Property owners in Bahir Dar city, the seat of the Amhara Regional State Administration, are running out of time to settle arrears in land lease payments.

The city's Administration issued notice three weeks ago granting leasees a 10-day deadline before beginning to reclaim plots. However, Bahir Dar authorities have yet to take measures until our press time on Saturday.

Officials of the regional state's Revenues Bureau are sifting land lease contracts held by prospective investors using an online platform. The Bureau digitalised its services and went online in 2014, registering close to 12,000 taxpayers on the platform. It has processed land leases issued to 15,000 developers.

"Many are property owners who don't pay their property taxes," said Dresse Sahelu (PhD), mayor of Bahir Dar city.

The city's authorities claim 118 million Br in arrears from 1,285 developers and property owners, with over 71pc owed by 260 developers. Star Business Group (SBG) is one of the leases in question.

Established in 1996 by three shareholders - the late Menwyelet Atnafu, Abebaw Desta and Worku Megra - the Group is in manufacturing, transit services, real estate and transport sectors. It imported edible oil, construction materials and pharmaceuticals and exported oilseeds and coffee. It was reincorporated in 2012, with a registered capital of 63.3 million Br.

SBG leased land in Bahir Dar to erect a five-star hotel and resort on a 220,000Sqm plot at the course of Lake Tana in 1997; the lease price for a square meter was 80 Br. After a year, the city Administration revised the amount to 294 Br, demanding SBG to pay with the revised tariff.

SBG managers complained to the city officials, claiming to pay the previous amount, disclosed Dereje Chanie, the human resource manager. The city cabinet allowed the Group to continue paying with the last tariff from 1999. However, the decision was foregone with the change of city Administration.

Last year, the Revenue Bureau notified the Group's executives to settle 53 million Br in arrears, cautioning them the land leased would be reclaimed should they fail to comply. The company paid 15 million Br in the same year.

"We'll pay," Dereje told Fortune. "We've no choice after all."