03/04/2011


Alemu Seme, who was at the head of the Oromia Investment Commission, and one of the leaders of the Oromo People Democratic Organisation (OPDO) has just been sent to study in China. This decision was made by Azeb Mesfin and Meles. Alemu was helped to escape the current OPDO arrest fever by Azeb as he had a lot of scandalous and corrupt relationships with her.
Particularly in illegal land sales. Alemu owns huge land himself in different parts of Oromia region.
Senior figures of OPDO and Oromia Investment Commission are being arrested due to corruption related and political causes.


The press freedom organization added: “Prime Minister Meles Zenawi and his government have been tightening their grip on news and information in the last months. Ethiopia has joined the list of sub-Saharan countries that are keeping a close eye on the media and are trying to control or influence editorial policies. Due to their increasing intolerance, the authorities are doing everything they can to stifle the critical impulses of journalists and to make life difficult for the private media.”
Journalist in the government’s sights
Eskinder Nega (picture), a former journalist jailed along with his wife in 2005 for supporting the protests that followed legislative elections, is again under pressure from the authorities.

On 11 February, police officers briefly arrested him as he left an Internet cafe and took him to central police headquarters. Because of several articles posted online, Eskinder Nega has been accused of tacitly calling on the country to rise up against the government, following the examples of Tunisia and Egypt.
The police commissioner described the articles as “inciting street demonstrations” and “a call for the suspension of parliament.” It was also reported that he warned Nega that he would be the first person the police would look for if any kind of violence broke out in the country. “We are not forbidding you to write what you want, but we are issuing you with a serious warning,” he reportedly added.
Prior to 2005, Nega was a press proprietor who owned four Amharic- language weeklies:Satenaw, Minilik, Askual and Ethiop. On his release in 2005 he was stripped of his right to run a newspaper. This ban still applies.
Avalanche of charges against weekly newspaper Fitih
The state prosecutor has brought more than 30 charges against the Amharic-language weeklyFitih. On 22 January, the editor, Temesgen Desalegne, was summoned by police to hear the charges against him. Accusations included “tarnishing the image of the ruling coalition.” He was released after posting bail of 500 US dollars.
Fitih recently also faced a libel suit by a parliamentarian, Asheber Woldegiorgis. A year ago, the newspaper was prosecuted by the Ethiopian Broadcast Agency, a state body in charge of issuing licences.
This is the first time since 1991 that a newspaper in Ethiopia has been facing more than 30 charges. Fitih’s publisher, Mastewal Birhanu, describes the situation as an “attempt to suppress the right of expression in the country.”
Tip of the iceberg
Reporters Without Borders fears that the cases of Fitih and Nega are just the tip of the iceberg. Harried, intimidated and disheartened by the “warnings,” journalists have begun to censor themselves.
Reporters Without Borders is also puzzled by certain cases of websites being blocked and suspects they are being deliberately censored. The Facebook page of Addis Neger, an Addis Ababa-based weekly that voluntarily suspended publication in December 2009, is mysteriously unavailable.
Reporters Without Borders strongly urges the Ethiopian government to do everything it can to allow the private press to do its job without fear of intimidation, financially damaging law suits and self-censorship. We would also like to take this opportunity to remind the government of Ethiopia of a number of pledges it made to protect the constitutionally guaranteed right of the press. We remain hopeful to see these pledges translated into action immediately.
MFI related deaths hike
© By Ankober Zuta , Blogger of Debre Birhan Blogspot
12-03-2011
Her eyes glitter.
“Well it is a long story” she says creaming her strawberry lips by her tongue. Cracking due to the blazing sun and lack of lip balm, ‘chap sticks’, Senayet’s lips were still as deliciously beautiful as Angelina Jolie’s.
‘Well it is a long story. I had taken a loan of 5000 birr ($300) to kick start my business from a local government owned Micro Finance Institution” Senayet explains. I am utterly taken by her unspeakable chocolate beauty. I am trying to recollect my attention to the issue. Hahaha
“And then?”I ask.
“And then what?” she replies my question by question.
“I mean what got you into this business; cleaning of a Hotel? “I enquire again.
“I told you. I was unable to repay the money I borrowed from the Micro Finance institution. Therefore, they took my property which I showed as a collateral as I was unable to repay my loan within the agreed time”.
I had met beautiful Senayet , 9 years ago when I was 11 years ago when I was studying at Bahir Dar University, around 550KM from the Capital, Addis Abeba. I and my friends used to get along with her as she had a long curly hair, beautiful face and engaging character. I still recall her everything and stories.
