I. A SYNOPSIS
Here is an independent report, on the progress and achievements of the so-called anti-corruption campaign being waged by Prime Minister Meles Zenawi of Ethopia.
In its Background and Introduction parts, the report outlines the efforts made by both the international donor community as spear headed by the Bretton Woods Institutes, and the Ethiopian Government, to revitalize the bankrupt economy they inherited from the Mengistu regime. These efforts progressed slowly but surely and had made notable achievements during the first five year period of 1993 - 1998. The Ethio-Eritrean war of 1998-2000 caused a temporary lapse to the progress of the reform programs. After a bloody war with neighboring Eritrea and the fratricidal split within his party, Prime Minster Meles Zenawi marked his return to the agendas of Economic Reform and Development, by his now infamous, declaration of war against corruption, in May 2001.
The third section of this report will then take us through the processes that this campaign has gone through in its one year of progress. The multitude of tracks that ran in tandem with the court proceedings have been described, with highlights given to the important events and anecdotes, especially from the perspectives of law and legality. These observations have finally been teased out and summarized under the heading "FEW OBSERVATIONS ON THE PROCESS" in section four. To shed more light on the issues of law and legality, a special commentary has been appended; (Appendix 1.1) under the theme 'The Legality of the Anti-corruption Proclamations".
Section five presents an over view of the charges and evidences as presented to the courts. Besides to the summary on the main issues and allegations, the contents of the main evidences have also been highlighted. Further more, a free translation of three of the four charges thus far filed to the courts has been appended under appendices 2.1, 2.2, and 2.3. A commentary under the theme "Analysis of CBE's Credit Principles and Operations vis-the Charges and International Credit Management Standards and Banking Practices" has also been attached (Appendix 1.2), with the hope of shedding more light on the culpability of the so-called "faults' by the prosecutor. In addition to the charges, a free translation of the application lodged by police and the orders given to restrain the properties, businesses, and the accounts of the victims have been appended as appendices 3.1, 3.2, and 3.3. The dissenting opinion expressed by justice Getachew Mihretu of the Federal Supreme Court (Appendix 3.1) deserves a special mention for it indicates what the truth is.
Section six is about "Achievements" of the campaign. Results, effects and/or consequences that can be either directly or indirectly attributed to the campaign have been discussed under this section of the Report. But whether to call them achievements has turned out to be questionable, and hence the quotation marks. Two commentaries have also been appended to expound on the negative consequences of the campaign. The first expounds on the out come of the campaign and its impacts on the national economy in general and the banking sector in particular (Appendix 1.3). The second, touches up on the reactions of the private sector, business people, public servants and the general public to the campaign (Appendix 1.4)
Lastly but most importantly, independent opinions on the campaign have been forwarded, in section seven of this report. The consensus here is that the nation is heading on towards a dangerous precipice. We call upon those who have the reason and the means, to intervene and avert this possibly fatal collision. We also have indicated the points for intervention that we think are both feasible and effective.
II. WHAT HAS THE ANTI-CORRUPTION CAMPAIGN (ETHIOPIA) "ACHIEVED"?
1.Background
1.1The demise of the dictatorial regime of Colonel Mengistu Hailemariam in May 1991, opened a new era of peace and development for Ethiopia and its people. It also led to the formation of the Transitional Government of Ethiopia (TGE)
1.2 In November 1993, the TGE officially proclaimed its free market oriented economic policies, thereby laying the grounds for engagement with the Western World in general and the Bretton Woods Institutes (BWI) in particular. Donor countries and Agencies financed the Economic Rehabilitation and Recovery Program (ERRP) that successfully revitalized the defunct economy inherited from the military regime. This gradually evolved into formal engagements with the BWI and other similar agencies.
1.3 Through the Policy Framework Papers (PFP) of 1993/94 the TGE got seriously committed to subscribe to the series of reform packages or programs of, especially, the International Monetary Fund (IMF). Starting with the early stages of liberalization, restructuring and stabilization, this relationship slowly gained pace and momentum. The programs gradually expanded to included privatization, financial sector reforms, health and education programs, power and energy, telecommunications, and many other specific or cross sectional items. By 1998, the reform agenda had really expanded and matured to include the so-called "Civic Reforms" packages.
1.4 Although not necessarily smooth and always friendly, the two parties had really developed a good working partnership. There was not much politicking around the programs. Agreed up on tasks were executed on time; and disbursements followed soon.
1.5 In May 1998, Eritrea invaded Ethiopia. This invasion dramatically changed situations both externally and internally. Relationships between Ethiopia and the BWI were affected and the reform programs went into temporary lapse.
1.6 Two years later, Ethiopia successfully repelled the Eritrean forces from its territory and the war came to an end through a peace agreement signed in Algiers, by both the Ethiopian and the Eritrean leaders. "Peace and Development" once again became the primary agenda for Ethiopian. However, due to reasons mainly related with the war and its handling, a sudden brawl broke within the leadership of the EPRDF, the ruling party in Ethiopia. The party leadership split into two factions, one led by Prime Minister Meles Zenawi and the other led by the Ex-defense Minister Seeye Abraha.
1.7The Prime Minister used his executive powers to swiftly remove his opponents from power and he effectively put them under house arrest. Right away, he hastily enacted the so-called Anti-Corruption Laws. After just one working day, Ato Seeye Abraha, six of his family members, Ato Bitew Belay another dissident in Ato Seeye's faction and many other businessmen as well as executives were arrested, on charges of corruption.2.Introduction
2.1 The Prime Minster proclaimed in several occasions that corruption was the "Number One" problem of Ethiopia and of his party, the EPRDF. He also demanded for unreserved support in his fight against this problem, from all those who could help. He pleaded with the legislative assembly for the unchallenged enactment of his draconian and unconstitutional proclamations. He pleaded with the general public for information and evidences incriminating the "culprits". He also pleaded with the international community in general, and particularly with the Bretton Woods Institutes, for financial help and support. And every one of them seem to have responded positively.
2.2 It has been over a year now, since this so-called "anti-corruption campaign" unraveled. In the meantime many people have been arrested, a lot of properties and businesses belonging to these people restrained or put under government custody and substantial public resources expended, in order to sustain the campaign.
2.3 The effects and consequences of this campaign have already begun sinking into our bones. Our hopes and aspirations of seeing a democratic and prosperous Ethiopia are turning out bleak and dimmed. Peace and stability are no longer to be taken for granted. Ethiopia is on the brink of a total economic collapse and a political disaster.
2.4 We a group of concerned Ethiopians, therefore, felt obliged to report to the world at large and particularly to the BWI, for we think that they want and they can do something to stop the speedy deterioration of events in Ethiopia.
2.5This document being the main summary, around it are clustered a series of focused articles on specific aspects of the campaign.
2.5.1 The next section shall briefly outline the process, highlighting the sequence of events along the campaign. An article on the laws and the legality of some aspects of the campaign has also been appended to shed more light on the issues of law and legality surrounding the campaign. Sections 4 will briefly reflect back on the process.
2.5.2 A summary of the charges and the evidences presented by the Prosecutor will also be presented in section 5. This will be supplemented by a brief note highlighting some aspects of banking and credit management, with close references to the alleged charges.
