

Oromia Insurance S.C. established

By MulukenYewondwossen

Pilots complain over unimplemented salary raise

By Tedla Yeneakal

National workshop discusses bio-fuel status in Ethiopia

By Abiy Demilew

UDJ refuses to revise name

By Kirubel Tadesse

Budget allocation prioritizes poverty eradication; MoFED says

By Addis Mulugeta

British Council holds management forum

By Abiy Demilew

U.S. Bureau downplays Ethiopia’s rejection of human rights reports

By Kirubel Tadesse

11 officials arrested for corruption

By Groum Abate

Commercial Bank hosts workshop on rural fiscal challenges

By Kirubel Tadesse

Visa cards generate 31 mln USD for Dashen Bank

By our staff reporter

East Africa in need of food aid; Oxfam

By Groum Abate

Commitment to 100 days

By Addis Mulugeta

Research brings poisonous tree into play

By Addis Mulugeta

Ethiopia needs to cut gov’t spending to control inflation: IMF

By Tedla Yeneakal

Teddy Afro’s case postponed to next Ethiopian year

By Tedla Yeneakal

A FIRST LADY’S BOUQUET

By Groum Abate

Khadra Mohammed, First Lady of Djibouti, has received the 20 hectares of land in the Sebeta area for a flower farm, on Tuesday July 22, 2008 from Alemu Sime, Investment Bureau Head of the Oromia Regional State.
The First Lady received the plot on behalf of her son Ayinashe Omar Guelleh, whom it was learnt, plans to engage in the booming flower sector. Floriculture already earns Ethiopia over 150 million dollars annually.
The Ethiopian government is keen to encourage investors, offering them a five-year tax holiday and duty-free import of machinery.
The area, 30 minutes south of Addis Ababa with green hills and lush valleys, is ideal for cultivating the country’s fastest growing export – flowers.
Ethiopia exports more than 80 million stems a month to 40 countries. 70% percent is to the Netherlands, from where they are sent around the world. It also exports to Germany, Britain, Russia and, in smaller amounts, to the United States and the Middle East.
Five years ago, Ethiopia made just $159,000 from exports of cut flowers, cuttings and summer flowers. Last year that had grown to $63.5 million and this year it is expected to hit $166 million.
Last week, President Ismael Omar Guelleh of Djibouti obtained 10,000 hectares of land around Bale, Oromia Regional State for investing in the agriculture sector. The multi-million dollar investment is expected to commence in the coming few weeks. The plot is mainly slated for growing wheat.
The president also visited the 10,000 meter square plot on Babogaya Lake in Bishoftu (Debre Zeit) town 45 kilometers south east of Addis Ababa and received a title deed for the plot to construct his vacation home.
Khadra, during the ceremony on Tuesday July 22, 2008 also visited the plot, which her son is going to invest.
The title deed for a 20 hectare flower farm was also presented to the first lady last week on Friday July 18, 2008 during the ceremony that also presented President Guelleh with his title deed for both sites in Bishoftu and Bale.
Warda A. Graham, owner of Wajag Gas and Alemayehu Ketema a businessman prominent in the construction sector facilitated the investment opportunity.

Tripartite Agro Pact

By Abiy Demilew

The Israel Center for International Cooperation (MASHAV), the Ethiopian Ministry of Agriculture and Rural Development (MoRAD) and German International Cooperation (GTZ), have signed a memorandum of agreement (MoE), on Friday, July 25, 2008, here in Addis, on the development of agricultural productivity in the nation.
Haim Divon, Deputy Director General, Ministry of Foreign Affairs of Israel, and a former Israeli Ambassador to Ethiopia, in Capital’s exclusive affirmed that, Ethio-Israeli cooperation is growing stronger, widening to various areas of mutual interest.
“Ethiopia now is our biggest partner not only in Africa, but also in the world,” said Haim Divon. “And we are working closely with the Ethiopian government and people, widening our areas of collaboration.”
Asked about specific areas of common interest, Haim Divon said, the agriculture sector is the major scope followed by the health sector. The former ambassador also told Capital that, his country is committed to helping Ethiopia improve productivity of the agriculture sector, which he stated is the base for the sustainable development of a nation.
“Israel is a small nation with a limited capacity of foreign aid. But we are joining our hands with our partners to contribute for the betterment of this country,” he said. “We have a solid experience in agriculture ready to be shared with Ethiopia.”
Haim Divon also affirmed that, the number of Israeli investors in agriculture and many other areas is growing, as the partnership between the two nations becomes ever firmer. “We are impressed as we work closely with Ethiopia, as the nation is showing strong commitment towards development,” he said.
The former Ambassador underscored that, Israel currently is supporting various projects in Ethiopia including expertise sharing in the health sector. “More than half of the land of Israel is desert. But we have introduced the world’s leading irrigation system, which is one of the areas we are helping Ethiopia with.”
The latest agreement signed between MASHAV, MoRAD and GTZ basically aims at the development and expansion of irrigation system across the nation, according to Haim Divon.
Yaacov Amitai, Israeli Ambassador to Ethiopia, also told Capital that, his country is satisfied with the current level of relations and cooperation. “Today’s agreement is the extension of the strength of relations in various areas.”
The Ambassador, ending his assignment to Ethiopia in two weeks, revealed Capital that, he is very much satisfied to see the historical relations between the two nations blossoming. “I leave Ethiopia with full optimism for growth and development, as things are already changing in the nation.”
It is to be recalled that, MASHAV in 2005, signed a USD 1.2 million program with USAID, to provide technical support to accelerate the transfer and adoption of modern agricultural technologies and practices in Ethiopia.
USAID and MASHAV, with a long history of partnership in developing countries, particularly in agriculture, have previously cooperated on small-scale irrigation project in the Amhara region, applied research work to control crop diseases, and the promotion of sound natural resource management.
Capital will feature the full version of an exclusive interview with Haim Divon, Deputy Director General, Ministry of Foreign Affairs of Israel, and former Israeli Ambassador to Ethiopia.

