Ethiopia’s stolen 8.4 billion dollars and EPRDF
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Ethiopia’s stolen 8.4 billion dollars and EPRDF
Ethiopia’s stolen 8.4 billion dollars and EPRDF
By Eskinder Nega
The folks at Global Financial Integrity may not know this, but their report on illicit financial flows is threatening to steal the thunder from an important milestone for the EPRDF, Ethiopia’s repressive ruling party, which will be celebrating its 20th year in power on the 28th of this month. And more than a harmless opportunity to gloat is slipping away. GFI’s report poses real danger of generating mistrust between EPRDF’s senior leadership.
Commissioned grandly by the UNDP, the development arm of the UN, GFI’s report explores the flow of illicit financial flows from Least Developed Countries (LDSs), of which Ethiopia has been an enduring mainstay. (Many countries, some in Africa, have moved up the ladder of development.)
Covering the 18 years between 1990 and 2008, which are all, but one, 1990, within the realm of EPRDF’s reign, the report includes Ethiopia, one of the world’s most impoverished countries, in the top ten countries from which funds have been transferred illegally in to banks and offshore financial centers in developed countries. The amount: a whooping 8.4 billion US dollars, which places Ethiopia at a shocking 9th place in the world, just below resource rich and gruesomely autocratic Myanmar with 8.5 billion dollars.
The report attributes the bulk, 65 to 70 percent, of Ethiopia’s illicitly transferred funds to trade mispricings. Somewhere in the remaining 30 to 35 percent—up to 3 billion US dollars—are the laundered monies of corrupt government officials, almost all exclusively members of the EPRDF.
Clearly, some EPRDF officials are amply prepared for a comfortable exile. And there are of course others who believe in the fairy tale of the party’s invincibility and see no need for a contingency plan. This will most probably be their wakeup call. The haste not to be left behind is now inevitable. The worst for the nation is yet to come.
Export figures released by the Ministry of Trade in late February 2011 show coffee still dominating the sector. Of the infinitesimal 1.14 billion US dollars the nation earned in six months from goods sold overseas in 2003(in the Ethiopian calendar), 320 million dollars were attributed to coffee.
Guna Trading House PLC, a holding of the Endowment Fund for the Rehabilitation of Tigray, EFFORT, a business empire managed exclusively by senior members of the EPRDF, is an exporter of coffee.
Guna is also a significant exporter of sesame seeds, another key export for the nation. Moreover, it has involvement in the import business.
There is no conclusive proof that EFFORT’s holdings are involved in trade mispricings, but the possibilities that exist for party leaders are cause for particular concern. Perhaps, only the tenure of Seye Abraha , who was EFFORT’s CEO before his fallout with Meles Zenawi and subsequent six years imprisonment, has been thoroughly scrutinized. (He came out clean.) With the EPRDF’s obvious old boy’s network cutting across party, government, and business circles, EFFORT is suspected by many of being a convenient conduit for illicit financial flows. But again, the hard proofs are lacking so far. (Ditto for the much smaller EPRDF affiliated endowment funds for other regions.)
Gold is now Ethiopia’s second biggest earner of foreign currency, bringing in about half as much as coffee. Most of it is exported by MIDROC, owned by Mohammed Al-Amoudi, an Ethio-Saudi billionaire, who owns the largest gold mine in the country. With hundreds of millions of dollars earned from exports, MIDROC is easily the nation’s principal exporter. Though instinctively apolitical, Al-Amoudi’s odd affiliation with the ruling party has long raised eye-brows. But even here, there is nothing more than a lingering suspicion that there is more than meets the eye.
A favorite of corrupt officials everywhere is of course kickbacks. A kickback is the difference between market price and inflated payment to a company that wins a government contract. It’s a favorite of third world dictatorships. And though practiced at all levels of government, the real money is with foreign companies, which is an exclusive preserve of senior officials. Arms procurement is their particular favorite. Interestingly, kickback from arms purchases was an issue during the wrangling for primacy between Meles and his critics in the EPRDF ten years ago. None of the charges were ever proved.
The 8.4 billions stolen from Ethiopia have no doubt mostly disappeared in to the black hole that is offshore banking. This is a huge part of international finance; more than 6 trillion US dollars lie there. The IMF estimates the illicit funds laundered annually by offshore banking at 1.5 trillion US dollars (of which half a billion is thought to come from fraud and corruption.) And until recently, Swiss was the favored haven. But since 2008, others, amongst them the Cayman Islands, have mrisen in popularity. The deposits in Cayman Island, whose population is only 54, 878, is estimated to hover around 1.9 trillion US dollars.
In Africa, Ghana aspires to be the new destination for international offshore banking. There are abundant reasons to shun infamous Switzerland.
Beyond the cruelty of stealing billions that could have gone a long way, in the words of UNDP, “to help children go to school, help mothers give birth safely, and expanding access to basic health care, better nutrition, and clean water and sanitation for all,” is the question of how this grand theft was possible.
The answer is simple: feeble rule of law; suffocated civil society; suppressed free media; nominal judicial independence; patronage based civil service—in sum, absence of a democracy with checks and balances. Where there is despotism there is corruption; particularly in the presence of a private sector. The problem is compounded when politics and business mix, which is the case for Ethiopia.
The extent of corruption in Ethiopia, as indicated by the stolen 8.4 billion dollars, is a shocker not only to the naïve supporters of the EPRDF but also to its severest critics. Simply put, no one imagined it to be this big. But it is, and the problem requires an urgent remedy.
This is money that has been stolen from Ethiopians, including all but a handful of the alleged 5 million members of the EPRDF.
Rest assured that the time for accountability will come in due time.
_____________
The writer can be reached at serk27@gmail.com
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43 comments
Comment from: G [Visitor]
Well I like to hear the pro and con EPDRF duke it out on nazret. This going to be good one.
05/22/11 @ 23:49
Comment from: Agamino [Visitor] 
i have no clue for how long eprdf should be tolerant for such ignorant confused journalist/activist/hate monger...
.
.
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he types trash after trash like there is no tomorrow!
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.
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he acts like, a mouse who snifs the nose of a hungry cat.