2.5.3 In section 6, we shall discuss the achievements, results or consequences of the campaign. In addition to presenting a broad overview of what can be called direct or indirect results of the campaign, we have appended two articles focusing on specific outcomes relating to the Bank and the banking sectors.
2.5.4 We shall finally wind up with some concluding remarks, and a call for intervention to redress the situation.
3.A brief Overview of the process
3.1 The campaign involved several tracks; running serially or simultaneous to each other. The main track being the one taking us through the court proceeding, there were feeder tracks on evidence collection, witness recruitment, legislative matters, property restraining, propaganda and defamation, suspect selection, identification and arrest, etc. We shall highlight the process along the temporal or logical sequence of these tracks.
3.1.1 On May 24, less than two months after the split in the EPRDF leadership, the House of Representatives (the parliament) endorsed two draft proclamations, as presented to it by the then Minister of Justice Worede Wold Woldie. The first proclamation i.e. #235/2001, proclaims the establishment of the "Federal Ethics and Anti-Corruption Commission", while the second proclamation #236/2001 provides for the Rules of Evidence and Procedures.
3.1.2 Four days and just one working day later (3 of them were holidays) on May 29/2001, early morning, about 25 people were arrested from their homes by the so-called special forces of the police, and arraigned into the special prison at the Central Investigation Bureau (CIB) of the Federal Police Commission. Included in the list were:
- politicians (dissidents) like Ato Seeye Abraha and Ato Bitew Belay,
- business people like the owners and manager of the Star Business Group, Yegata Trading, Abeba Trading, Tiss Abay Plc, Mina Trading, Ajema Plc, Abmar International, Tana Transport, Meskel Flower, Hagbes Plc, The Monitor Plc, Sami Yusuf Trading etc.
- Executives and Managers including Ato Assefa Abraha, the Board Chairman of the Ethiopian Privatization Agency (also the brother to Ato Seeye), Ato Beshah Azmte, the General Manager of the EPA, two vice Presidents and One AVP of the Commercial Bank of Ethiopia (CBE), the Managers of the two Sugar Estates and their common services center, and
- five family members of Ato Seeye (four brothers and a sister) some of whom were members of the armed forces, employees at private companies, etc.
Ato Abate kisho, an executive member of the EPRDF, and the Chief Administrator of the Southern Peoples Region was also arrested a few weeks later.
3.1.3 On the evening of May 29/2001, the Prime Minster's office (PMO) released an official public statement admitting the arrest of what it called, "corrupt officials and their collaborators" and named some of them. It also called on the general public to come forward with evidences incriminating these people and designated people and offices to receive these evidences and information.
3.1.4 Two days later i.e. on May 31/2001, the detainees appeared at the First Instance Court, in which no formal charges were presented against them. Police, rather admitted that they were detained by the orders of the PMO and without arrest warrants issued by a court of law. Furthermore, police demanded for a 14 day remand to make more investigations and organize its cases; to which the court agreed, except that it ruled for the release on bail of Temnit Abraha (a sister of Ato Seeye). In subsequent appearances police accused:-- Ato Seeye of having received a gift of 10 trucks from the Star Business Group.
- the businessmen of taking "illegal" loans and/or of buying sugar illegally from the sugar auction market,
- Ato Assefa and Ato Beshah of having illegally sold public enterprises in the privatization scheme,
- the vice presidents of the CBE of lending to the businessmen,
- the sugar factory managers of selling sugar,
- the two businessmen in Mr. Hrair and Ato Fistsumzeab, of buying businesses from the EPA, etc.
While the court allowed further remand for most of the detainees, it also ruled that two gentlemen viz. Ato Asmelash Abraha (a brother of Ato Seeye) and Ato Sufian Ibrahim (the Deputy General manager of Methara Sugar Factory), be released on bail.
3.1.5 On June 8/2001, ten days after his arrest, the First Instance Court decided to release Ato Seeye Abraha, on bail, to which police refused to obey and, instead, appealed to the Federal High Court for its repeal. The Federal High Court still endorsed the decision of the lower courts, but police refused to obey and hence Ato Seeye remained in his cell at the CIB. Four days later and discouraged by the results of the court appeals, the PMO presented an amendment to the 15 days old proclamation #236/2001. This amendment popularly called "Seeye's law", was enacted by parliament on June 12/2001, and it prohibits the right to bail from being given to anybody suspected of corruption. It also proclaimed that corruption cases be seen by especially designated courts. This amendment totally sealed the right to bail for all the detainees. Nevertheless, since Ato Seeye's ruling was given 4 days before the enactment of this amendment, the Fedral First Instance Court again ordered the CIB head to release Ato Seeye right from the court on June 19/2001. This time Ato Seeye indeed walked out of the court room and went as far as Menelik Square at St. Georgis Church. After few minute, he was kidnapped by the, now notorious, Special Forces, and was subsequently dropped back in his cell at the CIB. Later on all the files at the First Instance Court were closed and the detainees started reappearing at their newly assigned courts. Ato Seeye and his brothers, along with Ato Bitew, Ato Beshah, Mr. Hrair and Ato Fitsumzeab were assigned to the Federal Supreme Court, while all the rest went to the Federal high Court. The usual cycle of 14 days remand continued until the end of August 2001.
3.1.6 While the routine court appearances of the suspects continued during the months since May 2001, Police was simultaneously compiling information on the properties and bank accounts that belonged to the suspects and/or their businesses. Citing an article from the newly enacted proclamation #236/2001, the CIB requested the courts i.e. both the Federal High and Supreme Courts, to freeze the assets and block the accounts. Subsequent to the request and without giving the suspects any chance to be heard, the courts automatically ruled that:
(a)The saving accounts of some of the suspects, especially of those who appeared at the Federal Supreme Court (Ato Seeye et al) be blocked, and their balances transferred to an account to be designated by the court.
(b)All accounts (saving or current) belonging to the businesses of all the suspects in any bank operating in Ethiopia be frozen.
(c)All properties and assets (cars, trucks, buildings, etc) under the names of the suspects, their businesses and/or their family members (spouses) be frozen, and
(d)the businesses or companies belonging to the suspects be put under the custody of committees and/or government agencies to be assigned by the court.
(e)These draconian rulings of the Federal Courts, were given secretly, without the suspects being informed and immediately issued for enforcement, towards the end of July 2001. The suspects learned about it through the private press and much later than the date of the ruling. This confiscation order or "restraining order" as they called it is still in force, with all its disastrous effects on the family, the businesses and many others related to them.
3.1.7 Another important track in this campaign was that of evidence collection, witness identification, recruitment and crime searching. After arresting the suspects, the PMO officially requested the general public to come forward with any evidence or information that incriminates the detainees. Furthermore,
(a)Extensive searches (most of them unauthorized by court) were made into the residences and offices of all the detainees. Private diaries, office documents, minutes of meetings, computer diskettes, computers, note books, photo albums, etc. were gathered and moved in trunks to the CIB.
(b)Special task forces were assigned by the PMO, to review every decision or transaction made by these people during the previous years. This included reviewing the valuation of assets made in the EPA, mortgage valuations made for the CBE, etc.
