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Two of the 12 businesspeople, charged for their
alleged role in a financial fraud federal
prosecutors claim has damaged Nile Insurance S.C.,
wrote a long letter to Prime Minister Meles Zenawi
and Deputy Prime Minister Addisu Legesse seeking an
executive intervention.
Abebaw Desta and Minweyelet Atnafu, founders of Star
Business Group (SBG) and a series of subsidiary
companies, wrote an 18-page appeal in mid-March
2009, and send copies of it to several other senior
government officials and agencies.
The two business partners are among 12 businessmen
and insurance professionals who are charged for
alleged involvement in the issuance of seven
unconditional financial guarantee bonds worth 41
million Br, given on behalf of seven companies,
while serving as directors and top executives of
Nile Insurance.
The Federal Supreme Court released seven of the
defendants on bail, after overturning a ruling by
the Federal High Court; these are Tekalegn Gedamu,
Mahtsentu Feleke, Almaz Mogus, Tesfaye Tafesse, Desu
Tamrat, Tekle Tesfaye, Tesfaye Aklilu, and Tesfaye
Fentie. The court ruled that four of the
businessmen, - Abebaw Desta, Minweyelet Atnafu,
Worku Megra, and Temesegen Mehari - who own the six
private companies indicted in the same case, be
denied bail until such time that prosecutors bring
to a close testimonies from their witnesses.
The Federal High Court, Sixth Criminal Bench, began
to hear 18 witnesses testifying on Tuesday, April
14, 2009, which continued on Thursday.
Amidst this legal battle, two of the defendants now
behind bars are urging the Prime Minister and his
deputy to intervene by instructing the Ministry of
Justice to release them on bail. This request is
part of the nine appeals they made, including the
auctioning of 21 trucks that they said are now
parked idle. Although the Federal High Court ordered
these trucks - held as collateral for the guarantee
bonds by Nile Insurance - to be sold at public
auction, the process has been suspended after an
announcement was made, due to the absence of a Chief
Executive Officer of Nile, whose authority is
notarized by the courts.
Nile Insurance Company has been under the caretaker
management of the central bank since August 2008;
authorities at the National Bank of Ethiopia (NBE)
have called a General Assembly of shareholders for
today, April 18, 2009, in order to elect a Board of
Directors that would subsequently hire the Chief
Executive Officer.
However, senior government officials, who requested
anonymity, have said the executive branch has no
intention of intervening in a case that is in due
process of the law.
“The government has no desire to short-circuit a
case that is in the judicial domain,” a senior
government official told Fortune. |