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.
.
Can some body tell him that, NO ONE can save his ass when he is arrested.
i thought he has tried it before and he knows about Birtukan;the phony politician who is refered as Nelseon mandela by some losers in diaspora. you know about the diasporas they even call tamagn hero, lol
back to Eskinder Nega (confused creature):
get ready!
sooner or latter your ass will be some where behind bars!
prepare a well writen appology letter for the ethiopian people and the government.
By now you should know that, no loser diaspora nor foreigners will save you. (ask Birtukan)
your letter has to be well writen (better than Birtukan's)
you are going to be remembered by the losers in diaspora. i mean they will cry for a week then thats it.
.
.
.
he types trash after trash like there is no tomorrow!
.
.
.
he acts like, a mouse who snifs the nose of a hungry cat.
.
.
.
Can some body tell him that, NO ONE can save his ass when he is arrested.
i thought he has tried it before and he knows about Birtukan;the phony politician who is refered as Nelseon mandela by some losers in diaspora. you know about the diasporas they even call tamagn hero, lol
back to Eskinder Nega (confused creature):
get ready!
sooner or latter your ass will be some where behind bars!
prepare a well writen appology letter for the ethiopian people and the government.
By now you should know that, no loser diaspora nor foreigners will save you. (ask Birtukan)
your letter has to be well writen (better than Birtukan's)
you are going to be remembered by the losers in diaspora. i mean they will cry for a week then thats it.
05/22/11 @ 23:59
Comment from: JOe [Visitor]
Well well what a child aligatiopn, is that what you'r brother told you(Berihanu nega)....I think poor Ethioians now well know who is true and progressive. Tolate now Ethiopia going the right direction. Love it or live it.
05/23/11 @ 00:44
Comment from: The Patriot [Visitor]
I think Agamino has truely analyzed the situation and mind you all that what the report actually says and what the 'great' Eskinder is saying are totally different things. Anyway I think nobody 'buys' what this guy is scribbling these days. Mind you all that this is the same guy who told us that the 'might' of the Eritrean Air force will crush us if ever ( I hope never) there is a war with Eritrea.
The guy is confused of being an opponent to a government and being a patriot to the motherland.
Peace
The guy is confused of being an opponent to a government and being a patriot to the motherland.
Peace
05/23/11 @ 01:51
Comment from: Truth [Visitor]
To all woyane paid agents on Nazret.com:
Eskinder did not say Woyane stole the money. UNDP (for those ignorant woyanes: UNDP is an agency of United Nation, nothing to do with Eskinder)said Woyane stole the money. Therefore you are barking on the wrong tree. Go ahead and put the entire UN staff in Addis Abeba in jail. It seems woyane solution to all problems is putting people in prison. What a pathetic bunch of ignorant retarded bushmen!
Eskinder did not say Woyane stole the money. UNDP (for those ignorant woyanes: UNDP is an agency of United Nation, nothing to do with Eskinder)said Woyane stole the money. Therefore you are barking on the wrong tree. Go ahead and put the entire UN staff in Addis Abeba in jail. It seems woyane solution to all problems is putting people in prison. What a pathetic bunch of ignorant retarded bushmen!
05/23/11 @ 01:53
Comment from: lion [Visitor]
This is simply analogy and prediction letter. There is no prove of any money has been taken out. At most EPRDF are known for their honesty. The writer just try to predict and speculate without any tangible evidence of money stolen from Ethiopia. Come on, you can do better than that trying to convience your audience. Did they simply think, we are stupid and do know how to think for ourselef? These people are just praying something wrong would happen to EPRDF, but this is just wishful thinking. You need to listen to the majority of happey Ethiopians back home, not bounch of coffee burn out DC taxi drivers and parking lot workers. Come with better news, the train is leaving all of you who resist change.
05/23/11 @ 01:53
Comment from: menzew [Visitor]
How come UNDP establish such an allegation without even a single proof ?
05/23/11 @ 02:24
Comment from: Lie Detector [Visitor]
SHAMELESS LIAR, REAL ARTICLE BELOW...ETHIOPIA NOT EVEN IN TOP 20, WE DON'T HAVE THAT KIND OF MONEY.
Top 10 countries with the highest measured cumulative illicit financial outflows were:
1.China: $2.18 trillion
2.Russia: $427 billion
3.Mexico: $416 billon
4.Saudi Arabia: $302 billion
5.Malaysia: $291 billion
6.United Arab Emirates: $276 billion
7.Kuwait: $242 billion
8.Venezuela: $157 billion
9.Qatar: $138 billion
10.Nigeria: $130 billion
Top 10 countries with the highest measured cumulative illicit financial outflows were:
1.China: $2.18 trillion
2.Russia: $427 billion
3.Mexico: $416 billon
4.Saudi Arabia: $302 billion
5.Malaysia: $291 billion
6.United Arab Emirates: $276 billion
7.Kuwait: $242 billion
8.Venezuela: $157 billion
9.Qatar: $138 billion
10.Nigeria: $130 billion
05/23/11 @ 03:52
Comment from: Butajira [Visitor]
Dumbass, the article is not about government kickback, but rather businesses who don't pay taxes and hide their $$$ earnings overseas...The same big names EPRDF is throwing in jail right now, and you defend as political motivated victims.
Woregna, get in your taxi and go pick up the next call.
Woregna, get in your taxi and go pick up the next call.
05/23/11 @ 04:02
Comment from: henok [Visitor]
Eskinder,
This guy is really a foolhardy. He is forcing the government to put him in jail. No way. Just make your noisy letter. EPRDF knows when and how to strike. Enquanna lante niftam.....
This guy is really a foolhardy. He is forcing the government to put him in jail. No way. Just make your noisy letter. EPRDF knows when and how to strike. Enquanna lante niftam.....