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A ventured undercover investigative reporting between this writer and an associate in Ethiopia reveals these untold facts about the ‘killing aspect’ of these ‘poor saver’ micro finance institutions.
Andhra Pradesh, one of India’s most populous states, and Banagladesh, both famed for prospering the poor via micro finance institutions, saw their rough times as the institutions were hit with reports of embezzlement, repressiveness and firing of Mohammed Yunus as Managing Director of the Grameen Bank. But What does it look like in the Ethiopian case?
Foreign Participation
Monetary and Banking Proclamation No. 84/1994 of the Ethiopian Business Law precludes a foreign national from undertaking banking business in Ethiopia, and no person is permitted to own more than 20% of a banking company’s shares. Financial foreign investment, including the banking business in whatever form, is prohibited.
Our investigation done on 10 micro finance institutions (MFIs), said to be founded by Non Governmental Organisations (NGOs) reveals the indirect involvement of foreigners in micro finance in Ethiopia. The first investigation was done on all MFIs in Ethiopia which don't have government support and depend on donor support as their major source of funding. Gasha Micro-Financing S.C, which pulls 80% of its funding/ownership from NGOs, Asser Micro-Financing S.C, which pulls over 97% of its funding from NGOs, Meklit Microfinance Institution S.C, which pulls 91% of its funding/ownership from NGOS and two other Institutions had the direct and indirect involvement of foreigners. The seed money of most of these MFIs were garnered from foreign NGOs .These NGOs still have shares and stocks within the MFIs making them beneficiaries from dividends of profits.
The foreign ownership and breach of Proclamation No. 84/1994 is further explained in the fact that these NGOs administered by Ethiopia personnel are accountable partially to these funders.
The Ethiopian government usually states the reason for banning foreign involvement in the financial sector saying it is due to the fact that foreign bank competition with infant domestic banks may be detrimental to the domestic banks rather than making them efficient. However, except the government owned ‘independent’ MFIs, the few true MFIs which are fully owned and run by individuals members/shareholders such as AGAR, Wisdom Micro-Financing Institution S.C, Africa Village Financial Services S.C and Meeket Microfinance Institution S.C have been going through unfair competition and regulatory up and downs.
Party machine MFIs
The MFIs we section in this category are all owned and run by regional governments and party members of the ruling Ethiopian People’s Revolutionary Party (EPRDF).These are namely Amhara Credit and Saving Institution S.C, Addis Credit and Saving Institution S.C., Benishangul Gumuz Micro finance S.C, Dedebit Credit and Saving Institution S.C., Diredawa Micro finance Institution S.C, Omo Micro finance Institution S.C, and Oromia Credit and Saving Institution S.C. They all act and reach the mass and international community as ‘independent’ MFIs , however, the populous we interviewed in the Amahra and Oromia region perceive them rather as ‘partial’. These MFIs received their major funding (seed money) from their respective regional governments and endowments . The regional governments and their top cadres are the major shareholders in these MFIs making them the highest profit makers out of these so called ‘pro poor’ MFIs.
Mekonnen Yelewumwosen, the CEO of ACSI and Dr.Woldaye Ameha, of The Association of Ethiopian Microfinance Institutions (AEMFI) are the two big fame and money makers out of these MFIs.
Established as private share companies, Regional governemnt owned Ethiopian MFIs nominally state ‘the dividends are not distributed to shareholders’ however; there were tangible cases of dividend distribution to the major shareholders. Some of the big names in the MFIs business also own larger shares in various private and governmental MFIs.
“Most the above listed MFIs operate closely with Kebele Administrations, with some of them having offices shared with Kebele administrations. They have showed high level of dependency on Kebele authorities than operating independently. All of them call customers for loan appraisal, disbursement and collection, which 53 resulted into overlapping of service providers and looting of customers.” A recent report revealed.
We have also been able to document words of discrimination, coercion and repayment harassment from clients who weren’t willing to support or join the ruling party or were unable to repay on time.
“My application for credit was evaluated by Credit and savings Committee, which is composed of two Kebele (Governmental district office) Committee members and three representatives from various community associations (including the women and youth associations, elders) and one ACSI employee. It really gave me unease because I had fallen out with the Kebele official once when he tried to force my wife to vote for him in the local elections. As can be expected ,they didn’t approve my credit application” Kagane (not a real name), farmer in Finote Selam, Northern Ethiopia laments .Credits are given to coopertaive assocations or individuals making the major form of evaluation criterion 'political opinion' than other logistical requirements.
