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Tuesday, November 11, 2014

Ethiopia Participates in the World Travel Market in London

Ethiopia participated in the World Travel Market exhibition in London last week (November 3-6). An opening ceremony was held at the Ethiopian stand by Ethiopia's Ambassador to the UK, Ambassador Berhanu Kebede, the, Director General of the Ethiopian Tourism organization, Solomon Tadesse, and Ethiopian Airlines Area Manager , Michael Yared.

The World Travel Market (WTM) is an event which brings together professionals and decision makers representing the global travel and tourism industry. It is an important platform for promoting tourism internationally.

This year, Ethiopia was represented by a number of outstanding companies including Ethiopian Airlines, the Kuriftu Resort and twelve of the country's best known tour operators.

The Ethiopian Tourism Organization, the Government's tourist promotion arm, coordinated the participation. A number of other ecents were also organized in conjunction with the World Travel Market including a public lecture on the Rise and Fall of the Axumite Kingdom was given by Professor David Philipson, and a cultural music show and photo exhibition at the Royal Geographic Society.

The potential for tourism in Ethiopia and the efforts to improve it were also highlighted at a press conference which was addressed by Mr. Talib Rifai, Secretary General of the United Nations World Tourism Organization who had recently visited the country.

Ambassador Berhanu Kebede said that the Government of Ethiopia attached great importance to the sector and had embarked upon the implementation of policies and strategies designed to exploit the country's tourism potential and maximize the benefits from the sector.

He mentioned the construction of roads and airports to improve access to tourism sites as well as duty free privileges and other incentives to encourage the private sector to construct and operate hotels, resorts and recreation facilities. He underlined the importance of the tourism sector and the crucial role it played in generating foreign exchange and creating jobs.

Source: Allafrica

Monday, November 10, 2014

NIB Improves Profits but Fails to Satisfy Shareholders

Nib International Bank S.C. (NIB) has registered a 313.7 million Br profit after tax, reversing the mere 33,000 Br profit registered last year. Last year's dismal figures were attributed to enormous capitalisation.
Its latest profits are up by 11pc from the 286.3 million Br registered in 2011-2012. This is in addition to a 20pc increase of paid up capital, to 1.2 billion Br on last year's performance, and a 67.5pc growth on 2012's performance.
However, NIB's earnings-per-share (EPS) has decreased progressively, from 190 Br to 143 Br over the past four years.
"Even though there are benefits of increasing paid up capital, its impact on earnings, as well as dividends per share, should not be ignored. NIB should seriously review its capitalisation policy and use existing capital efficiently," said Abdulmena Mohammed Hamza, accounts manager for the Portobello Group Ltd, a London based holding company. "If there is a need for increasing capital, it should be in line with profit growth."
In contrast, the bank's officials saw its capitalisation as a positive development."We decided to boost our capital base irrespective of the decline in EPS, as a long term strategy, to ensure the durability, as well as the financial capability of the bank," said Mulugeta Dilnesaw, the bank's corporate planning and business development director.
According to Mulugeta, there are two reasons the bank is focusing on capitalisation: the recommendation for banks to have a strong capital base following the 2008 global financial crisis, and the 27pc of total loans invested into national bank bonds.
The bank, which was established in May 1999 by 717 shareholders, now has more than 3,500 shareholders. They are unhappy about the declining EPS, according to one shareholder who attended the annual shareholders' meeting on November 1, 2014, at Millennium Hall.
"It is good to see the bank showing progress from last year's net profit, but I feel it can do better, it is not enough. This was the mood shared by shareholders," he said.
Bank officials admitted that it was kept busy by internal problems and unable to significantly boost net profit after tax, the shareholder said.
However, NIB has performed well in financial intermediation operations, as well as in other areas of business. The interest earned on loans, advances, deposits, treasury bills and National Bank of Ethiopia(NBE) bonds has gone up by 21.66pc to 694.09 million Br. Non-interest incomes, such as service charges and commissions, gains on foreign exchange dealings and other income, have also increased by 22.85pc to 344.81 million Br.
"Despite the constant decline in gain on foreign exchange dealings being reversed, it is still lower than what it was five years ago," added Abdulmena.
Gain on foreign exchange dealings in 2010 was 130 million Br, whereas, in 2013 and 2014 it was registered as 65 million Br and 73 million Br, respectively. The total deposits mobilised by NIB have increased by 19pc to 7.9 billion Br, with the loan-to-deposit ratio increasing from 66.56pc to 68pc.
NIB has been very successful in increasing the loan-to-deposit ratio over the past four successive years. Deposits with foreign banks declined 77pc from 357.4 million Br to 82.2 million Br year-on-year.
If decline continues at this level, NIB may face difficulties in maintaining its liquidity, as well as earning more income from foreign exchange dealings, predicted Abdullemana. He recommended that NIB should scale up its deposit mobilisation efforts and look for long term funding sources. It also needs to consider putting a brake on increasing its loan-to-deposits ratio, he stated.
The bank showed such strong decline due to the shortage of foreign currency in Ethiopia and falling export revenues from gold and coffee, says Mulugeta.
The bank has made other advances, opening 20 new branches to increase its total branches nationwide to 91.
The total assets of NIB have reached 10.747 billion Br. NIB disbursed loans and advances currently stand at 5.4 billion Br, showing an increase of 22pc. It has invested 2.686 billion Br in NBE's five year bond at three per cent. The investment in NBE bonds accounts to 25pc of the total assets and 34pc of the deposits of the bank.
Source: AllAfrica

