Ethio-Engineering Group Swings Back to 101m Br Profits

May 6 , 2023

Ethio-Engineering Group (EEG) has reported a 101 million Br profit as its audit findings were revealed at the Parliament last week. Mesfin Mengistu, manager at Bishoftu Automotive Industry under the Group presented a photograph assisted improvement in the company's overall performance to the Government Expenditure Administration & Control Standing Committee chaired by Christian Tadele. Mesfin indicated the reduction of per diems to 43pc and its restriction to employees who venture out more than 45Km, automation of the production line, foregoing of purchases from international companies, 335 million Br worth of disposals and 766 million Br from sales. The report was presented following the audit report by the Federal Auditor General headed by Meseret Damte. She underscored the importance of addressing prior gaps in the financial dealings of the company. Meseret emphasized that problems identified during an audit will continue to be indicated as long as they are not resolved. "They might be mentioned for 20 years," she told Parliament. The Audit report finalized a year prior had found seven key problems in the management practices of the company between the years of 2009-2019 including "disregard for purchasing priorities, untimely delivery of contractual obligations and limited use of technology to assist its operations". The Group, formerly known as Metals & Engineering Corporation (METEC) has made several revisions to its working practices following the appointment of the new management under Suleiman Dedefo. He revealed that "the once-defamed corporation had managed to win an award from the Kaizen Institute for its operational efficiency" three days before its appearance before the Standing Committee. According to Board Members who spoke at the session, the Group remain a formidable force in the manufacturing sector, managing over 140hct of land through 1,000 employees and 106 vehicles.  The presentation had swayed most Parliamentarians, pleased to see the firm exercise such rigorous control over its finances and production. Christian noted that 12 billion Br liabilities that seem to have been disregarded as the company restructured are still a debt owed by the company and should be in the minds of the new management.