MIDROC adds floriculture to menu

By Muluken Yewondwossen

GITTU Horticulture plc, a new sister company of MIDROC Ethiopia Technology Group, owned by Ethiopian born Saudi business-tycoon Sheik Mohamed Hussein Al-amoudi, has purchased a 49 hectare farm from Prince Vegetable and Ethio Dream to invest on flower, vegetable and fruit farming.
According to sources, GITTU secured 9 hectares from Prince located in Ziway, 160 Km south east of Addis Ababa in Oromia region to cultivate vegetables and fruit. The 40 hectares is from Ethio Dream in Holeta, 70 Km west of Addis Ababa, Oromia, also for flower farm.
GITTU is also cultivating vegetable and fruit plantations on 100 hectares, 80 in Bishoftu (Debrezeit) and 20 in Koka, sources disclosed to Capital.
For this project, the company is investing 150 million birr. The Koka and Bishoftu projects are expected to start production in six months for export to the international market.
Another project which is also under MIDROC, Horizon Plantations Ethiopia, has been operational since January 2008.
Enjoying 50 million dollars in annual budgets for the next five years, Horizon Plantations p.l.c. will entail the development, cultivation and management of 253,000 hectares of oil palm, rubber, jatropa and tea in Ethiopia. The project directly employs 50,000 and indirectly benefits 350,000 others.
It is recalled Sheik Mohamed Hussein Al-amoudi and Tissa Perera, Director General of AgriNexus, the Malaysian firm which runs the project, signed the agreement on January 23, 2008 at Sheraton Addis. As per the agreement, AgriNexus will be providing consultancy, technical, and training services for a five year period.
At the ceremony, Jemal Ahmed, Deputy General Manager of Horizon Plantations stated that the investment demands at least five years before earning its first profits.
Horizon Plantations has secured the 250,000 hectares in Mezenger, Metekel, and Bench-Maji zones of the Gambella, Benishangul-Gumuz, and South Ethiopia Peoples’ states. 100,000 hectares will be devoted entirely to jatropha curcas, a drought-resistant perennial which grows well in marginal or poor soil. Jatropha is easy to establish and grows relatively quickly, producing seed for fifty years. The seeds have an oil content of 30 % and when refined, produce high quality bio-diesel for the use of standard diesel engines. Combustion is also clear and smoke free. The by-products can be used as organic fertilizer and insecticides in the form of pressed cakes.
The rubber tree plantation covers 85,000 hectares. Rubber tree is a plantation crop of major economic value because its sap-like extract, known as latex, can be collected and is the primary source of natural rubber. Rubber harvesting begins once the tree is five to six years old and its productive life-time is up to twenty five years.
The oil palm, which is used in commercial agriculture in the production of palm oil and tea (Camellia Sinensis), which have an average ratio of 1.00 to 1.25 workers per hectare, are allocated 58,000 and 10,000 hectares respectively.
The plantation project is to create new housing, townships, villages, roads, telecommunications, infrastructure, hospitals, markets, irrigations, water supply systems, schools, vocational training centers and others as it employs thousands once it becomes fully functional.
This agricultural project further advance the investments of Sheik Mohammed’s “MIDROC-Ethiopia Technology Group.’’ Sheik Mohammed Hussein Ali AL-Amoudi and his family established the MIDROC Investment Group in Ethiopia, consisting of over 30 companies. Starting from year 2000, five of the companies were placed under the leadership of CEO, Dr. Arega Yirdaw, and the number has since increased to eleven.

City Roads Authority utilizes 4.4 bln br

By MulukenYewondwossen

Since its establishment ten years ago, the Addis Ababa City Roads Authority (AACRA) has spent over 4.62 billion birr for road construction and renovation projects, acquired from the Ethiopian Roads Fund (ERF) and the City Administration. ERF allocated 197 million birr while the balance amount came from the Administration.
At a press conference held on July 25, 2008, Fekade Haile, general manager of AACRA, told journalists that the metropolis has been networked with 1049 kms of asphalt road of seven meters width.
“Ten years ago the City had only 400 km of asphalt road. The city is 54,000 hectares and the total area constructed is 35,000 hectares. According to the master plan the city needs 3000 kms of road. Due to hindrances like demarcation and illegal construction along roads the Authority managed to complete 8.3 percent of the planned 15% for the years,” he said.
During the decade community roads that amount to 47 km were built by volunteer community financiers.
In a related development, in the new budget year, AACRA plans 26 road projects (80 km) including the Gottera inter change project. According to Fekade, 52 km new road design work will be completed in the coming year.
AACRA has got 1.691 billion Birr to complete the ongoing road projects and to start new road construction, 1.54 billion birr from the city Administration, ERF 66 million birr and 33 million birr from the Chinese government on loan, for Gottera and Megenagna- Arat kilo projects. AACRA had requested 2.9 billion birr for the budget year.
In the new budget year, Fikade said, his office has planned to work on 132 projects. For the 39 new and on going projects that are passed to contractors AACRA has budgeted 1.23 billion birr; 199.2 million birr is for 23 road projects (88km) which will be carried out by the Authority’s own task force. 10.2 million birr for 152km (11 projects) design works, 49 km road renovation 21.8 million birr, for 99 km drainage work 21.5 million birr, for 65 km gravel road construction 21.5 million birr and for construction equipment purchase, 40 million birr. In addition, AACRA will also build 11 bridges at a cost of 19.9 million by its own task forces.