05/23/11 @ 04:04
Comment from: Jay [Visitor]
The amount took me by surprise, but I always knew they were robbing the country. The fact that the country's most valuable export item is exported and handled by Azeb Mesfin is self explanatory. She simply transfers the cash to her bank account. It is disgusting. How many kids go to sleep hungry?...now my day is ruined.W
05/23/11 @ 04:33
Comment from: Imperial Body Guard [Visitor]
lion [Visitor],
"Honesty means not to oppress anybody and deny him his deserved share. It does not mean being irresponsible or conceited and dictatorial. We, on Our part, will never cease to eliminate conceitedness, oppression, subversion and corruption in order to maintain peace and national security." Selected Speeches of His Imperial Majesty Haile Selassie I, page 393
"The aim of those leaders that is based on ambition for power and personal gain is one with no firm foundation and will, consequently, crumble easily." Selected Speeches of HIM Haile Selassie I, page 471
"Man can only begin an enterprise, it is for God to dispose of it to a good end." Selected Speeches of HIM Haile Selassie I, page 391
Long Live the Constitutional Monarchy!
Long Live the Kebra Negast!
Long Live African Unity!
Fire burn down the alien imposed federation star of secession
Rise with the Lion of Judah!
Long Live Independent Ethiopia!
"Honesty means not to oppress anybody and deny him his deserved share. It does not mean being irresponsible or conceited and dictatorial. We, on Our part, will never cease to eliminate conceitedness, oppression, subversion and corruption in order to maintain peace and national security." Selected Speeches of His Imperial Majesty Haile Selassie I, page 393
"The aim of those leaders that is based on ambition for power and personal gain is one with no firm foundation and will, consequently, crumble easily." Selected Speeches of HIM Haile Selassie I, page 471
"Man can only begin an enterprise, it is for God to dispose of it to a good end." Selected Speeches of HIM Haile Selassie I, page 391
Long Live the Constitutional Monarchy!
Long Live the Kebra Negast!
Long Live African Unity!
Fire burn down the alien imposed federation star of secession
Rise with the Lion of Judah!
Long Live Independent Ethiopia!
05/23/11 @ 04:51
Comment from: Fitawrari Habesha [Visitor]
This guy should be thankful he can bark lies and slander and put out false allegations like this and be tolerated. We may be too busy building the Dam but we will punish those who need it.
05/23/11 @ 05:36
Comment from: Nahom [Visitor]
I am not a supporter or beneficiary of EPRDF. I do have the independence to call a spade a spade, if that is the case and if I found it to absolutely true. In my opinion, it will be too cynical to label EPRDF corrupt. Of course, it could be politically corrupt. I have seen many corrupt individuals ending up in jail from within the party and from outside by the very EPRDF with no exception. It won't be surprising if some individuals had managed to launder money without being caught. High executive managers and government officials from the CBE, ELPA, Revenue Ministry, and many other units have been investigated and sent to prison. My observation has been that there exist a few but much disciplined EPRDF members whose serious stance against corruption and their devotion to pro-poor ideas has bare fruitful outcomes. Some try to argue that, as long as there is a huge discrepancy between individual's personal income and the ever increasing living expenses, small time corruptions will likely to be around, even with the existence of stricter policies and stiffer punishments in place to fight the evil. I have a hard time taking that as an act of desperation or as a means of survival, because the process always hurts someone or many people. Here we are talking about big time money laundering born out of vicious greed and which robes from millions.
05/23/11 @ 05:37
Comment from: alexo [Visitor]
weyanes and hodader civil service graduates, the time is coming. you can't celebrate your 20th anniversary because we you will hate the day you were born soon. some of yours the derg officials in prison to chat about it.
05/23/11 @ 05:41
Comment from: Hawassa [Visitor]
Thank you! Thank You Eskinder!!
I don't understand why some people are expressing their life frustration as EPRDF agents here on cyber space. This is research based report by United Nations Agent. If there is some thing wrong with the report we expect an answer from the Government. It looks the Government has acceted the fact of the report. Putting Eskinder behind bars is/will not change the truth. yes, Eskinder gives sleep less nights for those evils. Keep it up! Tell the truth. We are anxiously waiting for your weekly commentary.
I don't understand why some people are expressing their life frustration as EPRDF agents here on cyber space. This is research based report by United Nations Agent. If there is some thing wrong with the report we expect an answer from the Government. It looks the Government has acceted the fact of the report. Putting Eskinder behind bars is/will not change the truth. yes, Eskinder gives sleep less nights for those evils. Keep it up! Tell the truth. We are anxiously waiting for your weekly commentary.
05/23/11 @ 06:03
Comment from: የታወቀ ነገር [Visitor]
This is the final exposure to the looting of Meles mafia's 20 plus years of robbing. Ato Eskinder had been a victim of the Meles circle since he was a true journalist. He stood by the people's side and out rightly told what the greedy hayinas were amassing for the past two decades.
አቶ እስክንድር አንዳለው የሃያ አመት ዘረፋ ምን ያህል እንደመጣ አወቅን ::
ስምንት ነጥብ አራት ቢሊዮን ዶላር ሲበዘብዙ ኑረው አሁን ብንባረርም ቤየአገሮቹ ያስቀመጥነውን ገንዘብ እንበላለን ብለው እያሰቡ ነው::
ዋናው ጉዳይ ግን እነ አሊበዚህ እንክዋን አላመለጡም የትም ቢሄዱም ገንዘባችን ይመለሳል::
በቃ::
በቃ::
በቃ::
እ ህ አ ዴ ግ ይውደም::
አቶ እስክንድር አንዳለው የሃያ አመት ዘረፋ ምን ያህል እንደመጣ አወቅን ::
ስምንት ነጥብ አራት ቢሊዮን ዶላር ሲበዘብዙ ኑረው አሁን ብንባረርም ቤየአገሮቹ ያስቀመጥነውን ገንዘብ እንበላለን ብለው እያሰቡ ነው::
ዋናው ጉዳይ ግን እነ አሊበዚህ እንክዋን አላመለጡም የትም ቢሄዱም ገንዘባችን ይመለሳል::
በቃ::
በቃ::
በቃ::
እ ህ አ ዴ ግ ይውደም::
05/23/11 @ 08:07
Comment from: afezoroge [Visitor]
i appreciate EPRDF to stay at FAR for this person who try to confuse our readers with false writings AND MEBAL ALEBET HULET SAYEL MALET NEW
05/23/11 @ 08:48
Comment from: Yohanes [Visitor]
Hi,
The capital flight problem is not unique to Ethiopia. It is common to all countries that have non-liberal monetary policies ( China, many african countries...)
