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LETTERS TO THE EDITOR
 

 

Our Priorities Are Surely Misplaced

Dear Editor

 

I always love to read Lulit Amdemariam's column more than anything else; the issues she picks, her perspective on them, her courage to challenge the public, and her style of writing are really incredible.
 

Her recent column headlined, "Misplaced Priorities," [Volume 10, Number 470, May 3, 2009] was an issue that was in my mind for some time now; I am happy she brought it to light. I had a lot of discussions with many people but did not know how to put it in such a nice way as she did.
 

It is sad to learn about the death of all; but, it is also sad that they do not get fair respect.
 

Many people considered Fetawrari Amede Lemma as a Christian due to his trademark Ethiopian traditional outfit. I suspect this was because many associate the Ethiopian traditional cloth with the tradition observed by followers of the Orthodox (Christianity). As a result, we hardly see followers of other faiths, particularly Muslims, wearing them during public holidays.

 

This was not the case with Fetawrari Amede. As he was perhaps the exception, he used to be perceived as a Christian by many. He was an Ethiopian, proud of being an Ethiopian and at the forefront to defend the interests of Ethiopia. This was equally true with Sendu Gebru.
 

Regardless of the firm beliefs they share on Ethiopia and Ethiopianism, I am of the view that their huge contributions to the nation did not get the attention they deserved.
 

What about Kinfe Abreha (Prof)?
 

He did a lot to change Ethiopia's image globally. He miraculously published a number of internationally recognized books and articles. The sudden death of this brave man was given only news coverage.

 

And I would ask the same questions Lulit raised, again: "Is it the music of our country that grabs our attention, or is it the politics and social changes? How are people deemed worthy of state funerals and why is it that people that have represented their country, fought for it, bled for it, and were jailed for it do not get the honour of having the Green-Yellow-Red draped on their casket? Where is this country going if we continue at this pace? And most importantly, are we comfortable going there?"
 

She really is right. My best regards and respect to her and others who face reality with courage.
 

Hailemichael Tesfaye

 

 

Clarifying Facts on Habesha Cement

Dear Editors,
 

This is in response to your news story headlined, "Agency Suspends EIC's Desire to Invest 30m Br in Habesha Cement" [Volume 10, Number 472, May 17, 2009]. We found that the news story conveyed certain points that were factually incorrect, while other points depicted the reporter's judgmental views.

Read More

 

 

Investigative Journalism Way to Go

 

Dear Editors,

I read the news story by Hilina Alemu headlined, "Habitat Homes in Title Deeds Controversy" [Volume 10, Number 471, May 10, 2009]. I was initially impressed to see your newspaper engaged in investigative journalism, where the public could be informed on the on-goings in the community, so that in one way or another, it can learn from it.

Unfortunately, the story did not lend itself to that. Indeed, there are controversies over title deeds at Habitat New Flowers Real Estate company. But that is only one of the many irregularities that house buyers from Habitat are faced with. Above all, they are on the verge of losing their life savings, which they handed over to Habitat to build their houses.

As reported in your paper, people have paid 60pc to 90pc of the cost of the house; it is not yet known where the money went, because more homes that were supposed to be built are half complete or barely begun in some of the cases. Your news story, for instance, mentions the housing site appears deserted, and indeed that has been the case for the last three years.

Nevertheless, your reporter fails to ask why there is no work going on; why there is no construction equipment on site?

Your reporter should have dug in to bring out the whole truth.

Unfortunately, the story focused only on the surface, and zeroed in only on title deeds, ignoring the fundamental issue, such as why the homes have not been completed on time?

There is more to inform the public, and Fortune has the opportunity to do that in the future by interviewing house buyers, site construction workers, bankers dealing with Habitat, and officials at the city administration. I have no doubts Fortune can do better than what I saw in this news story.

From what I hear, the problem at Habitat is also common with other builders; the general public stands to benefit from your complete and professionally done investigative work. I say go for it!

Sileshi Yilma

 

 

Facing Reality

 

Dear Editors,

In your "Letters to the Editor" column, headlined "Face the Reality with Courage" [Volume 10, Number 472, May 17, 2009] one of your readers, Hailemichael Tesfaye, wrote that that the late Kinfe Abreha (PhD) was a great person. But the truth is this is a country where the total adult literacy rate is registered as 36pc, according to the UNICEF.

How could you expect a country with this level of literacy rate to know and understand what the Professor has done, writing almost all the books he authored in English?

It is not only the music of our country that grabs our attention. It is a question of understanding our own people.

Endashaw Anteneh

 
 

 

Lighter Side to Life Matters

Dear Editor

 

Your columnist, Lulit Amdemariam, had an encounter a few weeks ago that prompted her commentary headlined, "Drink for Thought" [Volume 10, Number 471, May 10, 2009] but made her unsure of how she wanted to express it.
 

Lulit is fully aware that her tone in the column "Life Matters" almost always comes off as angry and bitter. As much as her encounter could have evoked anger and bitterness, Lulit decided that she would look at the lighter side of things and find the humour and something positive. I thought that was really something. Keep it up, and thank you.