Exporters, farmers agree to cut off middle men

By Tedla Yeneakal

Exporters, local businesses and farmers from the Amhara region have signed an agreement document that entails the exclusion of middlemen, normally known as brokers, from their transactions after agreeing that they are the main reasons for fluctuating prices, affecting the market, and causing inflation.
In Bahirdar, the capital of the Amhara Regional State, starting from Monday, May 21, farmers engaged in the production of pulses, fruits and their partners, after conducting a study on major problems in their transaction identified among other things middlemen, affecting price fluctuation of commodities and thus agreed to exempt them from operations and work instead, directly amongst themselves.
Teferi Wendaleh, from the Amhara Region Agriculture Office and coordinator of the forum told Capital that the main objective was targeted at identifying problems associated with agricultural marketing problems and agreements have been reached on how best to operate in the chain.
“Middlemen have definitely been found to be major impediments in the market in distorting prices as well as creating artificial shortages, tremendously affecting revenues and excessively benefiting for themselves,” Teferi said.
75 individuals participated in the forum, with representatives of 16 farmers unions from the Amhara region as well as exporters and relevant stakeholders.
Anwar Ahmed, Marketing Manager of Kas Plc, who attended the forum on his part, said that the forum is greatly beneficial as they have come to agreement with farmers on issues related with capacity of production of the farmers against what is actually demanded in the market at a certain point in time.
“One of the critical issues raised at the forum was the involvement of middlemen disrupting the process of legal transactions both internally and for export purposes,” Anwar said.
According to a recent report released by the Food and Agriculture Organization (FAO), the country notwithstanding moderate rains in May, the cumulative total for the March to May season was below normal, resulting in drought conditions across an extensive area of the country, including the secondary ‘belg” crop areas. As a result, the output from this crop, now being harvested, is expected to be severely reduced compared to the bumper harvests of the last few years. Decreased water availability is reported in several regions with Afar, Somali and the lowlands of Oromiya the most severely affected. By contrast, western Ethiopia has experienced abundant and well distributed rains since the season started in late March. The May rains were beneficial for the growing of the early sown main ‘meher” crop, the output of which, however, will largely depend on weather conditions until the harvest due from October.
International Fund for Food and Agricultural Development (IFAD) funded the workshop, as agricultural marketing being one of the 7 projects run by the organization.

Federation leases land for HQ

By MulukenYewondwossen

The Ethiopian Employers Federation (EEF) has leased a 3500 square meter plot from the City’s Administration in eastern Addis, opposite the CMC apartments, to build a head office and atraining center.
According to Tadele Yimer, EEF president, the Federation discussed with Prime Minister Melese Zenawi and other concerned government officials to acquire land inside the city.
The Federation has already selected the design and has formed a fund raising committee.
“We expect funds from Africa and International Employer’s Federation. The center will give training on international labor law, entrepreneurship and poverty reduction,” said Tadele.
EEF is consulting with Addis Ababa Univeristy (AAU) on how the two can work together to realize the Federation’s training center.
Currently the EEF is paying 6000 birr monthly for rent on its current head office.
Last April, the Federation called an urgent General Assembly, whereby it amended statutes as well as a Board of Directors election, with the formation of a new general council.
Teshome Zewdie has been elected president, Yishak Abdulahi of Abas Trading, vice president, Tadele Yimer, Secretary General, Bezuayehu Tadele, chairman of East Africa Holding; Kasahun Bogale, representative of the Adama branch of the EEF; and Tadese Eyasu, representative of the Ethiopian Hotels and Restaurants Association, Wondawok Abeze, representative of the Dire Dawa branch of the Ethiopian Telecommunications Corporation (ETC); Matheos Gechelle of New Generation University College; and Firehiwot Worku of Ethiopian Airlines, were elected as members and have been approved by the Ministry.
But on July 18, 2008, one week before the celebration of the Federation’s 11th anniversary, the board members elected Tadele Yimer, who was remained in Secretary General position to be a president of the federation after the moving of Teshome Zewdie, and substitute Tadese Eyasu on the Secretary General position. According to the new president MoLSA has accepted the new election.
About a year ago, after the departure of some board members, Teshome and Tadele requested MoLSA to approve substitutes of the seven that they claimed were serving EEF, elected by the General Council and later approved by the General Assembly in February 2007.

“We monitor the executive, not the other way around!” Speaker denounces pressure

By Kirubel Tadesse

Ambassador Teshome Toga, Speaker of the House of Peoples’ Representatives, denounces claims of influence by the executive on the late decisions of House’s. Following a push from top government officials, including the P.M, the House had decided to second guess the Auditor General’s (A.G.) report for 2005/2006 budget year, which revealed that government has breached budget proclamation laws and borrowed 3.3 billion ETB more than it should have.
Despite opposition resistance, the motion by the government to set up a committee to verify the AG’s findings was endorsed by majority. The A.G. is accountable to the House, which opposition said is seriously questioned as the government pushed for the establishment of a committee, members of which were nominated by the government itself. The opposition proposed for the House’s pertinent standing committees to look into the matter, particularly by Public Accounts, which is chaired by the opposition Ethiopian Democratic Party (EDP-Medin), which is now revising its role following the establishment of the committee. The opposition says that the establishment shows with how much the executive can influence the parliament when the reverse should have been the order. Speaker Teshome agrees that the reason behind the chairmanship of the opposition in Public Accounts is to have a system of accountability as the opposition would be sharp to monitor government activities. But, he said, when the government says reports are false, it has a right to propose any decision it wants but it is up to the House to have the final say.
“Only because P.M. Meles proposed the establishment of the committee, it should not mean that the executive has influenced parliament, it rather works the other way round but we should not forget also that the P.M. is a Member of Parliament too,” Teshome told local journalists on Wednesday, July 23, 2008. According to House procedure, let alone the government which holds a majority, any MP can forward a motion but it is the House congress that would have the final say ultimately it favored the establishment of an independent committee in this case, Teshome explained.
“The practice is very common. For example, following the unrest in Addis Ababa and other cites, an independent committee was established but at that time too we had pertinent Legal and Administrative Affairs Standing Committee, to look into the matter but the government proposed an independent committee and this was endorsed, similar to this latest decision,” the Speaker said.
The independent committee is chaired by former state minister, Hailemelekot Hailegiorgis, which has dismayed the opposition. However, the Speaker stated this is no ground to cry partisan politics, as Hailemelekot is now in private practice and not a member of any political party.
Among 46 bills the House received this year, most from the executive, records show that no bill was turned down, which the opposition accounts in criticizing the voting trend of ruling party MPs.
“When you see the same pack voting in the same pattern for the entire year, you wonder why just one MP can’t do the job,” Capital had quoted Lidetu Ayalew of EDP-Medhin. Speaker Teshome doesn’t agree with such an assessment, recalling two bills, sent back to the Council of Ministers after amendment proposals received from public hearings convinced the respective standing committees.
“In other parliaments, the practice is to have a say on any bill, whether it be yes, no or to abstain but here, members see not to vote as a right or privilege.” Speaker Teshome also wonders at some MPs vote, “when you see some members not voting to endorse minutes of sessions, one questions if they understand the decision in waiting.”

