Clarification on VAT

Dear Editors,

Prime Minister Meles Zenawi’s response for clarification on the impact of value added tax (VAT) on the consumer, appeared before Parliament last week. This is not clear to me.

VAT is a tax calculated and paid on the added value, not on the total value, according to the Prime Minister. It seems he has forgotten that the application of VAT on the service value is not transferable, not perishable, not stored, and not visible. On the service transaction, VAT is applied on the total value and not on the added value as it is a ‘one-stop-transaction.’

For instance, if the price paid for the services of hair dressing is 150 Br, then VAT is calculated on the total amount and not on the hair dresser’s, say, 50 Br margin. The service sector is one-third of the economy and should not be neglected as such.

VAT is applicable on the total value on goods initially. It is only on the second, third ...  transactions that VAT is applicable and payable on the added value.

Have I misunderstood the Prime Minister?

Abebe Shitaye

abebeshitaye@yahoo.com

Uncalled-for Attack on Tewodros

Dear Editors,

I am one of your readers online. I do enjoy your newspaper. I do refer it to friends and others who are interested in knowing about Ethiopia from all perspectives.

However, I was very disappointed to read a column by Ayenew Hailesellasie headlined, “Democracy on Magic Carpet” (Volume 10, Number 519, April 11, 2010). It has a paragraph that reads, “Today, we prefer to think of him as a hero who chose to kill himself instead of falling to the British. But, sorry to say this, I believe he was just a loser.”

I do enjoy Ayenew’s writings. However, to call Tewodros a loser was an uncalled-for attack on his dignity. I sincerely and respectfully ask your newspaper to remove the word “a loser” from your pages. I know your publication has a reputation to live up to.

Zewdu Mekonnen
zedwu@yahoo.com
Silver Spring, MD
United States

Gov’t Involvement Necessary for Economic Growth

Dear Editors,

I read the message by Aragaw Belay headlined, “EDP: History in the Making” (Volume 10 Number 519, April 11, 2010). The message is no different from the illusionary thinking of the rest of members of the Ethiopian Democratic Party (EDP). Illusionary because it is mere ambition that does not consider the objective reality of our country.

Liberalism is a concept most related to the degree of government involvement in economic matters.  Liberals argue that governments role in economic matters should be limited; they term this as “small government”.

It is true that “small government” or liberalism may work in economically advanced countries where the market mechanism plays the crucial role in regulating the economy. In these countries, supply and demand revolve almost around the equilibrium.

Yet, the governments of advanced countries did not stop interfering in economic matters as observed in the United States and other European countries during the economic crises in economic sectors such as the financial and automotive manufacturing sectors.

Ethiopia is not an economically advanced country; but just starting to develop, if not, grow. The market mechanism is too weak to regulate the economic system.

Does Aragaw Belay mean that government involvement in economic matters should be avoided? Why would Aragaw’s party complain about the EPRDF when it comes to electricity, sugar, and cement prices? Did the EPRDF hinder businesspeople from investing in these sectors?

There is no problem with “big government” as long as it is democratic and developmental.

The EDP seems ambitious; although ambition and stretching have sometimes positive impacts in driving forward to achieve goals. But too much ambition is equal to illusion.

What is the relevance of comparing Obama’s election campaign agenda to the Ethiopian case? The two countries have no similar realities. We need visionary not illusionary leaders; and we need more pragmatic than conceptualist leaders. This is the secret to the development of China.

I think the problem of EDP members is lack of experiential knowledge. Their involvement in practical political and executive leadership is limited. Their perception of the world is straight. The world is like a ball on a smooth floor that one does not know which direction it moves after a slight touch.

Shitaye Kassa
abebeshitaye@yahoo.com

ETC Buries Its Head in Sand

Dear Editors,

I completely agree with Getachew T. Alemu’s assessment in his commentary headlined, “In Age of Broadband, Ethiopia’s Education Remains Hostage to ‘Chalk’n Talk’” (Volume 10, Number 513, February 28, 2010).

By all the indexes of the International Telecommunications Union (ITU) - ICT and Telecom Indexes, 2007/o8/09 - Ethiopia is categorised as least developed in Africa. Ethiopia and North Korea are the only countries which have yet to liberalise the telecom industry or are countries that deny the private sector the opportunity to invest in the telecom network and ICT services.

It is a pity that the information officer from the Ethiopian Telecommunications Corporation (ETC) was still compelled to make his case and tried to bury his head in the sand in front of these glaring facts.

