Prime Minister Abiy's Megaprojects in Parliamentary Crosshairs

Jul 1 , 2023


[ssba-buttons]

Accountability concerns have surged over the grandiose ventures of the Administration of Prime Minister Abiy Ahmed (PhD), becoming issues of parliamentary contention last week. The Administration’s ambitious roster of projects, ranging from public parks and squares to luxurious retreats and grand palaces, are under the magnifying glass, with a growing chorus of lawmakers demanding transparency for the projects’ finances. Today’s parliamentary debates have brought the issue of fiscal transparency to the fore, marking it as a hot topic of political discourse. The Administration’s approach to these mega projects are under increasing scrutiny, with lawmakers, and presumably many Ethiopian citizens, eager to understand the financial realities behind these ambitious ventures. The MP from NAMA, Muluken Assefa, has become a leading voice in this unfolding saga, taking issues with the Administration’s decision to bypass audits for the projects. Muluken voiced concern over the mobilization and expenditure linked with these grand undertakings, urging the thorough investigation of potential financial irregularities. Federal Auditor General, Mesert Damite, told Parliament the focus of her audits was primarily on federal agencies that function with budgets ratified by Parliament. However, she did not hesitate to assure the lawmakers that her office would examine the Prime Minister’s large-scale projects if specific and precise questions were posed about them. This surge in financial scrutiny is not entirely new. Parliament has seen similar issues of concern raised in the past over "passion projects” sparking heated debates about the proper allocation and use of public funds. Finance Minister Ahmed Shide also encountered similar inquiries when he presented the budget bill a few weeks prior. He offered an elusive response, stating that these projects were treated "differently" yet he did not elaborate, leaving parliamentarians and the public alike seeking more answers.


Radar

Ethiopia, IFAD Sign 69.2m Dollar Deal to Promote Lowland Resilience

The Ethiopian Government and the International Fund for Agricultural Development (IFAD) have signed a 69.2 million dollar grant agreement to implement Phase II of the Lowland Livelihoods Resilience Project (LLRP II). The grant agreement was signed by Finance Minister Ahmed Shide and IFAD President Alvaro Lario. The project targets climate resilience and improved livelihoods for three million people in pastoral and agro-pastoral communities. Co-financed by the World Bank, LLRP II covers eight reg...


Radar

NBE Expands Diaspora Warning Over Unlicensed Remittance Firms

The National Bank of Ethiopia (NBE) has issued an expanded public warning targeting unlicensed remittance operators abroad, flagging four U.S.-based companies it says are undermining Ethiopia's financial regulations. The warning includes newly disclosed findings and specific cases that underscore growing concerns about illicit cross-border financial activity. Remittance flows remain a vital lifeline for Ethiopia's economy, supporting households and supplying critical foreign currency. But as...


Radar

Stricter Standards Unveiled for Public Auditors, Accounting Firms

The Accounting & Auditing Board of Ethiopia (AABE) has issued a new directive aimed at strengthening oversight and professional standards in the accounting and auditing sector. Grounded in the Financial Reporting Proclamation, the directive addresses long-standing regulatory gaps while preparing the sector for the country's emerging capital market. Key provisions introduce stricter licensing standards for public auditors, professionals permitted to audit public interest entities. Applican...