Oromia Insurance S.C. established

By MulukenYewondwossen

The founding general assembly of Oromia Insurance S.C, sister company of Oromia International Bank was held yesterday, July 26, 2008.
Promoters of Oromia International Bank started selling shares to establish Oromia Insurance S.C. following a promotional meeting held on April 19, 2008, at the Hilton Addis. Close to 47 million Br was pledged for subscriptions.
The National Bank of Ethiopia (NBE) has given the promoters the license to sell shares and a blocked account has been opened in three branches of the Cooperative Bank of Oromia, in Addis Abeba. More would be created at Awash International Bank S.C. and the Commercial Bank of Ethiopia (CBE).
The promoters envisage raising a subscribed capital of 100 million Br, and a paid up capital of 25 million Br. With a par value of 1,000 Br, the minimum number of shares that can be secured is 12, worth 12,000 Br, while the maximum stands at 20,000 shares valued at 20 million Br. The subscriber is required to pay 3,000 Br and five million Birr, respectively.
When licensed, Oromia Insurance S.C. will be joining 10 private and one state-owned - Ethiopian Insurance Corporation (EIC) - insurance companies to tap into the increasing profits garnered by the financial industry in the country.
The organizers state that social, technological and legal factors are conducive to the institution of a new insurance company in Ethiopia.
Oromia International Bank’s founding general assembly had been held in December 2008, at Hilton Hotel with the attendance of more than two thousand people. The bank will open its first branches within weeks in Addis Ababa and 16 other cities and towns, Dr. Likissa Dinsa, board member of the bank, told Capital.

Pilots complain over unimplemented salary raise

By Tedla Yeneakal

Pilots working for the country’s national carrier, Ethiopian Airlines, have complained about unimplemented salary rise that was scheduled to be effective as of January 1, 2008, pilots who requested to remain anonymous have told Capital.
The management of Ethiopian is increasingly concerned with the loss of its most experienced staff to other airlines offering better salaries, no income taxes, accommodation, and allowances for children and other benefits, pushed its board, chaired by Foreign Minister Seyoum Mesfin, to make the salary adjustment with projected extra costs to the airline placed at 79 million birr, including raises for other staff members of the airline.
“We have not had the raise as per the promise of management and we have complained through our Association representatives to the Chief Executive Officer but have not received a positive response so far,” a pilot complained. “I don’t understand clearly why the increment has not been made practical up to now, when the management knows clearly about the attractive offers from competitors.”
Leul Teklemedhin, acting manager of public relations and publications at Ethiopian, told Capital that the pilot association’s members are discussing the salary raise issue with the CEO of the airline, Girma Wake, and they will ultimately solve it.
“I can not further comment on an issue that has not been finalized. There are several issues raised between both sides but I can not go into details,” Leuel said.
In mid-October the management refused to grant work release to members of cockpit crew leaving the airline, explaining its fear the growing numbers of letters of resignation would not be the reason to close the airline due to a shortage of pilots.
According to information obtained, giant airlines in the Middle East are offering tempting salaries to Ethiopian pilots, paying up to 10,000 dollars a month in addition to attractive expense allowances and free residence.
Currently, the airline has 200 pilots and operates 27 aircraft.
The management of the airline has decided not to grant work releases over a one year period until the airline trains an adequate number of pilots, saying it had explained its decision to the pilots and most of them who love the national flag carrier have accepted the decision. But the salary issue seems to be another bone of contention between pilots and the management.
Ethiopian currently employs 4,700 staff. In 2006/07 alone 150, employees left the Airline seeking better remuneration.

