. . . . Volume 1, Number 69 August 26 - September 1, 2001 50m Br Gov't Tender Goes to Disqualified Company Companies that have participated in the federal government tender are in an uproar over a multi million Br. contract award given to a company they alleged has been disqualified at the early stage of the bid process. Proposes Over 191m Br Budget to Purchase Vessels East Africa Holdings on the Move to Set Up Tea Plant News from Fortune, Ethiopia's Business Weekly Vol. 1, No. 69 Augusa 26 September 2, 2001 Exclusive to Ethioguide About Fortune Archive Court Rules Down $20,000 Claim Against Saudi Airlines Customs Building Border Warehouse Center Obtains Highest Sugar Income in Three Months Construction Cost Could be Reduced by 30pc, Study Reveals Court Appointed Board Asks for Additional Members Sheraton Sets for New Year Party WFP's Envoy Arrives Here Ministry Lifts Withholding Tax on Sales of Imported Goods Sympathizers Petition for Iskinder's Release Packard Foundation Allots $35m for NGOs in Ethiopia Frustrated Unionists to Organize a Forum Export Earnings Fall by 100m Br EDITORIAL Give Attention to the Calub Project Senseless Waste of Resources RESTAURANT REVIEW Sangam Indian Restaurant ECONOMIC COMMENTARY The New Melody: Poverty Reduction Strategy VIEW POINT - LAST PART IS EPRDF SERIOUS ABOUT CAPITALISM? HERE IS A CHECKLIST MY PERSPECTIVE The Ring Road OPINION Reasons for Skepticism VIEW FROM ARADA A Tale of Two Ring Roads INTERVIEW Mission Accomplished NEWS IN BRIEF Letter To The Editor TREND BUSINESS OPPORTUNITY TENDER MART . . YET ANOTHER FUSS ON THE TENDER BLOC 50m Br Gov't Tender Goes to Disqualified Company BY YIBEKAL GETAHUN FORTUNE STAFF WRITER While there is unresolved dispute over an IT project contract award owned by the Federal Parliament but cancelled two weeks ago, companies that have participated in another federal government tender are in an uproar over a multi million Br contract award given to a company they alleged has been disqualified at the early stage of the bid process. The Educational Materials Production and Distribution Enterprise (EMPDE), a procurement consultant for Ministry of Education, has awarded a tender of 50 million Br to Image Technologies Ltd. for the supply of educational materials, tools, machines, office equipment, computers, tractors and accessories. These materials, purchased with the federal government budget, are to be supplied to education bureaus and their technical and vocational training centers of the Amhara, Tigray, Addis Abeba, Harari, Afar, Dire Dawa, Somali, Gambella and Benishangul regions. The training centers were established under the recently introduced policy of education frameworks that are financed by the government's budget. The bid participants, who have written letter of complaints to 12 government organizations, including the Prime Minister's Office, are saying that the enterprise has given the award to a company which, according to them, has been disqualified initially by the committee due to inability to meet the technical requirements. The tender, issued on March 30, was originally divided into four lots: agriculture, business education, home science, and industrial and construction technology. According to close sources, a total of 39 companies had participated in the four categories of which the second lot, which sparked the dispute, has attracted 17 bidders for the supply of equipment and materials for business education. According to the bid document, the second lot invites for the supply of 1,712 computers, 6,043 Amharic and English typewriters, 289 laser jet printers, 162 duplicators, 232 photocopiers, 192 scanners, 288 overhead projectors, 155 television sets as well as video recorders, accessories, software and stationary items. According to Sylvester Ogbolu, project manager of SIDUS Systems Inc. represented by YMG Technology and Trading Services Plc, the awarded company was "not even in the final list of the three companies that stood first to third in the technical evaluation." "The company did not satisfy a major tender requirement of providing a minimum of 80pc of the items in the entire lot," said Mr. Ogbolu, who is also project manager of the controversial computer networking project at the parliament. The instruction of bidders states: "bidders not providing a technically responsive offer for at least 80pc of the items in a sub lot or lot will be treated as incomplete and rejected as non responsive." The technical evaluation by the committee resulted in selection of three companies: YMG Technology and Trading representing SIDUS Systems; Nejat Computers representing Altra, and Beza International Plc. Companies such as Africa Lakes, GCS and Omedad were also among the participants of the bid. The financial offers of the short listed companies show that Nejat has proposed around 48 million Br, YMG 71 million Br, while Beza International has offered 96 million Br to supply the components requested in the second lot. Close sources said that both Nejat and YMG have written letters of protest against the award to 12 concerned government organizations, including the Ministry of Finance, the chairman of the bid committee, Dr, Teklehaimanot H. Sellasie, vice minister of Education, and Auditor's General Office demanding for the cancellation of the award. None of the companies could obtain any response in return, sources said. YMG, in a letter it sent to Genet Zewdie, minister of Education, signed by Ogbolu says: "Image Technologies should have been rejected for submitting an incomplete tender. Allowing the wrongful contract award to proceed will perpetrate a grave injustice and most importantly, be against the principles of revolutionary democracy of the government of Ethiopia." The awarded company, Image Technologies Ltd, an Indian based firm locally represented by an individual, has already opened Letters of Credit to import the equipment. "This type of procedure will definitely discourage businesses from actively participating in government bids unless handled in transparent ways," the plaintive companies representatives fear.Top Restrictive Directive Helps ESL Revert Losses Proposes Over 191m Br Budget to Purchase Vessels BY YIBEKAL GETAHUN FORTUNE STAFF WRITER If there should be any state enterprise manager who is happy about government policy on the economy, it should not be any other than Ambachew Abraha, managing director of the Ethiopian Shipping Lines (ESL). A directive issued 15 months ago by Deputy Prime Minister Kassu Ilala restricting local banks opening letters of credit for imports that do not use the domestic liner, unless they produce a waiver from the company, is indeed a blessing to ESL that was going to the drench just few years ago, unable to stand the tough row in the global marine business. At the expenses of the local importer, hence the consumer community, Ambachew is now cheerful when announcing profit, a turn around result from the two consecutive years of losses it had suffered. ESL, which has incurred more than 23 million Br in losses during the year 1998/99 and 1999/2000, has now posted a 25 million Br gross profit for the year ending June 2000/01. "The directive has helped the company to survive," admitted Ambachew at an unusual press conference he called on Thursday, August 23. The directive issued in May last year have also assisted ESL to increase its services from what it had targeted at the beginning of the ended financial year. According to Ambachew, ESL had planned to transport 454,708 tons of cargo following the introduction of the directive, targeting to exceed its performance of the previous year by 173,272 tons. It, therefore, was able to carry this year 614,198 tons of cargo exceeding the target and the previous year's performance by 35pc and 118pc, respectively. ESL has also carried 7,958 tons of export goods, which are spared from falling in the domain of the unpopular directive that is believed to give monopolistic position to ESL in setting the standard in the business as it pleases. ESL also carried some 60,000 tons of cargo belonging to the neighboring Sudan. Some 30.6pc of the imported goods were loaded from European countries, 166,877 from Far East ports and 38.8pc (238,463 tons) from ports enroute to the Gulf and Indian Ocean. The managing director said that during the year 2000/1, the liner has utilized 70pc of its vessels' loading capacity. The percentage shows the "effective and efficient" utilization of the vessels capacity, according to Ambachew. The country has imported 970,423 tons of goods in the fiscal year, excluding fuel, aid and bulk cargoes. ESL has carried 60pc of these imports and three per cent of the export. According to Ambachew, his company had planned to carry outbound cargo of 21,250 tons but only managed to ship 7,958 tons, falling short by 62pc of its target. "Our performance in export cargoes is less due to the right given to buyers to determine the liner to load their cargoes," he said. PLANS TO ACQUIRE TWO VESSELS In an effort to strengthen its shipping services, ESL has proposed a budget of 191 million Br for the purchase of one vessel and for a down payment to order a new ship whose construction to begin soon. According to the company's managing director, in spite of the approval of this budget by the Ministry of Finance, following its request, it was forced to return the budget because of the delay in releasing the finance as it received the budget in the ninth month of the ended budget year. ESL, which started its shipping operations with three vessels 35 years ago, now operates nine fully functioning vessels. The liner has sold three of its vessels and bought one in return over the past three years. Having a total capacity of handling 110,000 tons of cargo prior to the sale of Wol Wol and Key Kokeb, ESL has now increased its total capacity to 118,000 tons but with reduced number of vessels. Due to the limited number of ships but increasing market on the other hand, the liner is forced to lease space from other shipping companies, according to the managing director, who said his company has signed lease agreements with nine liners, in its Far East, Europe and Gulf routes. So far, ESL has entered space lease agreement with other liners for 10 to 20 containers a week. "We work with other liners to provide efficient and reliable service for our customers," said Ambachew. "Within the lease agreements, we accept better and fair rates as a result of the negotiating power we have as an institution," he said, noting that his company offers relatively lower prices to customers