(c)Auditors and Inspectors were assigned to the Sugar Estates, the EPA, the CBE, and many other places, tasked with reviewing and auditing every single transaction that involved the detainees.
(d)Senior officials in the government, including the Prosecutor, the head of the CIB and many others in the EPRDF tried to recruit false witnesses through cajoling, coercion or intimidation. Most of those who refused, like Ato Tilahun Abay of the CBE, Ato Beshah of the EPA, Ato Tamrat Layne, Ato Negussie, Ato Abate Kisho, etc. were later imprisoned and subsequently charged.
3.1.8 The campaign was also supported by intense medial coverage and high profile propaganda.
(a)Court sessions were reported, with a lot of exaggerations on all the government media, viz. the press, TV and radio. The EPRDF media dedicated substantial space and airtime to this campaign. Cartoonists and columnists were employed for this purpose.
(b)The Prime Minister and his Minister for Foreign Affairs publicly condemned the detainees as "thieves" in public statements and briefing, live interviews, party conventions, and government sessions including in the parliament.
(c)Ato WoredeWeld Weldie the ex-Minster of Justice, in a statement he made to the parliament, while presenting the infamous amendment stated that "these (the detainees) were criminals that murdered a nation and not just one single individual, and, therefore, should be treated much more severely than a murderer .... and hence they shall have no right to bail."
3.2 Coming back to the main track, Ato Seeye et al appeared at the Federal Supreme Court on August 30/2001. Contrary to his usual demands for more remands, the police officer representing the CIB, declared to have finished his investigations and thereby demanded that the detainees stay at the Central Prison of Addis Ababa, until the prosecutors file their charges against them. In responses to the demands of the officer, the lawyers of the detainees, requested that their clients be released on bail; to which the officer responded negatively, citing the amended proclamation. The Lawyers, however, argued that:
(a)since the right to bail is an "inalienable right" according to the constitution and hence cannot be denied by any proclamation.
(b)the amendment was enacted three weeks after the arrest of the detainees, and should not be allowed to apply retroactively, for retroactivity is prohibited by the constitution; and finally,
(c)since Ato Seeye had already been allowed the right to bail by court, and before the amendment, it shall not apply to him.
Despite all these arguments, the Federal Supreme Court of the Federal Democratic Republic of Ethiopia replied that it was not mandated to interpret the constitution, and thereby ruled that the amended law applies, hence no bail. The same ruling was given by the Federal High Court on the other detainees few weeks later. And all the detainees were transferred from the CIB to the Central Prison of Addis Ababa (CPAA), in accordance with the requests of the CIB.
3.3 Ethiopian laws require that "prosecutors file their charges, within 15 days, after the conclusion of investigations by police". Accordingly, the prosecutors were supposed to file their charges against Ato Seeye et al by Mid-September 2001; but they never did. Subsequently the lawyers of two of the detainees lodged their complaints according to the provisions of the laws, for "Habeas Corpus'. A Federal court ruled on October 24/2001, that two of the detainees viz. Mr. Hrair and Ato Fitsumzeab be released immediately. Nevertheless, the head of the CPAA, as usual refused to obey the orders of the court; and the two gentlemen were escorted back to their cells at CPAA. When asked as to why he does not obey the order of the court, the police officer responded that he would need to get the approval of the PMO.
3.4 Forewarned by the rulings of the court on the issue of Habeas Corpus, the "now born" Anti-Corruption Commission filed its charges against Ato Seeye et al by October 28/2001. After dragging its feet for about a month, it also charged the businessmen and several executives of the CBE, including Ato Tilahun Abay, the President. In a statement it filed on January 8/2002, the Commission accused 41 bankers and 13 business people, of corruption and abuse of authority. Ato Bitew Belay, Ato Abate Kisho, Ato Negussie Hailu and two other businessmen were similarly charged by a separate application. The sugar factory managers were also charged in the same way but in a separate file.
4.Few Observations on the Process
4.1 Having gone trough the process as has been described above, we are all bound to make observations and take notes regarding one or another aspect of the campaign. Following are a few observations that we think will shed some light on the lawfulness of the process and the motives driving the campaign.
4.1.1 Parliament approved the proclamation that establishes the Federal Ethics and Anti-Corruption Commission i.e #235/2001, on May 24/2001. The PMO issued orders to arrest the victims by May 29/2001, just four days or one working day later. Leave alone a properly working commission, the commissioner was not appointed when these arrests were made on its behalf and by its name. Who authorized the PM or the PMO to replace the commissioner or the commission? Why the hurry? Such questions become important, especially when seen with the fact, as stated by the police officers in the First Instance Court sessions, that there were neither evidence nor crimes reported to police and against the detainees.
4.1.2 In the absence of any crime or evidence, how and why were then, the detainees handpicked by the PMO? Why were all the family members of Ato Seeye included? When it was evidently clear that most of them were not even in public service?
4.2The main purpose of initiating or supporting a campaign against corruption is not to arrest people, nor to confiscate properties. It is rather to restrain the greed to become unlawfully rich, and ensure transparency and accountability in public as well as private businesses. Any process aiming at achieving such noble ideals shall itself be free from any suspicions of unlawfulness, dubiousness or unaccountability. But looking back at the process we just described:
4.2.1 The campaign kicked off from unlawful grounds. Arresting people without an arrest warrant issued by court is unlawful according to Ethiopian Law. Searching their residences and offices without a court permit makes the process doubly unlawful.
4.2.2 Right after the start of the campaign, three of the first victims were released on bail by court order. Next came Ato Seeye's turn, and he was also released on bail. Police made all possible efforts to stop the release of Ato Seeye, but when all efforts were about to fail, the PMO intervened with its new proclamation. The process by which this amendment was enacted is dubious and unlawful; its contents are unquestionably unconstitutional. This unlawful and unconstitutional amendment is serving a purpose, but obviously a purpose completely different from the one an honest anti-corruption campaign ought to serve.
4.2.3 Even after the enactment of this perilous amendment, Ato Seeye was released by another court order, but he was immediately kidnapped from the gates of the Federal First Instance Court. He was kidnapped by the Prime Minister's special body guards and re-arrested by the order of the Prime Minister. Another blow to the notions of justice, democracy and the rule of law.
4.2.4 Another incident that blew-off any remaining illusion about the commitments of Ato Meles to the rule of law and justice was the one related to the issue of Habeas Corpus. When a Federal Judge ordered the release of Ato Fitsumzeab Asgedom and Mr. Hrair, the Deputy Head of the Central Prison Administration of Addis Ababa refused to obey in public. He instead bluntly told the court that he would not release anyone of them without the knowledge and approval of his bosses at the PMO.
4.2.5 And finally, when police declared to have finished its investigations on Ato Seeye et al, and the issue of the right to bail was again raised at the Federal Supreme Court, it ruled against the request, citing the new amendment. The court also declared that it was not its job to doubt the constitutionality of proclamations enacted by parliament. This sealed the hope and aspirations of many Ethiopians to see a balanced and counter balanced system of governance, as well as the dream of seeing an independent judiciary.