National workshop discusses bio-fuel status in Ethiopia

By Abiy Demilew

A national workshop, held at the Science Faculty of Addis Ababa University, (AAU July 24- 25, 2008, has discussed on the status of the biofuels in Ethiopia.
The workshop, enriched by various presentations of the context, on its first day discussed the strategy of Bio-fuel development and its use, exploring the policy gaps and issues on Bio-fuel production and environmental impacts and examining prospects of Bio-diesel and Methanol production and utilization in the country.
Food security, which has already started impacting on the economic and political stability of many countries of the world, was also discussed exploring the controversy of Bio-fuel production and food security issues.
On its second day, the workshop deliberated on the advantages of ethanol stoves for clean cooking, presented by Gaia Association, widening its scope to the technical issues of Bio-fuel blending for transportation sector; the controversy of sustainable land management and Bio-fuel production; the role of Bio-fuel production and use on macro economics and its impacts on energy security, presented by the Ethiopian Economics Association.
The national workshop, before it conclude, also deeply investigated policy gap identification and the way forward on policy issues, the socio-economic and environmental aspects of bio-fuel production and use.
As the global concern on food security is of rising concern in recent years, the production and use of Bio-fuel has now ignited a wave of heated discussion and debate around the globe.
H.E. Girma Wolde Giorgis, President of the FDRE, recently, in an exclusive interview with Capital, revealed his concerns on the social and environmental impacts of Bio-fuel production.
“Bio-fuel production is affecting human living today. The world cannot continue turning human food towards fuel production,” President Girma said.
Dr. Joachim Von Braun, Director General, International Food Policy Research Institute (IFPRI) and the World Bank’s leading economist, in another exclusive with Capital also disclosed that, Bio-fuel production has become a serious challenge directly impacting on global food security.
“Bio-fuel production is driving the global food markets to be unstable,” he said. “And that’s directly reflected on the dramatic food price escalation. Currently, the world is out of food stocks and we cannot continue investing food for Bio-fuel production.”
In recent studies and United Nation reports, Bio-fuel production is mentioned to be one of the top four reasons for the current global food crisis situation impacting on livelihoods, especially in the least developed areas like Africa.

UDJ refuses to revise name

By Kirubel Tadesse

Unity for Democracy and Justice, the newest political group that awaits National Electoral Board of Ethiopia (NEBE) accreditation, has refused to comply with NEBE’s Office request to revise its name, Capital learnt.
NEBE Office requested a change on the Amharic word UDJ wishes to use, Andenet (unity), which is, according to the Office, a personal name that should not used by political parties as per the law. UDJ argues that the two name doesn’t have any logical relationships as the later one would only be used as a short version name for the party and should not necessarily imply stated meanings.
Other amendments the Office advised to UDJ were completed, according to UDJ chair, Birtukan Medksa. Some of the amendments include omission of statements from the party’s program but Birtukan says it hasn’t result in any major changes.
Another amendment the Office advised was on the party’s emblem that has yellow, red and green colors. This request was not accepted by UDJ, which submitted back the documents last Thursday July 24, 2008.
UDJ officials want the NEBE Board to have a say on their documents, which should come in a few days time.
UDJ program and bi laws are very similar to the former Coalition for Unity and Democracy Party (CUDP), which its top officials [majority in UDJ] vowed to carry on under any name.
UDJ’s 358 page of supporting documents and the accreditation request, signed by Chair Birtukan, was what the NEBE office was looking into.
The support documents include founding members’ signatures [close to 5000] and party bi laws. The by laws name the supreme council highest governing body next to the general assembly. The party’s executive committee which saw historic election to give its chair to a women, has eighteen members which are now on a three day training.
In this training which is being taken by sixteen members of the eighteen member executive committee is expected to be concluded today. It started on Friday July 25, 2008 at Debrizeite Management Institute. The trainers were selected from UDJ experts and the program was designed to capacitate the trainees with skills of management and team building. Conflict resolution and other areas related to the executive committee’s possible future jobs are among agenda on the training.

Budget allocation prioritizes poverty eradication; MoFED says

By Addis Mulugeta

The Ministry of Finance and Economic Development (MoFED) has announced that the budget allocation of the Ministry and its five years strategic plan starting from 1998 has prioritized poverty eradication.
Head, public relations and information department of MoFED, Getachew Admassu, explained to journalists on July 24, 2008, that the budget allocation for 2009 exceeded that of the previous year’s by 23.5 per cent because of the ministry emphasized road, education, agricultural and rural development, rural electricity, water development and other sectors. The ministry has allocated 23.4 billion birr and of this sum, 14.1 billion birr will come from government treasury and the rest from loans.
According to the document the budget allocation for road development gets 7.36 billion birr, and 6.7 billion birr and 5.21 billion birr for education and capacity building, in agriculture respectively. On the other hand, health, water and electricity get 1, 92 billion, 1.7 billion and 1.2 billion birr respectively.
Regarding the budget allocation of next fiscal year the opposition indicated in parliament in the beginning of July, 2008, the flow of more money, exacerbated over all inflation in the country.

British Council holds management forum

By Abiy Demilew

The British Council in Ethiopia holds a one day management forum, tomorrow, Monday 28 July 2008, on Managing Cultural Diversity, at the Lalibella Hall, Sheraton Addis, Capital learnt.
In a press release the council sent to Capital, it said the Management Forum is one of the components of Management Express run every month by British Council in partnership with a network of management professionals and practitioners who meet regularly to share professional best practice.
According to the council, by providing links with both UK and local management and leadership professionals, the Management Forum will provide opportunities for members to network with like-minded professionals and to share ideas and experiences in seeking practical solutions to different challenges in the workplace and to expand their leadership and management horizons.
The monthly forum focuses on the themes of personal development, globalisation, effective leadership and environment, business strategy, business ethics and corporate social responsibility, the British Council said.
Since its launch in October 2006, the Forum has brought together over 150 professionals from all sectors and a variety of backgrounds. It has provided numerous opportunities to listen to a variety of high profile speakers from this country and abroad and to benefit from their experience on a range of important topics, accordingly.
“Management Express is a suite of inter-related products designed to complement each other helping customers in getting engaged in different levels and at diverse stages in their career development through Information resources, networking opportunities and participative learning with peers and sector experts.” It stated. “It is a continental programe to develop management and leadership capacity of Individuals and organisations in sub-Saharan African countries.”
Tomorrow’s management forum, under the theme of Managing Cultural Diversity will be conducted by Kismet Ibrahim, the British Council said.

