BY BACHA ZEWDIE
One of the defining features of the Tigrean People Liberation Front (TPLF) era’s economic activities in Ethiopia is the unfair and unequal participation of economic actors. The African Chamber of Commerce General Manager, Kibur Genna told EPA that there had not been equal economic participation in the past 27 years.
He pointed out that organizations owned by the TPLF junta were unfairly favored through various means. Generally, the economic system of the past 27 years was not meant to be conducive to creating fair participation and competition.
It is public knowledge that various stakeholders have gone to great lengths both in the past and in the present to ensure that the business environment is fair for the private sector. As the shout has fallen on deaf ears, equal participation has not been achieved yet.
Businesses are established with the assumption that there is a fair and impartial system put in place. Members of the TPLF Junta and its affiliate businesses, however, have been receiving unfair advantages in the so-called market in Ethiopia.
There was a system in which government officials who were assigned as board members let the Junta’s businesses to access information and loan whenever they wanted. They were also given a very long loan reimbursement time.
On the contrary, these special accesses were not available for many. Particularly, the private sector suffered a lot in this regard. Many were unable to compete and as a result left the market. If the private sector is to play is a critical role in the economy, a fair and competitive market system must be put in place.
Though governments claim to put the public’s interest first, they have been repeatedly observed doing on the contrary. And Kibur Genna noted that he observed a self-serving government in Ethiopia that prioritized its own interests ahead of country. “The problem is global, but it is exacerbated in Africa due to limited resources.”
Indicating that his associates’ recommendations provided at various forums were not accepted, he said that there were loopholes for some to hit their target through discussion.
The major role of stakeholders including the government in this regard would be to reverse what had been the case for 27 years in the country. “We have to be able to ensure fair competition in our business practices,”
By the same token, Woubshet Mulat, a Lawyer, said that the junta not only distorted legitimate business competition, but also got rid of its competitors. “The criminal junta went as far as destroying any competitive businesses, private or public, due to its strong desire to control everything.”
Since coming to power, the group had not only been repressive politically but also economically. “This group was the largest investor in Ethiopian economy; it has created even more economic power than the federal government.”
If a group, which is divisive in nature, dominates the politics and economy of a country, it would become a threat to its survival. “It would obtain the opportunity to do whatever it wants, including destroying the nation. And this seemed to be the case of the TPLF clique.”
Woubshet said when it comes to making a large amount of money, for instance, the junta informs one or a group of its members in advance. A law will be enacted to encourage him to exploit the system.
The law for instance might provide a license to import duty-free vehicles and provide transportation services. As the person is prepared beforehand, he will be able to get the most out of the new law by planning and preparing beforehand. This procedure has been utilized repeatedly to exploit the economy and the system.
“The group’s economic cruelty has many manifestations. This went as far as snatching aid food from people in drought-stricken areas. This is a major manifestation of the group’s inhumane nature,” he said.
The junta has a track record of looting humanitarian aid as in case of the drought in 1985. “Moreover, it has been insensible when plundering humanitarian aids provided for safety net and other reasons,” he said.
There have also been a lot of mishandlings when it comes to privatization of public enterprises. Their members had easily accessed loans from state-owned banks to become the winners of the bid to privatize public enterprises. Accordingly, there are many members of the Junta group who are now owners of a large hotel and factories.
Woubshet further added the junta members even looted existing factories and set up their own businesses. Mesfin Engineering, for example, was established using the fund stolen from a large factory built by the Derg in Pawe district of the Benishangul-Gumuz State.
As soon as this group began to take control of Ethiopia, it mobilized and moved everything to locations suitable to itself. Afterwards, it has bankrupted Maru Metals, Automotive Manufacturing Company (AMCE) and other potential companies to strengthen Mesfin Engineering.
It is also possible to mention the case of the successful Star Business Group and many other successful enterprises which are now nonexistent due to the junta’s exploitation and unfair business practices. “Several financial institutions, including the Bank of Abyssinia, have come under their control by making their members buy a large number of shares. They have also repeatedly put individuals in these institutions in jail illegally. Ayat Real Estate can also be a good case in this regard,” he added.
According to Woubshet, some of the clique’s companies were also involved in illegal activities. For example, Sur Construction has constructed more fortresses in Tigray State than roads it built-in Amhara State. During the conflict between Kemant and Amhara State, many TPLF affiliated companies have been supplying weapons to fuel the conflict. There are numerous indications that these organizations were financing terrorist activities.
Members of the gang also had farms in Humera area under the name Hiwot Agricultural Mechanization. Considering the large amount of drugs discovered in these areas, he said “it is possible to assume that these people were cultivating drugs in the name of agriculture. This should be properly investigated, as many of the drugs seized during the recent expulsion of the criminal Junta may be from there.”
“Fueling and sponsoring a large number of conflicts as has been witnessed in the country requires a large amount of finance,” he said adding that it was clear where the money came from. “Junta’s organizations must be assessed thoroughly: they should be held accountable for what they have done so far.”
Evidence from the Panama Papers a few years ago indicates that some of the group’s organizations are engaged in arms trafficking. This indicates that the group has been using the organizations to destabilize also neighboring countries.
That is why military laws were not enacted in the country. As a result, weapons were widely sold in Ethiopia though the question, “who imports and sells the weapons?” is not genuinely answered yet.
The group was cancer for peace and stability not only in the country but also in the region, so that it was necessary to clean up not only in Ethiopia but also The Horn of Africa after conducting a thorough investigation.
If an organization is found to be engaged in illegal activity, it will be prosecuted. Depending on the situation, the property may be confiscated by the government; otherwise, it could be fined. The crimes committed by these organizations are serious and should be confiscated.
“After changing the management and adjusting their purposes, these businesses should be reorganized to engage in fair business practices. Every job should be done in accordance with the law to prevent similar problems,” he said.
Financial Intelligence and building strong institutions are needed to monitor whether there is the financing of terrorism and these types of businesses are operating legally in a competitive manner. In such cases, it is necessary to bring them to justice for the overall health of the national system, he stressed.
The Ethiopian herald December 13/2020