4.2.6 It is barely a decade since the new era of free market economy and pro-private sector polices dawned in Ethiopia. Although the rights to private ownership of property and to the free pursuit of economic endeavors have been enshrined in the Constitution of the Federal Democratic Republic; the scars of the previous socialist regime are still abundant. The attempt to restitute illegally confiscated properties to their previous lawful owners has not yet been concluded. No compensation has still been paid to any of the previous owners of the public enterprises now in the hands of the government. A shocking event that added salt to this bleeding wound was the restraining order issued by the courts, on the private properties and businesses of the defendants. The fact that this paramount decision was made by the highest courts of the Republic and without the knowledge of the owners; gives a shattering blow to the notion of "respect to private property" and the nascent confidence of the private sector in the whole system.
4.2.7 Last but not least, the chronological sequence of the events, starting from, the split in the party, enactment of the corruption laws and detention of dissidents 4 days after the law was proclaimed, and the banning of bail 12 days after their arrest, clearly testify to the fact that the aim of the campaign was to corrupt the law rather than to combat corruption.
4.2.8The above mentioned few incidents clearly testify to the unlawfulness and unconstitutionality of the campaign process. Furthermore, the efforts made by senior party and government officials to recruit and prepare false witnesses, the amount of time and money spent to dig out faults through the so called auditors, inspectors, experts, etc. as well as the attempt to establish crime from documents and diaries gathered through illegal searches, belie the declared motives of the campaign while shedding light on the true motivations driving the campaign and its commanders.5.Overview of the charges and evidences
5.1The first group to be charged was that of Ato Seeye et al. In a statement read out at the Federal Supreme Court on October 28/2001, the anti-corruption commission accused 12 people for a total of 6 offences.5.1.1The list of the defendants included Ato Seeye and his brothers Assefa, Fissaha, and Mihreteab. His sister Temnit Abraha, who was previously released on bail was also called in and charged. Ato Tamrat the ex-Prime Minister during the Transitional Government and also ex-Deputy PM of the FDRE was included, for failing to "co-operate" in falsely testifying against Ato Seeye. Ato Beshah, Ato Fitsumzeab Asgodom and Mr. Hrair were also in the list of the accused. Three others were accused in absentia.
5.1.2Annexed here with, is a free translation of the full text of the application, as presented to the court. Here is an overview of the charges, evidences and the current status of the proceedings.
5.1.2.1The charges are based on the provisions of the Revised Special Penal Code Proclamation No. 214/1981 Art. 23. This proclamation was especially enacted by the previous fascist regime to deal with what it called "counter-revolutionaries". The said article reads as follows:
"Art. 23. Abuse of Authority
1/Any public servant, any elected member of any mass organization or co-operative society or any member of any revolution defense committee who, with the intent to obtain for himself or to procure to a third person, unlawful advantage or to do injury to another person:
(a)misuses his official position or the powers proper to his office, whether by commission or culpable omission; or
(b)misuses his authority in a manner that is prejudicial to government or public interest; or
(c)performs official acts when he is not or is no longer empowered to do so, or exceeds his power especially in the case of incompetence, suspension, removal from office;
(d)is punishable with rigorous imprisonment from three to fifteen years."
5.1.2.2Articles 32, 33 and 35 of the Ethiopia Penal Code have also been cited to show the degree of involvement of the defendants; i.e, primary offender, collaborator or inciter.
5.1.2.3The first charge is about bank loans advanced by the Commercial Bank of Ethiopia to Ato Seeye's brother Ato Mihreteab Abraha and his business called MFAM PLC. It accuses Ato Seeye and Ato Assefa, of having ordered or persuaded the president of the CBE, Ato Tilahum Abay to give the loans to Ato Mihreteab Abraha. It further alleges that the loans were advanced by the orders of the president and hence outside the standard loan approval procedures of the Bank. To prove this, the prosecutor called in Ato Tilahun as a witness. A "Special Investigation Report" allegedly prepared by the inspection department of the Bank was also presented as evidence. Despite the fact that this report was specially prepared by the orders of the police (CIB) and presented to the court without the knowledge and approval of the bank's management; it confirmed that:
(a)The truck loan advanced to MFAM was approved not by Ato Tilahun as the charge alleges, but the Board of Directors of the Bank along with other similar loans amounting to about Birr600 million intended for the purchase of close to 600 trucks. It was a project, initiated to fill the capacity gap created during the Ethio-Eritrean war, monitored and approved by the highest organs of the government including the then Defense Minster and Deputy Prime Minster Teffera Walwa. Out of 600 trucks and 600 million Birr, MFAM borrowed 5 million Birr and bought 5 trucks.
(b)The overdraft facility mentioned in the charges is not Birr 10 million, but only Birr 1.5 million. This loan was approved through the normal process of hierarchical loan committees and not by Ato Tilahun as alleged.
(c)Finally all loans were based on properly documented mortgage and loan contracts; and were performing regularly.
5.1.2.4The second charge alleges that Ato Assefa and Ato Seeye have, in 1992, enticed (persuaded) the then Prime Minister, Ato Tamrat Layne to order the duty free importation of five trucks, belonging to a certain Kahsay Abbay. A letter signed by Ato Tamrat has been presented as evidence, but this letter does not in any way mention Ato Assefa or Ato Seeye. Furthermore, nothing is known about what links Ato Kahsay to Ato Tamrat or Ato Seeye.
5.1.2.5The third charge alleges that Ato Seeye in his capacity as the General Manager of a private company called EFFORT and as a member of parliament, has through some other officers of EFFORT requested the General Manager of a truck dealer (called AMCE), to give discounts to his brother. A member of the TPLF polit-buro and an ally of Ato Meles has been called as a witness in this case.
5.1.2.6The fourth charge accuses Ato Seeye of requesting in, 1993, the then Deputy Health Minister, Dr. Abdi Adem, to assist his sister Temnit Abraha get employed in one of the hospitals under the Addis Ababa Administrative Region. Subsequent presentations by the defendants have, however, revealed that:
(a)Temnit, a pharmacist by profession, got employed through her own merits and by directly applying to the head of the autonomous health bureau of the Region.
(b)Dr. Adem being a federal minister (deputy) had no authority over the regional bureau, and therefore could not have helped even if he wanted; and
(c)Temnit worked in this hospital for few months and left it soon due to low pay (USD 60/month).
5.1.2.7 The fifth charge accuses Ato Assefa of having, in 1996, ordered the then Manager of Meta Abo Brewery to cancel the distribution license of a certain Hagos Hadera and give it to his brother Ato Mihreteab. The General Manager who allegedly received the orders (by phone) is currently deceased. The CIB tried to coerce a commercial manager of the Brewery to falsely testify but the guy instead fled the country, leaving his family behind. Furthermore, the defendants established that:
(a)Ato Mihreteab was in the business of beer distribution since 1994, while Ato Assefa was not even in this country.
(b)Ato Hagos relinquished his distribution license due to his own reasons and by his volition.
5.1.2.8The sixth charge concerns Ato Assefa, Ato Beshah, Ato Fitsumzeab and Mr. Hrair. It is about the sale of five public enterprises through the Ethiopian Privatization Agency (EPA). It accuses Ato Assefa the then chairman of the Board of EPA, and Ato Beshah the General Manager, of having unlawfully sold these enterprises. However, by citing the evidences presented by the prosecutor; the defendants established that:
(a)Most of the allegations mentioned in the charges were blatant lies and contradicted the truth stated in the minutes of board meetings, tender documents, sales contracts, etc. that were presented to the court.