Asteway Abebe
Nairobi

Wrong Word for Hawassa’s Residents

Dear Editors,

I keep on enjoying my weekly “diet” of Fortune, which keeps me informed and inspired. Girma Feyissa's insightful commentaries are always an added pleasure. However, in Girma Feyissa's recent piece headlined, “City Built from Blue Prints” (Volume 10, Number 519, April 11, 2010) I happen to detect a malapropism, which goes to negate the gamut of Girma's line of thinking.

In his concluding remark, Girma Feyissa stated: “This is a metropolis that harbours people of all nations and nationalities.”

While I am more than happy to stand corrected, the word “harbours” is a malapropism, a misnomer of a word which gives an unintended meaning. One harbours a grudge and ill feeling. Or in its noun form, harbour is a shelter for the seamy side of society, hence, one could talk about a city becoming a harbour for criminals.

As Girma's otherwise flawless, “City Built from Blue Prints” has portrayed effectively, Hawassa (Awassa) has, indeed, become “the flagship” of nations, nationalities and peoples.

Mulugeta Aserate

muluasratekassa@googlemail.com

Dublin, Republic of Ireland

Gov’t Has No Option But to Jam VOA

Dear Editors,

Your columnist, Ayenew H. Sellasie wrote in his piece headlined, “The Gathering Storm”, (Volume 10, Number 517, March 28, 2010) that “an extreme case is Meles’s public assertion that his government would jam the Voice of America (VOA).” Read More

Sam

justrezzz1@cox.net

Lack of IT Education Leads to French ETC Management

Dear Editors,

I believe that the Ethiopian Telecommunications Corporation (ETC) has been handed to a group of French managers because existing managers are incompetent and the company has foolishly killed the capacity building College of Telecom and IT (CTIT). We chose instead to pay dearly for French managers. Read More

Asteway Girum
astewaynew@gmail.com
Nairobi

EDP: History in the Making

Dear Editors,

History is knocking on our doors. A political landscape bound with principles and standards for the Ethiopian Election 2010 is before us. Let us open our doors, our minds, and our hearts and speak our thoughts. Let us begin the debate. It is time for more honest debates to instil policy confidence into the electorate. It is when the public becomes perspicacious that they can buy the right policy.  Read More

Argaw Belay
The EDP’s Parliamentary Candidate

Loudspeaker War in Addis Abeba

Dear Editors,

I realise that with the elections just round the corner and with campaigning in full swing, the issue of noise pollution may not seem a priority, but I feel that it is in fact a democratic issue that must be addressed. Read More

Tony Hickey
General Manager
Ethiopian Quadrants PLC
ethiopianquadrants@gmail.com

ICT Liberalisation Not Answer

Dear Editors,

We have read the commentary by Getachew T. Alemu headlined, “In Age of Broadband, Ethiopia’s Education Remains Hostage to ‘Chalk’n Talk’” (Volume 10, Number 513, February 28, 2010), which criticised the telecom sector. Read More

Abdulmena Mohammed Hamza

London
abham2010@yahoo.co.uk

Past Generation Has Greater Commitment than Ours

Dear Editors,

I would like to respond to a comment forwarded by Mersea Kidan headlined, “Failure of Past Politics: Dichotomous Thinking” (Volume 10, Number 517, March 28, 2010). In his response to B. Kassa headlined, “Win-lose Politics Leaves No Room for ‘Third Way’ ” (Volume 10, Number 516, posted on March 21, 2010), Mersea was unable to find any valuable, logically reasoned and sufficiently strong argument except his criticism of “that generation.” Read More

Samuel Zenebe
samuelznb@yahoo.com

EPRDF Needs Diversity to Survive, Even within Itself

 

Dear Editors,

As a concerned citizen in the current Ethiopian political arena, I prefer the Ethiopian Peoples’ Revolutionary Democratic Front (EPRDF) to stay in power and administer Ethiopia until such time that a strong, conceptualist, as well as potentially pragmatic opposition party is able to lead Ethiopia to prevail and mature. Read More

Belayneh Kassabelay
5050@yahoo.com

Earthquakes Cause Condos Construction Jitters

Dear Editors,

I am very pleased with the issue Samson Tesfaye raised in your  newspaper, published on March 14,  2010, headlined, “Earthquakes in Ethiopia: Preparedness Vs. Procrastination” (Volume 10, Number 514).

Seeing what happened in Haiti, I was concerned with the same issue. I understand that we are in a different geological and geographical location. We may not face the kind of natural threat we witnessed in Haiti. But what will happen if some natural catastrophe was to occur?

The reason I ask this question is to encourage the concerned body to give much more emphasis in connection with the way construction work is undertaken.

I do support the construction of condominium houses, but I remember people were concerned with the mushrooming condo construction – the way they are built.

Are they built properly? Do we have building codes suitable for earthquakes? How strictly are these building codes enforced?