compared to the rates clients offered by others. ESL, according to the company chief, is looking for ways to work with international liners in concession agreements. "We are in the first stage working in cooperation with other liners. But our next step will be to work in concession." CONTAINER TERMINAL A study to build a bonded warehouse around Kaliti area on a 35000 Sq. meters of land it has received some three years ago is at the final stage where ESL has already hired a foreign consultant for the project. The company believes that the construction work of the terminal will be launched in three months time. ESL plans to take interested partners to operate and manage the container terminal. The terminal will provide package and stuffing services for export items and would help to enhance point-to-point services, which it currently provides in limited capacity upon orders made by importers, according to the managing director. The director also believes that the recently suspended door-to-door delivery service is "a must" for the country, thus a multi model transportation law has to be introduced and a directive that clearly shows the mandate and responsibility of involved institutions has to be designed. "Even though it may create conflict of interest between institutions, it is the only way of progress towards full containerization," he said. So far, 90pc of exports and 60pc of the country's imports are containerized. The managing director said his company is also planning to build mariners training institute in Debre Zeit town to train sailors that will be recruited by the company as well as other international liners.Top East Africa Holdings on the Move to Set Up Tea Plant MIKIAS WORKU FORTUNE STAFF WRITER East African Agri-Business, one of the six subsidiary firms of the East Africa Holdings, is implementing its plan of erecting a tea processing and manufacturing plant in the southern part of the country. The company is projecting to set up the factory at its tea plantation stretching on a 500 hectares of land, which is part of the 3400 hectares received in a 50-year concession from the Southern Peoples and Nationalities Regional State for various short and long term agricultural developments. According to Wudeneh Assibe, head of the board secretariat, the first line of the machinery for the manufacturing plant has already arrived at the Djibouti Port and erection of the steel structure that will house the factory will begin soon at the plantation site. He said that the factory will have three lines of production at full capacity within five years but will launch first phase production with a first line before the end of this year. The machinery that has reached the port originates from different Far East countries and cost more than 1.1 million Br, the head of the board secretariat said, adding the factory is projected to have a capacity of making between three to five tons of tea per hectare at full scale production. East Africa Agri-Business plans to label the processed tea at the packaging plant owned by its affiliate, East Africa Printing and Packaging Ltd. The tea processing plant, according to him, is part of a 42 million Br investment that the company is implementing and looks to undertake in the future in its tea development project in the area. The manufacturing line will be the third tea processing factory in the country next to Wush Wush and Gumero tea plantations and tea processing plants, both recently privatized to Sheik Al-Amoudi's investment arm - MIDROC Ethiopia - for 208 million Br, together with a labeling plant in Addis. The East Africa Holdings controls six subsidiary companies that are operating in real estate development, transport, industry, agriculture and marketing. The company has already launched an industrial estate on 20 hectares of land in Akaki area where biscuits and floor factories are already operational. "Our long term plan is to set up more than 20 factories within the industrial zone while soap and blended food factories are in the pipeline," Wudeneh disclosed.Top Court Rules Down $20,000 Claim Against Saudi Airlines BY DAWIT KETMA Special to Fortune The Saudi Arabian national carrier, Saudi Arabian Airlines, has won a lawsuit of 20,000 USD filed against it by an Ethiopian claimant whose daughter had died onboard during one of its flight to Addis Abeba. Letay Kahesay, mother of Kedija Mohammed, sued the airline in July 1999 after her daughter had died on December 23rd, 1998, onboard on its flight from Jeddah to Addis. Letay's charge invoked the Hague Convention of international passenger safety of 1955, which Saudi Arabian Airlines ratified on February 27th 1969. The claimant had raised Article 17 of the convention that reportedly imposes liability on airlines if a passenger incurs injury or death while embarking or disembarking from the airplane. The claimant charged that her daughter was perfectly healthy, except for her natural appearance of sliminess but, paradoxically, added that the carrier should not have let her onboard before taking a medical check-up as she looked abnormally thin. Letay brought to her defense autopsy reports,which reportedly stated that the deceased died of natural causes. The claimant, therefore, has invoked article 22 of the Hague conversion for a 20,000 USD compensation. The airlines defended against the claim arguing that it could not have known whether a passenger is life threateningly sick unless boarded with the help of people or wheel chaired. It added that the autopsy report states the cause of death only natural and did not relate it with the flight. The Federal High Court, which heard the case, stipulated that an airlines is not compelled to take a pre-flight medical test of passengers under the 1955 Hague convention nor Ethiopia's commercial code. The court ruled on the airline's behalf that the death of the passenger was only natural, as it was stated on the autopsy report. Ethiopian Airlines (EAL) was summoned to deliver a document of an international air transporters association agreement published in 1991 which Saudi Arabian Airlines is signatory. The court quoted article 17 (1) of this document as saying that the airlines may not take liability for the death of a passenger if the cause of the death arises only from the passenger's heath problems. The court, on July 30, ruled down Letay's claim as groundless.Top Customs Building Border Warehouse BY MIKIAS WORKU FORTUNE STAFF WRITER The Ethiopian Customs Authority is about to construct a warehouse at Gelafi, a town found on the Ethio-Djibouti border. The construction of the storehouse and shade, which will cost more than 7.4 million Br, is estimated to take 15 months to be completed beginning the date of the commencement of the project. The authority has this week issued a tender to select a construction company that would undertake the project. Sources anticipate that the government is considering to reintroduce the door-to-door delivery transport system, which was suspended two months ago as a result of confusion that have arisen in the implementation of the system and lack of adequate relaying stations for speedy lifting of goods from the port. Observers say this will indicate the intention by the Fed to reissue the directive once the warehouse is completed.Top Center Obtains Highest Sugar Income in Three Months Food Producer Embarks in the Tender DAWIT TAYE FORTUNE STAFF WRITER The Ethiopian Sugar Industry Support Center is recuperating from the alarming downturn that had hit the bi-monthly sugar auctions a couple of months back. The center has now managed to sell 61,000 quintals of sugar at the 76th round held this week collecting the highest sales revenue in the past three months. The center obtained 24.4 million Br in revenues from the sugar auctions compared to turnovers far less below 20 million Br in the auctions held consecutively for three months. Some 15 companies took part in the auction, which saw for the first time one manufacturing company as participant among the usual suppliers. The new entrant is Fafa Food S.C., which took 2,000 quintals offering the highest price, 400.35 Br for the quintal. The food processing company bought the sugar to use it for its own consumption to manufacture food, said its officials. Merchandise Wholesale and Import Trading Enterprise took the largest quantity of sugar, 20,000 quintals, paying 400.01 per quintal.Top Construction Cost Could be Reduced by 30pc, Study Reveals BY KALEYESUS BEKELE FORTUNE STAFF WRITER Cost of construction projects in Ethiopia could be downsized by 30pc of their existing expenses, argues a recent research conducted by a British quantity surveyor David H. Evans, a construction cost consultant. Mr. Evans in his study said that although the Ministry of Works and Urban Development, in its survey on construction expenses escalation, estimates overheads and profits to be at 31.6pc, he says that at least 10pc and possibly 20pc can be saved. Evans produced the study during his stay here as a consultant to the new airport terminal project. According to the survey, one of the factors escalating construction cost is wastage, which can be avoided by improving the efficiency of contractors and training of their working force. Evans in his study states that the biggest single saving that can be made is during the period of briefing given by the client to the architect or engineer and before the commencement of design and construction works. According to him, the brief must glue exactly to what the client needs the building to serve. Otherwise, said Evans, a poor briefing may result in a building not satisfactorily fulfilling its function, over designed for its purpose or become expensive to maintain. "The architect or engineer should not necessarily be allowed to produce a design which is unchecked by an independent expert or by the client's in house staff," the study advises. It also indicates that the comparative costs of flat and pitched roofs should be considered. According to the research, a pitched roof may give more flexibility for services, reduce roof drainage costs and eliminate the need for a separate roof structure for services and water tanks. "Another area of savings is in the employment by contractors of specialist sub constructors because workers in specialist trades will naturally improve their skills and knowledge if employed fulltime in their specialty," the study advises. Quarry owners and building materials merchants should also be encouraged to expend and hold large stocks to be able to satisfy the need for