Though it is not "good" for the country, business people have legitimate reasons to send dollars outside of the country. They simply cannot be certain of how things are going to be in the future. Ethiopia is not Switzerland you know...
The capital flight problem is not unique to Ethiopia. It is common to all countries that have non-liberal monetary policies ( China, many african countries...)
Though it is not "good" for the country, business people have legitimate reasons to send dollars outside of the country. They simply cannot be certain of how things are going to be in the future. Ethiopia is not Switzerland you know...
05/23/11 @ 09:22
Comment from: Kena Keb [Visitor]
If Eskendir Nega can not point out from this 68 or so pages of study report where it implicates individuals or deliberate acts of crimes by the Ethiopian government, his blanketing assertions remain dubious. In an attempt to incriminate the government, who he despises, he resorts to his wild imaginations.
Ethiopia shall prosper!!
Ethiopia shall prosper!!
05/23/11 @ 10:30
Comment from: zemenai [Visitor]
Sadly,our country has fallen under the enemy and we are now burdened by what the enemy has been doing to our country and people for the last two decades.it is unfair and as well as sad that we are carrying the cost,but the enemy will definitely pay the dreast price.
Ethiopians,in retrospect,what had we not done right and had not done the right thing that we let the enemy settled in our own country?
Does the enemy deserve day long stay in our country?
Remeber,the enemy would not depart volunterly leaving aside the lucrative business it has been doing with billions of dollars profit at the cost of the country and people.Today,the enemy,with billions of dollar in its bank account and a lot of Ethiopians' blood in its hands has fully turned 1,127,127 square kilometers of lands into its own business empire and 80 million Ethiopians slaves.
Ethiopians,remember this too:-the enemy prides itself in dividing,deceiving,robbing,and killing Ethiopians.But we are sufficient enough to fight the enemy and crush it to its defeat.We are one in being Ethiopians and must take the enemy very seriously.Meles Zinawi is a great divider,a great deceiver,a great lier,and a great destroyer.you can not find him in you because you are Ethiopians he is not.
let's all pledge and promise to ourselves and to our people and country that we make the year 2011,the year of victory over the enemy.
Ethiopians,in retrospect,what had we not done right and had not done the right thing that we let the enemy settled in our own country?
Does the enemy deserve day long stay in our country?
Remeber,the enemy would not depart volunterly leaving aside the lucrative business it has been doing with billions of dollars profit at the cost of the country and people.Today,the enemy,with billions of dollar in its bank account and a lot of Ethiopians' blood in its hands has fully turned 1,127,127 square kilometers of lands into its own business empire and 80 million Ethiopians slaves.
Ethiopians,remember this too:-the enemy prides itself in dividing,deceiving,robbing,and killing Ethiopians.But we are sufficient enough to fight the enemy and crush it to its defeat.We are one in being Ethiopians and must take the enemy very seriously.Meles Zinawi is a great divider,a great deceiver,a great lier,and a great destroyer.you can not find him in you because you are Ethiopians he is not.
let's all pledge and promise to ourselves and to our people and country that we make the year 2011,the year of victory over the enemy.
05/23/11 @ 12:21
Comment from: bex [Visitor]
I think Agamino out of touch when you talk about Skinder Nega well written on that Corrupt TPLF leaders ever body knows all Ethiopian Economy controlled by 10 or 20 TPLF regime and half of Ehiopian Economy controlled by Meles Wife when Ethiopian people begging for bread you trush wayane think before you speaking okay, Skinder Nega he didn't writen by him self look at it again,any way when the time is comes that all money is gona return to Ethiopian just like Libya leader Mohmmer-Gadafi no place to hide in 21first centure i thing the time to shut your up mouth and listening to people and pray for your self ya- wayane leje!!!
05/23/11 @ 12:30
Comment from: Abu Anja [Visitor]
To name some ancient thiefs like
Haile Meketa or Hadis Teklehaymanot
traditionally people from both Tegrey and Eritrea are kleptos by
blood.These two races by culture
stealing is in their genes andwill never change.Find me and tell me one person that is not a thief from
EFFORT or EPRDF central.I have estimated the loot to be 10 billion
3 years ago and it needs an upgrade
which I estimate fund controlled by
Meles and wife and EFFORT to surpass at least 20 Billion U.S.
that I can proof.So all you crybaby
supporters of this criminal regeim
will be exposed when the dust settels down.it wont be long
Haile Meketa or Hadis Teklehaymanot
traditionally people from both Tegrey and Eritrea are kleptos by
blood.These two races by culture
stealing is in their genes andwill never change.Find me and tell me one person that is not a thief from
EFFORT or EPRDF central.I have estimated the loot to be 10 billion
3 years ago and it needs an upgrade
which I estimate fund controlled by
Meles and wife and EFFORT to surpass at least 20 Billion U.S.
that I can proof.So all you crybaby
supporters of this criminal regeim
will be exposed when the dust settels down.it wont be long
05/23/11 @ 15:36
Comment from: mamo [Visitor]
So many "woyane Leba" agents and "ketafis" barking back when the truth about their deeds is being exposed out in the sun. Ethiopia will be rid of these parasites soon enough and they will be held accountable for their action. Like Egypt, Tunisia, Libya, and Lebanon, the mighty Ethiopian people will rise up against these thieves and opressors like a tsunami and claim their dignity and freedom once again. The day of reckoning is soon at hand!
05/23/11 @ 15:56
Comment from: Goorsha [Visitor]
One way to stop the money laundering for the Diaspora is to use an official bank to send money to Ethiopia.
Most Ethiopians living abroad are using Hawala Money Transfer agencies to send cash to their loved ones in Ethiopia. But, have you ever asked who these agencies are?
Yes, these agencies might give you a better exchange rate, and charge you lower service fees, but who is behind that agency? Where does your money end up? Who is behind the paying agent in Ethiopia?