U.S. Bureau downplays Ethiopia’s rejection of human rights reports

By Kirubel Tadesse

Assistant Secretary David Kramer, Bureau of Democracy, Human Rights and Labor of the U.S. State Department, has downplayed the Ethiopian government’s repeated denials of credibility of the Bureau’s annual reports.
Talking to local journalists on Thursday, July 24, 2008, at the end of a two day visit, his first to Africa in his current position, Kramer said his Bureau and the Embassy work very hard to put information that can be verifiable and backed up, excluding suspicions and speculations. However, the Assistant Secretary added, it is not unusual to have initial reactions of countries rejecting or denying the Country Reports on Human Rights Practices.
The Ethiopian government, particularly the Ministry of Foreign Affairs (MoFA), has been seriously questioning findings of the report, sometimes even accusing the Bureau of partiality. “Ethiopia will continue to express its displeasure to the State Department about this routine and unhelpful practice of the Bureau, and underline the need to correct what appears to be a deep rooted bias against Ethiopia,” statement of MoFA, released following the latest Bureau’s report, had read. Taking on the issue, Kramer said that the aim of the reports is not to embarrass the governments or countries, rather, to draw attention on some aspects of human rights that can use some improvement. Kramer added that it is common for U.S. embassies to defend reports, which was the case in Ethiopia.
At the conclusion of his visit [in which he met top government officials including the P.M.,] Kramer used the opportunity to highlight the U.S. commitment towards the protection of human rights, which he said will sustain whether GOP nominee Senator John McCain or Democratic presidential hopeful Senator Barack Obama takes oath after the fall election.
Many Ethiopian opposition figures expect the U.S. presidential elections with optimism. One group states that any change will do since the U.S. losing interest in Ethiopia, especially in the protection of human rights would not get any worse while another group says that Obama will deliver the American ideals he highlights in his speeches and that will help Ethiopia for the better.
In a recent Capital vox-pop that sought to explain what the nation expects of Obama, top opposition figures had their say in which they highlighted the region’s current military political complexity, which would make it impossible for any U.S. president to write any major strategic alterations. A senior U.S. analyst does not agree with this assessment. This analyst anonymously explains to Capital that whether it is the case of Somalia or other concerns, the U.S. has been always reserving alternative routes. “We could run counter terrorism operations in Somalia or in the region as a whole from other countries such us Kenya, “explains this analyst, “it is true that no other country so far has been committed to the level of Ethiopia. However this could change.”
Critics agree on a major point, whoever ends up in the White House, a new regional assessment will come and it will be easy to tell from measures likely to come in the first few months of 2009. That will hardly be news for the East Africa region which has witnessed similar U.S. policies through various presidencies.

11 officials arrested for corruption

By Groum Abate

The Federal Ethics and Anti-Corruption Commission (FEACC) has announced that it has arrested seven of the eight individuals suspected of taking part in a corruption offense committed at the Education Materials Manufacturing and Distribution Enterprise.
Seven of the eight suspects, including enterprise general manager, former finance head and quality control expert as well as members of the procurement committee on July 22, 2008, the commission announced.
The corruption offense involved over 980,000 Birr.
In a statement on Friday July 25, 2008 the commission announced the eight suspects have committed the alleged corruption by allowing purchase of various inputs out of tender regulations that require procurement of materials estimated to be over 30,000 birr should be held through open tender.
“It was confirmed that various inputs including hardboard, plywood, tyres, computers and printers worth over 980,000 birr were purchased through direct procurement and limited tender at different times”, the statement said.
According to the commission, a variety of below standard materials valued at over 78,000 birr have also been procured out of the necessary quality specification.
The corruption offense incurred a financial loss estimated at over 980,000 birr plus an unidentified damage on the government, the commission said.
In a related case FEACC has arrested four suspects for allegedly involving in a corruption count committed at the Ministry of Federal Affairs that resulted in the cancellation of an over 1.39 million birr grant provided by the World Bank for the execution of disaster preparedness and contingency plans in 23 pastoralist woredas.
The commission said it has arrested the four suspects on July 23, 2008. The suspects were assigned at different positions of the Pastoralist Community Development Project Unit that was responsible for the execution of the disaster preparedness and contingency plan.
The suspects, according to the commission, committed the swindle in the process of hiring a consultant firm for the project.
The FEACC investigated the matter based on a letter the World Bank sent to the Ministry of Finance and Economic Development in November 2007, stating that the procurement of consultant firms was carried out in violation of the guideline set by World Bank on selection and employment of consultants.
Short listing consultants without advertising for an expression of interest and awarding of three contracts on a direct-contract basis were also mentioned as violations committed by the officials in the process.
As a result, the statement said, the World Bank announced the cancellation of a 938,119 birr fund from the grant agreement and requested reimbursement of 454,031.95 Birr which had been disbursed earlier for the procurement of the consultancy service.
Four individuals including projects’ policy and research, purchasing and finance officers have been apprehended and brought before court by the commission.

Commercial Bank hosts workshop on rural fiscal challenges

By Kirubel Tadesse

The Commercial Bank of Ethiopia (CBE) hosted the African Rural and Agriculture Credit Association’s (AFRACA), East African sub regional workshop, at Hilton Hotel from July 22- 24, 2008. the workshop was entitled “Innovations in addressing rural challenges in Africa.”
Speaking at the opening, CBE President, Abie Sano, explained that his bank has devised a mechanism whereby it can provide input loans to small-holder farmers, in collaboration with regional governments, considering how much the sector contributes to the overall economy [agriculture is the livelihood to close to 90% of the nation.] “CBE’s current agricultural input loans, including loans for the purchase of fertilizer account with four billion ETB,” Abie said, explaining his bank’s commitment in helping the nation’s soul economic source which he says would need assistance due to limitations of the formal banking system.
Mbita Mary Nandazi, Secretary General of AFRACA, noted why the challenges in rural areas is a concern’, 75% of the world’s poor and even higher numbers of Africans live in rural areas. “Agriculture and rural sectors have suffered from neglect and under investment for over 30 years,” Nandazi said reminding that if due attention is given, GDP growth from the sector is four times more effective in reducing poverty.
Nandazi reminds that let alone the East African countries which live in extending desert conditions and climate change scenarios, rural areas in general are characterized by higher transaction costs for both financial institutions and their clients, higher systemic risks, more volatile cash flows, lower risk bearing ability and higher vulnerability. “To address these problems, financial institutions are expected to offer varied services that meet the needs of our people, “ Nandazi added, “these services should include micro-finance, savings, remittance payments, such that credit may only become relatively more important as it provides an option to clients to build assets that enhance live.”
During the workshop a number of prominent Ethiopian and African experts presented papers and discussions with invited local and international stakeholders and various professionals were held.
The workshop is organized by AFRACA Secretariat in conjunction with the East Africa Sub-Regional chairperson being Association of Microfinance institutions in Uganda (AMFIU) and the CBE.
AFRACA, founded in 1977, is an association of financial institutions involved in providing financial services to the rural population in Africa.

