Ethiopian Review

Addis Ababa, Ethiopia — The Finn Flower Africa PV, a Dutch based private company, has appealed to the Federal First Instant Court not to lift the suspension imposed on the ET Highland Flora’s bank account and on the owner’s right to sell or transfer it to a third party.

Last Monday, June 22, 2009, the plaintiff responded against the defendant’s application to lift the court’s suspension on the company, explaining the problems that the company may face if the previous ruling of the court is overturned.

On May 25, 2009, The Finn Flower had asked the court to suspend ET Highland’s bank accounts and its owners’ rights to sell and transfer ownership of the local company to a third party. It also requested the details of ET Highland’s bank account to be disclosed for the court and the plaintiff.

The Fifth Civil Bench of the Court passed the suspension on May 26.

However, Tsegaye Abebe, general manager of ET Highland Flora and Chairman of the Ethiopian Horticulture Producers and Exporters Association, presented its explanation against the suspension request.

The defendant urged the court to lift the suspension because its produces are perishable and, they claimed, they would experience heavy losses from the suspension.

The Netherlands based Finn Flower Africa PV, which holds a 50pc share of ET Highland Flora, filed the charge against Tsegaye on May 12, 2009. The charge alleges that the defendant neglected the plaintiff’s rights by using an unlimited power of his authority in the company. For example, Flora claimed, Tsegaye took a loan for his personal purposes using the company’s property as collateral and refused to notify the inventory and balance sheet of the company are some of the counts the General Manager of ET Highland Flora is called to the Court for.

The plaintiffs also alleged that though they requested Tsegaye to call for the general assembly to discuss on some agendas, he was unwilling.

The lawyer representing the Finn Flower has requested the court to rule for the end of the defendant’s authority in the company, and to order for conducting of auditing of the company’s life time financial report by independent auditor authorized by the company’s shareholders.

The Federal First Instance Court has adjourned the case to June 29, 2009.

Last month, two foreign directors from Finn Flower Africa PV, Elkuizen Constantus Maria and Elkuizen P.Q. Maria, were sued by a prominent businesswomen, Mekia Sikessa, in Federal High Court; the businesswoman had claimed compensation worth 300 million Br from the two compatriots who allegedly provided faulty consultancy services to her agricultural business.

The litigation ended after the court decided Mekia should pay the court fees before the case was opened after she had applied to be allowed to open the case through forma pauperis, without paying the court fees.

ET Highland Flora Plc was established in June 2004, with capital of 11.7 million Br. The company produces cut flowers at Sebeta, which is 24km southwest of Addis Abeba, in Oromia Regional State, on the place called Dima. The Dutch based Finn Flower Africa PV and the local Blue Nile Flora Plc own the company with 50pc share each.

- By ABIY WENDIFRAW | Addis Fortune