Thursday, November 6, 2014

Posted on Thursday, 06 November 2014 12:28 Ethiopia, Egypt seek closer ties as Nile hydroelectric dam advances

Egypt's President Abdel-Fattah El-Sisi and Ethiopian Prime Minister Hailemariam Desalegn, met at an African Union summit in Malabo in June this year. Photo©Reuters
EGYPT'S PRESIDENT ABDEL-FATTAH EL-SISI AND ETHIOPIAN PRIME MINISTER HAILEMARIAM DESALEGN, MET AT AN AFRICAN UNION SUMMIT IN MALABO IN JUNE THIS YEAR. PHOTO©REUTERS
Ethiopia hopes a raft of deals signed with Egypt on Monday would enhance frosty relations with its North African neighbour, despite Cairo's lingering concerns over the potential impact of a 6,000MW power dam project.

The two countries have been engaged in a dispute over the construction of the East African country's $5bn Grand Ethiopian Renaissance Dam (GERD).
We do the right thing on the basis of accepted international norms and laws
Ethiopia says more than 40 per cent of the dam is completed so far.
The dam has been a source of concern for the Egyptian government since May last year, when images of the dam's construction emerged in the media.
Cairo fears the operation of the dam, built on the Nile, will reduce the flow of water and threaten livelihoods.
Ethiopia, however, has repeatedly dismissed Egypt's concerns, saying the hydropower dam project will not consume water.
Leaders of the two nations, Egypt's President Abdel-Fattah El-Sisi and Ethiopian Prime Minister Hailemariam Desalegn, met at an African Union summit in Malabo in June this year, where they embarked on an initiative to ease tensions and further enhance cooperation in other areas.
An Egyptian delegation, led by Foreign Minister Sameh Shoukry, was in Addis Ababa earlier this week to iron out various cooperation deals and sign a Memorandum of Understanding in several areas including education, trade and health.
Ethiopia's Foreign Minister Dr Tedros Adhanom said the two countries "have been linked indissolubly by the great River Nile".
And now, he said, the two countries need to work more "effectively to implement agreements signed" despite their low level of trade and economic relationship so far.
Tedros has also assured Egypt that his country would follow the right path while carrying out the Dam project.
"We do the right thing on the basis of accepted international norms and laws," he said.
The GERD will have far reaching benefits for all the people of the region, he said, reiterating "the fact that the purpose of the Dam is hydro-power generation".
Ethiopia plans to export electricity to neighbouring countries, including Egypt.
Foreign Minister Shoukry on his part said Egypt "appreciates Ethiopia's right to development without conflicting with Egypt's water rights".
In a joint communiqué released following the fifth Ethio-Egypt Joint Ministerial Commission Meeting on Monday, the two foreign ministers promised to stick to the agreed points in Malabo.
According to the communiqué the two "reaffirmed their commitment to the joint statement issued in Malabo in this regard as a momentum for their future cooperation".
Among other things, the Malabo's statement says the two countries agreed to respect the dialogue over the Nile dam and cooperation between the two countries.