I know that there are organisations and privately owned consulting firms assigned to do such jobs. But those engaged in the construction work and the people who are assigned to supervise quality control should listen to their common sense and learn to do the right thing for their people and country.

Kinfe Mulugeta

jemanesh@gmail.com

Earthquakes in Ethiopia: Preparedness Vs. Procrastination

Dear Editors,

Earthquakes occur in Ethiopia along the Rift Valley and its surroundings. A few notable past earthquakes include Kara Kore in the 1961, Serdo in 1969, and Dobe (Afar) in 1989.

The level of destruction of an earthquake, among other things, is a function of its magnitude and proximity to built-up areas. If an earthquake strikes a remote place, its impact would be negligible. However, if it strikes close to densely populated areas the impact could be catastrophic.

In recent weeks, the world has witnessed two major earthquakes – in Haiti (January 12, 2010) and in Chile, on February 27, 2010 – with totally different outcomes in terms of human and economic loss. The Chilean earthquake was a much stronger magnitude 8.8, while the Haitian earthquake was a magnitude seven.

However, the magnitude of destruction is significantly less in Chile than it was in Haiti. The number of lives lost in Chile is estimated to be in the hundreds whereas in Haiti it is in the hundreds of thousands.

Why such a disparity?

The answer is in the earthquake preparedness. Chile is a country that has been hit by major earthquakes in the past and has adopted strict building codes that would withstand a certain level of ground shaking, while Haiti did not. Unfortunately, the effect is reflected in the level of destruction and number of lives lost.

Earthquakes have happened in Ethiopia and will happen in the future, that is a given. The magnitude of the earthquakes, however, should not be as big as the ones in Chile or Haiti.

How prepared is the country in the event of an earthquake?

The recent construction boom in the country has seen the erection of high-rise buildings in Addis Abeba and other cities.

Do we have building codes suitable for earthquake prone areas? How strictly are these building codes enforced?

Earthquake preparedness also involves raising public awareness of the potential problem. It would be wonderful to hear from the appropriate government officials on the issue of earthquake preparedness in the country.

Which scenario will play out in the event of an earthquake striking a populated area in Ethiopia – Chile or Haiti?

Samson Tesfaye

High Time to Lower Tax on New Vehicles

Recently, there was a price decline in the used car market due to rumours that tax, on imported new vehicles, is to be scrapped. What aroused my tremendous interest in the subject and prompted me to write this is the high price of vehicles (used or new) which is unthinkable for many.

When considering the advantage of lowering taxes on new cars, a win-win situation arises for the general public and the country as well; especially in terms of the savings we all get by discouraging the import of used cars.

When we buy used cars, consider the disadvantages: these vehicles with an average age of 10 years and over 100,000km would incur additional costs in repair and foreign currency for their spare parts from the minute we import and start using them; they are short lived and would need to be replaced by another car; not to mention the cost to the environment; some of the accidents on the road would be because of the mechanical failure sure to happen.

In short, we are becoming the dumping ground of old cars for the wealthy European Union (EU) and the Middle Eastern countries.

On the other hand, the advantages of new cars are that they: do not require repairs or spare parts for years which saves our much needed hard currency; last much longer; and are safe to drive providing the owner peace of mind.

We should also remember that in order to buy a car somebody needs to save the whole amount and pay cash upfront – because financing for the purchasing of a car is non-existent. This reality makes cars out of reach for many who could be car buyers. Financing for new cars also has to be considered, by our banks, for people who would qualify.

Additionally, lowering taxes as mentioned above should be considered in order to introduce and encourage imports of electric cars. Electric cars may come in handy in light of: all the hydropower dam projects, the low cost of electricity in our country and the anticipation of all the excess electricity we are to have. This is in comparison to the unpredictable and unstable imported petrol which is drying out our foreign currency reserve.

So it is high time to consider scrapping some of the taxes on new vehicles; especially on electric cars and ethanol/ bio fuel vehicles as well.

By Ayenew Awole

A Demand That’s No More or Less

One dominating concern in the minds of those of us citizens of this country is the fear of prosecution from trumped up charges that can put us behind prison for years to come for matters that are only a figment of a wild state of imagination, as perceived by the powers of the day, as a threat to their authoritarian rule of uncontestable state power.

To prove the above assertion, the Prime Minister was in Parliament on Thursday, March 18, 2010; speaking with confidence, and exuding arrogance, that anyone who speaks out against the EPRDF government during this election campaign will be prosecuted after the May 2010 election. Why he wanted to wait until the end of the election period is anybody’s guess; I venture to assume that his effort is necessitated not to offend the donor community whose continued financial support is essential for the basic functions of his government to continue as a government.

