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The Federal High Court heard on Thursday, May 7,
2009, eight witnesses brought by federal
prosecutors, who accused shareholders and former
senior managers of Nile Insurance S.C., and
companies owned by some of the defendants of
complicity in unlawfully benefiting from the private
insurance firm.
Together, the eight witnesses took a little over an
hour during the morning session to complete their
testimonies largely related to how loans were given
and financial guarantee bonds issued to companies
such as Tis Abay Plc, a company owned by Abebaw
Desta and Menwiyelet Atnafu (two of the defendants);
as well as to Tana International Plc., Nile
International Plc, and Nile Coffee Export Plc, where
Temesgen Mehari, another defendant, has influential
interests.
But the testimonies were very brief, particularly
compared to the week before when four witnesses -
Mekdes Aklilu, Getu Gelette, Woldeyer Yezengaw and
Tewodros Tesfaye - took both the morning and
afternoon sessions to give their testimonies.
The longest testimony last week took 18 minutes; it
came from Daniel Seyoum, 50, who now works at the
Equatorial Business Group (EBG) as director of its
Automotive Business Department.
He told the court about how a deal was made in
December 1998 between EBG and Nile International Plc
for the latter to procure 50 Volvo manufactured
trucks estimated to be worth 30 million Br. Seventy
five per cent of the financing came from a bank,
while Nile Insurance provided risk coverage in
financial guarantee bond for the remaining balance,
Daniel, who was deputy manager of the technical
department for EBG at the time told the court.
Nile International had paid 1.6 million Br in
advance and had agreed to finalize the balance
within 36 months; the insurance firm gave coverage
for 5.3 million Br, according to Daniel.
Subsequently, EBG handed over 30 of the trucks, and
the remaining 20 trucks became a source of dispute
between the two parties. EBG, failing to settle the
case through arbitration, took the case to the
Federal High Court and won a ruling for 3.1 million
Br, Daniel told the court.
The case is currently under litigation after an
appeal against the ruling was brought before the
cassation bench of the Supreme Court.
Girma Muluneh, 55, from the CBE, and Belay G. Mariam,
51, former manager of CBE’s Anwar Mosque Branch and
now working for Nib International Bank, told the
court about the 10.2 million Br loan agreement
signed between CBE and Tis Abay Plc in December
1997. The loan was used to procure 11 trucks from
AMCE, while Nile Insurance provided a financial
guarantee bond.
“I haven’t stayed long enough [at the branch] to
know whether or not the loan was paid back,” Belay
told the court in response to questions from
Gezahegn Fikre, prosecutor on the case.
The prosecutor objected to the attempt by Ababaw
Desta, one of the defendants also standing for Tis
Abay Plc, to show a copy of a certified payment
order (CPO) to Belay in order to establish if the
latter signed on them. Judge Aysheshum Meles denied
the objection and let the witness see the copy of
the CPO; Abebaw said during the cross examination
that the copy of the CPO shows that 7.6 million Br
was paid to AMCE and the remaining to Mesfin
Industrial Engineering for the manufacturing of the
trailers for the 11 trucks.
Other witnesses, such as Zewditu Mebea, 33, Abebech
Ayele, 50 (working now at Awash International Bank);
Eshetu Yoseph, 59, from the Bank of Abyssinia; Wube
Kinfe, 65, now employed by United Bank and having
worked for the Bank of Abyssinia in the past; and
Engedawork Fekadu, 67, from Dashen Bank testified
how they were witnesses when Tana International Plc
and Nile Coffee Export Plc were taking loans and
overdraft facilities from Awash, Abyssinia and
Dashen Banks, all covered by financial guarantee
bonds issued by Nile Insurance.
Last week’s testimonies were the last of the 18
witnesses prosecutors brought to establish their
charges that the defendants were complicit in
issuing and receiving financial guarantee bonds
worth over 41 million Br in violations of the
country’s commercial code and Nile Insurance’s
policies, with the intent to enrich themselves in an
unlawful manner. Prosecutors also produced hundreds
of pages of material documents to support their
case.
Defence lawyers appealed to the court on Thursday to
be permitted to submit a written response to the
material evidence brought by prosecutors as to
whether or not they are “admissible.” Judge
Aysheshum ruled against the appeal.
It was also a marked day for the four defendants -
Abebaw Desta, Menweyelet Atnafu, Worku Megra, and
Temesgen Mehari - whose release on bail was
suspended by the Supreme Court until the
finalization of testimonies from witnesses. Judge
Aysheshum had granted them release on bail of 50,000
Br each (for Abebaw and Temesgen) and 30,000 each
for the other defendants. But the Judge ordered the
immigration office not to let the defendants leave
the country until the case was finalised.
Two of the defendants, Temesgen and Worku, were
released from Kality Prison on Friday morning, while
Abebaw and Menweylet were re-arrested on the same
day by Federal Police investigators.
The case has been adjourned to June 12, 2009, for
the court to give a verdict; whether or not the
defendants defend the charges. |