State Minister Dewano Meets Representatives of Green Fuel Solutions

State Minister for Foreign Affairs, Dewano Kedir, met on Tuesday (November 4) with representatives of Green Fuel Solutions and its partners. The delegation was headed by Marlon Pujol, GFS' Director of Development who stressed GFS was willing to work in concert with Ethiopia in the field of green energy development.
This would allow for a continuous exchange of technology and expertise, he said, adding that GFS considered Ethiopia as a key manufacturing development partner in Africa in the area of green energy resources. Engineer Girma Allaro, President of GADB Development Company, explained that Green Fuel Solutions process municipal and other waste through a low heat and low pressure proprietary catalytic system, and convert it into high grade fossil-free fuel, including diesel, kerosene, and fuel oil. The process also produces electricity and an asphalt component.
Engineer Girma emphasized that a partnership with Ethiopia would be for the mutual benefit of the people and the company. The process would add a new and powerful element to Ethiopia's green energy development. Dr. Getachew Tikubet, Director of Bio-Economy Africa, said that GFS' focus area was climate-resilient green economy and this was in harmony with Ethiopia's development policies and green growth strategy.
He said the company's participation would expedite and accelerate the green development agenda, adding that the conversion of waste materials (plastic, wood and grasses in the river valleys) into fossil free fuel would provide for fertilizers and animal feed, contribute to wild life conservation and encourage tourism. State Minister Dewano underlined the business and investment areas and opportunities that existed. He noted that Ethiopia's development policies matched GFS' green energy ideas, and emphasized that Ethiopia highly valued its partnership with GFS in the fields of clean energy, tourism and industry. He assured the delegation that the Ministry of Foreign Affairs, together with other Ministries and agencies, would support GFS in making its projects successful.

First of its kind in Ethiopia

First of its kind in Ethiopia 
For the first time there has been a sentence passed down regarding cyber crime in Ethiopia. Yonas Kassahun was sentenced to two years in prison and a 5,000 birr fine for hacking into a third party's email address. 
The Sixth Criminal Bench of the Federal First Instance Court, Arada District handed down the first of its kind sentence for email hacking into a third party's computer system.  
The court saw the case for over a year and half and handed down the plea guilty on October 22 and the verdict on October 27. 
The revised criminal code of 2004 did include computer crime but this is the first time there has been a ruling in a computer related case, an expert said. 
The decision is relevant because now there is likely to be increasing incidents of cyber hacking, especially in the financial sector. 
Yonas was accused of hacking into the email of his former girlfriend Akiko Seyoum, when he was in Germany during June 2012, according to the court's final verdict document.
The Arada Court said digital forensics indicated that the defendant hacked into the plaintiff’s email address and damaged documents that she exchanged with various companies and individuals.
The court stated that the defendant was found guilty after evaluating the two sides’ argument. The testimony was proved by the Information Network Security Agency (INSA) which in turn sent it to the Federal Police. The Agency said that on June 7, 2012 Yonas got into her email account and damaged documents from her inbox. According to INSA’s evidence the defendant removed data from the defendant's email by hacking into her electronic address. The evidence was sent to police in January 2013 and stated that the defendant removed data from Akiko's address and sent it to his and a third party email account.
Experts said that the current decision is the first in the nation's judicial history.  
Some cases are related to cybercrime but it is difficult to get evidence, experts said.
Previously in 2012 one case was related to the transfer and withdraw of 9.9 million birr from various bank accounts by the bank clerk of the Construction and Business Bank. It was prosecuted under article 407, which criminalizes abuse of power by public servants. Another case involved hacking the password of ATM cards but it was thrown out due to lack of evidence. 
Desalegn Teresa, public relation head of the Ministry of Justice, told Capital that the current decision would be the first involving cybercrime in the country. He said that another case is also under investigation. “Other cases related with technology involving damaging or theft of the fiber optic cable for telecom service is underway,” he said.
The cybercrime is included in the 2004 penal code titled ‘crimes against rights in property’, which is a revision of the 1957 law. The penal code criminalizes four types of malicious cyber conduct; unauthorized access, causing damage to data, disrupting the use of computer services and misuse of computer devices. 
Yonas’ case was also heard under article 707 (2 (a)) of the criminal code. 
The penal code articles from 707 to 711 are also stated about cybercrimes and penalties.
To enforce cyber security the government formed INSA, which was established in 2006 and reestablished in 2011 by the Council of Ministers. It is the sole cyber security organ in the country with the objective of ensuring that information and computer based key infrastructures are secured.  
Experts said that the country is now expanding the use of electronic payment system and strong cyber security is needed to encourage people to use the system. 
Cyber crime was mentioned for the first time over a half century ago in the US