contractors to place orders overseas, which contribute in increasing construction costs. The survey cites the breakdown as reductions on overheads as a result of increased turnover and fairer contract conditions (10pc); reduction in waste as a result of better training (5pc); proper briefing of the consultant and more efficient design (10pc); and use of specialist sub-contractors (5pc) can all be possibly save 30pc of construction cost that is being incurred by the Ethiopian construction industry. The surveyor also recommends that the government could ensure that there are good and reliable contractors to undertake government projects by appointing only those contractors who can demonstrate a good track record. Whereas consultants should be encouraged to undertake research in construction methods to improve the quality of building, reduce construction costs as well as reduce maintenance costs and the selection of consultants could be influenced by their research, Evans argue. Top Court Appointed Board Asks for Additional Members BY DAWIT TAYE FORTUNE STAFF WRITER Members of the new board appointed by the Federal Supreme Court to govern companies owned by businesspeople now behind bars for alleged corruption involvement have appealed to the court to enlarge the existing number of members of the board. The board members pleaded before court early this week that the number of the representatives forming the board is inadequate to assume the task. Five members drawn up from Ethiopia Chamber of Commerce, Investment Authority, Ministry of Justice, Ministry of Finance and Commercial Bank of Ethiopia were appointed by the court. The board has forwarded its request following the court's order to submit administrative plan to start managing the companies. The board, chaired by Andualem Abebe, secretary general of the Ethiopia Chamber of Commerce, has reached to a consensus on the need for more members following site visits it has made to the companies earlier. Star Business Group and its affiliates, Abmar and Ajema are the companies whose assets and business activities will be under the administration of the board. Fortune learnt that the court will look into the matter and expected to reach to a verdict on September 7.Top Sheraton Sets for New Year Party BY MIKIAS WORKU FORTUNE STAFF WRITER Once again, Sheraton Addis has started its preparations for the evening celebration of the Ethiopian New Year's Eve on September 10, to be staged in the compounds of the luxury hotel. A press release issued by the hotel says this year's celebration will feature internationally acclaimed artists from the Caribbean, North America and Ethiopia. Chaka Demus and Pliers, the Jamaican duo since the early 90s with three consecutive British national pop chart hits, as well as Gregory Isaacs, one of the Reggae superstars with over 500 songs and over 70 albums, are the international music idols the hotel will bring in for Ethiopian fans. Sheraton announced that Hamelmal Abate and Hiruth Girma, coming from the U.S. for the event and "Teddy Afro", the young singer that has promulgated the hottest album in town, are in the list of Ethiopian entertainers. Hamelmal Abate, who was among the top artists that had performed during the grand opening of the Sheraton Addis, and for the celebration of Ethiopian New Year of 1999, "will be once again with us", says the management. "This young rising star performs throughout Africa and Europe, and has gained recognition in the U.S.A, where she resides. Using influences gained from her tours, she creates something uniquely modern yet remarkably traditional," said the release. Hiruth Girma is coming especially for this occasion from the U.S.A to entertain Sheraton guests here with the songs of her recent album, while Teddy Afro, who has gained a tremendous popularity among old and young alike through his songs of his first album, will be part of the festivity. Says Sheraton: His [Teddy's] unique reggae style arrangements appeals to traditional and modern tastes. "The entire Sheraton Addis team is preparing for this sensational event tempting and spoiling its customers with an array of international culinary delights, a fine section of beverages, champagne at midnight and firework displays electrifying the skies of Addis Ababa." Entrance tickets have been made available for sale in the main lobby of the Sheraton as of Friday, August 24, priced at 1,000 Br per person.Top WFP's Envoy Arrives Here The new Resident Representative of the World Food Program (WFP) to Ethiopia, Ms Georgia Shaver, submitted her letter of appointment to Dr. Tekeda Alemu, vice minister of Foreign Affairs last week. Appointed by Catherine Bertini, WFP Executive Director, Ms Shaver will manage WFP support programs: agriculture rehabilitation and development in Ethiopia. Ms Shaver, 46, joined WFP in 1980 as an assistant project officer in Malawi. She has then served WFP in Zambia, Italy and more recently in Mozambique as manager of WFP Southern Africa Regional Office in Maputo. Ms Shaver studied international relations (Development, International Organizations and Food Aid) at Antioch University and the University of Southern California in the United States. She is married and has a ten-year-old daughter. WFP is the United Nations' front-line agency in the fight against global hunger. In 2000, WFP fed more than 83 million people in 83 countries including most of the world's refugees and internally displaced people. WFP has launched the Global School Feeding Campaign as the largest provider of nutritious meals to poor school children, aiming at ensuring the world's 300 million undernourished children are educate. Top Ministry Lifts Withholding Tax on Sales of Imported Goods BY MARY DEJENE FORTUNE STAFF WRITER Traditional carpentry wisdom advises that one should measure more than 10 times before cutting a piece of wood. "I wonder whether the architects of this law have this conventional knowledge," said one businessman referring to the continuous amendment of the newly introduced tax regime that requires a withholding of five percent from transactions. Although introduced a little more than a month, the law has been amended for the third time this week, in a bid to correct its flawed design the oversights made upon designing it. The Ministry of Finance has now broached new amendments on goods that are imported but put on sale by the importers themselves. Earlier to this, the government was forced to suspend its application until January 1, 2002, on coffee traders following a five-day strike where the traders protested against the law. Following this suspension, the Ministry has excluded fuel stations from the new regime since their commission is only two cents from a liter that make things difficult for them to withhold five percent, while it has also exempted payments of services valued at 100 Br and below as ineligible. In a letter dated August 16 and signed by Vice Minister Hailemelekot T. Giorgis, the ministry announced that importers, when selling goods they have imported would not be subjected to the five per cent withholding tax, as this is already being done by the Customs Authority upon their importation of goods to the country. "The five percent withholding income tax to be collected on imported goods (CIF Value) and the five percent withholding income tax on payments together withhold ten percent of the price of imported goods and this will affect the working capital of the importers," the amendment letter says. Importers, when they themselves sell the imported goods, have to produce copies of their declarations of the five percent payment effected when clearing the goods, which will exempt the transaction from the five percent deduction of the payments for their sales, according to the ministry. Regarding the payments to garages for maintenance of vehicles, the letter stipulates that when garages purchase spare parts on behalf of their customers' vehicles, and expenses of the spare parts are reimbursed together with the payment for maintenance services, the garages are expected to withhold five percent of the expenses of spare parts from the suppliers. "However, garage customers should not withhold the five percent payment from the reimbursement." In the case when the garage provides both the supply of spare parts and the maintenance services to the vehicles itself, the ministry authorizes the customer (payer) to withhold five percent of the total payment. The letter also said that the correctness of the tax payer's account books must be verified by auditors and any taxpayer of category 'A' and 'B' to make use of this provision must submit books verified by recognized auditors of the General Audit Office.Top Sympathizers Petition for Iskinder's Release BY TAMRAT G. GIORGIS FORTUNE STAFF WRITER For the Federal Police, he is one among those suspected of involvement in a high profile corruption. For some people, he is innocent. For many others, he is just a victim of unfortunate incident. Whilst there are those who prefer to use his case as one more evidence to support their argument about the sinister situation under this regime. However the opinions vary, there are until last Friday, August 24, more than 560 sympathizers of Eskinder Joseph, majority owner and managing director of Mesekel Flower, who launched an online lobby to pressure the government for his release or speedy trial. "The plight of Eskinder Joseph - A U.S. Educated Ethiopian Entrepreneur and Humanitarian", says the online petition signed by hundreds of Ethiopians and non-Ethiopians, including Ethiopia's veteran politician Col. Goshu Wolde and 32 of his employees. "As employees of Mr. Eskinder Joseph, we do not know what is going to happen to us [that] all activities are frozen at the moment," appealed his employees on a petition sent to not only the Ethiopian government, but also President George Bush, Congress of the United States, the U.S. State Department, Amnesty International and other international human rights organizations. "We request [for] his immediate release so that we and our families have a future," they pleaded. The one time pilot and graduate of one of the most prestigious colleges in the U.S., Claremont College, Eskinder came back to Ethiopia in mid 1990s to pioneer a horticultural farm close to Zewai that finally earned him reputation and respect both from the public and the government. Many, in fact, give him the credit for teaching Ethiopia how to grow and export rose flowers to international markets. "Mr. Joseph is an example to thousands of Ethiopians," wrote a