(b)Neither Ato Beshah nor Ato Assefa had the power to approve transactions; and more precisely the sale of each enterprise was first accepted by the full board and finally approved by a written instruction to go ahead from the Prime Minster's Office.
(c)Ato Assefa was one among many board members, which included the Deputy Prime Minster-Teffera Walwa, Finance Minster-Sufian Ahmed, Minster of Health-Kebede Tadesse, Minister of Justice-Mahteme Solomon, Head of the PMO-Mulugeta Alemseged, etc; and had no special powers; while Ato Beshah as a General manager implemented decisions taken by the Board or the Prime Minster's Office.
(d)There is nothing exceptional about these transactions, except that Ato Fitsumzeab happened to be brother-in-law to Ato Assefa while Mr. Hrair is alleged to be his friend or prison mate.
5.1.3These are the charges against the most senior officials targeted by this campaign. Ato Seeye has been charged for "Abusing his Authority" by "requesting a car dealer through friends" by "enticing his boss the PM 10 years ago" by "requesting the deputy health minister" etc. etc. This charge, besides being the crux of the whole campaign, is also expected to exemplify the depth and breadth of the problem of corruption within the EPRDF. His brothers and a sister have been charged as collaborators and beneficiaries: by borrowing money from a Bank that has over 40,000 clients, by being employed in a public hospital, and more importantly for just being his brothers as is the case in Ato Fessaha Abraha and Weldeselassie Abraha who have nothing to do with any of these allegations. Ato Assefa has been charged for transactions that were approved and sanctioned by the highest office and people in the government; his only unique attribute being that he is a brother to Ato Seeye.
5.2Next to Ato Seeye et al, were charged his colleagues Ato Bitew Belay and Ato Abate Kisho. Their charge was filed at the Federal High Court, and stated that Ato Abate and Ato Bitew "had approved an illegal purchase of construction machinery in 1995". The purchase was deemed "illegal" because it allegedly was done outside the so called "standard procurement procedures". As accomplices were included three businessmen, one of which is Ato Negussie Hailu, the one who declined the offer to falsely testify against Ato Bitew Belay in exchange for a reduction in his current prison term.
5.2.1These charges are also based on the same proclamation and provisions of the penal codes. The prosecutor has also presented a list of his witnesses and evidences to the court. Among the witnesses were senior officials of the Southern Regional Government, including the deputy to Ato Abate Kisho.
5.2.2In their responses to the presentations of the prosecutors, the defendants argued that:
(a)Neither Ato Abate nor Ato Bitew were involved in the said transaction. And, as clearly established by the evidences of the prosecutor, it was rather the Deputy Administrator (who has now been recruited to testify against his former boss) who approved it.
(b)Ato Bitew, who had never been an official in the Region or the Federal Government has nothing to do with the approval of procurement contracts; and
(c)Finally, neither of them had any thing to gain out of this transaction.
5.3The third file was that of the sugar factory managers. Included here are Ato Belete, Ato Shewaferaw, Ato Berhanu and Ato Demelash. Ato Solomon Baraki the ex-manager of Wonji-Shoa sugar factory and who is said to have died in Asmara after being expatriated during the Ethio-Eritrean war, has also been included here.
5.3.1The legal provisions mentioned as a basis for this charges are similar to those mentioned for the others. This file is unique in the sense that no businessmen have been included, and the charges are more ridiculous.
(a)Ato Shewaferaw Girma, the General Manager of the Sugar Industries' Common Service Center, is charged for corruption for selling 80 quintals of sugar to the Ministry of Defense. He has been charged for violating a directive allegedly issued by the PMO and prohibiting the sale of sugar out of the auction market.
(b)Ato Solomon Baraki has also been accused of selling 700 quintals of sugar to the trade union of his factory workers.
(c)Ato Demelash has been accused of accepting a cheque from one company for settling payment from another sister company.
(d)The other two gentlemen have been charged with the failure to put ceilings to the amount of sugar that a single bidder would buy at the auctions; and thereby allegedly encouraging a monopolistic concentration of sugar stock.
5.3.2The "respected" office of the Auditor General, had been employed for over 10 months, to dig into the operations of the sugar estates, with the hope of finding more serious mistakes to incriminate these honest gentlemen who had served the nation for over 25 years each. They were (probably) targeted because General Tsadkan, the ex-chief of staff used to be the board chairman of Methara Sugar Factory. Failing to find any crime what so ever, the prosecutor has charged them with the above mentioned "allegation" and four of them are still in jail since May 2001; awaiting trial.
5.4The fourth group to be charged by the Anti-Corruption Commissions consists of 41 top executives of the Commercial Bank of Ethiopia (CBE) and 13 of its "prime/corporate customers" as they are called in the Bank. Most of the businessmen and two vice presidents were in jail since May 2001. The rest, including the president, Ato Tilahun Abay were sent to jail, the day the prosecutor filed his case at the Federal High Court. Included in the list were all the vice presidents, most of the assistant vice presidents; every branch manager and credit analyst that had been involved in the approval or appraisal of loans to the targeted businesses, etc, etc. It appears that the names were picked from the Loan Approval Formats (LAFs) and Analysis Reports related to these businesses. The ex-Vice Governor of the National Bank of Ethiopia, Ato Nesredin Ahmed has also been included, just because he approved an overdraft loan of 2 million Birr to one of the targets, 10 years ago. Many of the bankers were in their retirement, some were arraigned from their hospital beds, some of them had left the CBE over six years ago and were employed in other banks. Among them all, these bankers represent both the old guard of the banking sector as well as the new generation of bankers the nation had groomed and trained for years.
5.4.1The prosecutor filed four charges in one application. The basis of the charges were the same articles of the special penal codes and the criminal code. We have attached herewith a free translation of the application, but we shall still try to present the overview as follows:
5.4.1.1The Central Investigation Bureau (CIB), right after arresting the businessmen, in May 2001; dispatched special teams to the CBE, with the task of conducting special investigations on the loan files of the detainees. These teams disguised as "inspectors" and closely working with the Acting Head of the Inspection Department at the CBE (a cousin of the PM, and newly promoted to the job) prepared their "Inspection Reports" wherein they listed a series of acts which they called were "irregular" and allegedly contravened the procedures and systems of the CBE. About forty of them have been listed in the preambles to the first charge in the prosecutors' application.
5.4.1.2This list of the so called "irregular acts" is then followed by a list of 12 sub charges (i.e. 1.1 up to 1.12). Each sub-charge lists the loan facilities and amounts allegedly advanced to the businessmen and/or their businesses. The employees of the bank i.e. credit analysts, branch managers and loan committee members along with the borrower are then clustered around each sub-charge.
5.4.1.3Finally, the bankers are then accused of approving the loans and the businessmen for taking them. The charges deliberately avoid mentioning the loan contract. It also says nothing about the performance of the loans while accusing the businesses of unlawful enrichment, and the bankers of abuse of authority.
