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Lingering Payment Dispute Between Defence Ministry and Bus Assoc.

 
 

 

 
     
 
 















 

 

A dispute has arisen between the Ministry of National Defence (MoND) and Africa Alem Public Transport Bus Owners Association over payments for transportation services rendered by the Association last year.

The reason for the dispute comes from the Association’s claim that it is owed 107, 755 Br by the MoND, for the transportation services it has been providing its soldiers from June 2005 to July 2006.

But another reason for the dispute is the Association’s refusal to sign a contract renewing their arrangement unless some amendments are made to the terms of agreement; terms that the Association said cannot be included in contracts from now on.

 
Yibeltal Ashenafi


In letters written to the Ministry, the Association, which has been transporting soldiers to different regions in the country at different times during the last 11 months, has requested that payments be made for its services. But Yibeltal Ashenafi, vice-chairperson of the Association’s Board, told Fortune that despite the many queries made by Africa Alem, no written response has been given.
 

“In September, we were verbally told that unless we signed the contract, we would not be paid for our previous services,” he said.
 

In earlier years, the Association, which was created after the merging of two other associations, Africa and Alem, had signed an annual contract with the Logistics Department of the Ministry. In 2005-2006, the Association made 3.1 million Br from these services.
 

Nevertheless, because articles three and four of the contract do not provide equal penalties, the Association are convinced that they should be amended.
 

According to Article three of the contract, which specifies the rights and obligations of the transporter, the service provider is obliged to provide transportation at whatever time and day it is requested to any destination ordered.
 

“If the vehicle does not arrive on the date that was agreed upon, the Association will be charged 500 Br for the delay,” the Article further states.
 

Article four on the other hand, which specifies the rights and obligations of the service user, reads that the Ministry is obliged to assign work to the vehicles within two days of its receiving them.
 

“If the vehicles have not been assigned in the two days after receiving the order, it will be penalized 500 Br for every wasted day,” it says.
 

In other words, while the Association is penalised if it is late in providing buses by a day, the Ministry has two days to leave those buses idle, depriving the Association the possibility of using the buses elsewhere.
 

Alem Africa believes it has suffered from these strict requirements, so it wrote a letter to the Ministry stating its reluctance towards renewing the contract without necessary amendments being made.
 

 “To address these articles, we would like a meeting so that we can discuss possible amendments,” the letter written by Africa Alem read. 
 

Yibeltal  told Fortune that they had not received a reply to the letter they sent a day after receiving the renewal contract from the Ministry.
 

While the dispute between the two parties was still unresolved, the MoND assigned buses for services through the Federal Transport Authority Assignment and Regulatory Office, but not one of Alem Africa’s buses were assigned for work.
 

“The action is not acceptable,” said the Association.
 

Alem Africa said that it did in fact want the Ministry’s business, but that it was unfair to see that the Ministry would take such actions of ignoring the Association’s buses while both parties were negotiating on the contract.
 

“In order to avoid a whole other dispute, we have decided not to assign any of the Associations buses to work with the Ministry, until the contract issue has been resolved,” a staff member from the Assignment Office told Fortune.
 

 “The signing of a contract confirms a legal bind between different parties,” said a member of the Board of Directors of the Association. “But to be told that you will not get work, unless you sign the contract is like blackmail and this is punishable by law.”
 

“We have no problems with the Association,” said Colonel Desta Wubet, Transport Assignment Department aide with the ministry’s Logistic Department. “We will pay the money when we are ready.”

He declined to comment further.

 

 

By ISSAYAS MEKURIA

FORTUNE STAFF WRITER

 
 

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