False bills land exporters in prison

Capital, Ethiopia December 16, 2009 • Three sentenced between 18 and 30 months for under invoicing coffee beans • More exporters to face charges The Federal High Court has handed down verdicts to three coffee exporters, putting them behind bars after they were found guilty of under-invoicing bean exports earlier this week. Jemal Abdu Mohamed was sentenced to two and half years imprisonment and fined three thousand birr. He was also ordered to relinquish the right to acquire an export license for three years after he is freed. Berihun Abebe Adal received a two year jail term and a three thousand birr fine. He is also banned from obtaining a license for three years. Gebre Egziabher Gebre was sentenced to one and half years and fined five hundred birr. Gebre Egziabher’s license is revoked for two years. The statement obtained from the Ministry of Agriculture and Rural Development (MoARD) explained that the three exporters are only a part of many exporters who are in the pipeline to face charges. MoARD said it warned exporters to refrain from under invoicing exports of agricultural products. Tarekegn Tsige, public relation head of MoARD, told Capital that the ministry will continue to take similar legal measures against other illegal exporters who are deviating from the normal regulation. Tarekegn said that the three illegal exporters were engaged in illegal acts before the coffee auction at the recently established Ethiopian Commodity Exchange (ECX). The export of coffee is the backbone of the Ethiopian economy in terms of foreign currency. It earned about a billion dollars from the bean export in the last two years from the total of three billion dollars of export revenue. Experts said that the country can generate more foreign currency through legitimate coffee bean trading. However, illegal cross boarder trading has a negative effect on the trade. Last March, the ministry suspended six major coffee exporters who were found guilty hoarding coffee instead of exporting it to the global market. Before the crop season this year the coffee byproducts which were supposed to be sold on the local market were hoarded. During an inventory, inspectors found that exporters were hiding a substantial volume of standard coffee. The coffee exporters were also found to have failed to export sufficient quantities of coffee. This violated an agreement with the Commercial Bank of Ethiopia. The ministry said that though it has charged those exporters, the court process is still pending. According to Capital sources, the ministry is preparing to go to court to accelerate the case. The public relations head of MoARD confirmed the information. __________________________________________________________________________________________________________________________

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