Land Related Services Reopen Void of Clarity


Land Related Services Reopen Void of Clarity

The suspension of property transaction services by the Addis Abeba City Administration has been lifted after a two-month hiatus. However, officials in the City Cabinet did not reveal if the ban on land-related services through designates, imposed a month prior was included in the decision. The partial or complete hiatus on land-related services, is all too familiar to residents of Addis Abeba, with the suspension of these services over the past year having resulted in a loss of over half a billion Birr for the City Administration in fees and capital gain taxes. At the end of September 2022, the City Administration banned property transactions through designates, a.k.a power of attorney rights, demanding leases or property owners to appear in person before transactions are legitimised. A month later, the ban was revised, allowing residents with disabilities, those unable to move due to illness and members of the diaspora to use their power of attorney rights, while share and private limited companies could get services through their general managers or directors. In August last year, the City Administration suspended all land-related services claiming to battle extensive illicit construction activities before rescinding them four months later. The service was banned all over again two months ago. City officials attributed their decision to impose temporary suspension to fight rampant "illegal activities" and pledged to thoroughly investigate the matter before resuming services. Chief of the Addis Abeba Land Management Bureau, Kenia Yadeta (PhD), dispatched a circular to the 11 districts under the city administration last week, instructing them to resume services. According to Kenia, the issues that led to the suspension have been addressed. The resumption of services is expected to generate revenues for the city. It remains to be seen whether the investigation into the "illegal activities" will be transparent and appropriate measures will be taken to prevent such activities from recurring.

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