sympathizer by the name Emebet Shiferaw. "Eskinder Joseph . . . is among the most positive minded people I know," said Eskinder Berhanu. Eskinder was, indeed, on a ladder of success before his sudden, unexpected and shocking imprisonment in late May this year. Wedded quite recently, he was planning to scale up his rose project to an ambitious expansion project that would have increased his annual turnover to five million Dollars in short term and 20 million Dollars in five years from the current one million Dollars, according to his own speech given to participants of global young entrepreneurs summit held in Brussels this year. Unfortunately, this very ambition led to his lock up alleged to be involved in soliciting loans from the Commercial Bank of Ethiopia (CBE), which he has denied categorically. Federal Police alleges that Eskinder has obtained second waive of loan from the CBE without putting proper collateral and while having the first loan unserviced. "I could not believe this story," said a petitioner named Tilahun Demissie. "If it is true, it is shocking." One other friend of Eskinder, who posted a lengthy essay on Ethiopian websites, such as Ben's Page, said at the beginning he considered it as "some kind of big mistake". ". . . when they check the facts, they will certainly realize they got the wrong person and will immediately release him," said G. Mezgebu from Flushing, New York. But it has been now more than three months since Eskinder is put under police custody, if not appearing for more than 10 times before court. Police has not so far produced a formal charge against him and other businesspeople and politicians anticipate that it has been demanding from the Supreme Court for more days to investigate the allegations. In the meantime, based on appeals made by the newly established Federal Ethics and Anticorruption Commission, the Supreme Court has frozen the accounts of his company and others. Many of the petitioners argue that Eskinder's arrest would discourage Ethiopians in the Diaspora who want to come back to start their own business. Those who consider him as a role model would now take him as an alarming lesson, they say. "I shutter when I think of the negative effect this will have on other people wanting to go work, live and help their country if this is what awaits for them," protested petitioner Ted Zewde. "The arrest of Eskinder Joseph is a blow to all educated and skilled Ethiopians in the Diaspora who plan to return, invest and participate in the development of their homeland," fear the petition authors, who described themselves as members of Ethiopian community in the United States. They pleaded for his immediate release and protection of human rights. Among the petitioners, there are those who have called for justice to be served bringing his case to the court where decision could be given "as soon as possible". "Try him or set him free," declared Lydia Moges, another petitioner. Top Packard Foundation Allots $35m for NGOs in Ethiopia BY MARY DEJENE FORTUNE STAFF WRITER The David and Lucile Packard Foundation, founded by the celebrated entrepreneur, philanthropist and co-founder of the multinational Hewlett-Packard company, David Packard, has allocated funds amounting to 35 million Dollars to be disbursed in five years in support of 18 non-governmental organizations operating in Ethiopia. The foundation, which started operation here two years ago, has so far approved 20 million Dollars of the total fund, according to representatives of the organization that arrived here for a five-day working visit. The four-member delegation is comprised of Ms Nancy Burnett, member of the Board of Directors, Mr. Cole Wilbur, former president and current member of the Board of Directors, as well as Dr. Clark and Dr. Duff Gillespie, member of the Population Program Advisory Committee and Deputy Assistant Administrator of USAID, respectively. At a press briefing held at the Sheraton Addis on Friday, August 24, Dr. Clark said that the Amhara and Oromia development associations, the Family Guidance Association of Ethiopia for Youth Clubs, the Ethiopian Orthodox Church for HIV/AIDS Prevention and Save the Children are among the beneficiaries of the financial assistance. Ethiopia is among eight countries to which the Packard Foundation pledged in November 1998 to donate more than a third of a billion Dollars in aggregate over the following five years (75 million Dollars a year) to address family planning and reproductive health concerns in the selected countries, the representatives said. India, Mexico, Myanmar, Nigeria, Pakistan, Philippines and Sudan are the other countries encompassed in the program. During their stay, members of the delegation held talks with Dr. Kebede Tadesse, minister in charge of Social and Administrative Affairs in the Prime Minister's Office, Dr. Lamisso Hayisso, vice minister of Health, as well as His Holiness Abune Paulos, patriarch of the Ethiopian Orthodox Church.Top Frustrated Unionists to Organize a Forum BY DAWIT TAYE FORTUNE STAFF WRITER The industrial peace, as labor unionists are always fond to say, within the construction sector is becoming contentious these days. The confrontation is severe between foreign construction firms and newly formed labor unions that are observed being backed by their federations and confederation. Appeared to be tired and frustrated following failures of their strikes and demonstrations, unionist at the large foreign construction companies have now agreed to jointly organize a panel discussion soon in a bid to expose to the international community "the mistreatment" they claim to suffer by their employers. The construction companies whose labor unionists say have committed human right abuse are Midroc Construction, Kajima Construction, Dragados - J&P, Chinese Road and Bridge Corporation (CRBC) and Kingnam. The labor associations said that they are forced to move in unison and act against the employers' violence because the dispute between labor and management has intensified and the efforts made by associations and government to resolve the issues peacefully have failed to materialize. The associations are planning to invite representatives of embassies, IMF, ILO, government officials and especially diplomats of the companies' countries to participate at the panel. The associations said that they have asked the wood, metal, cement and other workers industry federation to host the panel. There are more than 6,000 employees working in the five companies, which are undertaking construction projects worth billions of dollars, mostly financed by their respective governments or multilateral organizations.Top Export Earnings Fall by 100m Br BY DAWIT TAYE FORTUNE STAFF WRITER Ethiopia's revenue from exported goods has significantly dropped this year to 3.5 billion Br in total gains. Data obtained both from the Export Promotion Agency and Customs Authority show that Ethiopia had exported 257,000 tons of goods registering 3.6 billion Br in revenues last year, down by 100 million Br compared with the same period last year. The decline in the export earnings is owed to the drop in revenues from coffee export: from 2.2 billion Br in the previous year to 1.4 billion Br this year affecting the total export market. It was a robust year for hides and skins, paradoxically. Revenues from these exports ranked second following coffee but leaping by more than 200pc from the 300 million Br earned last year. Exports of Chat, which came second after coffee in the previous year, have brought 509.9 million Br this year, conceding a 10pc decline compared to last year revenues. Top In Brief Merkato Grooming for Night Shopping Office of the Merkato Community, established under the Addis Abeba Chamber of Commerce to address concerns surrounding the market area, said preparations are underway to make the market place accessible for shoppers after working hours and late at nights. The office said it is working closely with concerned parties to solve the problems of street lighting and security in an effort to ensure the safety shoppers. Addis Lissan, August 22. Bureau Plans Networking City Finance Offices The Addis Abeba Administration Finance Bureau said it is undertaking a study to integrate in a computer networking its 28 finance offices located in each woreda in the capital. The bureau said the automation would enable to provide quality customer services and reduce the burden on the workforce. Addis Lisan, August 22. Finance Bureau Registers 3.1m in Revenue The Addis Abeba Administration Trade, Industry and Tourism bureau has announced its collection of revenue of 3,131,200 Br during the just ended budget year. The bureau said the amount is lower than what it had planned to collect. The bureau said it has registered some 11,314 new entrepreneurs and 9,420 businesses were licensed. It also said that 28,983 businesses have renewed their licenses while 2,492 returned theirs. Addis Lisan August 18. Gondar Distributes 480,000 Sq. m of Plots The Gondar Administration Council of the Amhara State has reportedly given more than 480,000 Sq. meters of plots in the town to investors and humanitarian agencies during the previous Ethiopian budget year. Around 15,000 Sq. meters of plots were leased to two entrepreneurs who have proposed to establish soap and plastic manufacturing plants while 244,000 Sq. meters of urban plots were granted for free for the construction of schools and health institutions. Humanitarian organizations also received plots measuring a total of 199,000 Sq. meters for establishing rehabilitation centers street children while 28,000 Sq. meters were leased for the construction of residential and business quarters. The Ethiopian Herald, August 22. City to Spend 722m for Economic Sector The Addis Abeba City Administration said that it would execute 156 ongoing and 195 new projects in the current budget year with an outlay of 722,337,000 Br. Over 542 million of the sum will go to the economic sector to help carryout various projects among which 58 are road construction projects that cost over 253 million Br. The Ethiopian Herald, August 21. Land, Loan Delay Projects, Authority Says The Ethiopian Investment Authority said only 40 of the 209 projects licensed in the education sector have so far become operational. The authority also revealed that although 452 projects have been licensed for the construction of buildings, only 90 of them are currently operational, while 18 projects of the 65 licensed for rental of stores have materialized. The reason for failure of launching the