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BUYER REFUSES TO TAKE OWNERSHIP OF YERER FLOUR FACTORY
Addis Fortune, Ethoipia
May 15, 2007 Tuesday
Ethiopia;
The Privatisation and Public Enterprises Supervisor Agency (PPESA)
will re-tender Yerer Flour Factory SC as Anwar Abdulkadir, who won the
tender to buy the Factory for five million Birr in January this year,
failed to take ownership.
In March, PPESA informed Anwar, the only bidder who showed interest
in the Factory, of its decision to award him the plant, but he refused
to take over.
A PPESA official told Fortune that the Agency repeatedly wrote Anwar
to sign the agreement and finalise the transfer of the Factory but
the investor would not budge.
"The winner could not receive the Factory," said the Agency Public
Relations Officer, Wendafrash Asefa. "Therefore, a decision has been
made to re-tender the Factory."
During the last two months in which PPESA was expecting the winner
to take over the Factory, it ceased production and the workers were
sent on their annual leave.
Fortune's attempts to solicit comments from Anwar failed. But sources
close to the situation however, say that Anwar refuses to take
ownership because he has discovered the Factory is seven million Birr
in debt. They added he was told to take over the debt as well.
"The Individual had no information about the debt prior to or during
the opening and award of the tender", sources disclosed.
Yerer Flour Factory, located 98Km east of Addis Abeba just south of
Adama on the road to Wonji, was built by Armenian and Italian investors
35 years ago, and has a capacity to produce 500-550qt of flour a day.
The Factory still uses old machinery dismantled and brought in from
Kenya by the founders which consume disproportionately larger amounts
of electric power than more modern factories in the sector.
"It is impossible for the Factory with 105 permanent and 3 contract
workers to compete in the sector," a member of Factory management
disclosed to Fortune. He said that it used to earn a net profit of
up to three million Birr six years ago. It now loses an average of
2.5 million Br annually.
"Sitting idle for the last two months, I am concerned and stressed that
I would loose my job," said a veteran machine operator who was employed
by the Factory for 20 years. "I have lost all hope of returning to
my job, and I would now like to see my pension materialise," he added.
Addis Fortune, Ethoipia
May 15, 2007 Tuesday
Ethiopia;
The Privatisation and Public Enterprises Supervisor Agency (PPESA)
will re-tender Yerer Flour Factory SC as Anwar Abdulkadir, who won the
tender to buy the Factory for five million Birr in January this year,
failed to take ownership.
In March, PPESA informed Anwar, the only bidder who showed interest
in the Factory, of its decision to award him the plant, but he refused
to take over.
A PPESA official told Fortune that the Agency repeatedly wrote Anwar
to sign the agreement and finalise the transfer of the Factory but
the investor would not budge.
"The winner could not receive the Factory," said the Agency Public
Relations Officer, Wendafrash Asefa. "Therefore, a decision has been
made to re-tender the Factory."
During the last two months in which PPESA was expecting the winner
to take over the Factory, it ceased production and the workers were
sent on their annual leave.
Fortune's attempts to solicit comments from Anwar failed. But sources
close to the situation however, say that Anwar refuses to take
ownership because he has discovered the Factory is seven million Birr
in debt. They added he was told to take over the debt as well.
"The Individual had no information about the debt prior to or during
the opening and award of the tender", sources disclosed.
Yerer Flour Factory, located 98Km east of Addis Abeba just south of
Adama on the road to Wonji, was built by Armenian and Italian investors
35 years ago, and has a capacity to produce 500-550qt of flour a day.
The Factory still uses old machinery dismantled and brought in from
Kenya by the founders which consume disproportionately larger amounts
of electric power than more modern factories in the sector.
"It is impossible for the Factory with 105 permanent and 3 contract
workers to compete in the sector," a member of Factory management
disclosed to Fortune. He said that it used to earn a net profit of
up to three million Birr six years ago. It now loses an average of
2.5 million Br annually.
"Sitting idle for the last two months, I am concerned and stressed that
I would loose my job," said a veteran machine operator who was employed
by the Factory for 20 years. "I have lost all hope of returning to
my job, and I would now like to see my pension materialise," he added.