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While the Commercial Bank of Ethiopia (CBE) obtains
its long desired 7,000sqm of plot beside Ethiopia
Hotel, a new controversy looms over the sale of a
villa situated on a 1,400sqm plot of land along
Yohannes Street recently rented by Master Films and
Communication Plc.
The Addis Abeba City Caretaker Administration’s (AACCA)
Lease Board reclaimed the controversial plot that
was leased by the former Provisional City
Administration to Al Meta Impex Plc and granted it
to CBE.
However, the commercial building has been sold to
Inova Plc for six million Birr by the family members
of the late Negash Oda who was the original
landlord. As a result, the decision by the Mayor’s
Office over the plot that is going to be leased to
CBE in its entirety sparks fresh controversy.
The property was the only one remaining in the hands
of Negash after his other six premises were
nationalised by the previous government. After
Negash passed away, his family members assumed
responsibility of the property.
Before Inova bought this property from the
proprietor, the plot was put on sale by Negash’s
family. Abinet Gebre-Meskel and Master Films, its
current tenants, showed interest to buy the
property. Since the June 23 agreement, the transfer
of ownership has been processed, according to Kirkos
District sources.
However, due to the Lease Board decision to award
the previously disputed plot to CBE, reclaiming it
from Al Meta, the plot sparked another round of
controversy between Inova and families of Negash.
Sources told Fortune that Inova condemned the
sale on the part of the Negash family, knowing that
CBE is to lease the whole plot of land. Family
members of Negash, however, deny any knowledge about
the decision made by the City Caretaker before they
sold the property to Inova.
One of Negash’s sons, Bekele, declined to comment on
the subject.
Fortune’s
attempt to verify the loose play by the Kirkos
District in agreeing with the two parties, knowing
that CBE is to be granted the total tract, did not
succeed as the Federal Ethics and Anticorruption
Commission apprehended Mesele Mekuria, department
head of the district; Markos Gebreyesus, land
administration bureau head; and Milashu Yehdego,
team leader of the lease bureau, on July 10, 2007.
Affected by the Lease Board’s decision on the
7,000sqm of plot on which the commercial houses were
built, Al Meta and other businesses in the area that
organised under the National Business Company have
disputed the wisdom with which the City officials
have taken the decision.
The disputed plot lies at the junction of Ras Desta
Damtew and Yohannes Streets. CBE demanded the plot
to install its 30-storey headquarter which is
projected to cost 200 million Br.
The Bank had signed a lease agreement with the
former Addis Abeba City provisional administration
headed by former mayor Arkebe Oqubay in June 2006,
paying the required 20pc of the lease amount in
advance. However, the then Lease Board had already
given a chunk of the plot measuring 1,527sqm to
Almeta, which was also planning to install an
11-storey building.
With only a few weeks left to handover its oath of
office to the City Caretaker Administration, the
Lease Board under the Provisional City
Administration overturned its lease agreement made
with Al Meta and the land was granted to the Bank.
One member of the Lease Board in the former City
Cabinet told Fortune that the Board’s
decision is based on the size of the project
proposed by the contenders and CBE’s projected plan
to erect a multi-storey building that would beautify
the physical image of the city.
However, Al Meta and the other businesses that
operate within the premises of which the land
transferred to the Bank has levied their complaints.
Located on the controversial plot of land, those
businesses such as Gashem Travel, Tinkish Hotel and
Birook Clinic have also protested by putting their
plights before the Mayor Brehane Deressa, claiming
they should be given priority over CBE.
Amid this dispute, the Lease Board issued an order
for the demolition of houses located on the plot and
decided to give land once again to Al Meta. One of
the premises occupied by the Federal Police
Commission and these houses subjected to demolishing
are all owned by the Rented Houses Agency (RHA). For
the demolishing of houses the Administration has
paid 623,700 Br in compensation. The Kirkos District
started assessing and calculating the houses located
on the plot to determine the amount due for
additional compensation.
It was at this junction when Abei Sanu, CBE’s
president, that complained against the decision in
his letter to the Mayor’s Office by which means the
Lease Board’s decision once again went in favour of
the Bank. Subsequently, the Caretaker Administration
further issued an order for Kirkos district to
demolish the houses on the plot and the land to be
handed over to CBE.
“Now the decision goes against my interest and
indeed, I am disappointed by the action of the Lease
Board. Mesfin Teshome, owner and general manager of
Al Meta, told Fortune. “My focus is not about
lodging complaints against the latest decision; it
is about requesting the City Caretaker to grant an
alternative plot of land for lease.”
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