Tuesday, November 4, 2014

Office 365 now available in 140 total markets including Afghanistan, Ethiopia, and Nepal

Office 365 now available in 140 total markets including Afghanistan, Ethiopia, and Nepal
Microsoft has announced today that Office 365 is now available in nine new markets, making the service available in a total of 140 markets. Office 365 brings together the Microsoft Office productivity suite, including Office, SharePoint Online, Exchange Online and Lync Online, coupled with an always-up-to-date cloud service and an affordable monthly subscription.
"In the past five years, that vision has expanded across the globe - from 40 markets in 2011 to 88 markets in 2012 to 127 markets in 2013. And today that number grows to 140. We are proud to announce that O365 is now available commercially to customers in the following nine new markets: Afghanistan, Botswana, Ethiopia, Namibia, Nepal, Tajikistan, Tanzania, Uganda, and Zambia," Microsoft stated in an official blog post.
Microsoft also revealed today that Office 365 will be available for non-profits (direct only) in Cyprus, Estonia, and Paraguay. You can check out the entire list of markets with Office 365 here.
Microsoft recently announced that Office 365 customers would get unlimited storage space on OneDrive at no additional cost. This bump in storage space applies to Office 365 Home, Personal, and University customers. This means you don't have to worry about the storage space anymore, you can upload all your documents to Microsoft's cloud storage service.
Source: winbeta.org/