projects, according to the authority, is the delay occurring during the process of land acquisition, high lease rates, as well as prerequisites for getting bank loans. Addis Zemen, August 21. $1.7m in Cotton Sales for Tendaho The Tendaho Agriculture Development Organization said it had sold 16,288 quintals cotton worth more than 1.7 million Dollars to foreign markets in the 2000/01 harvest year. The organization also disclosed it was able to collect 12.1 million Br in revenue from sales in the local market.Top ECONOMIC COMMENTARY The New Melody: Poverty Reduction Strategy By Abebe Tadesse In a midst of the ruling EPRDF's political turmoil that has made too many of its officials quite busy caught up in the rock but hindering them at the same time from discharging their official functions, Girma Birru, Minster of Economic Development and Cooperation, was one who seems to have more time for extra-party agendas. He showed up recently to a conference held at the Ghion Hotel to brief government officials, the diplomatic corps, representatives of non-governmental organizations and others on the formulation of Poverty Reduction Strategy Paper (PRSP). This is a strategy paper expected of poor nations should they want their external debt be canceled by wealthy nations such as the United States that has promised to right off 5.7 billion Dollars of loans poor nations owe to it. The World Bank and the International Monetary Fund (IMF) came up in the late 90s with a new scheme to help relieve poor nations from their burdensome external debts. The Highly Indebted Poor Countries (HIPC) debt relief program is therefore administered by these two institutions, when countries qualify for the program. In addition to qualifying criterion, which was ones demanded by Prime Minister Meles to be reformed, applying nations should submit a strategy paper where they articulate their programs of fighting poverty. Thus, Ethiopia has submitted its Interim Poverty Reduction Strategy Paper (IPRSP) to these institutions in a bid to win their sympathy for qualifying for HIPC, if accepted would help it minimize the 25pc of its national earnings that goes back to creditor nations to service its debt, which amounts close to six billion Dollars. Girma has therefore emphasized the importance of stakeholders' active participation in the consultation process. And I believe there is no more appropriate appeal than this for the program to succeed. Antipoverty programs will not succeed unless delivery systems are adjusted to accord more public resources where the need is crucial to increase transparency and accountability to beneficiaries and build the capacity of poor communities to help themselves. Accordingly, PRSP will face the same fate as other antipoverty programs, if it fails to fulfill this. Poverty is endemic and distribution consequences of policy actions are critical to provoking or abating crisis. After more than a decade of acrimonious debates and tones of evaluation reports, there is an increasing convergence of views that Structural Adjustment Program (SAP), which Ethiopia has been experimenting on with other African countries, have not worked as it was intended. It was grossly defective as a policy package for addressing the endemic poverty and pervasive under development of the region. Economic policies would be judged by the extent to which they contribute to economic development, which is broadly understood as involving economic growth, structural change, and the elimination of poverty. Poverty was prevalent both in rural and urban areas, according to estimates made in 1995/96, with a coverage of 47pc and 33pc of the respective population. Since the rural areas account for about 85pc of the country's population, poverty is primarily a rural phenomenon. The same estimate also shows that 45.5pc of the population were below the poverty line. Poverty line is a level of income below which an individual or household cannot afford on a regular basis the necessities of life. The percentage of population below that line depends on per capita national income and the manner in which it is distributed. This include predominantly poor state of nutrition which increases the susceptibility of the poor to illness, in turn making it difficult for them to get the limited work that is available. Survival, therefore, may sometimes depend on borrowing, leading to an incapable burden of indebtedness. Poor families have few income earners compared to the number to be supported in the family. This is why the solution to poor nutrition is to increase employment and income rather than the food supply itself. An extreme poverty arises from either lack of "something" and/or occurrences. The something refers to lack of land and other assets, employment opportunities, income, skill, education, health, etc. The health issue is becoming evident these days when we see Ethiopia's experience in ever increasing child mortality and lower life expectancy, in part because of HIV/AIDS. The PRSP, unfortunately, denies one major fact in the Ethiopian socio-economic makeup. It claims that there is no landlessness in the country, inspite of the fact that there are very many men and women who do not own land (with usufruct right system itself). The government, of course, has an important role to play in alleviating poverty. But it is essential to choose methods of interventions carefully. It should be concerned with the alleviation of poverty as an important objective in project selection and design. Other things being equal, projects providing benefits to the poor should be preferred. Macro economic and structural policies that encourage growth and employment are essential for any poverty reduction strategy. According to the PRSP, reduction of poverty will continue to assume core place in the agenda of the country's development, which consists of four building blocks: Agricultural Development Led Industrialization (ADLI), judiciary and civil service reform, decentralization and empowerment, and capacity building in public and private sector. Sustainable development requires meeting the basic needs of all and extending to all the opportunity to fulfill their aspirations for a better life. It should address the problems of large number of people who live in absolute poverty: those who are unable to satisfy even the most basic needs of their lives. Meeting essential needs requires not only a new era of economic growth for the country in which the majority are poor, but an assurance that the poor get their fair share of the resources required to sustain that growth. Top RESTAURANT REVIEW Sangam Indian Restaurant Tel. 518976 Location: On Bole Rd, Next to Mega House Serves Indian Cuisine Service *** One would be disappointed, if not appalled, if accidentally eavesdrop to the small talks of the female attendants at this place. They stand at the portal to the kitchen found on the far-left corner facing the main restaurant, and plunge in mean chitchats, mocking customers. Fortunately, they try to keep it between themselves, sometimes unsuccessfully though, as one of our reporters this week, who unfortunately chose to seat near their "strategic location" was able to hear every drip of their nasty conversations. It would have been hurtful for customers of this place had they known the waiting staff is mocking them. The attendants also lack attentiveness in following up guests to fulfill their requirements during the run of the meal. In restaurants of such standard, attendants should always be standby close to guests to respond to their needs, and take the initiative to make frequent inquiries and polite interactions with customers. However, some of the male attendants' exertion to fill in the gap and make up for the faulty service is praiseworthy. We do not want to imply that the ladies of the place are all irresponsible. There are those who rightfully do their job, but the demeanor of their colleagues badly reflect on them. Whereas orders arrive relatively fast, it could have been even better if accompanied with mannerly and cheerful gestures. Customers deserve that. Food ***** Typical of its nature the food was delicious and spicy. You can tell that the dishes are cooked with professional hands, although we did not get the chance to see the Chef circulating between tables to reap diner admiration, as they do in Far East eateries. The orders arrive hot and fresh making them more appetizing. The fasting Vegetable Curry is as tasty as the Chicken Curry and worth trying is the Mutton Curry. The menu, loaded with pages and pages of lists, dominantly contains chicken and fish dishes, although variedly prepared. The presentation may be more appealing with a little bit of creativity to adorn the dishes. Environment **** The interior of the spacious restaurant bears a simple setup. Maybe too simple? The place would have been better off with a little bit of decoration to make it more eyeful. Even though it looks well looked after at first glance, there are evident marks that show slight neglect of rectifying some minor defaults. There are fractures visible at every corner of the wooden wall. The traverse on which the curtain is hanging in the second room is protruding after apparently it was broken, which disfigures the environment. These are things that can be easily maintained with insignificant costs: electric wires are visible on the walls, whereas a light switch that apparently is victim of several fractures ruefully call for replacement. The place, which still is a great restaurant, can be more grandeur with minor refurbishment. The Management should also think of giving the place an Indian touch. There is nothing in the restaurant that tells a diner of an Indian eatery except for its name and once looking into the menu, which is flooded with chicken varieties, curries, fish and the inevitable rice. Price **** The price charged at this restaurant is fair enough if judged by the quality of the food. But some of the prices are a bit exaggerated looking, for instance at the price of the vegetable curry with rice and pita bread, which goes up to 46 Br, tax excluded. Parking ***** The restaurant has a spacious compound that can park a good number of cars and has a dependable security. Sanitation **** There are separate quarters for ladies and gents. Both rooms are kept clean with all facilities available including a fluid soap, tissue paper and towels. However, the tissue paper holders in the ladies room are broken and tissue papers are kept in the washroom. One of the toilet seats is broken and fixed with a rope, while