Saudi Star Settles Debt before Hearing

Saudi Star cultivates rice using irrigation dams and canals Machineries and tractors bought at a cost of 80 million dollars including spare parts last year from Caterpillar parked at the plot of Saudi Star in Gambella Regional State. A 35.2 million Br suit brought against Saudi Star Agricultural Development Plc by the Agricultural Equipment & Technical Services (AETS) for unpaid monies for service rendered has been lifted after the latter paid its debt with interest. The AETS had filed the suit on July 20, 2011, at the Federal High Court Eight Civil Bench for that amount, after it cleared a 4,000ht plot in Alwero, 721Km from the capital in the Gambela Regional State, owned by Saudi Star. AETS, which employs 525 people and maintains and rents heavy-duty farming and construction materials, had signed a 43.5 million Br contractual agreement on January 20, 2011 with Saudi Star. Saudi Star, which is registered at the Ethiopian Investment Agency (EIA) in August 2009, with a 500 million Br start up capital, leased 10,000ht in the Gambella Regional State for the cultivation of rice using irrigation dams and canals. It plans to use the Alwero Dam, which was constructed by the military during the time of the Dergue, to cultivate the land that has lain idle for close to two decades, since the regime’s demise. The contract was to clear the 4,000ht plot which was covered with juniper trees of medium density and other indigenous trees. Despite Saudi Star, formed by Mohamed Ali Al-Amoudi to grow food in Ethiopia for Saudi Arabia, admitted that it owed the money claimed by the AETS and asked for more time to pay the money, the latter had gone ahead with its suit. The court had scheduled a hearing for Wednesday, October 19, 2011, for Saudi Star to respond to the charges. However, during the hearing, only Moges Lemma, the lawyer for the claimant appeared and told the court that it has withdrawn its suit as the defendant has paid the full amount with interest. Both had a history before this contract in which Saudi Star had repeatedly tried to buy the agricultural equipment renter, established in 1993, from the Privatization Agency. However, its offer of 171 million Br was rejected by the Agency which deemed it too low, for the company, it was asking a minimum of 249.5 million Br. Saudi Star imported construction machinery and 300 tractors with their spare parts at a cost of 80 million dollars last year from Caterpillar. The long term goal of the company is to develop 500,000ht with its sights on land in the Benishangul Gumuz Regional State and the Agew Awi Zone of the Amhara Regional State. By EDEN SAHLE FORTUNE STAFF WRITER