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A visible absence from chiefs of banks operating in
the country at a seminar held at the Sheraton Addis
last Thursday was Leikun Brehanu, general manager of
Awash International Bank. It was represented by one
of his deputies, Eshetu Fanta, for Leikun was
opening the 44th branch of the Bank in Assosa town,
Benshangul-Gumuz Regional State.
Unusually for the pioneer private commercial bank
following the liberalisation of the financial sector
in January 1994, he was not accompanied by anyone
from the Board of Directors. It was not because
there was no one interested among the Directors, but
because Awash has been plagued by legal disputes and
controversies following a challenge some of its
shareholders posed on the groups – deemed G8 by
their adversaries - that are now claiming legitimacy
to the top governance body of the Bank.
Next week will be crucial to bring to an end this
legal brawl that involves not only its warring
shareholders, but also a trio of parties including
the external auditor, A. A. Bromhead & Co., as well
as the regulatory agency, the National Bank of
Ethiopia (NBE). The Federal High Court, to whom both
the regulatory agency and the external auditor have
appealed to, is expected to give its verdict
tomorrow, perhaps putting to an end what insurgent
shareholders are claiming was a gross violation of
the electoral integrity of the Bank, held in April
2007, at the Hilton.
Ever since then, Awash Bank has been practically
without a governing body, although the G8, led by
Hamissa Wakawaya, claimed legitimacy after it was
voted into office during that election. Both
petitioners own close to 30pc of the company’s paid
up capital and officials at the regulatory agency
contest the validity of April’s election, the latter
threatening to takeover management of the Bank
provided that shareholders fail to agree to hold
another election.
There has been a highly confidential and intense
negotiation taking place in what seems a pre-emptive
action against the move the central bank threatens
to take, according to reliable sources. The latest
was a dinner hosted by the G8 on last Tuesday at the
Hilton with close to 50 shareholders that own more
than 500 shares each at Awash Bank.
“It was clear that the group wants to lobby us,”
said a shareholder who attended the dinner and
declared his opposition both to the external auditor
and the petitioners.
Little has the G8 achieved from this meeting,
according to those who attended it. Many of the
shareholders told the G8, which to the surprise of
some presented itself as a legitimately elected
board of directors, that it was wrong for it to rush
to court in June 2007, and attempted to stop the
external auditor from calling an extraordinary
meeting that was meant to re-elect a board of
directors.
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