one of the flushers is extended by a piece of cord. The toilets in the gents' room are abandoning their milky whiteness to the reddish brown that marks time for replacement is not too far away.Top INTERVIEW Mission Accomplished Brutawit Dawit, one of the very few top-notch women business executives in the Ethiopian business environment, was out last week meeting more than 300 people telling them her fascination, thrill and excitement. She did not tell them about the fact that she moved to the would - be completed spacious building downtown Addis, where she has created a commodious office for herself. In front of such a huge crowd, she had appeared gratified with her latest venture that she had longed to accomplish for more than a year now. Now the bank she manages, Wegagen Bank, has connected seven of its city branches providing its customers with automated, fast and efficient services, if not offering them an opportunity to access their accounts from any of the branch they enter relieving them at the same time from going all the way to the particular branch they have an account. The U.S. educated and trained Brutawit is the only woman executive in Ethiopia's banking industry. Having stayed briefly with Bank of Abyssinia, during its early stage of establishment, upon her return from abroad, Brutawit has extensive banking experience in the United States, before finally coming back home. The President of Wegagen Bank had a brief moment with our Managing Editor, Tamrat G. Giorgis, in responding to questions about her computerization project, whose cost she adamantly refused to tell him. Fortune: Do you feel that you have accomplished a major project in the life of this bank? Are you satisfied with a kind of work the company that is hired by the bank did on this particular job? Brutawit: Yeah. When we started the project, we started it with a reference point assessing the needs of the bank, how we would want to computerize it, and when we want it to be computerized. Although any vendor can computerize a bank, the problem was to find the right vendor that would customize the software to the needs of the bank. So, we are satisfied with the project but there are few things that we have to wind up. Fortune: Such as taking it to the regions? Brutawit: When you computerize an office, whether it is a bank or bottling factory or a transport company, it does not mean that you have finalized the computerization process. It is rather an ongoing process. Fortune: There was a delay during the implementation of this project. Could you brief me on that front? Brutawit: Several reasons. One was that we want to make sure that every member of our staff is properly trained, since most people now working for Wegagen will have to use their PCs on their desks and that PC on their desk is useless unless they know how to use it. The second aspect was we did not want to rush through this project because we spend a lot of resources and we sweat. Rushing through it to the best of my knowledge was not such a good idea because it is a new idea. The other reason was telecommunications. We had finished computerizing the bank a long time ago but what took time was the networking. And since our objective was to make sure that the seven banks are properly networked, these branches needed some king of a system, a communication system, to inter-link them. At the time, the only thing that was available to us was the acquisition of leased telephone lines, which itself took sometime. But, the leased lines were not found to be dependable because they were crushing forcing us to look for an alternative. With the assistance of telecommunications people, the digital data network (DDN) lines were given to us on trial basis. Wegagen is one of the very fortunate to be on the list of this new system. Fortune: There were originally about twelve companies that had participated in the tender. Transnational Computer Technology was finally selected. Was it because it is owned by an Ethiopian? Brutawit: That is not the reason, though it was a plus. But, I do not really care whether he is a Japanese or an Ethiopian. What I wanted was a product that I can use, a product that we can buy, a product that is affordable. The very important criteria for us was to make sure that whoever decides to participate they should be willing to open an office in Addis and the office should be properly staffed. If I do not have an office of the vendor here, every time something goes down, I have to contact the vendor abroad. And every time you pickup that phone, it costs tons of money. Imagine, computers are always in the habit of going down anywhere (not only in Ethiopia), and suppose the computers fail? What do I do? Wait for someone to come from Ireland or from Kenya? From India? From Hong Kong? Or wait for someone from Wollosefer [TCT's office is around Wollosefer, off Bole Rd.]. The fact that TCT's coming here to open an office was a big plus. The other thing was also price, which is a very important criteria in the purchase of anything. We were able to negotiate a much better price. Fortune: How much? Brutawit: I do not think that is anything of importance to anybody because what I negotiated to do with one company is the information of that company, not public information. Fortune: Can I ask why you are not willing to disclose this information? Brutawit: Why should I? Fortune: So that people get informed. Brutawit: That is not information, and it is not so important. This is a deal made between Wegagen Bank and TCT. What is the big importance for newspaper people to know how much Wegagen's computerization process cost? Are you interested in knowing what is it worth or in knowing how much we paid for it? You should ask how much it is worth and my answer would not be in dollars and cents, but in the benefit that we can reap from this project. Fortune: What does this project mean to you as a bank? Brutawit: Why bother to spend so much money, so many days, weekends? For various reasons: one is to accommodate the needs of our customers. The amount of time a customer would have to spend to get his money out is simply in few minutes compared to what it was. Money is time, and time is money. It gives the bank an opportunity to serve its customers faster, with more efficiency and less errors. It will also bring us a little closer to the international banking practices. It makes a big difference in the eyes of international bankers. It makes their life as easy as it will make ours because they now get computer print out in few minutes. Fortune: And to the shareholders? Brutawit: It will attract more customers to the bank. The more customers the bank has the more business you create. Is it not that the whole idea of creating a bank? Fortune: The most important here is the customer. What difference will this bring to them? Brutawit: Several. If the customer had come to the bank for her balance statement, she could not get it right away. We might ask him to come back the next day or we might have to ask her to come at night. It takes time because everything had to be calculated manually. If you walk to any of our branches today, no matter where your actual branch is and no matter where you had initially opened your account, and ask for your balance, you will find pages of balance sheet in a minute. Businesses particularly require for their balance sheets frequently. The other thing is, your branch might be in Gergi, while you are doing some business in Merkato where you need money. You do not have to drive all the way to Gergi to get your cash. There in Merkato, you can go to our branch there and withdraw your money. The same is true for loan payments, transfers or international banking. It makes life much easier. Fortune: This is obviously a new feature not only in the Wegagen Bank services, but also in the nation's banking industry. To what degree will it make your bank competitive? Brutawit: That is very difficult to say but one thing you can be sure about is the human heart is never satisfied. You always desire something better. Since I can cash my check at any Wegagen branch, why do not I use Wegagen and make it easier for myself? Businesses make deposits or withdrawals two or three times a day and they do not have to go all the way to where their branch is located. Fortune: You have claimed to be the first in introducing this project. However, one of your competitors, Dashen Bank, has announced earlier last week that it has already started inter branch services after the completion of its networking project. Do you still claim to be the first? Brutawit: We still believe we are the first because the computerization was completed a while back but what lacked was the networking part. The branching was started on August 2nd, although we did not make it public simply because we wanted to properly inaugurate it. Several customers were using the inter-branch banking since then. Fortune: You did mention in your inaugural speech that this project is part of a long term strategy of services that others will be introduced. These, I believe, are services such as ATM, credit card, and debt card. Where does the ATM project in particular stand now? Brutawit: It is still a very active project. I just do not see the telephone lines issue resolved because a lot depends on the lines. We are trying to figure out if there are other alternatives to overcome this problem. Fortune: One of the challenges of automation is major layoff. Do we expect any layoff from your bank? Brutawit: No! Fortune: Why not. Because the more you get automated the lesser number of people you would need to work for you. Brutawit: We were expecting it and we have already moved people around. This is not something that we started yesterday. We were thinking about it from day one. Fortune: How about in the future because you will continue the automatation? Brutawit: It does not matter. We are going to do certain number of branches and while we are computerizing those branches, there are other branches that will be opened. This idea of laying people off is not a reality at all. Fortune: But you will not employ any more people. Brutawit: Not everybody is going to sit in front of a computer. It is a growing bank. Fortune: The other challenge is in case of power failure or virus attacks. Are you prepared? Brutawit: We have UPS and generators in case of power failures. On the virus issue, you deal with it when you come across it. There is nothing you could do about it even if you put all the anti virus models that are created around the world. It is