Monday, November 3, 2014

1984 GREAT ETHIOPIAN FAMINE: TPLF STILL LICENSED TO STEAL

1984 GREAT ETHIOPIAN FAMINE: TPLF STILL LICENSED TO STEAL

 by Alemayehu G. Mariam*
Remembering the Great Ethiopia Famine of 1984 (Part II)
In my commentary last week, (Remembering the Great Ethiopia Famine of 1984, Part I), I reviewed various commentaries I had written over the years challenging the fabricated and false claims of the Tigrean Peoples Liberation Front (TPLF) and its late leader Meles Zenawi that there has been no famine in Ethiopia since they took power in 1991. I argued that Meles & Co., in a silent conspiracy of semantics and word games with the international donors and loaners, have managed to successfully conceal the existence of famine ravaging various parts of Ethiopia for over two decades. I concluded that famine in Ethiopia sugarcoated with fancy words and phrases is still famine!
Gebremedhin Araya (L), Max Perbedy (C), Tekleweyne Assefa (R)
Gebremedhin Araya (L), Max Perbedy (C), Tekleweyne Assefa (R)
In Part II of my memorial to the victims of the 1984 famine, I revisit the great TPLF swindle of humanitarian aid during the 1984-86 famine. I first wrote on the TPLF theft of humanitarian aid during this period in my May 2011 Huffington Post commentary entitled, “Licensed to Steal”. Using interview evidence from two former top TPLF leaders, I examined the scope and magnitude of the of the criminal diversion of humanitarian aid by the TPLF for weapons purchases and other non-humanitarian purposes. The pattern and practice of international aid corruption by the TPLF which began in 1984 still persists in 2014 with today with finesse and sophistication.
“Ali Baba” Meles and the 40 TPLF/REST Aid Thieves in 1984-85
In 1984-85, at the height of the catastrophic famine in Northern Ethiopia, nearly a quarter of a billion dollars were raised internationally for famine relief. That famine was extreme and unprecedented in its severity. Michael Buerek of the BBC who visited the Tigrai region in 1984 described the situation as “a biblical famine in the 20th Century” and “the closest thing to hell on Earth”.
In 1984-85, normal delivery of emergency humanitarian aid to the Tigrai region and other famine-stricken areas in Northern Ethiopia was virtually impossible because of rebel activity and bombardment by the Derg military junta. The roads normally used to deliver aid supplies to the Tigrai region from the capital had become unusable because of intense rebel military activity. The various international famine relief non-governmental organizations (NGOs) had to find alternate routes to quickly deliver relief aid to famine victims in rebel-controlled areas.
As an alternative, many of the NGOs set up shop in Eastern Sudan close to the Tigrai border to expedite food delivery to famine victims. The large concentration of NGOs on the Sudanese border and the publicity surrounding the enormous fundraising efforts by various international celebrities for Ethiopian famine victims caught the attention of the TPLF leaders who saw a lucrative business opportunity for themselves and their rebel army. They proffered themselves to the NGOs as effective conduits for relief aid delivery in the areas they controlled.
According to Gebremedhin Araya, a former treasurer and TPLF co-founder Dr. Aregawi Berhe, top TPLF leaders including the late Meles Zenawi, implemented an elaborate scam to swindle millions of dollars from international famine relief organizations earmarked for famine relief. Gebremedhin and Aregawi stated Meles and his top cadres hatched out and successfully executed a fraudulent scheme to use a front “humanitarian relief” organization called “Relief Society of Tigrai” (REST) for aid delivery. The TPLF leaders managed to “convince” the various NGOs operating out of the Sudan that REST is a genuine charity organization completely separate from the TPLF, the military wing. In fact, REST was the other face of the TPLF coin.
Dr. Aregawi Berhe, presently in exile, explained the TPLF’s sophisticated aid fleecing scam to BBC’s Martin Plaut:
… Sometimes we were using aid money to buy arms through secondary means. You come to the Middle East, you can buy arms if you have the money. So we were using some of the money to buy arms. You know this organization called REST, Relief Society of Tigrai. It was the humanitarian wing of the TPLF, and through REST aid money was coming to the TPLF. So when you get this aid money, you make a budget for relief, for the Front or to buy arms, medicine and so on. I would say we were relying on the aid money for sustaining the struggle.