5.4.2The second charge involves an export operation, that allegedly required the proceeds to finance a reverse import contract of merchandise, whose bills of lading are said to have been lost somehow. The third and fourth charges concern properties or businesses that were foreclosed by the CBE and sold off through open tenders. The ex-owners of the two businesses were Eritreans that were expatriated during Ethio-Eritrean conflict, and the buyers are business people in the targeted group.
5.4.3Subsequent to the presentation of his charges; the prosecutor has also submitted a list of his witnesses as well as copies of the evidence he shall use to prove his charges.
5.4.3.1The cardinal document presented as evidence in almost all cases is the so called "inspection" or "special investigation report" prepared by the teams assigned by the CIB and under its close monitoring and guidance:
(a)Each report states in its first page that it was prepared subsequent to the special instruction given by the Acting Head of the Inspection Department of the CBE, sometime towards the end of June 2001 (one month after the targets were detained)
(b)The methodology the inspectors employed, was a targeted review of each loan file of the detainees. No sampling was made to make comparative analysis with other loan files outside the targeted group.
(c)The so-called "irregularities" or acts that allegedly contravene the procedures of the bank are then listed for every loan approved since the last 10 years; irrespective of the loan status now. The total sum of the irregularities constitutes the list in the preamble of the first charge. The total sum of the loans approved during the last ten years constitutes the figures mentioned under each sub-charge of the first charge.
(d)This report after being reviewed and accepted by the so-called Acting Chief Inspector of the CBE and his cousin at the CIB, is said to have been presented to the Board of Directors of the Bank for its blessing and final approval. The Board, unfortunately, is said to have severely criticized the intent, the methodology and the conclusions drawn there from; and finally disowned it. Having thus failed to secure the endorsement of the Board or the Management of the CBE, the CIB and through it the Anti-Corruption Commission directly presented this "disowned" report as evidence to its charges. The Commission, in the meantime, is said to be negotiating with office of the Auditor General for its blanket endorsement of these reports, and hence give them some sort of legitimacy and authenticity.
5.4.3.2Another evidence presented by the prosecutor is the Loan Approval Format or LAF of the Bank. This is a format that captures the entire loan approval process, starting from the application of the client, and going up to the final approval of the loan by the appropriate committee in the hierarchy. It also summarizes opinions or recommendations of lower committees as well as those of credit analysts. One observation we want to make at this point is that in as much as junior bank managers, credit analysts and senior credit committees, forwarded their recommendations for or against the approval of the targeted loans; more than 85% of the loans were approved by the Board of Directors of the Bank. Ironically, those who recommended for or against the approval, have been charged indiscriminately and are languishing in jail while not a single board member has been charged. Shameful as it may sound, the ex-minister of justice and the current head of the committee that overseas the anti-corruption campaign, Ato Woredeweld Woldie is one of the board members who approved all these loans.
5.4.4Another important issue, the prosecutor deliberately avoided mentioning in his presentation, is the issue of loan performance and contract administration. Bank loans are based on contracts. Any litigation between the bank and the borrower should be based on the performance or non-performance of this contract. A brief review into the loan documents of these businesses had revealed that:
(a)Almost all of these loans were performing very well and hence classified as "Regular" as at June 2001. In a bank where loan non-performance is a chronic problem and where more than 40% of its loans are classified as "Bad", being classified as "Regular" is the exception rather than the norm. Accordingly, the bank had classified these businesses as its "Prime Customers" and issued a special "Pass" that would enable them to be easily identified by its staff any where in the network.
(b)Substantial amount of the loans listed in the charges had already been settled. To cite some examples:
1.In its applications to the High Court for restraining orders, police claimed that Star Business Group's loan from CBE was Birr 105 million. In its charges it stated the amount to be 45.5 million Birr. But even the 45.5 million Birr indicated in the charge against Star Business Group and its General manager Ato Worku Megra had been settled, and the current balance is just zero. (Sub-charge 1.1)
2.Out of the 190.219 million Birr indicated against Mina Trading PLC and its General Manager Ato Minwuyelt Atnafu only 39.42 million (over draft) remain outstanding. (Sub-charge 1.2).
3.Similarly only 19.0 million Birr is still outstanding out of the 35.4 million Birr advanced to Tana Transport PLC. (Sub-charge 1.3)
4.Tiss Abay PLC has been charged for a total amount of Birr140.643 million, where as the actual outstanding balance is just 77.44 million (Sub-charge 1.5).
5.Sami Yusuf Import Export Enterprises has been charged for over 117 million Birr; where as the actual balance is a mere 16 million over draft facility.
This deliberate exaggeration of figures, coupled with the extensive media coverage accorded to it, belies the true motives and intentions of the whole campaign.
5.5In its "inaugural" statement released on May 29/2001, the Prime Minster's Office (PMO) declared that the campaign against corruption had kicked off that very morning, with the arrest of what it called "corrupt officials and their collaborators". The so-called "corrupt officials" were Ato Seeye and Ato Bitew; "their collaborators" were then the owners and managers of these companies targeted by Ato Meles. In the same statement, the PMO called on the general public to co-operate by giving up more information and evidence incriminating these officials. But it also explicitly warned that it was not interested in petty issues and rather called the public to focus on the big fish and big money.
5.6Only the Gods and probably also Ato Meles, would know the full details of the information and evidences gathered from the public through the temporary offices opened for this purpose and closed after a week or two. But, from what have been trashed into the courts, after one full year of auditing, investigation, inspection, witness cajoling or coercing, etc. we can forward a lot of remarks and make observations on the whole farce and drama.
5.6.1First and foremost the so-called "collaboration" does not exist and never existed. It even appears that the officials and the so-called "collaborators" did not know each other on the personal level. The first charge read against Ato Seeye, in his first appearance at the Federal First Instance Court, stated that Ato Seeye had received a gift of ten trucks from the owners of the Star Business Group. This utterly false allegation had been stated in several meetings and party conventions, by Ato Meles and his close associates. Immense efforts were made to some how create this link, but to no avail.
5.6.2Despite all the time and resources deployed to dig into crimes or create them, the final outcome is disastrously shameful.
(a)Even if there truly existed a PMO directive prohibiting the sale of sugar out of the auction market, selling 80 quintals of sugar to the Ministry of National Defense, especially at a time when the nation was at war with Eritrea or much worse, selling 700 quintals of sugar to the trade union of the workers that produced it, can never constitute an offence of any size. But this is what Ato Meles called the "big fish" and the "big issue" in his address.
(b)A member of parliament has no authority over a bank manager or a car dealer. But true or untrue, the "big issue" for Ato Meles has turned out to be "a member of parliament requesting a car dealer through friends for reduction in car prices". Much worse, Ato Bitew has been accused of approving a transaction that took place 8 years ago and in which he had no involvement at all and being a brother to Ato Seeye has become a crime punishable by law.
(c)"Borrowing from a Bank" no matter whether you pay it back or not, has become a criminal offence punishable up to 15 years, in this era of free market and private sector economy. Properties worth hundreds of millions of Birr have been "confiscated" for nothing, other than belonging to the wrong owners. This is also done in this era of capitalism and private ownership, and during broad day light in the eyes of the whole world.
