Securing funds for development projects through privatization is the right thing to do. And the governments stance on not privatizing some of the big corporations is understandable at least for some time but what is not understandable is while the government is privatizing these state owned enterprises, the ruling party is engaging itself in expanding its so called endowment companies which should also be privatized as the government has nothing to do in owning business enterprises, political parties should also be out of conducting business.
In today’s Ethiopia, business and politics are still highly intertwined. TPLF owns big companies such as Mesfin Industrial company, Star pharmaceuticals, Almeda Textile, Mesebo cement, etc. Other political parties under EPRDF also have their own companies in their respective regions. A total of more than one hundred companies are owned by EPRDF who are registered under former party members and also people who are still in power. There is no one in the high ranking government positions who is not a board member or linked in other way to these endowment owned companies. What does this mean? Why privatize other state owned companies, not political party owned ones?
If privatization is good for the nation and the government is willing to let go enterprises which was under its control for long time, why not the ruling party let go its companies for the sake of the nations development, which the current regime is singing day in and out.
If the construction of the Abay Dam is for Ethiopia, it is not only Ethiopian Airlines which should be privatized, it should be Mesfin Engineering too. In fact if the government is firm in its determination to build the Dam, the ruling party has to set an example and show its commitment by privatizing its companies first.
The government argues that these endowment owned companies are crucial in the transformation to middle income status but it is not public how these companies are operating as a private entity or how they are detached from the ruling party and when they will phase out or transform themselves. And it would be naïve to think that these companies are not getting preferential treatment while the board members are still in power and the persons listed in the ownership are highly connected to the ruling regime. Do they make their financial and audit report public as a public entity or they report to the ruling party, it is not clear.If their contribution to development is irreplaceable,why not transform them to public companies with access to shareholding.
So, for the ruling party to clear this confusion and to detach itself from conducting business and concentrate on good governance and economic emancipation, which has to go hand in hand, either it has to privatize these endowment companies too, or make public their operation as a public entity and their contribution to the development plans of the country and when they will phase out or transform themselves and this should get public consensus, the people should be consulted and agree to the fate of these companies, I mean not a part of the population, the whole population as Abay is to all, Mesfin, Mesebo , Dinsho and Tiret should be for all, regardless of their history and location.May be addressing this issue might help the current government in trust building.
Otherwise , if this trend of privatization continues there will be only two mega private companies in the future, EPRDF and MIDROC, if they are not already.
Just a personal reflection for public discourse from Anonymous.