If you want to stop such "money laundering" schemes, then stop being used by these agencies. Go to licensed agencies. Ask for their license before you use their services. This way, if we all have a firm stand, we will be able to reduce the laundering (stopping it will not be possible).
May God Bless Ethiopia!
Most Ethiopians living abroad are using Hawala Money Transfer agencies to send cash to their loved ones in Ethiopia. But, have you ever asked who these agencies are?
Yes, these agencies might give you a better exchange rate, and charge you lower service fees, but who is behind that agency? Where does your money end up? Who is behind the paying agent in Ethiopia?
If you want to stop such "money laundering" schemes, then stop being used by these agencies. Go to licensed agencies. Ask for their license before you use their services. This way, if we all have a firm stand, we will be able to reduce the laundering (stopping it will not be possible).
May God Bless Ethiopia!
05/23/11 @ 16:12
Comment from: nebyu [Visitor]
The government deliebratley avoid those big business organizations and now they are doing what ever they want.To be frank how on earth policy maker's run a business?Do you guys know about STAR business group?It is not operational failure that make the company fail it is EPRDF for the sake of its monopolistic interest.
05/23/11 @ 16:14
Comment from: werner2010 [Visitor]
I advise everyone here to read the original report, rather than an activist's interpretation of it. First; the report is based on 48 Least Developed Countries (LCD), and the author admits that the report is based on "weak statistical capacity..., [and] that data on 14 LDCs (including Ethiopia) are spotty or entirely missing.
Second; a report especially on Africa concluded that it is the private sector that is responsible for 97% of the illicit outflaw:
"Much attention has been focused on corruption in recent years, that is, the proceeds of bribery and theft by government officials. In the cross-border flow of illicit money, we find that funds generated by this means are about 3 percent of the global total. Criminal proceeds generated through drug trafficking, racketeering, counterfeiting and more are about 30 to 35 percent of the total. The proceeds of commercial tax evasion, mainly through trade mispricing, are by far the largest component, at some 60 to 65 percent of the global total. While we have not attempted in this study to verify these approximate percentages for Africa, we believe that they are likely to be of roughly the same order of magnitude."
http://allafrica.com/download/resource/main/main/idatcs/00020095:24a05e6055090ed87b531edefe0f1cbb.pdf
The report stresses that while the hawala arrangements are widely used to transfer some funds, "trade mispricing accounted for the bulk of such transfers, in which residents can acquire foreign assets illicitly by over-invoicing imports and under-invoicing exports... in the two latest years money flowed out through balance of payments accounts."
I agree that there is considerable transfer of illicit funds, therefore the government should work with the UNDP to find the best way to combat this evil deed. Further, the activities of organizations like EFFORT need to be transparent, to say the least. But EN's frantic attempt to make a link between the illicit outflow of the funds and the alleged corrupt practices of EFFORT, EPRDF, MELES, and even AlAmoudi is simply stupid. He cannot simply ignore the fact that Ethiopia has been commended once and again for it's proper and accountable use of funds and the significant progress it made towards the MDGs. There are efforts to creat systems and safeguards to fight corruption and to educate the public to play active role in these endeavours.
Nazret has been deleting my comments, is that because I mostly disagree with the opposition?
Second; a report especially on Africa concluded that it is the private sector that is responsible for 97% of the illicit outflaw:
"Much attention has been focused on corruption in recent years, that is, the proceeds of bribery and theft by government officials. In the cross-border flow of illicit money, we find that funds generated by this means are about 3 percent of the global total. Criminal proceeds generated through drug trafficking, racketeering, counterfeiting and more are about 30 to 35 percent of the total. The proceeds of commercial tax evasion, mainly through trade mispricing, are by far the largest component, at some 60 to 65 percent of the global total. While we have not attempted in this study to verify these approximate percentages for Africa, we believe that they are likely to be of roughly the same order of magnitude."
http://allafrica.com/download/resource/main/main/idatcs/00020095:24a05e6055090ed87b531edefe0f1cbb.pdf
The report stresses that while the hawala arrangements are widely used to transfer some funds, "trade mispricing accounted for the bulk of such transfers, in which residents can acquire foreign assets illicitly by over-invoicing imports and under-invoicing exports... in the two latest years money flowed out through balance of payments accounts."
I agree that there is considerable transfer of illicit funds, therefore the government should work with the UNDP to find the best way to combat this evil deed. Further, the activities of organizations like EFFORT need to be transparent, to say the least. But EN's frantic attempt to make a link between the illicit outflow of the funds and the alleged corrupt practices of EFFORT, EPRDF, MELES, and even AlAmoudi is simply stupid. He cannot simply ignore the fact that Ethiopia has been commended once and again for it's proper and accountable use of funds and the significant progress it made towards the MDGs. There are efforts to creat systems and safeguards to fight corruption and to educate the public to play active role in these endeavours.
Nazret has been deleting my comments, is that because I mostly disagree with the opposition?
05/23/11 @ 17:27
Comment from: john john [Visitor]
Dear Eskinder Nega
Happy 20th anniversery to you and to the rest of Shabia cult !!!!!! can you make 2012??????????????????????? I'm 99 year old i can't wait your end so i can rest in peace.
Happy 20th anniversery to you and to the rest of Shabia cult !!!!!! can you make 2012??????????????????????? I'm 99 year old i can't wait your end so i can rest in peace.
05/23/11 @ 20:50
Comment from: Shewarega [Visitor]
Men yecheleme bimelsel, men bimenemen, ye mata mata ewunet yereta. Truth shall triumph in the end, the bitter end.
05/23/11 @ 21:32
Comment from: Brendan [Visitor]
Abu Anja:
You hit them straight on the head. the DNA mapping of woyanes is correct. They are thieves by BLOOD.
You hit them straight on the head. the DNA mapping of woyanes is correct. They are thieves by BLOOD.
05/24/11 @ 02:17
Comment from: Abu Anja [Visitor]
RE;werner2010
Sir,please tell me a nation where all the country finance is run by
the leaders and affliates.Please
WE all know the full owner of
the entire Ethiopian economy is
EFFORT MELES and all the clicks
within.
