The Office of Federal Auditor General (OFAG) says that the Ethiopian Engineering Group (EEG), which is the major portion of the infamous former Metal and Engineering Corporation (MetEC) is continuing on its traditional stride with regards to assembly and sales of agricultural equipment.
OFAG which appeared in parliament a week ago for its 2020/21 budget year report through its findings showed that EEG did not have a developed quality standards or grade to date.
It added that as the previous trend, the group is continuing partly in assembling and selling bulk agricultural equipment which is imported without quality measurements and standards.
OFAG has also shown through its finding the mishaps that MetEC conducted years back.
According to the audit report that was presented by Meseret Damte, Auditor General of OFAG, the then corporation had procured 14,452 different horse power tractors from 2010/11 to 2014/15 at the cost of USD 146.1 million and 10.5 million euros. OFAG said that the purchase did not follow the proper procurement procedures, without market demand and procurement assessments, and without evaluation of whether the agricultural products were suitable for farming in Ethiopia or not.
“Up until last February, 5,825 tractors that were not able to provide service were still stored,” OFAG’s head said on her performance audit findings.
The Auditor General office said that despite EEG’s Adama Agricultural Machinery Industry which was established at the Nazareth Tractor Assembly Plant in 1984, its operation were not engaged in innovation activities and did not place it in the track of improving the sector activity or managing collaboration works with others who have experience on the area.
It added that it is still stuck on the operations of assembling imported tractors rather than producing its own products.
Over two billion birr is also not yet collected from tractor sales, in addition to the firm not settling almost two billion birr of debt that it ought to pay.
The Auditor General said that the industries which have irrigation project contracts of 1.2 billion birr for Afar, Oromia and Somali regions were accomplished as per the schedule.
OFAG which delivered a very vast and in detail financial and regularity audit findings said that on its performance audit it was able to conduct 29 audits, which is over 96 percent of the plan. On the finding it has disclosed significant gaps that were observed on the audited public institutions or enterprises like such that of the EEG.
One of the democratic institutions said that public offices mannerism in the correction of gaps that were recommended from the previous findings has improved in comparison with the preceding experience.
EEG back peddling in innovation, audit findings show
Huawei Ethiopia holds partners’ summit
Chinese technology company, Huawei Ethiopia, held its partner summit on Monday June 27, 2022 at the Hilton Hotel Addis Ababa.
The company has thrown the technology promotion and recognition program with its partners in Ethiopia with the attendance of Huria Ali, State Minister of Innovation, Cowin Cao, Deputy CEO of Huawei Ethiopia presenting Huawei Ethiopia’s Enterprise Business, Huawei Technology Group senior executives, the company’s domestic partners and different pertinent stakeholders.
“Huawei is contributing to the realization of the Ethiopian Digital Strategy 2025 by bringing the best technology in the world to our country,” said Huria Ali whilst opening of the forum.
Whilst indicating that the company has recently launched a 5G network with Ethio Telecom, the State Minister highlighted that government is supporting efforts to build a digital economy by building more infrastructures, creating jobs and importing smart technologies. “We are working with both local and international institutions to build a digital Ethiopia,” she said.
Cowin Cao, Deputy CEO of Huawei Ethiopia on his part expressed that Huawei Technology is working with 158 domestic partners in Ethiopia, which has led to job opportunities for 3,700 residents.
The program, developed by Huawei Technology Group, recognizes various companies and organizations that work in partnership with the company.
Addis Chamber celebrates momentous 75-year journey
Addis Ababa Chamber of Commerce and Sectoral Associations (Addis Chamber) celebrates its 75th anniversary.
The celebrations began from Tuesday June 28 and stretched to June 30; and featured major policy panels and symposiums on various trade and investment issues. The three-day panel discussion and symposium at Skylight Hotel and Hilton Hotel focused on Ethiopia’s private sector development and environmental policy, illegal trade and competitiveness challenges, enactment of laws and regulations on private sector development, women’s business leadership, social enterprise opportunities and challenges, and business organizations and institutions. Prominent scholars, policy makers and private actors also presented on these panels.
“The 75th anniversary of the Addis Ababa Chamber of Commerce and Sectorial Associations (AACCSA) is a sign of hope for the future,” said President of the Chamber of Commerce, Mesenbet Shenkute.
The Chamber also released its new book, which narrates its 75th year’s anniversary journey alongside a photo exhibition to commemorate the council’s 75 years of travel. The celebration also focused on educating the next generation on the opportunities and challenges of the past, as well as educating others on the institutional secrets that the institution has maintained in the face of adversity.
Mesenbet said the chamber will continue to focus on providing timely policy recommendations and being part of the solution to challenges, as well as strengthen its role as a bridge between the public and the private sector in line with its mandate to continue the growth of the private sector and modernize its business system.
The secretary of the council, Shibeshi Bete-Mariam pointed out that the new chamber, established in 1939, has carried out various activities over the past 75 years.
“The chamber has shown that it is a transitional institution that has not been affected by influences,” stressed Shibeshi.
Established in 1947, AACCSA is a voluntary, non-governmental, business membership organization with more than 15,000 member companies. The chamber serves as a credible voice of business and advocates for the creation of a conducive business environment. It also promotes trade and industry, disseminating business information, consulting government and members on economic development and business issues, establishing friendly relationship with similar chambers in other countries, and exchanging information as well as engaging in arbitration in times of disputes among businesses.
Govt to scarp colored plastic bottles
The usage of masterbatch (MB), which is used for coloring plastic bottles in the bottled water industry, is to be halted if the new recommendation of the relevant government body findings is to push through.
Traditionally most of Ethiopian water bottlers have been using MB to colorize their plastic bottle to blue, which to some degree has its share of costs in foreign currency.
Ashenafi Merid, General Manager at the Ethiopian Beverage Manufacturing Industries Association, said that the implementation of forbidding companies on using MB would have multiple advantages for the bottlers and the country in general.
“For instance companies which are using MB to colorize their plastic bottle at least have to allocate up to USD 40,000 for the import of MB, which can be channeled for import of other materials. Moreover, recycling companies will gain better price points for used plastic scraps when they export for clients and the country shall save the foreign currency which it spends on unnecessary commodities,” the General Manager elaborated.
According to Ashenafi, companies which process and export used plastic bottles have been expressing their concern that colored bottles have less demand from buyers which has forced them to sell at lower prices than the pure plastic scraps.
As per the information Capital obtained from the association, a kilogram of MB costs about 535 birr.
Despite it not being a standard to use the chemical, bottling companies have traditionally used it. On the down turn, there have been links associating the colorant with health issues.
The Food, Beverage and Pharmaceutical Industry Development Institute, recently conducted a study, which took over a year, on the use of MB.
As per the recommendation from the study, the companies would not be allowed to import or use MB.
“In other countries bottlers are not using MB for their water bottling,” Ashenafi added, by adding his association has proposed the case to be studied in order to impose restrictions through a legal frameworks.
Currently, there are 109 water bottlers and most of them are members of the association.