Visa cards generate 31 mln USD for Dashen Bank

By our staff reporter

Dashen Bank managed to generate over USD 31 million from acceptance of Visa cards in its last fiscal year ended June 30, 2008. This was declared as part of the Annual Managers Conference of the Bank, held at Adama from July 24 to 26, 2008. Experts in the field revealed that such a contribution is vital not only to the bank but also to the economy at large. It was also indicated on the conference that the number of cards issued by the Bank has reached over 24,000. Besides the hard currency obtained by entertaining international Visa cards, the card acceptance network of the Bank has also managed to pass a total transaction value of Br. 120 million on the bank’s own cards within the same year. Though 89% of this sum constituted cash withdrawal from ATMs, the Bank stated that the progress observed in using local cards at merchant locations for effecting payment is encouraging.
The bank has indicated the fact that the achievements obtained are not without challenges especially in consideration on of being a pioneer in the Ethiopian market for payment card diversification. It, therefore, has appreciated the contribution of all concerned organs especially the Ethiopian Telecommunication Corporation for its close cooperation in creating and enabling communication infrastructure on which the entire payment card system is based. Officials in the Bank are further thankful for the patience of their esteemed customers in ; ‘acing the challenges together and they confirm that without good understanding of the customers such a promising achievement would not be possible.
Starting the business two years back with five ATMs, the Bank now has managed to install a total of 20 ATMs out of which four are located outside Addis Ababa, in Awassa, Nazareth, Bahir-Dar and Mekelle. According to officials of the Bank the number of ATMs will soon reach 40 as there are 20 ATMs being configured for distribution. Besides, the Bank is also providing cash withdrawal services on Visa cards in all of its 47 branches and 4 forex bureaus. The number of merchants signed with the bank has also exceeded 319 where a total of 362 Point of Sale (POS) terminals have been distributed. The bank confirms that this diversification is a continuous process so that customer convenience will further be assured. At present, throughout the Bank’s card acceptance network a monthly average of more than 25,000 transactions are being processed successfully.

East Africa in need of food aid; Oxfam

By Groum Abate

More than 14 million people across east Africa are in urgent need of food aid and Oxfam International has launched an urgent appeal for donations to support of its emergency work. The charity warns that millions of people in Ethiopia, Uganda, Djibouti and Kenya are being pushed, “towards severe hunger and destitution”.
Ethiopia is the worst affected with 4.6 million people needing emergency food assistance, the charity says.
A combination of drought conditions and increasing food prices is causing the crisis.
According to BBC the price of rice in Somalia has soared by 350%, while in Ethiopia maize has doubled in price.
In Somalia, the cost of rice increased by 350% between the beginning of 2007 and May 2008. This, along with drought and mass displacement put 2.6 million people, which account 35% of the population at risk.
In drought-stricken parts of Ethiopia, 75,000 children suffer from acute malnutrition.
In Kenya, where caterpillars have damaged almost 70% of crops and pastures in northern districts, 1.2 million are at risk of starvation.
300,000 in Uganda’s Karamoja Region and 130,000 people in Djibouti are part of this drought, worsened by soaring food prices.
Oxfam officials say that an already serious situation has been made worse by a combination of drought, conflict and rising food prices.
Earlier this week, UN agencies including the World Food Programme and the Office for the Coordination of Humanitarian Affairs also warned of disaster for millions if aid is not rapidly forthcoming.
The British-based group appealed for funds to support emergency aid across the region, where it said millions faced being tipped towards severe hunger in countries including Somalia and Ethiopia.
“This is a catastrophe in the making. We have time to act before it becomes a reality,” said Oxfam’s Rob McNeil.
Rocketing food prices were compounding problems like drought, conflict and poverty, said Oxfam, which estimated that between nine million and 13 million people were in urgent need of humanitarian assistance. McNeil said the cost of food had risen by up to 500% in some places, leaving people who had suffered drought after drought in recent years in “utter destitution”.

Commitment to 100 days

By Addis Mulugeta

To celebrate the completion of the Rapid Result Initiative (RRI), 10 companies shared their 100 days experiences, achieved goals, challenges and lessons learned against HIV/AIDS, on July 24, 2008, at the Panorama Hotel organized by Ethiopian Business Coalition Against HIV/AIDS (EBCA)
Tadesse Tekalign, advisor to EBCA, said that the workshop focused on RRI and Rapid Result Approach, which mean that result is recorded within a short time. RRI has a business concept which was established 40 years ago. However, it emerged in Ethiopia as a concept against HIV/AIDS within companies only recently. The pilot project started 100 days ago within 10 business companies, and to achieve the project each company selected a strategic leader, a team leader, coach and formed committees. Companies like Alkyd Resin, Crown Cork and Can, East African Holdings, Emergency Relief Transport Enterprise, Kaliti Construction, Prefabricated building, Total Ethiopia and Walia Tannery presented and shared their experience, challenges and achieved goals. All agreed to shared common challenges of the absence of members, discouraged by other employees. Ambachew Semmu, Walia Tannery said Laborer in Walya Tannery were cited for their work on the fight against the epidemic. They have used a systematic way of handling the challenges from the company and started behavioral changes of employees. He said that after they implemented RRI, within 100 day their plan to cover 55 per cent increased to 28 percent.
EBCA awarded a certificate for all companies.