Sir,please tell me a nation where all the country finance is run by
the leaders and affliates.Please
WE all know the full owner of
the entire Ethiopian economy is
EFFORT MELES and all the clicks
within.
05/24/11 @ 03:55
Comment from: Maru Molla [Visitor]
To ALL,
Eskinder Nega says "Covering the 18 years between 1990 and 2008, which are all, but one, 1990, within the realm of EPRDF’s reign, the report includes Ethiopia, one of the world’s most impoverished countries, in the top ten countries from which funds have been transferred illegally in to banks and offshore financial centers in developed countries. The amount: a whooping 8.4 billion US dollars, which places Ethiopia at a shocking 9th place in the world, just below resource rich and gruesomely autocratic Myanmar with 8.5 billion dollars."
Neverthless, GFI report has ten 10 countries in its list which does not include Ethiopia. If you go to GFI website, you will read the following: “Top 10 countries with the highest measured cumulative illicit financial outflows between 2000 and 2008 were:
1. China: $2.18 trillion
2. Russia: $427 billion
3. Mexico: $416 billon
4. Saudi Arabia: $302 billion
5. Malaysia: $291 billion
6. United Arab Emirates: $276 billion
7. Kuwait: $242 billion
8. Venezuela: $157 billion
9. Qatar: $138 billion
10. Nigeria: $130 billion
Then further GFI has two categories Normalized and Non-normalized and Ethiopia is 67th and 55th respectively. (Source: http://www.gfip.org/storage/gfip/executive).
This is only to let you know that Eskinder’s presentation has something else than what the report itself says. I will try to counter his assertions line by line if I get time to do it. Anyway, the reader has to know that the responsibility belongs to everyone who feels concerned about Ethiopia. Please check contents of every submission very carefully and then support or oppose. In the meantime, I am not yet agreeing to GFI reports, but what I am saying is it should be used accurately without being distorted. Thank you,
Sincerely,
Maru
Eskinder Nega says "Covering the 18 years between 1990 and 2008, which are all, but one, 1990, within the realm of EPRDF’s reign, the report includes Ethiopia, one of the world’s most impoverished countries, in the top ten countries from which funds have been transferred illegally in to banks and offshore financial centers in developed countries. The amount: a whooping 8.4 billion US dollars, which places Ethiopia at a shocking 9th place in the world, just below resource rich and gruesomely autocratic Myanmar with 8.5 billion dollars."
Neverthless, GFI report has ten 10 countries in its list which does not include Ethiopia. If you go to GFI website, you will read the following: “Top 10 countries with the highest measured cumulative illicit financial outflows between 2000 and 2008 were:
1. China: $2.18 trillion
2. Russia: $427 billion
3. Mexico: $416 billon
4. Saudi Arabia: $302 billion
5. Malaysia: $291 billion
6. United Arab Emirates: $276 billion
7. Kuwait: $242 billion
8. Venezuela: $157 billion
9. Qatar: $138 billion
10. Nigeria: $130 billion
Then further GFI has two categories Normalized and Non-normalized and Ethiopia is 67th and 55th respectively. (Source: http://www.gfip.org/storage/gfip/executive).
This is only to let you know that Eskinder’s presentation has something else than what the report itself says. I will try to counter his assertions line by line if I get time to do it. Anyway, the reader has to know that the responsibility belongs to everyone who feels concerned about Ethiopia. Please check contents of every submission very carefully and then support or oppose. In the meantime, I am not yet agreeing to GFI reports, but what I am saying is it should be used accurately without being distorted. Thank you,
Sincerely,
Maru
05/24/11 @ 07:59
Comment from: Yoni [Visitor]
Eskinder is throwing crazy allegations...
He may commit suicide soon knowing nothing he throws sticks.
He may commit suicide soon knowing nothing he throws sticks.
05/24/11 @ 08:47
Comment from: AAA [Visitor]
Greetings
Dear werner2010
I have looked at the full UNDP report. I thank you for summarizing the report and to help the others to have informed and evidence based dialog.
In addtion, here are the Key findings of the report include:
Approximately US$197 billion flowed out of the 48 poorest developing countries and into mainly developed countries, on a net basis over the period 1990-2008. The top ten exporters of illicit capital account for 63 percent of total outflows, while the top 20 account for nearly 83 percent. Based on available data, African LDCs accounted for 69 percent of total illicit flows, followed by Asia (29 percent) and Latin America (2 percent). Trade mispricing accounts for the bulk (65-70 percent) of illicit outflows from LDCs, and the propensity for mispricing has increased along with increasing external trade. The top exporters of illicit capital (cumulative outflows) are:
Bangladesh,US$34.8 billion,
Angola,US$34.0 billion
Lesotho,US$16.8 billion
Chad,US$15.4 billion
Yemen,Republic of, US$12.0 billion
Nepal,US$9.1 billion
Uganda,US$8.8 billion
Myanmar,US$8.5 billion
Ethiopia,US$8.4 billion
Zambia, US$6.8 billion
The factors that drive illicit flows from LDCs may be broadly classified into three categories—macroeconomic, structural, and governance-related. It is likely that structural and governance issues are driving the bulk of illicit outflows, but this needs to be examined on a case-by-case basis. The GFI report on LDCs was commissioned by UNDP as a contribution to the United Nations IV High Level Conference on the Least Developed Countries in 2011.
Dear werner2010
I have looked at the full UNDP report. I thank you for summarizing the report and to help the others to have informed and evidence based dialog.
