Radar | Jun 17,2023
Municipal authorities have issued a notice to a share company that owns a commercial property in Mercato, demanding managers meet a list of requirements within 15 days or face permanent closure.
Edget Be-Andinet S.C. has been told to acquire a new trade license, hold a shareholders' assembly to elect a new board of directors, and hire an external auditor.
“Failure to do so will lead to the closure of the building permanently,” said Meketa Adafre, advisor at the Addis Abeba Trade Bureau. He accuses the company of violating its articles of association by having its board of directors serve for five consecutive terms. He also alleges it had hired an external auditor that shareholders had not approved.
The three-storey building was constructed in Mercato a decade ago at the cost of 40 million Br. It accommodates 350 stores and shops, including offices and a cafe. The building has been the contention between city officials and the company over the past few years. A year ago, authorities sealed five shops in the building but reopened them after the Addis Abeba First Instance Court ruled in favour of Edget Be-Andinet.
The authorities closed the building two months ago, alleging that the company had not renewed its trade license. They allowed it to reopen three weeks after repeated appeals from traders who lease space in the building.
Habtamu Tilaye, trade inspection and regulatory director at the Trade Bureau, says his office has been trying to shut the building down since 2017 over the expired trade license.
“Due to the pending court cases and disputes between the shareholders, officials were not able to execute their decision,” he said.
Osman Ahmed is among the businesspeople idled for nearly a month due to the authorities’ measures. Osman had paid rent in advance before the closure, selling clothes with a staff of two in the building, which is unlikely to be refunded. The father of two was operating with a valid license and contended that his business was closed unfairly.
“My future is still uncertain,” he said.
Though he is back in his shop, it might prove to be a temporary respite if the share company fails to meet the requirements laid out by city officials.
Kadir Muzayen, general manager of Edget Be-Andinet, says the management takes the notice issued on November 13, 2021, seriously.
“We’ll comply with the requirements,” he told Fortune.
However, failure by the share company to comply will lead officials to shut down the building again, forcing the businesses out.
“The traders have to relocate if the share company doesn’t comply,” Habtamu said.
Nejat Hussein, another store owner in the building, is faced with an uncertain future. She is not convinced the company will adhere to the Bureau’s demands.
“It’ll be a difficult life if my business is closed,” said Nejat.
PUBLISHED ON
Nov 13,2021 [ VOL
22 , NO
1124]
Radar | Jun 17,2023
Commentaries | Apr 10,2023
Fortune News | May 25,2019
Fortune News | Sep 14,2019
Agenda | May 13,2023
Radar | Feb 19,2022
Fortune News | Nov 25,2023
Radar | Jul 03,2021
Fortune News | Nov 09,2019
Radar | Jun 25,2022
Feb 24 , 2024 . By MUNIR SHEMSU
Abel Yeshitila, a real estate developer with a 12-year track record, finds himself unable to sell homes in his latest venture. Despite slash...
Feb 10 , 2024 . By MUNIR SHEMSU
In his last week's address to Parliament, Prime Minister Abiy Ahmed (PhD) painted a picture of an economy...
Jan 7 , 2024
In the realm of international finance and diplomacy, few cities hold the distinction that Addis Abeba doe...
Sep 30 , 2023 . By AKSAH ITALO
On a chilly morning outside Ke'Geberew Market, Yeshi Chane, a 35-year-old mother cradling her seven-month-old baby, stands amidst the throng...
May 2 , 2024
For successive generations of Ethiopia's tax authorities, the chore of tax collection...
Apr 27 , 2024
The Prosperity Party (PP) - Prosperitians - is charting a course through treacherous...
Apr 20 , 2024
In a departure from its traditionally opaque practices, the National Bank of Ethiopia...
Apr 13 , 2024
In the hushed corridors of the legislative house on Lorenzo Te'azaz Road (Arat Kilo)...