Endashaw Anteneh

 

 

Life Matters Valid Piece, Not Trash Talk

Dear Editor
 

Your issue of May 10, 2009, has entertained two responses from your readers in its "Letter to the Editor"; both were comments directed at Lulit Amdemariam's piece headlined, "Misplaced Priorities" [Volume 10, Number 470, May 3, 2009]. I find these comments harsh, although they seem to stand as defenders of the late Tilahun Gessese.
 

No one will dare to dispute Tilahun's achievements in the history of Ethiopian music. So does a dodged look at Lulit's article reveal the same. A learned reader is one who reads beyond the words of the columnist and one who pierces the veil of each article.
 

Lulit has tried to educate us about the common mistakes we happen to make in every walk of our life by not rendering the proper place for things that matter most in life. The media should set the tone and priority of the public's agenda on the basis of emergency, as well as necessity, instead of simply going with the wind.
 

I see that Lulit was successful in her efforts to pass on such a message using the recent event that was of great public interest. We are entitled to our views, but any criticism should support itself with rational argument. A claim putting her work as mere trash talk would undermine professional ethics, if not be silly.

 

  Biniam Ahmed

 
 

 

Textile Labour Union Needs Reality Check

Dear Editor
 

I was amazed to read a story headlined, "Local Textile Labour Case May Go International" [Volume 10, Number 470, May 3, 2009]. This story says a local employer and union's case may go international because the case was not getting resolved here in Ethiopia.
 

I cannot believe the union chose this particular time to take it that far. Its leaders are thinking about getting in touch with the employer's clients through the International Conference of Free Trade Unions (ICFTU) in order to urge them not to buy the product from the local factory.
 

What are they thinking? Where have they come from? Do they live in the same world we live in? Do they follow the news on what is going on around the world, that countries are doing all they could to make it through this turbulent times? Have they heard stories of employees losing their jobs, in millions, and companies getting bankrupt? Do they know that employers and employees are working together to avoid bankruptcy of their companies so employees have job security (even on a concession basis) during these trying times?
 

Besides, when they say they will contact the exporter's clients and ask them not to buy the product, have they not heard about the foreign exchange crunch this country is facing?
 

Maybe they were not aware that the products exported by individual companies do bring back the hard currency we all (as a country) depend on. I suggest they should get a reality check; they should also be thankful that their members do have jobs during these tough times while millions are desperately looking for one.
 

Their timing is so bad that instead of taking their case to international level, they should rather focus on increasing productivity. Our work attitude should change too. Working together with management, we should find a way we could be more a productive workforce.
 

Our industrial production output is too low, even when compared to other Third World countries.

We should keep in mind that our industries, all imported machineries purchased with foreign exchange, are established after consuming huge investment capital. If the exported products were not competitive enough, those industries could get bankrupt and close their doors with loss of jobs as avoidable consequences. It is in all our interest to see the success of these companies.

We should also be careful not to send the wrong signal to prospective investors, both domestic and foreign.

Ayenew Awole

 

Strengthening Credit Information Exchange among Banks

Dear Editor
 

Banks in most circumstances require sufficient collateral to ensure repayment in case of failure on part of the borrowers to repay a loan. This is despite the views of some who regard collateral as a minor matter; they take the view that having a good borrower with a good business is a far more important basis for lending than collateral.
 

For banks in a country like Ethiopia, the importance of collateral is beyond doubt as it ensures the repayment of the loan in case of default by the client. If an information asymmetry problem exists, where banks do not have information about their borrowers as much as the borrowers know about the banks, it is natural that banks will continue to take the collateral issue though the magnitude may differ from one bank to another. 
 

One of the main problems with collateral is establishing clear title. Banks might go to seize collateral only to find that the borrower had already pledged it to other banks, or in our case, as your newspaper reported last week headlined "Amendment Proposes Leeway in Mortgages Collateral" [Volume 10, Number 471, May 10, 2009], without fulfilling the article on the 1960 Civil Code that the mortgage collateral should be signed before courts or notary.
 

The government's move to amend the article related to mortgage collateral is a great relief to the banks, which otherwise may fall in serious jeopardy and which will ultimately have consequences on the financial sector. However, there are other issues beyond mortgage collateral: The issue of strengthening credit information exchange among banks in Ethiopia, as this ultimately narrows the huge information gap banks have on their borrowers or that narrows the information asymmetry problem in the country.
 

Information is basic to banks for making decisions they would not come to regret. In fact, it is one of the competitive tools where a bank that manages to collect adequate and timely information about its clients can make better credit decisions - hence reducing the risk of default - than others that fail to do the same or that focuses very much on collateral. Proper evaluation of credit requests, hence, requires pre and post information about the borrower in addition to other requirements, including the pledging of collateral, assessment of the applicant's business and financial reports.
 

Hence, credit information exchange among banks prior to the provision of the loan is a task that the banks should give utmost attention. 
 

Though collateral and mortgage of collateral continue to be taken seriously by banks in Ethiopia and the recent move by the government to amend the article in the 1960 Civil Code is appreciated, the focus should go beyond the issue of collateral to strengthening the information base banks have on their clients.

 

Abraham Tesfaye
Commercial Bank of Ethiopia (CBE)

 
 
 
 
   
   
   
 
 
 

 

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