We are talking about millions of dollars. I can cite you a concrete example. In 1985, when Tigrai was hit by a terrible famine, aid money was flowing through REST to the TPLF. So the MLLT (Marxist-Lennist League of Tigrai), and the TPLF leadership which is almost one and the same had to budget for $100 million U.S. dollars. I remember Meles Zenawi suggesting that 50 percent of that money should go to TPLF activities; 45 percent should go to MLLT organizing and 5 percent to support the victims… I know these two guys [Araya Gebremedhin and Tekleweyne Assefa]. They are TPLF fighters. One is pretending to be a merchant the other is pretending to be buying the sorghum from the merchant. Both of them are TPLF senior cadres and they are just doing a drama, pretending to be a merchant. All these things are dramas to get the money. [NGO representative Perbedy pictured above fanning a wad of cash] was fooled.”
Gebremedhin corroborated Aregawi’s statements. Gebremedhin (pictured above counting cash) said he personally handed cash payments in the hundreds of thousands of dollars to the late Meles Zenawi and the serpentine Godfather of the TPLF, Sebhat Nega. Meles and Nega, the two TPLF head honchos, controlled the cash flow of the TPLF. Although Gebremedhin was the chief TPLF treasurer, he said he was kept in the dark about the uses of the money obtained from the NGOs after he delivered it to Meles or Nega. Gebremedhin nevertheless had well founded suspicions about the uses and misuses of the money. However, the incriminatory evidence, (including the candid photograph above depicting the two TPLF cadres and Max Perbedy, a representative of Christian Aid, one of the largest UK NGO, counting and recording stashes of cash in a large satchel on the floor), is shocking as it is damning and irrefutable.
To magnify the severity and dramatize the gravity of the famine situation for the NGOs, the TPLF leaders ordered the exodus of large numbers of victims from Tigrai into the Sudan creating a mushroom of refugee settlements overnight along the northern Sudanese-Ethiopian border. Using different techniques and methods, the TPLF leaders stage-managed an elaborate marketing “drama” for the NGOs to deliver aid to the large famine-stricken population inside Tigrai. This was done principally by organizing a small group of their most trusted and inner circle members to pose as “grain merchants” and solicit business from the NGOs.
The NGO deception games, or more accurately the Western NGO famine aid-sharking scheme, were varied. At the onset of the scam, the TPLF leaders used a three-staged process. In stage one, one group of TPLF/REST officials masquerading as legitimate grain merchants would approach the myriad NGOs and offer to sell them substantial quantities of grain for quick delivery to the famine victims. At the time, the TPLF had acquired hundreds of heavy trucks and stashed in secret underground warehouses grains from various sources, including NGOs, for use by its fighters. These secretly stashed grain stockpiles were in fact being offered for sale to the NGOs. The TPLF/REST “grain dealers” would make grain sales deals with the NGOs, complete the sale transaction and return back to their hideouts with the cash payment. Gebremedhin personally played a direct role in this drama as a “grain dealer”. He described his role with stunning simplicity:
I was given clothes to make me look like a Muslim merchant. The NGOs don’t know me because my name was Mohammed. It was a trick assigned (created) by the top leaders for the NGOs. I received a great amount of money from the NGOs and the money was automatically taken by (the TPLF) leaders. The money, much of it, the leaders put it in their accounts in Western Europe. Some of it was used to buy weapons. The people did not get half a kilogram of maize. Once the grain “purchase” was made another group of TPLF/REST operatives would take over the responsibility of “delivering” the relief aid inside Tigrai.
In the second stage, TPLF/REST officials would facilitate spot checks of grain stockpiles in their own secret warehouses. But the warehouses were tricked out. Gebremedhin said, “if you go there, half of the warehouse was stacked full of sacks of sand.” Gebremedhin said the NGO representatives would perform cursory visual inspections of the stockpiles in the warehouses, give their approval, make payments and cross back into the Sudan to make arrangements for additional grain purchases.
In the third stage, the same or different group of TPLF/REST operatives would go back to the NGOs and make a pitch for additional sales of grain for delivery in a different part of Tigrai. These offers did not actually involve any new or fresh supplies of grain. Instead, stockpiles of grain already in secret storage facilities in various locations throughout Tigrai were trucked around and shuttled to new locations, giving the appearance to the NGOs that fresh supplies of grain were being bought in for delivery. Since the aid workers had no means of independently verifying the grain that they are paying for is grain that is being shuttled from one location to another from TPLF stockpiles of fresh shipments, they would perform their usual cursory inspections and make payments. In that manner, TPLF/REST were able to sell and resell multiple times the same previously acquired stockpile of grain (and sand) to the NGOs generating millions of dollars in revenue.