Failure of Loan Repayment
There is a short period of loan, that is, a maximum of 12 months and group guarantee and possessions are taken as collateral and loan size of 5000 Birr for micro credits. "The step in getting back loans from the poor farmers has two steps," a researcher explains. "It begins with family and group pressures. If this fails the MFIs revert to using Kebele Courts."
The Kebele Courts have been used by the state apparatus to punish dissenters and failed debtors. Headed by untrained party loyal jury, these Social Courts pass decisions that includes confiscation of the property of the debtor to settle repayments and even arrest. In both the studied regions; Amhara and Oromia, credit clients have expressed their dissatisfaction, resentment at the ‘irrational’ and ‘nepotistic decisions’ of the Courts.
Although not officially recorded, up to 100 clients of government owned MFIs have committed suicide since 1996.Thousands went into a life of begging, prostitution or lost their properties due to severe measures taken by the Kebele Courts as most failed or ‘refused ‘to pay loans on time .Besides these punishments, many of those who failed to repay their loans recount of being subjected to severe and continuous psychological trauma by the Committee, Group and Court members, portarying them as indecent and ‘milkers’ to their peers.
Does micro finance really work for the poor?
There are many success stories of Ethiopians who have succeeded in making their own fame and wealth out of the credits they received from these MFIs. Lives have been truly changed. Out of these successes most have gradually been recruited by the ruling party to serve both as cases of successful capitalists for the Western neoliberal donors and double agents within their communities. Regardless, of this merits, MFIs demerits have been unreported by most media making them saintly and perfect.
“The regime uses MFIs to present itself as a capitalist, liberal government, pro poor, and socially responsible as well while it fundamentally uses them as grassroots organisations of spying and controlling the community.” Says an Ethiopian, Associate Professor of Development Studies, opting to remain anonymous.
MFIs are sarcastically described in the colloquial of clients and non clients of MFIs in Amhara and Oromia regions respectively as ‘Wedo Eda’,‘Eyayu Gedel’ and ‘Bollo Senee’ both literally translated as ‘entering a hole’. This describes how MFIs are viewed within the local community, explaining their ‘suicidal’ nature.
Wrap up
According to the Ethiopian Ministry of Foreign Affairs report of 2006 on 26 MFIs in Ethiopia the combined outreach in terms of number of clients accessing both credit and saving products in September 2006 reached close to 1.5 million. Outstanding loans and saving mobilized respectively reached over two billion and close to 755 million birr. This shows how increasingly penetrative and useful options of micro and small finance ,MFIs have become, still with the disadvantages and negative impacts sugar coated.
In general outlawed foreigners involvement; feelings of resentment, favouring ,manipulation and discrimination and enrichment of few by MFIs ; abusive and extrajudicial and inhuman decisions and enforcements by Kebele (District) Courts dominate the untold stories of Ethiopian MFIs resulting in the suicides and total bankruptcy of the MFIs clientele that were unable to payback their loans.
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I have no idea where Senayet is at now; alive or dead. But that young lady of early 20s was destroyed due to her mere inability to repay her loans to a governmental MFI. She could still be cleaning those big, dark and hot offices of the Hotel.
Tariku Chimdesa contributed to this story by doing two weeks undercover observation and study from Ethiopia.
Peaceful Demonstrations in 2005
Gamu-Gofa was a province in the southern part of Ethiopia, named after two of the ethnic groups living within its boundaries, the Gamo and the Goffa. This province is bordered on the west and north by Kaffa, on the north and east by Sidamo, on the southeast by Lake Chew Bahir, and on the south by Kenya and Lake Turkana.
Gamu-Gofa province came into existence as a result of Proclamation 1943/1, which created 12 taklai ghizats from the existing 42 provinces of varying sizes. With the adoption of thenew constitution in 1995, Gamu-Gofa was reorganized into the Semien Omo and Debub Omo Zones of the Southern Nations, Nationalities, and Peoples Region of Ethiopia.
Based on the 2007 Census conducted by the Central Statistical Agency of Ethiopia (CSA), this Zone has a total population of 1,593,104, of whom 793,322 are men and 799,782 women; with an area of 11,010.99 square kilometers, Gamo Gofa has a population density of 144.68.
Various Ethiopian and foreign based dissident journalists and media have been reporting that Ethiopia could be the next country to experience the popular uprisings of Northern Africa.
Addis Abeba, the capital city of Ethiopia is under the strict surveillance and monitoring of security personal serving the incumbent .All forms of communication are also filtered by Chinese and regime's loyal Communication experts.