hard to protect. Because nobody is able to create as many anti virus software as there are viruses. To the best of our knowledge, we implement the best anti virus into our system and the staff is well trained. We know that we cannot afford to have virus and we are very careful. I just pray that it does not happen here. Fortune: How protected is your system if computer hackers access? Brutawit: It has got a lot of controlling system. That is another but very important aspect. There are different personnel in the branches. The teller will be able to access the teller screen only and nothing else. The loan officer can access only loan files. He cannot access accounts. There is no way one can do that. The accountant can access the general ledgers, subsidiary ledgers and things like that but not loan files, or teller screen. Access code is given to those only for the responsibility they held. When one turns the computer on, it registers the time and the access code, helping us to know who or by whose code the system was accessed. On top of that, we change access codes on regular basis. Fortune: How do you plan to serve those customers who do not use English? Did you consider the problem that may arise from language barrier? Brutawit: What is the working language of banks in Ethiopia? It is English. Which bank submits its annual report in Amharic? Which bank publishes its report in regular basis in Amharic? None. The working language of banks that I know in Ethiopia is English. A lot of analysis are not done in Amharic. What is important to the community at large is when you walk into Wegagen and you want to transfer money from branch A to branch B, there is a form you need to fill out. That form contains both Amharic and English, thus it is your choice. Fortune: Do you have a final word to the public in respect to this project? Brutawit: I would like the public to know what the benefit of this project will be to them. In any society, people are shy to immediately jump into new things. It is a common human nature. That is why we took the first three weeks of August in trying to accustom our customers into using the branch banking service before announcing it to the public. At least, some people have had the opportunity to use it and if that usage made them satisfied, and has met their expectation, then the best advertisement in the world is not what appears in the newspapers, but rather words of mouth. Top VIEW POINT - LAST PART IS EPRDF SERIOUS ABOUT CAPITALISM? HERE IS A CHECKLIST BY TSEHAI ALEMAYEHU, PHD. For the average citizen who witnessed the EPRDF so profusely proclaim that Ethiopia is at the onset of a new capitalist dawn, I believe that a document, which translates the theoretical paradigm into a list of practical guideposts, can be of great service. Thus, I have enumerated a list of major changes that are sure to come if the EPRDF is serious about embarking on this new course. Look for these signs to judge for yourself if the rules of the economic game in Ethiopia are really changing and in what direction. If I may be allowed to be so presumptuous and address the policy maker (legislator, party official, and/or state and federal government executive), you can view the list of lookout items enumerated here as your "to do" list. Your government's commitment to pursue the capitalist way essentially amounts to a pledge to undertake the following measures with respect to the economy. Many of the items enumerated below are not new. Some of these actions have been demanded by the public and promised by the EPRDF before. Others are relatively unknown and may even appear to be obscure. Nonetheless, each of these is a measure that would be undertaken in the next few months if the EPRDF were serious with its declaration. PRIVATIZATION OF LAND AND NATURAL RESOURCES: This should be one of the first acts of a newly capitalistic EPRDF. Given the importance of agriculture in the Ethiopian economy, this is unanimously viewed as a key test of the seriousness of the EPRDF's commitment for implementing a market economy. Granted that it is a complex issue and as such it may be quite some time before we see the final shape of the government's policy in this area, various bodies of the EPRDF should be immediately commencing work leading to privatization. Should the EPRDF also come through with one of the other requirements of a democratic market economy, namely transparency of government work, we should soon learn that the process leading to the eventual privatization of the most important economic resource of the country has begun and should be invited to participate in that process. ENACTMENT OF OPEN-MEETINGS AND RECORDS OF GOVERNMENT ACTIVITIES: This is a politically rewarding and administratively simple act for the EPRDF to undertake. Simply committing to conduct all government businesses in open view of the public could immensely enhance its credibility in the eyes of citizens as well as the world. Thus, we should see within the next couple of months the enactment of laws which allow accredited members of the media as well as interested members of the general public to witness parliamentary debates, to gain easy access to copies of legislative proposals and to review the voting records of members of various constitutional government bodies. Such a law would be a federal statute but would apply to the operations of state and local government agencies as well as the various bodies of the federal government. STREAMLINING THE BUSINESS PERMIT-REGISTRATION-LICENSING PROCESS: Among those actions which fall entirely within the economic domain, the need for reform in this area is second in urgency only to the reform required in the laws governing land ownership. We should soon see the EPRDF begin work on legislation aimed at streamlining and clearly defining the objectives of the business permitting-registration-licensing process. Such a law will delineate those business activities that may impact national security or those that have the potential to adversely impact the health and safety of employees or the general public. It will then define a streamlined regulatory framework for the approval of business startups in these areas and explicitly deregulate all other business startups. If the EPRDF is serious about its desire to see a market economy, it will legislate to reduce the bureaucratic processes for business startup in all other areas to simple registration. Filing a simple form that asks for basic demographic information regarding the ownership and purposes of the business should be all that is required. Such legislation will ensure that registration is not contingent upon anything but the desire of a citizen to engage in a business enterprise. ELIMINATION OF CENSORSHIP AND/OR INFORMATION BLACKOUT: The EPRDF has had a great deal of difficulty in trusting the public to be the best judge of the value and merit of news, opinion and/or gossip. It remains, however, that markets do not function well when they have to rely on the government to serve as the filter of information. Thus, in addition to open-meeting and open-records laws, we should see the EPRDF immediately introduce legislation which would prohibit the government from engaging in censorship of any kind including censorship by harassing journalists. Such legislation would also provide for the regular publication by the government of key economic and demographic information that the business community often requires for decision-making purposes. RECONCILIATION OF STATES' RIGHTS WITH RIGHTS OF CITIZENSHIP: One of the controversies associated with the EPRDF's version of federalism is the problem it has created for the free flow of goods, services and resources across state lines. Given its new commitment to a market economy, citizens should soon enjoy enhanced freedom to work and do business in any part of the nation they find most appealing to their business sense. The EPRDF should spearhead a constitutional amendment or clarification to guarantee every Ethiopian citizen the right to live and work anywhere in Ethiopia. The aim here is to remove all ambiguity regarding the supremacy of a citizen's right to live and conduct business in any part of the country over states' right to regulate business activity. PRIVATIZATION OF PUBLIC ENTERPRISES AND FINANCIAL SECTOR REFORM: The EPRDF has actually been engaged in this process for quite some time now. What remains is for it to make appropriate preparations so that the process can be completed in a timely and orderly manner. The enterprises still in the hand of the government tend to be very large in size. For the most part, these enterprises tend to be in sectors such as transportation, communication, banking and energy. These kinds of enterprises are the critical infrastructure underpinning the smooth functioning of any market economy. The EPRDF is thus likely to want to ensure that these enterprises remain in Ethiopian hands. To that end, look for the EPRDF to first carryout financial sector reform that would enable Ethiopian nationals to raise the kind of capital necessary for having reasonable chances for successful participation in the bidding for such large enterprises. The financial sector reform that has long been missing from the EPRDF reform agenda should lead to the emergence of a vigorous and resilient capital market. Once this is achieved, we can expect the EPRDF to take the last step towards finalization of the privatization process by placing the remaining public enterprises on the auction block. DIVESTITURE OF HOLDINGS BY POLITICAL ORGANIZATIONS: One of the controversial aspects of the EPRDF regime pertains to the new and innovative layer of control it exercised over the operation of the national economy by allowing member organizations of the Front to own and operate economic enterprises. The holdings of the TPLF in particular and holdings of other political organizations create real or apparent conflicts of interest for party and government officials. Party and government officials whose official duties require them to regulate and/or do business with such enterprises are put in untenable positions of conflicting loyalties. The business community and the general public exhibit great discomfort with their business involvement. Public officials who are entrusted with enforcing the laws of the land, administering justice and operating the nation's business often frustrate private economic initiatives as they pursue to line their pockets with contract kickback and bribery. The transparency in government noted earlier as a requirement