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| LETTERS TO THE EDITOR |
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Public Relations Vital to
Success |
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Dear Editors,
I
read your fascinating editorial headlined,
"Wallowing in Profits, Public Enterprises Suffer
from Legitimacy Deficit" [Volume 10, Number 485,
August 16, 2009] with great interest. As you pointed
out, many managers of the state enterprises are
strangers to the value and quality of corporate
communications. |
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Read More |
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Regulations for Downside of Stock Market do not Exist |
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Dear Editors,
When the
issue of stock exchange was raised in your editorial
headlined, "Putting the Wagon before the Horse?" [Volume 10,
Number 486, August 23, 2009] many people mistakenly assumed
it is a venue to buy and sell shares like any commodity. But
beyond its basic functions, a platform to buy and sell
securities, it attracts a lot of speculators, noise traders,
spread betters, gamblers and arbitrageurs. |
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Ignorance
of the Law Inexcusable |
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Dear
Editors,
Your news
story headlined, "Four-Year Tax Shock" [Volume 10, Number
484, August 9, 2009] contains fundamental errors which could
mislead taxpayers. The headline implies that it is somehow
shocking to request accounting information to assess and
collect tax arrears or that there is a statute of
limitations for tax collection. |
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Read More |
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India,
International Standards Differ |
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Dear Editors,
I am very
much disturbed by your news story on Indian investors
working in Ethiopia headlined, "A Stranger Comes to Town"
[Volume 10, Number 486, August 23, 2009]. I believe you have
put the situation very clearly.
There are
a number of issues related to the Indian culture and way of
working that could damage the Ethiopian labour ethics and
its progress, diverting it to an undesired direction.
I had an
opportunity to attend culture training on the Indian way of
life, and more importantly, took a course on human resource
management: The Indian Way Compared to the International
Standard. I must say it is not a way of life I would ever
wish to see implemented in our country.
It would
further hamper any future progress we dream of, both
economically and culturally. However, given the
circumstances, there are still ways to protect those farmers
and other workers in the area. And action should be taken as
soon as possible.
I would
like to kindly ask you to do a follow up on this issue from
time to time. I strongly believe that it is a very important
issue, and unique from other investors' issues. I am
specifically concerned with Indian Investors.
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Daniel Hiruy |
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Recognize
Competitive Companies, not Monopolies |
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Dear Editors,
I am one
of your frequent readers. But I have a question regarding
why the Ethiopian Telecommunications Corporation (ETC) and
the Ethiopian Shipping Lines (ESL) are sharing the "bonanza"
along with the Ethiopian Airlines.
In my
judgment, they should mourn and cry for their achievement
you described as "bonanza" [Volume 10 Number 484, August 9,
2009].
May I
also ask who their competitors are?
I would
crown Ethiopian and its management for their achievement.
They are competing with more than 10 carriers and they are
doing well. Please forward my question to ETC and ESL; what
are they going to do when this monopoly is broken?
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Yonas |
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Evicting
Hotel Tenants, Un-Ethiopian |
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Dear Editors,
It was a
nightmare on the morning of August 10, 2009, when a group of
authorized personnel ordered me to immediately evacuate my
room in the Omedla Hotel, which had become my permanent
home, pending a lingering court case to retake my own
residence. At first, I had flash-backs of the Red Terror I
had gone through during the Derg regime and could not even
respond.
Upon
returning to my senses, I started to look for my enemies; I
realized there were none. They were all God fearing,
obedient, dedicated fellow Ethiopians, I congregate with
daily.
Reflecting on the episode, I find this procedure of evicting
hotel tenants rather ugly and against every aspect of
Ethiopian hospitality and culture. It pains me even more
when I think of Seyoum Mesfin, minister of Foreign Affairs,
my mentor, my hero who strives so hard to keep up the image
of Ethiopia, to attract Ethiopians to repatriate to their
motherland and to promote tourism and foreign investments.
What a
disaster this would have been if similar chaos had taken
place at the Sheraton or Hilton?
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God Bless Ethiopia
Vartkes Bilemdjian |
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Is
Fortune's Case Really Historic? |
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Dear
Editors,
Your
news story headlined, "Fortune Wins Landmark Case against
Ayat" [Volume 10, No. 476, June 14, 2009] gives extensive
coverage to the court battle your publisher has fought
against Ayat Share Company. |
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Pankhurst
Family Distances Itself from Memorial Institute |
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Dear Editors,
My
attention has been drawn to an advertisement by the Sylvia
Pankhurst Education and Training Institute entitled Sylvia
Pankhurst Memorial Institute, on page 11 of your issue of
June 7, 2009 [Volume 10 Number 475].
Though
I have given my approval to naming a school after my mother,
I have not been asked, and have not agreed to the use of my
mother's name for the said Sylvia Pankhurst Education and
Training Institute. Neither I, nor members of my family,
hold any position or have any affiliation with the Institute
share company.
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Thank
you
Richard
Pankhurst (Professor) |
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A Case for Telecom Privatization |
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Dear Editors,
I read
the news headlined, “Amharic Office Word Application
Software Almost Complete” [Volume 10, Number 473, May 24,
2009]. It was great to know that the age old language of
Ethiopia is entering the information age. My appreciation to
the three organizations: Microsoft Inc., the Ethiopian
Information Communications Technology Development Agency (EICTDA)
and the Addis Abeba University (AAU).
However, all this effort is of no use as long as a single
monopoly operator owns the generation and transmission of
information and networks without the involvement of the
private sector. As a result of such a policy, Ethiopia, with
telecommunications services for over a century, is now known
as a prime example of least developed countries (LDCs) in
the information communications technology sector.
The
private sector is excluded from owning a network, and small
and medium enterprises, which could provide local language
based content services, are absent from the scene. Perhaps
Microsoft Inc. and the other influential
organizations should clearly take a stand against the
disabling policy on telecom and ICT monopoly in Ethiopia.
Only
then can we talk and expect innovative and sustainable
development through ICT.
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Asteway Abebe
Nairobia |
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Is AU's
Priority Cash or Development? |
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Dear Editors,
When I
was covering the 4th African Health Ministers Conference for
my government earlier this month, I was delighted to meet
African officials in large numbers for the first time. I
felt blessed for being assigned to Addis Abeba, as my first
African posting. In naivety, I used to think Africa was as
homogenous as are most European countries. I was fortunate
to learn that the diversity is immense, and incredible.
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Read More |
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Ethiopian
Journalists Must Support Each Other |
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Dear Editor
I read
the commentary by Lulit Amdemariam headlined, “Ethiopian
Journalism” [Volume10, Number 473, May 24, 2009]. It was a
timely and fascinating piece.
Most
media houses usually ignore such indispensable issues.
Journalists in our country are seen complaining about their
profession only when they are imprisoned, charges are
pressed or when a new media law is imposed on them.
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Read More |
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Textile Labour Union Needs Reality Check |
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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. |
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Ayenew Awole |
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Strengthening Credit Information Exchange
among Banks |
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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.
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Abraham Tesfaye
Commercial Bank of Ethiopia (CBE) |
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