(d)The attempt to establish criminal offence and penalize a third party on the basis of operating manuals of one party is incomprehensible. Executives of the borrowing companies are being accused, because officers in the lending bank allegedly violated their internal procedures. To see such a non-sensical sense of legality driving the campaign is really disturbing.
5.6.3Even if all the allegations stated in the charges were true; they will never constitute any criminal offence of any sort, leave alone a "big offence" as the PM would want to. But, by deliberately delaying the process and denying the right to bail, Ato Meles will have achieved his personal and political goals. As he himself once told the parliament the home of these people shall be in jail for some time to come. And surely they are there for over a year already and with a sluggish and docile judicial system, it will be years before the courts have time to rule on the merits of the case.
6."Achievements" of the Campaign
6.1We have thus far tried to highlight the process and the current status of the campaign. Our hope is that we have created an opportunity for people, not that closely involved, to get a feel of what has been happening under the guise of fighting corruption. This feel shall then crystallize into opinions and a commitment to act. To further assist this opinion formation process, we shall now try to outline what we think are the major achievements, results or consequences of this campaign.
6.2The consequences of the campaign can be broadly classified as direct and/or indirect. Direct consequences shall be those that came as immediate results of the decisions or orders given by the various agents involved in the operations of running the campaign i.e. the police, the courts, the PMO, the commission, etc. On the other hand, indirect consequences are derivatives or multiplied effects of the direct ones.
6.3The most direct casualties of this campaign are the detainees and their immediate families. The businesses of these people, their assets and properties, the employees and managers are also directly hit by the decisions and actions taken in relation to the campaign. The Commercial Bank of Ethiopia, the Sugar Estates and the Ethiopian Privatization Agency have also sustained substantial damages as a consequence of this campaign.
6.3.1A total of 76 people have been charged of corruption and abuse of authority; about 20 of which are being tried in absentia. The rest, i.e. 56 people are still in jail with their right to bail denied.
Some of these detainees are old and sick, so much so, they are unable to physically appear at court. One of them, Ato Nesredin Mohammed the ex-Vice Governor of the National Bank of Ethiopia has just passed away while in prison. He was unable to appear in court for more than 2-3 sessions; but that did not convince the court to release him on bail, for proper medical treatment. A lot of them have been charged for cases that they don't know of:
(a)The credit decision of a bank involves a lot of people. Some make analysis, others recommend, some others approve or disapprove, still others implement and follow up. More than 85% of the loans in question were approved by the Board of Management (Directors) of the CBE, but still not a single board member has been charged. On the other hand, credit analysts, branch managers and lower level credit committee members have been enjailed; irrespective of their opinions or the recommendations they made.
(b)The final decision to sell any enterprise in the privatization scheme was made by the PMO and/or the Board of EPA, while the General Manager and the Board chairman have been charged for approving the sale of enterprises.
(c)Managers or employees have been accused in relation to loans that were taken by their companies, or transactions that took place long before they were even employed by the companies. Many of them have been accused in relation to loans that had already been settled.
6.3.2The loss of their leaders and managers, coupled with the fact that most of their assets have been restrained and their accounts frozen; have effectively put most of the companies, out of business. After they were put under the custody of committees or competing public enterprises (for example, a flour mill administering another flour mill), the productive assets (trucks, factory machinery, etc) were made idle or at least substantially underutilized. Furthermore, whatever meager revenues they generated, were put into separate accounts under the control of the custodian, hence no provisions for loan servicing and maintenance. Despite the fact that almost all the loans these companies borrowed were regular as at June 2001, almost all of them are now in arrears; thereby creating good grounds to foreclose on whatever asset or property remains. This eminent danger of foreclosure, added with the already restrained business situation will make bankruptcy and collapse totally unavoidable. The livelihood of about 8000 employees, managers and their families will also be endangered.
6.3.3All the companies that have now been restrained were among the so-called "Prime Customers" of the CBE, and hence its major sources of revenue. The loss of these customers, plus its entire leadership and managerial staff, have seriously endangered the very existence of the CBE. Ironically, the loans that were regular and good sources of income to the bank just a year ago, have now become non-performing and hence sources of concern and worry to the bank. Although to a reduced scale, the private banks are also bound to be negatively affected. In addition to the loss of business and income that we just described, the fact that most of the properties restrained by court order were also collaterals to the loans advanced to the companies, will limit the ability of the banks to retrieve their loans through foreclosure.
6.3.4The Sugar Estates were highly profitable. In addition to their normal profits of hundreds of millions every year, they also used to generate surplus cash to the Treasury through the auctions. Every income beyond Birr 250/quintal used to go into the so-called "Sugar Development Fund" under the Treasury. Since the average market price in the auctions was much higher than Birr 250, (usually upto 560/quintal) the said fund was a lucrative source for the Treasury. More importantly, the factories never faced any problem with regards to sales. However, as things stand now, the sugar market has collapsed, prices are as low as Birr 400 per quintal, even then the estates are overstocked; and hence barely profitable. This total collapse coupled with the fact that the market has been totally flooded by illegally imported (contraband) sugar, make the prospects for the entire industry look terribly bleak.
6.3.5The privatization program was a lynchpin in the entire economic reform program. Besides to being a good source of revenue to the Treasury, it is pivotal in the whole effort to redefine the roles of the public and the private sectors. Furthermore, it provides an easier and profitable exit for the government, from many of its unprofitable investments in the Public Enterprises under its ownership. It also provides a good hope of survival and continuity to many of the almost defunct Public Enterprises and their employees. After a difficult and more hesitant start in 1995, the privatization program had gathered steam and momentum for a real jump. Thanks to the support and guidance of many institutions, including the BWI, the EPA had defined a clear plan to windup itself as quickly as possible; tentatively by 2004. Come, May 2001, everything charged. The Board Chairman and General Manager of the Agency were imprisoned. Almost all the experts and staff of it were arraigned for questioning by the CIB. Every thing they did during the previous years became a suspect. Knowing that nothing was done without the full knowledge of the PM, this puzzled and shocked every body. Out of hundreds of transactions made in a very similar way, five of them were selected and 2 buyers picked up for jailing. Since May 2001, not a single new transaction has been effected by the Agency. All the preparations to privatize the Construction and Business Bank, Ethiopian Telecommunications Corporation, and many other State Owned Enterprises still remain frozen. The head office of the Agency still serves as the operating base for the army of auditors, inspectors and so called experts mobilized by the PMO in order to search for crimes against the detainees. Privatization has almost been forgotten, and only the gods know, what it shall take to revive it, or whether it shall ever be revived, again.
6.4The above mentioned direct results of the campaign have several knock down effects, in almost all directions. Our political system and its leaders have been seriously discredited. The powers and responsibilities vested on the executive branch of government have been abused with impunity. The entire justice system has been corrupted and jeopardized. Our National Assemblies have been tarnished and the members fooled. The allegiance and integrity of our security forces have been severely tested. Our social fabric, values and references have been tampered with. And finally, our collective hopes and aspirations to build a prosperous and democratic Ethiopia have been shattered.