of a capitalist economy, has to be augmented with clearly defined and vigorously enforced ethics and laws. The recent attempt of the EPRDF to move in this direction stumbled out of the gate because of its timing and of the targets selected for its initial application. Additional legislation is required which specifically outlaws not only outright corruption but also precludes public officials and their families from having financial interest in private sector ventures that can benefit from their official functions. One true sign of the EPRDF's commitment to its new ideals would be the introduction of bills in the next session of parliament which provide for regular and full financial disclosure by public officials and officials vying for public office, blind trusts and for sworn anti-corruption pledges. REFORM OF THE EDUCATIONAL SYSTEM: Very early in the process, the economic reform needs to be complemented with educational reform which provides the inclusion of civics education in primary and secondary education and for freedom of choice in tertiary education. The best defense against corruption and lawlessness is inculcation in the minds of children the value of good citizenship. While this approach takes longer to yield results, it nonetheless leads to fundamental changes in the attitudes of future leaders of business and government. We should be seeing revamped emphasis on civics in the school system in the near future. On another note, the EPRDF which took the necessary but difficult step of placing on the student the responsibility of finding a job after graduation from the country's colleges and universities, needs to take one more step to fully privatize the educational decision making process. This final step would allow the various colleges and universities in the land and the faculties within them to compete for the best students they can get. Students should be free to apply for admission to the departments of their choice and hence be allowed to pursue the careers of their choice. The current system assigns career paths to students through the educational placement system with very little input from students. We should see the education ministry institute a new policy on educational choice that supports the notion of freedom in occupational choice. The accountability of government leaders to the electorate constitutes the very essence of democracy. The proper exercise of this check and balance requires a populace which is vigilant and which takes careful note of the actions of its elected representatives. In that vein, I am going to make a copy of this "to do" list and post it to my bedroom wall where I can check off as items on that list are implemented. Personally, I give the EPRDF two years to make substantial headway towards completing this list of critically required actions. Every citizen who aspires for a democratic Ethiopia has a duty to likewise monitor the government's progress. I am hopeful you will find this list to be a helpful starting point for a national conversation on what needs to be done to empower our people, to eliminate poverty and ignorance and to strengthen our country.Top MY PERSPECTIVE The Ring Road And Pedestrian Drivers of Addis Dream on By Yonas Kebede Soon the New Year will relieve us from the long gloomy days in muddy traffic. In time, we may even drive without falling through the streets that keep on turning into riverbeds. Although your driving skills improve due to frequent dogging and punching through the chaotic traffic, a bumpy ride has become your daily prescription, by now. But I would not hold my breath for quick relief, if I were you. The rain is still pounding the streets daily, sometimes with ice the size of marble balls. The soil under the pavement washes away creating deep street-wide potholes, you can no longer avoid. We are told that the Ring Road is 60pc complete. Thirty-seven years in the making, this Road will "ring" around downtown Addis, if it rings anything. We already need a "beltway" to by-pass it. All that is visible is the super slow rate of construction and the traffic havoc as an added bonus. Never has so much driving madness experienced by so many for so long. Have you dared to drive through the Old Airport area in the last two years? Maybe you just happen to be lucky enough to be condemned to live or work in that area. The construction of the Ring Road has made life nearly unbearable. I am sure that what is keeping you in that area is the promise that when it is completed, the Ring Road will cure all the problems of the road. Potholes will disappear overnight . . . taxis will not make a U turn at intersections . . . traffic law will be enforced. Dream on. Did you know that Emperor Menelik built the first all-weather road in the Empire? Yes, he was the culprit. He built the road to connect his palace in Addis Abeba with Addis Alem, 125Kms west of here. Soon after, the first pothole made its appearance. At one time apparently, the old Emperor considered Addis Alem as an alternate "new capital". He was just keeping his options open with one car in his garage. During the rainy season, Menelik drove to Addis Alem, which was considered a resort. The royal family also enjoyed piped water, plumbing and electricity at the palace. By the turn of the 19th Century, paved streets and bridges were constructed in Addis Abeba. After his coronation in 1923, fleets of convertible cars loaded with foreign dignitaries accompanied Haile Selassie from St. George Cathedral to his palace. There was more road per vehicle still and for many moons to come. To be sure, the reverse is glaringly evident today. Almost one hundred years of roads in Addis Abeba and we have yet to master the art of road building or, for that matter, driving. Somewhere down the line, both of these things turned into nuclear science. Have noticed that the right of way is determined by the size of the vehicle. A slow heavy truck has the right of way on the fast lane (left lane). Truck drivers simply own the left lane and just about every driver accepts it complacently. This is the law, de facto. Do you suppose this type of driving will continue on the Ring Road? Make a bet? If you posses a banged up 4WD, you can drive on any side of the street, at whatever speed you want to, and you won't even have to stop at intersections. It would be your right by virtue of the size and dilapidated condition of your truck. If on top of all that you are a government chauffeur, your blue/purple plated vehicle would enable you to plow through the streets unchallenged, instantly converting every road into a one-way street going your direction. Legions of government plated Land Cruisers surf the highway southeast of the capital in search, it seems, of charcoal to burn. Laden with bags of the stuff they speed through the small towns, horns blasting and ignoring clearly marked traffic signs reducing the speed, on the return trip to Addis. Residents and animals alike, scatter in terror. It must be concluded that the Addis driver is really a pedestrian at heart and thinks and acts like a pedestrian. Therein lies the danger. She often forgets she is behind the wheel. She turns 360 degrees to greet a friend, hit the breaks, change direction, reverse gear, pass at will, zigzag or walk right up to your face. Minim chigir yelem. Yichalal! Yichalal! Our pedestrian behind the wheel will not turn his headlights on until it is pitch dark to conserve car-battery power or switch the windshield wiper until his visibility is reduced to zero. Pedestrian drivers are not yet aware that the motor vehicle has been generating electrical power since Adam and Eve. Yeh, the Ring Road will not be televised brother. It will not be televised. Ring Road or not, it may be wise to keep one's options open just like Atse Menelik.Top EDITORIAL Give Attention to the Calub Project Many years have passed since the Calub gas project became a media sensation leading many people to believe that the country would soon start to benefit from it. During the time of the Derg, the project was quite exaggeratedly looked at as a breakthrough and a prestige project feeding the then prevailing socialistic illusions and propaganda infatuations. Yet, contrary to expectations, Calub never took off the ground. It was sometimes regarded as not cost effective or economically meaningful. The previous enthusiasm soon gave way to public disappointment and disregard by the authorities. The Calub gas project once again came to the attention of the authorities after the EPRDF government came to power back in 1991. In line with the government's new market led policies, a plan was drawn under which the Calub project would be transformed from an entirely state-owned project into a share company so that it could pick up momentum once again and benefit from the new policies. The greatest expectation, so far unrealized, was for foreign investors to step in to fill the financial and management vacuum left by the collapse of the Derg regime. Yet, the Calub gas project failed to attract as many local shareholders, while international mining concessions failed to show much enthusiasm or step in to exploit it. What hurt the project most, however, was the kind of utter disregard the government displayed in the last few years. According to recent reports by the state media, the authorities in the Somali region, in the course of their recent conference, have called on the federal government to take the Calub gas project seriously so that it could benefit both the people of the region and the country at large. It is to be recalled that similar calls were also made in the past although the authorities did almost nothing to heed them. The government did not intervene vigorously even when the World Bank recently decided to stop financing the project. This kind of neglect is bound to hurt not only the Calub project but also other areas of the economy as it serves as a bad precedence and a negotiating failure of the Ethiopian authorities. The Calub project may be facing all kinds of problems. But the government will make a bad situation worse by simply ignoring it. It has to intervene more vigorously and do something about it instead of letting it fester indefinitely.Top Senseless Waste of Resources There is a very narrow definition of corruption in this country. More often than not, corruption, in its narrow sense, is understood to consist only of a certain state official abusing his or her power and using public property for personal benefit. Neglect towards public property or resources should also be