Martin Plaut, who as a BBC reported from the famine regions of northern Ethiopia in the 1970s’, in his March 2010 report identified a 1985 official CIA document which concluded, “Some funds that insurgent organizations are raising for relief operations, as a result of increased world publicity, are almost certainly being diverted for military purposes.” Robert Houdek, a senior US diplomat in Ethiopia in the late 1980s, was quoted by the BBC saying that TPLF members at the time told him that some aid money was used to buy weapons. An aid worker named Max Peberdy stated that he had personally delivered to TPLF/REST officials $500,000 in Ethiopian currency to purchase grain.
The prima facie evidence of massive relief aid diversion and theft in 1984-85 by the TPLF is compelling and damning as Gebremedhin has detailed it in his articles. (To access Part I of Gebremedhin’s Amharic article, click here; for Part II, click here.)
The evidence of TPLF aid theft and conversion is further corroborated by Prof. Seid Hassan in his meticulously researched and documented article, “The State Capture Onset in Ethiopia: Humanitarian Aid and Corruption” (recommended reading). Prof. Hassan concluded, “The documents I examined and the interviews and testimonials I gathered indicate that donors and aid agencies knew that the Relief Society of Tigray (REST) was the flip-side of the same coin- the TPLF and aid agency personnel knew a portion of the humanitarian aid that they were providing was being diverted for military purposes by the Fronts…”
Those accused of involvement in the wrongdoing have dismissed the evidence as “rubbish”; they have not called for a full fact-finding inquiry to clear their names of such serious and grave charges. Until such inquiry takes place, the evidence of aid-sharking and theft stands unchallenged and unrefuted. Bob Geldof who organized Live Aid/Band Aid in 1984 collecting tens of millions of dollars in donations upon hearing of the claims of misuse of famine aid for arms purchases threatened, “If there is any money missing I will sue the Ethiopian government.”
One must grudgingly admire these TPLF con men for their sheer audacity, genius and creativity in ripping off tens of millions of dollars earmarked for famine relief from the NGOs in the mid-1980s (and also for the past twenty-three years from the Ethiopian people). Truth be told, Ali Baba and his 40 thieves could not have pulled off such a brilliant scheme to sell and re-sell to the NGOs the same sand as grain over and over again. Even Hermes, the Greek god of thieves, would not have been able to come up with such an exquisitely perfect plan to hoodwink and bamboozle gullible NGOs of hundreds of millions of dollars. The TPLF leaders truly deserves the title, “A New Breed of African Thieves”.
REST (Relief Society of Tigray) never rests
U.S. food assistance in Ethiopia is administered Ethiopia exclusively through three foreign NGOs (Food for the Hungry (FH) (self-described as a “Christian organization serving the poor globally since 1971”), Save the Children (SC) (self-described as “the world’s top independent charity for children in need”), Catholic Relief Services (CRS) (the “official international humanitarian agency of the Catholic community in the United States”) and one domestic NGO, Relief Society of Tigray (REST). The very same REST that facilitated the swindling of hundreds of millions of aid dollars in 1984-86 is facilitating food aid delivery in Ethiopia in 2014.
Between 2010 and 2014 (and quite possibly prior to 2010 as well), REST was the ONLY domestic NGO involved in the distribution of over USD$1.5 billion in food aid. According to an August 15, 2014 USAID report, USAID through its Office of Food for Peace provided REST and other international NGOs USD$237 million in 2014; USD$236 million in 2013; USD$307 million in 2012; USD$313 million in 2011 and USD452 million in 2010.