6.4.1The EPRDF has never been the favorite of the urbane and particularly the Ethiopian elite. However, no matter how much any body doubted its intentions or hated its leaders, there were certain virtues that seemingly permeated the system as well as its leadership. One such virtue was truthfulness. Many people used to believe very much of what it said. This trust and belief in what the party and its leaders did or said was one critical factor in the capability of the party to mobilize public support against aggression as well as for peace and development. But, during the last 12 months, it has completely depleted whatever trust or confidence it had accumulated during the previous 10 years. Its leaders have repeatedly lied in public and on record. Almost every body, both in and outside the party now sincerely believes that all the discourse on Bonapartism, corruption, democracy, etc. was deliberate lie and cover up. And many more people believe to have been cheated in supporting the so-called "renewal" and particularly the "anti-corruption campaign."
6.4.2This campaign has also exposed the extent to which the executives can stretch their powers to serve their own narrow concern and purposes. Proclamations were pushed down the throat of the legislative, court rulings were fragrantly disobeyed. Laws and procedures were either bent or crushed to suit the requirement of the day. And all these abuses of power and authority were made in the name of fighting corruption and abuse of authority, in the name of ensuring the rule of law and the prevalence of democracy. By the same token our hopes and aspirations of creating a balanced and accountable government have been seriously undermined.
6.4.3Judges have been fired, suspended or reprimanded for being disobedient or unco-operative to the demands and orders of politicians. The constitution has effectively been suspended in order to create room for this campaign. Laws that were declared fascist and hence incongruent with the current setup, were suddenly resuscitated and put in full force. New proclamations were hastily enacted to cope up with the particular needs of a particular group. In the meantime, the whole system of law and justice has been reduced to a mere extension or rubber stamp of the executive.
6.4.4The national assembly was fooled to "discuss" an already approved and printed amendment to a 15 day old proclamation. The Federal Supreme Court shied away from deciding on the constitutionality of this infamous amendment. Despite the confirmation of the unconstitutionality of the amendment by its own standing committee, the House of the Federal Assembly, has been deliberately prohibited from discussing the issue. It was actually hastily disbanded when it was about to deliberate on the report of the committee, during its mid-year session. Its end of year session might probably be skipped. Three of our most important institutions were serially corrupted and made worthless.
6.4.5The lies and distortions disseminated by and from the highest office of government, the deliberate attempt by the government through its public prosecutors to establish false crimes, coupled with the relentless efforts made to recruit false witnesses have shattered our confidence and trust in whatever is "public". But more importantly, it has already begun to erode or eat into our social fabric and trust.
6.4.6One important achievement we made during the last decade was what we had attained in the areas of economic recovery and private sector confidence. Starting with the Economic Recovery and Rehabilitation Programs (ERRP) of the early 90's, we had progressed remarkably upto the era of sustained growth and expansion in the late 90's. This progress had required the efforts and commitments of many people. Substantial resources, both material and financial, went into the attainment of these encouraging results. We had almost started to win the confidence and trust of many foreign investors. Several Ethiopians in the diaspora had began to look home wards. Quite encouraging signs had started showing up with regards to creating a sizable domestic entrepreneur class. Hellas! all this has been devastated in one years time. Forget about new or foreign investors, domestic investment and investors have been terrorized. Some of them have already fled the country, many others are on their way out. The economy is in a shock, we seem to be retracting to where we were 11 years ago. Thanks to the international community, the EU, the IMF and the World Bank, we were once given a life line, to swim and get out of the mess we inherited. Eleven years later, we seem to be bent at recreating the mess in a much deeper and wider scale; but only the gods shall know if we will ever have a second life line.
6.5These are some of the results or consequences that I could associate with the anti-corruption campaign. Direct or indirect, they are of course results, but can we really call them achievements? According to any English language dictionary the word "achievement" is related with intended, desirable and positive accomplishments through effort. Our government, our people, the sponsors of this campaign (the BWI) or every one of us, might obviously have contributed a lot into the effort, in the form of money, time, leadership, or other resources. But the above mentioned results could never have been our desired achievements. A government, worthy of the name cannot plan to destroy itself, to discredit itself, to demolish everything that it had built over years. We all must have had good intentions, such as increased trust and confidence between the governors and the governed, increased sense of ownership, transparency, accountability and above all, the rule of law. But the results we got, do not unfortunately reflect back positively. Ok then! How and why did we end up here? What can be done to get out of here? And by whom?
6.5.1This campaign was led by people or by a party that we all know was good at leading and managing successful campaigns. The EPRDF had led a series of glorious military campaigns both before and after becoming a government. The efforts made to revitalize and rehabilitate the economy during the previous 10 years of the EPRDF's rule were remarkably successful. Knowing all these and many similar success stories, we had no reason to question the capacity and capability of the EPRDF led government to successfully lead such a campaign, and hence our trust and support.
6.5.2If we really had agreed on means and ends right at the start of the campaign, if we had asked harder and faster questions about the depth and width of the problem, and hence the very need of the campaign, we would have done a lot of services to ourselves, our institutions and to Ethiopia/Ethiopians. We failed to ask some critical questions before we jumped into the band-wagon, and we have been driven to where we are now.
6.5.3The only way out of this mess is to start to ask these critical questions and try hard in order to get convincing answers for all of them. The questions we raise may vary according to identity, role and capacity, but in any case we have to raise them. Answering these questions or obliging others to answer them shall logically lead us to the way out, even if that way involves undoing some things and unwinding others.
7.Some Concluding Remarks
7.1A special train kicked off Arat Kilo, on May 2001. It contained some selected passengers, whose selection criteria seem to be not clear but not necessarily the same. The train had no destination or purpose. It was just let to roam around the rail, remotely controlled from the PMO (Arat Kilo). It did in deed roam for a year.
7.2The attempt to find a cause or purpose for this expensive trip seems to have evidently failed. Those of us who clappingly saw off the train, without asking about its purpose and destination, seem to have become suspicious of foul or vile. Those who paid for the fuel have also begun raising eye brows. Above all the nation has got only one rail and it has been occupied by the purposeless train for too long now, and is also showing signs of fatigue.
7.3After a full year of roaming and wandering, the train is now headed back to the starting point-the PMO. It is about to crush. The controllers at the PMO have choices.
7.3.1They can just let it crush into the building they are occupying, thereby perishing with it. They can as well leave or vacate the building and let the train crush into the empty building. The third choice will be to stop the train before it crushes, unload the passengers and retract the train out of the rail.
7.3.2The first two choices are destructive, in that they entail loss of people and assets. The nation cannot just afford such a waste. We are, therefore, left with one choice-the third one.
7.4Let every one of us think of what we can do, in order to make this choice realizable. And of course much will depend on what the drivers or controllers at the PMO and the Sponsors at the BWI choose to do or agree to do or not to do, but still I have a couple of suggestions:
7.4.1Stop the campaign and undo some of the perilous doings of the last year, say the annulment of the amendment to the anti-corruption law and the reversal of the restraining order on assets. A couple of additional measures to rebuild public confidence and trust will also help.
7.4.2Initiate an objective study on the extent of the problem of corruption in this country. And the outcome shall lead into the design of the appropriate institutions and modalities for combating it.
7.4.3And subsequently, let the courts freely decide on the cases at hand; while the defendants shall also be free to defend themselves.