What all this boils down to is the fact that those of us involved in the May 2010 election campaign have to choose between going to the state prison for speaking out the facts as we see it, or glorify the miserable achievements of the ruling party of the past 18 years for mismanagement, corruption, and poor governance, as a benchmark for all Ethiopian politicians to aspire to.

When we speak out for lack of checks and balances in the federal system of our government, it is to avoid this kind of supremacy of one branch of the government taking matters into its own hands, and acting with impunity, as the judge, jury, and prosecutor; infringing upon our natural and constitutional rights as citizens of this country. In a democracy, citizens, (leave alone candidates in a campaign), are free to speak their mind for or against the achievements of the government or lack of it, without fear of prosecution.

Although, freedom of expression is guaranteed in the Ethiopian Constitution; it is always exercised with caution and fear, lest we offend our ‘supreme leaders’, who wish to be worshiped for their unimaginative and incompetent governance of this country and its people in abject poverty for the last 18 years.

To make matters worse, I was watching a clip of the Prime Minister’s interview on the BBC, expressing his government’s intention to jam the Voice of America Radio that was being transmitted to Ethiopia.

What is going on?

We are already denied access to some website pages, and now the radio! It appears to me that the ruling party has reached an extreme state of paranoia that is dangerously close to exposing itself and the citizens of this country to greater calamity that cannot be remedied in years to come.

We have a Constitution that proclaims all kinds of rights and privileges of a democratic society to its citizens. In actual practice, though, we are being governed by the whims of those who are working day and night to shield us from the positive effects of democracy by way of harassment and intimidation for speaking out against authoritarianism and lack of democracy as guaranteed not only in our own constitution, but also that of the United Nations Declaration of Human Rights of 1948 to which our own country is a signatory.

In a poor country such as ours, to deny the populous the opportunity to have access to print and electronics media is not only a violation of the professed constitutional rights of the citizen, it is also to condemn the people of Ethiopia to an ever widening poverty, ignorance, and isolation from the benefits of science and technology that is freely enjoyed by citizens of the rest of the world.

Anything and everything we say during this campaign could be used against us. Our own response would be: our freedom and liberty cannot be objects of negotiation that we wish to submit to the ruling party for fear of prosecution. Come day or night, rain or shine, we are determined to live and die as free men with all our human dignity, constitutional and natural rights respected to the full extent of the law. We ask for no more and no less.

By Temesgen Zewdie
Temesgen Zewdie is a member of Parliament and the Unity for Democracy and Justice (UDJ)

I Can’t Believe I’m Writing This

Dear Editors,
 

I once heard about an incident that had driven Oprah Winfrey mad when she came to visit Addis Abeba. The alleged story had it that she was infuriated by customs officers at the airport, who apparently did not recognize who she was, for they ignored her while giving priority to other arrivals who happened to be whites; little did they know that they were her security personnel.

Read More

Bole Customs Frustrates Customers

Dear Editors,

I arrived at Bole International Airport on an international flight early on the morning of September 4, 2009. I had to seek Customs clearance for an exercise equipment which I had brought with me.

The clerk on duty in the ‘assessment’ booth did not seem to know how to locate the described items on the computer. This process took a long time. Altogether the process took almost 90 minutes due to the inefficiency of the Customs officers there.

Read More

Unshakeable Habit of PM's under Unoriginal Assault

Dear Editors,
 

I am writing after reading Lulit Amdemariam's column headlined, "Professor, PM" [Fortune, Volume 10, Number 503, December 20, 2009].
 

I respect and encourage the right of every Ethiopian to freedom of expression and thought. And it is heartening to see her and other members of the private press speaking out under often difficult circumstances. However, when it comes to the mainstream media, I believe there needs to be a minimum level of professionalism and ethics demanded - out of respect for the public and the subject involved.
 

Read More

Indians are Not Stranger to Ethiopia

Dear Editors,
 

We would like to draw your kind attention towards the news story published in your newspaper headlined, “Stranger Comes to Town” [Volume 10 Number 486, August 23, 2009], and further a letter from a reader headlined, “India, International Standards Differ” [Volume 10, Number 487, August 30, 2009].

The Embassy of India would like to express its disagreement regarding both the printed items, as they have incorporated wrong facts, baseless allegations, and a biased story. 

Read More

Is Fortune's Case Really Historic?

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.

Read More

Pankhurst Family Distances Itself from Memorial Institute

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.

Thank you

Richard Pankhurst (Professor)

A Case for Telecom Privatization

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.   

Asteway  Abebe
Nairobia

Is AU's Priority Cash or Development?

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.

Read More

Ethiopian Journalists Must Support Each Other

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.

Read More

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