In addtion, here are the Key findings of the report include:
Approximately US$197 billion flowed out of the 48 poorest developing countries and into mainly developed countries, on a net basis over the period 1990-2008. The top ten exporters of illicit capital account for 63 percent of total outflows, while the top 20 account for nearly 83 percent. Based on available data, African LDCs accounted for 69 percent of total illicit flows, followed by Asia (29 percent) and Latin America (2 percent). Trade mispricing accounts for the bulk (65-70 percent) of illicit outflows from LDCs, and the propensity for mispricing has increased along with increasing external trade. The top exporters of illicit capital (cumulative outflows) are:
Bangladesh,US$34.8 billion,
Angola,US$34.0 billion
Lesotho,US$16.8 billion
Chad,US$15.4 billion
Yemen,Republic of, US$12.0 billion
Nepal,US$9.1 billion
Uganda,US$8.8 billion
Myanmar,US$8.5 billion
Ethiopia,US$8.4 billion
Zambia, US$6.8 billion
The factors that drive illicit flows from LDCs may be broadly classified into three categories—macroeconomic, structural, and governance-related. It is likely that structural and governance issues are driving the bulk of illicit outflows, but this needs to be examined on a case-by-case basis. The GFI report on LDCs was commissioned by UNDP as a contribution to the United Nations IV High Level Conference on the Least Developed Countries in 2011.
05/24/11 @ 10:26
Comment from: kul [Visitor]
It is funny to see many Woyane cronies in this site trying to defend woyane. They say woyane leaders are honest as if we don’t know how they live. Many woyane ministers earn less than 6000 Birr per month salary. But they live in a multimillion dollar mansion. They drive the most up-to-date luxury cars and send their kids to prestigious schools. We Ethiopians know how EFFORT controls the economy and how Woyane cronies manipulate the market. We know what Azeb is doing. When the time comes we will ask foreign banks to freeze their account. THATS FOR SURE
05/24/11 @ 12:31
Comment from: afarman [Visitor]
k k k k here comes another "journalist" he claims to be living in antidemocratic country and here is what he is writing, let readers observe what Ethiopia is.
Ethiopia is a truely emerging democratic country, Eskinder Nega is writing trash after trash thinking the government will detain him, here goes, he can even fabricate things and nothing happens to him, Ethiopia is moving forward, it has no appetite to pursue hopless "journalists".
Thanks EPRDF for letting all crazy men and women write whatever they want.
Welldone EPRDF, let all of them speak out, and we the people will respond to them, they will be exposed. We ethiopians know whats going on in our country.
Ethiopia is doing a good job, the country is in a democratisation process where hate filled journalists can write anything and get the response from the public, I say this, Eskinder Nega is a liar, let himfinish all his weaponery like prof Almariam and Birru Nega. They are all morons
Ethiopia is a truely emerging democratic country, Eskinder Nega is writing trash after trash thinking the government will detain him, here goes, he can even fabricate things and nothing happens to him, Ethiopia is moving forward, it has no appetite to pursue hopless "journalists".
Thanks EPRDF for letting all crazy men and women write whatever they want.
Welldone EPRDF, let all of them speak out, and we the people will respond to them, they will be exposed. We ethiopians know whats going on in our country.
Ethiopia is doing a good job, the country is in a democratisation process where hate filled journalists can write anything and get the response from the public, I say this, Eskinder Nega is a liar, let himfinish all his weaponery like prof Almariam and Birru Nega. They are all morons
05/25/11 @ 14:06
Comment from: foul [Visitor]
pp listen the writer is right EPRDF the one who hiding money from own pp.it is funny many EPRDF supporter or the cover blow up so they are try to defend and write stupid thing.it time ethiopian pp to rais and over turn the goverment.
05/25/11 @ 17:32
Comment from: Tulu Proud ET [Visitor]
Maru Molla
We are taking about the poorest county made by Woyane, Ethiopia and the Woyane regime who steels US$8.4 from the poor and loaned money and hide it in rich nations while Ethiopia is listed on long-term list of the U.N.’s World Food Program.
All those countries you mentions are extremely rich and are not the subject of this article.
I kept questioning about your low IQ and education level from your contradicting comments. You kept interjecting on matters you don’t understand.
If you don’t mind have you attended high school?
It is not wonder why situation in Ethiopia are in extreme danger when the Woyane regime and cronies like you in charge of running the country!!!
05/25/11 @ 17:59
Comment from: Mesfin B [Visitor]
To Tulu ProudET
In response to your question, I don't think the fella-MaruMolla(pseudoname to trick us for we all know he is from Adwa)did finish.
A hghschool dropout!!!LOL
Enough with looting in the name of Ethiopia.
Down with EPRDF.
In response to your question, I don't think the fella-MaruMolla(pseudoname to trick us for we all know he is from Adwa)did finish.
A hghschool dropout!!!LOL
Enough with looting in the name of Ethiopia.
Down with EPRDF.
05/26/11 @ 10:54
Comment from: Mahlet Gebrekirstose [Visitor]
AGAMINO WUSHA BEBELABET YICHOHAL
YOU SELFISH YOUR STOMACH CAN THINK MORE THAN YOUR MIND: STUDPID EVEN YOU DONT KNOW ABOUT WHAT MEDIA IS,WHY THE BRAVE ESKINDIR WILL AHEAD TO JAIL,BY THEIR CRIME? HAHAHA,YOU FOOLISH WEYANE IS NOT A GOVERNMENT RATHER HE IS SHIFTA ,ETHIOPIA HAS PROTECTED FROM FOREIGN INVVADERS BUT NOW NON SENSE TREACHAREOUS REPRESENTED BY YOU ARE LEADING(ACTUALLY NOT LEADING BUT ORGANIZED AND STOLEN eTHIOPIA) SO WHY the genuine Eskindir will goes to jail sitting thives like you from a vila.Dont forget you shameless ,YOU DONT FEEL SHAME WHILE TAKING FROM POOR ETHIOPIANS WANT TO GO SOUTH AFRICA TO WATCH FOOTBALL,THE SOCALLED ASKALUCAN TRADING( DONT YOU THINK THAT THIS IS AN ORGANIZATION BY YOUR STUPID INTELLEGENCES),DO YOU THINK THAT THE ETHIOPIAN PEOPLE? SO NOW YOUR WORRY IS THAT WHY ESKINDER IS REPORTING YOUR OFFICIAL MAFIA? ACTUALLY MELES IS SHAME LESS ,HIGEMENISTUN BEHAIL LEMETAL BILO YIKESEWAL ESUS MECHE ENDENANTE DEDEB NEW ,TENKIKO YAKAL BUT HE IS HAPPY HE IS LIVING WITH HIS FAITH,MIND ,HE DONT FEEL THE PAIN BUT IF HE IS MORAN LIKE YOU HE MAY FEEL THE BITTERNESS ,HE KNOW WHY HE IS GOING TO JAIL? FOR TRUTH ,SO WHY HE IS WORRYING? YOU DONT KNOW WHAT MEDIA MEAN ,YOU STUPID AND YOU WILL NEVER KNOW UP TO END BUT DONT FORGET THE DOOMY DAY FOR WEYANIE IS NOT FAR,SO THEN ESKINDER WILL BE FREED AND EVEN THAT ALSO HE MAY NOT BE HAPPY OR DISAPPOINTED BBECAUSE HE IS ALWAYS HAPPY ,HE IS ALWAYS WITH THE TRUTH.
