Judges at the Federal High Court granted police an additional 14-day custody to continue their investigation of alleged corruption against Kinfe Dagnew (Maj. Gen), former head of the state-owned military-industrial complex, Metals & Engineering Corporation (MetEC).

The three-panel judges of the 10th Criminal Bench of Lideta Division accepted the request of investigators, who claimed that they needed more time to compile documents and witness testimonies to press charges against Kinfe. During the latest session held on Thursday, the judges also denied bail rights to Kinfe.

Arrested on November 14, 2018, Kinfe was brought in front of the Court the next day along with his brother Essayas Dagnew, former chief operating officer of Ethio telecom. During their first appearance, the brothers appealed for public defence, which was granted by the Court. In later proceedings, the judges revoked their plea for public defence after the police presented documentary evidence showing the financial capacity of the suspected.

During the November 19, 2018, session, Kinfe and Essayas requested bail through their lawyer, but the panel denied the request and adjourned the case to Monday, December 3, 2018.

Last Monday investigators presented a multi-page preliminary claim with 12 counts of allegations against Kinfe and one count against Essayas. Police claimed that Kinfe allegedly approved the procurements of various items made by the Corporation without proper and legal public bidding processes.

The preliminary claims brought against Kinfe include the procurement of machinery for a naphtha purifying subsidiary from Alphakat KDV, a German company, for eight million euros, which the Corporation settled for 4.8 million euros; and a procurement for the same project where Kinfe allegedly approved a 347.9 million Br contract to hire Ev-GTDC Waste to Energy LLC without a proper bidding process, claim police.

Another accusation leveled against Kinfe is the procurement of 20 double-cab pickup trucks from Equatorial Business Group for 22 million Br. The vehicles were procured by negotiation without following proper procedures, according to police. Kinfe also allegedly ordered and approved the purchase of 10 used aircraft from Gunner for 9.5 million euros; one aircraft from Tecnam Aircraft for 615,197 dollars; four aircraft from Yun Vich Company; and 24 Mig 23 jet fighters for 1.2 million dollars from a Bulgarian company to be used as scrap metal.

Procurement of Rivera Hotel and a plastic factory from Alem Fitsum, managing director of Alemgenet Steel Factory, for 128 million Br is another claim brought against Kinfe. Under Kinfe's direct order, the Corporation paid off a 67.8-million-Br bank loan and interest fee tied to the properties and the additional 15 million Br capital gains tax that should have been settled by the seller, Alem, according to police.

"The initial agreement between the two parties states that the properties cover a total of 11,000Sqm, but in fact they rest on 6,941Sqm," reads the police filing.

Police also accuse Kinfe of allegedly approving the procurement of Imperial Hotel for 72 million Br and a four-storey building for 12.7 million Br from Ermias T. Amelga and Getahun Beshah of Getfam Plc, respectively.

Kinfe is also suspected of ordering the purchase of four residential homes at various locations and owned by different people for nearly 52 million Br.

Initial grubbing and clearing work done at the site of the Great Ethiopian Renaissance Dam (GERD) is another accusation of Police. MetEC took the project from Ethiopian Electric Power for 2.1 billion Br and outsourced the project to sub-contractors without a proper bidding process. In addition, the Corporation made full payments to sub-contractors before the projects were finalised and delivered, according to police.