Research brings poisonous tree into play

By Addis Mulugeta

A poisonous tree species which has been spreading widely in the Afar Region has been found to be a means of generating income for pastoralists once threatened by
Prosopis juliflora, the scientific name. The poison originates from the liquid in its seed.
According to Dubale Admasu, Natural Resource Management advisor in Farm Africa, Prosopis juliflora is a dry land plant or shrub native to South and Central America and the Caribbean.
“It has effects on the biodiversity of the ecosystem to which it spreads. It spreads and expands mostly by flooding from neighboring countries and it has now covered a large area. The liquid from the Prosopis seed and the seed itself is very dangerous; it destroys indigenous trees, livestock, causes human health problems, loss of pasture, blocks access road and causes mechanical injury. However, the pastoralists of Afar region have started to use the tree as pods for feed, fuel wood, fencing, poles and charcoal. And, by using small hammers, the dried pod is utilized for supply, is palatable and a high value feed. It is therefore a source of income and job opportunities. The major prevention and control systems of the tree are by mapping invaded areas and areas at risk, prepareing land use plan for invaded areas based on potentials (property for cultivable, key pasture areas, camping areas access roads), organize Prosopis management committees at woreda and kebele level, mass seedlings uprooting, and pod crushing and marketing for livestock feed,” said Dubale.
Harvesting the tree before setting pods, cutting the tree at least 15cm- below the ground, restrict areas for charcoal burning to limit land degradation and charcoal burning, create community awareness about the prevention strategies; seedling uprooting, restricting livestock movement, etc. are also methods of preventing and controlling the poisonous tree.
As per Dubale’s research, it is believed that Prosopis was brought from India in 1970s by the Ministry of Agriculture for conservation purposes. Initially it was introduced to Dire Dawa, then to Afar ( Amibara and Gewane ). It can be grown to resist drought in low rainfall areas, poor soil, has tolerance to salinity and alkalinity, improves the fertility status, tolerant to repeated cutting, provide high biomass and provides different products and services. It has been introduced and naturalized in different parts of the world including Africa, Asia and Australia during the last 100-150 years. However, exotic species such as Prosipis that are known for their merit in the natural range can become serious invading weeds when introduced into areas without proper management.

.Ethiopia needs to cut gov’t spending to control inflation: IMF

By Tedla Yeneakal

The Ethiopian government must lower its spending to decrease domestic demand, which has exceeded production in economy and add to price pressures and help to control inflation, according to a report released on Tuesday, July 15, 2008 by the International Monetary Fund (IMF).
“It is empirical that the Ethiopian government curbed spending to bring inflation under control following signs of “growing macroeconomic imbalances,” IMF said. “Forceful policy tightening is needed to slow inflation and to ensure that inflation expectations do not become ingrained.”
Inflation in Ethiaopia, probably averaged 22 percent in the fiscal year to July 7, up from 16 percent in the previous 12 months, record oil prices have boosted imports, cutting foreign currency reserves that now cover about 1.5 months of import requirements, compared with an average of 2.1 months last year, the IMF said.
Economic growth in the country probably slowed to 8.4 percent in the 2008 fiscal year from 11.4 percent in the previous 12 months, according to the report.
“Recent signs of growing macroeconomic imbalances manifested as higher inflation and a weakening of the balance of payments suggest that demand is running ahead of capacity expansion,” the report added.
Ethiopia’s House of Peoples’ Representatives has approved the country’s budget for next fiscal year, about 54.2 billion birr, exceeding the previous year’s budget by 23.5 percent, an all time high figure comparatively. It is feared this will exacerbate inflation. The bill stipulates that the stated amount of money is envisaged to be secured from the federal treasury as well as from grants and loans from international donors.
The educational, roads, transport and agricultural sub- sectors will take the lion’s share of the capital budget, as the government attaches due importance to human resources development and construction of infrastructure.
The budget allocated for defense has significantly been increased by half a billion birr as well as the subsidy for the regional states that have also increased when compared to the last few years’ budget allocation.

Teddy Afro’s case postponed to next Ethiopian year

By Tedla Yeneakal

The Federal High Court 8th Criminal Bench on Monday, July 11, 2008 adjourned the case of Tewodros Kassahun a.k.a Teddy Afro, for the accused to start defending his case next Ethiopian year.
After finishing the previous testimonials of witnesses the prosecution attorney presented to the court, it has decided for the singer to continue defending his case, postponing it for next Ethiopian new year, (October 9, 2008).
Many of his fans and family members who gathered inside and outside the court room, were saddened after the court ordered to hear the case next Ethiopian new year, when it opens following a two- month break.
During the trial accompanied by the usual crowd, federal police around the court room were witnessed trying to disperse crowds protesting against the decision that Judge Leuele G. Mariam passed.
Teddy, who was jailed for over 3 months after being charged with a hit and run incident that occurred in November 2006. He was first detained briefly at the time the incident occurred and released on 50,000 birr bail, before being apprehended again and taken to Kaliti prison facility, 25kms out of the capital Addis Ababa.
Addis Ababa police arrested Teddy after suspecting him of killing an 18 year old street boy named Degu Yibeltal, who died after he was hit by a car. A taxi driver at the time allegedly tipped off the police to the license number of Teddy’s BMW, which was later found in a ditch on the road towards the CMC residential area, where the singer resides.
Teddy pleaded not guilty to driving without a license and negligent driving.