YOU AND YOUR MEMBERS(THE BRIBERSS ,THIEVES ) CONTINUE TO WRITE YOUR GARBAGE ,GARBAGE IN AND GARBAGE OUT.I KNOW YOU ARE EARNING BY THE GARBAGE YOU WROTE ON THIS PAGE.
YOU SELFISH YOUR STOMACH CAN THINK MORE THAN YOUR MIND: STUDPID EVEN YOU DONT KNOW ABOUT WHAT MEDIA IS,WHY THE BRAVE ESKINDIR WILL AHEAD TO JAIL,BY THEIR CRIME? HAHAHA,YOU FOOLISH WEYANE IS NOT A GOVERNMENT RATHER HE IS SHIFTA ,ETHIOPIA HAS PROTECTED FROM FOREIGN INVVADERS BUT NOW NON SENSE TREACHAREOUS REPRESENTED BY YOU ARE LEADING(ACTUALLY NOT LEADING BUT ORGANIZED AND STOLEN eTHIOPIA) SO WHY the genuine Eskindir will goes to jail sitting thives like you from a vila.Dont forget you shameless ,YOU DONT FEEL SHAME WHILE TAKING FROM POOR ETHIOPIANS WANT TO GO SOUTH AFRICA TO WATCH FOOTBALL,THE SOCALLED ASKALUCAN TRADING( DONT YOU THINK THAT THIS IS AN ORGANIZATION BY YOUR STUPID INTELLEGENCES),DO YOU THINK THAT THE ETHIOPIAN PEOPLE? SO NOW YOUR WORRY IS THAT WHY ESKINDER IS REPORTING YOUR OFFICIAL MAFIA? ACTUALLY MELES IS SHAME LESS ,HIGEMENISTUN BEHAIL LEMETAL BILO YIKESEWAL ESUS MECHE ENDENANTE DEDEB NEW ,TENKIKO YAKAL BUT HE IS HAPPY HE IS LIVING WITH HIS FAITH,MIND ,HE DONT FEEL THE PAIN BUT IF HE IS MORAN LIKE YOU HE MAY FEEL THE BITTERNESS ,HE KNOW WHY HE IS GOING TO JAIL? FOR TRUTH ,SO WHY HE IS WORRYING? YOU DONT KNOW WHAT MEDIA MEAN ,YOU STUPID AND YOU WILL NEVER KNOW UP TO END BUT DONT FORGET THE DOOMY DAY FOR WEYANIE IS NOT FAR,SO THEN ESKINDER WILL BE FREED AND EVEN THAT ALSO HE MAY NOT BE HAPPY OR DISAPPOINTED BBECAUSE HE IS ALWAYS HAPPY ,HE IS ALWAYS WITH THE TRUTH.
YOU AND YOUR MEMBERS(THE BRIBERSS ,THIEVES ) CONTINUE TO WRITE YOUR GARBAGE ,GARBAGE IN AND GARBAGE OUT.I KNOW YOU ARE EARNING BY THE GARBAGE YOU WROTE ON THIS PAGE.
05/26/11 @ 15:29
Comment from: Tulu Proud ET [Visitor]
Mesfin B
Thanks bro for your understanding.
I agree the pseudo intellect/pseudo “Maru Molla” is a Woyane cadre from Adwa.
He/she is hiding behind a well known person’s name since being fraudulent
is the nature of Woyanes.
The reason is since Woyanes are hated for their disgraceful and disgusting looter and disloyal behavior.
05/26/11 @ 18:04
Comment from: abyssiniangirl4life [Visitor]
Agamino,
Don't you even have a little bit of shame threatening someone with jail time for telling you like it is. Ethiopia must really be cursed to be saddled with bushmen for politicians! The only moron that thinks what Birtukan wrote was a genuine apology is you. What are you, mentally retarded?? mouse smelling the cat's nose? Ante moralu satihon, MORALOCHUUUU (moral sibaza) neh.LOOOOOOOOOOL. Your answer to every challenge is bomb, kill, or jail. You are not in the bush anymore. At least pretend like you are civilized. Geez!!!
Don't you even have a little bit of shame threatening someone with jail time for telling you like it is. Ethiopia must really be cursed to be saddled with bushmen for politicians! The only moron that thinks what Birtukan wrote was a genuine apology is you. What are you, mentally retarded?? mouse smelling the cat's nose? Ante moralu satihon, MORALOCHUUUU (moral sibaza) neh.LOOOOOOOOOOL. Your answer to every challenge is bomb, kill, or jail. You are not in the bush anymore. At least pretend like you are civilized. Geez!!!
05/26/11 @ 23:31
Comment from: Maru Molla [Visitor]
It doesn't matter how educated I should be to express my views. You try to silence those who directly oppose or challenge you by hurling insults. If you truly believed in basic rules of decent conversations, you should have engaged me in dialog by pointing where my weaknesses are. Instead, you are speculating on my academic credentials and place of origin. What does that have to do with expressing my views of Eskinder Nega's article. I don't think if Eskinder himself appreciates your inappropriate and out of place criticism; actually he is no better than you. You are totally wrong by suggesting who I am not. I don't have any affiliations with anyone. I am an individual who clearly sees the dangers of vitriolic diaspora politics by individuals like yourself and I belong to millions of ordinary Ethiopians. I will keep commenting and I won't be discouraged. Thank you!
05/27/11 @ 15:03
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