REST still describes itself as the “humanitarian wing of the Tigray People’s Liberation Front”. REST in 2014 is in fact a behemoth domestic NGO monopoly and a conduit for the diversion and laundering of international aid funds to the TPLF just as it was in 1984. It has no domestic competition in the distribution of international food aid in Ethiopia. As a matter fact, the so-called “Proclamation on Charities and Society” which decimated virtually all NGOs in Ethiopia (in 2010 after enactment of that law the number of civil society organizations in Ethiopia was reduced from about 4600 to about 1400 in a period of three months) made REST the undisputed domestic NGO monopoly. According to one Ethiopian scholar, REST is a TPLF conduit. “The initial capital for TPLF’s business empire apparently came from several sources. A major conduit was the Relief Society of Tigray (REST), a famine-relief charity run by the Front. REST is widely credited for serving as an effective front organization for funneling aid money and materials from unsuspecting as well as willful foreign benefactors into TPLF coffers.”
The fact of the matter is that under the so-called Charities law, the only domestic NGOs allowed to operate in the country are those that are wholly owned subsidiaries of the TPLF or others who have established partnerships with individuals and organizations affiliated with the TPLF. In 1984, the TPLF laundered international humanitarian aid through REST. In 2014, the TPLF still launders international humanitarian aid through REST. How ironic! The more things change, the more they remain the same!
In all of Africa, USAID has its largest aid program in Ethiopia. What has happened to the tens of billions of dollars in U.S aid given to the TPLF over the past 23 years? The answer to that question is a curiously mindboggling one! No one knows. Not even the USAID which has dumped billions of dollars into the coffers of the TPLF knows! That was the conclusion of the U.S. State Department Office of the Inspector (IG) in his “Audit of USAID/Ethiopia’s Agricultural Sector Productivity Activities (Audit Report No. 4-6663-10-003-P (March 30, 2010)”.
…The [IG] audit found the [Agricultural Sector Productivity] program is contributing to the achievement of market-led economic growth and the improved resilience of farmers, pastoralists, and other beneficiaries in Ethiopia. However, it is not possible to determine the extent of that contribution because of weaknesses in the mission’s performance management and reporting system. Specifically, while the mission used performance indicators and targets to track progress in several areas…, the results reported for the majority of those indicators were not comparable with the targets. Moreover, the audit was unable to determine whether the results reported in USAID/Ethiopia’s Performance Plan and Report were valid because mission staff could neither explain how the results were derived nor provide support for those reported results. In fact, when the audit team attempted to validate the reported results, it was unable to do so at either the mission or its implementing partners (pages 6-12)…
In October 2010, a few days after Human Right Watch released its report on the abuses of aid in Ethiopia, USAID and the Development Assistance Group (the 27 bilateral and multilateral development agencies providing “assistance to Ethiopia”, (sometimes collectively referred to as the “international poverty pimps”) issued a statement denying the “widespread, systematic abuse of development aid in Ethiopia. Our study did not generate any evidence of systematic or widespread distortion.” Tweedle Dee testifying as a star witness on behalf of Tweedle Dum!
As Dambissa Moyo has convincingly argued, international aid has been a trap for Ethiopia and other African countries. The wages of international aid in Ethiopia have been a vicious cycle of dependency, endemic corruption, market distortions, deepening poverty and terminal aid addiction.
Post Script:
There are two unsung heroes who have made significant contributions for decades in reporting on famines in Ethiopia. On the 30th anniversary of the Great Ethiopian Famine of 1984, I would like to personally thank Michael Duncan Buerk, the British journalist whose reporting of the 1984 Ethiopian famine not only inspired musician Bob Geldof to launch the Live Aid concert but also brought great international awareness to the suffering of the Ethiopian people. I also wish to thank Martin Plaut, who as a BBC reporter and later as Africa Editor, exposed the siphoning off millions of dollars in Western aid to victims of the Ethiopian famine of 1984-85 for weapons purchases. Walter Lippmann, the famous American writer, reporter, and political commentator observed, “There can be no higher law in journalism than to tell the truth and to shame the devil.” I do not believe there are any journalists who told the naked truth and shamed the devil about the Great Ethiopian Famine of 1984-85 than Buerk and Plaut. All Ethiopians owe them a debt of gratitude.
International aid is a vicious poverty trap for Ethiopians, but a license to steal for the TPLF!
Professor Alemayehu G. Mariam teaches political science at California State University, San Bernardino and is a practicing defense lawyer