RESPONSE TO ABEGAZ BELETTE ON AL AMOUDI
By Hannah Yohannes
June 26, 2005 

I.. Introduction
I am reacting to an article you recently posted Abegaz Bellete�s �Al Amoudi is not a �Sacred Cow��. Overall, I applaud the author for not harboring a juvenile understanding of democracy and democratic rights. I also admire the author for not jumping on the apology bandwagon. However, I feel that author sold himself and his readers short by emphasizing morality and not exploring the legal issues associated with Mr. Al Amoudi�s recent actions, both his public support (campaigning) of EPRDF and his �tantrum� since receiving some criticism.

Many people have not duly noted the significance of Mr. Al Amoudi wearing the EPRDF t-shirt and campaigning on behalf of the ruling party. Not only campaigning but also making fun of the opposition parties! Where does he think he is? Does he think he is in the West? Does not he see (or at least read) opposition members being killed? Doesn�t he see (or at least read) about opposition members under arrest for absolutely no reason? His foray into Ethiopian public life, in such a partisan manner, has opened him up for public evaluation by all those concerned with the welfare of Ethiopia. Prior to Mr. Al Amoudi�s public show of support for the EPRDF, he was a private person and no one had the right to comment on him; I would have been out of line writing this simple commentary. But now, it is a completely different story.

With this as background, we can evaluate Mr. Al Amoudi more broadly. I assert the following: (1) Mr. Al Amoudi does not have the same democratic rights as other Ethiopians (he has more), (2) Mr. Al Amoudi�s business operations and activities are grossly opaque and thus their long-term contribution to Ethiopian society is unknown, (3) Mr. Al Amoudi has miserably failed to lead Ethiopian society as its premier business person. There are several other minor points but these are the major ones that can be summed up in such short commentary.

2 On Democratic Rights
First, as to Mr. Al Amoudi�s democratic rights. It is only a juvenile interpretation of democracy and democratic rights that leads one to the conclusion that �Mr. Al Amoudi has the same rights as other Ethiopians�a right to support any party he chooses,� etc. A realistic understanding of democratic rights tells us what we sense: even though Mr. Al Amoudi is probably not an Ethiopian citizen (with all its risks), he probably yields a lot more influence in Ethiopian society than most Ethiopians do. By any measurable metric of democratic rights, such as the ability to freely express oneself and be heard by X% of the population and assume Y% worth of risk to personal net worth, he far surpasses most Ethiopians. And let�s not forget that he probably practices his politics in Ethiopia with the open support of a foreign government (wherever he may hold citizenship)�as that government has a right to look after the welfare of its citizen should anything happen to such citizen. Not only as a private citizen of one such foreign government but Mr. Al Amoudi may be an officer of other influential entities in other countries. As such, other governments, which host these before-mentioned entities, have a justifiable interest in the continued welfare of Mr. Al Amoudi. On top of all this protection (security), Mr. Al Amoudi is extremely wealthy when compared to the average Ethiopian citizen; this gives him tremendous leverage to influence Ethiopian politics. And thus, his democratic rights far surpass most Ethiopians. My point in all of this is that no one should be shedding tears for Mr. Al Amoudi�s loss of democratic rights. There are far more deserving (because they have much less democratic rights vis-�-vis Mr. Al Amoudi) Ethiopians.

Looking at the West (say the U.S.) as an example in democratic conduct, we do not see the super wealthy being hard core partisans. [One must not look at the exceptions but get a feel for the society as a whole. Moreover, one must not assume that the exceptions do as they please everywhere all the time.] Instead, you find such individuals as world leaders in their respective fields, almost all with a great sense of purpose and responsibility both to their respective countries and indeed mankind. (See the relevance of this last point in Section 4 below.) 

3.. Opaque Business Operations
Where does Mr. Al Amoudi (MIDROC and all his other companies in and outside of Ethiopia combined) generate most of his revenues? Profits? I doubt if many people can answer this question. Again, this question would have been inappropriate a few months ago but Mr. Al Amoudi�s foray into Ethiopian politics has changed all that. Most would agree that he has significant political influence in Ethiopia, and if so, then the source of his revenues and profits should be of public concern in Ethiopia. An exact breakdown is not necessary for the general public but an accurate summary is an absolute must. By the same token, what does Mr. Al Amoudi�s (again MIDROC and all his other companies in and outside of Ethiopia combined) balance sheet look like? Is it possible that he is running a leveraged operation and all his companies could come crumbling under hefty debt and thereby destabilize the Ethiopian economy? Is this a potential risk that the public should assess? The only point that I would like to make here is that this information is now of public concern and Mr. Al Amoudi has a duty to share this information, be it in a summarized fashion, with the public-at-large.

There are some who have suggested that Mr. Al Amoudi should be praised for investing in Ethiopia. They assert that he could have moved his capital to the West and benefited from the booming stock market in the late 1990�s and the booming real estate market in the early 2000�s. To me, this argument, solely by itself, raises equally puzzling questions: why would an investor make such irrational business decisions? If Mr. Al Amoudi is not running businesses for profit, then to what purpose? (Perhaps it is because he has a heart of gold but I will leave that for his close family and friends to decide. From where I am standing, this action has to hold water when it is looked at in its totality with the rest of Mr. Al Amoudi�s actions.) I believe Mr. Al Amoudi correctly predicted that Ethiopia was not going to fall apart in 1991 and increased his investment in Ethiopia. (I don�t particularly think this was an astute observation since I do not believe that Ethiopia will cease or break apart anytime in the near future; it has withstood far more trials and tribulations than the EPRDF-DERG switch.) 

Moreover, Mr. Al Amoudi rose to prominence during the EPRDF era and some episodes (such as the Tamrat Layne�s imprisonment and Mr. Al Amoudi�s recent campaigning on behalf of EPRDF) have implied that he has close connections with ruling party members. As such, his investments in Ethiopia could be based on his connections/insider status. This in turn may mean that it was expectations of profit (perhaps less returns but with far less risks) that drove Mr. Al Amoudi to increase his investments in Ethiopia. But if it is not for profit, then indeed for what purpose? There is a plethora of evidence to suggest that his flagship operation, the Addis Sheraton, is not profitable. What about his other businesses? Again, if not for profit, then to what purpose? A good public relations tool for Mr. Al Amoudi�s other businesses? (Acceptable use.) A good public relations tool for the government or Mr. Al Amoudi�s other interests? (Not acceptable use.) But of course, as the expression goes, this is the sixty-four thousand dollar question, i.e., this is all a shot in the dark given the opaqueness of Mr. Al Amoudi�s business operations.

And lastly, Mr. Al Amoudi's close associations with Saudi Arabia also raise questions. Several Ethiopians have written that the government of Saudi Arabia, through its support of rebel movements in Ethiopia in the 1970�s and 1980�s, and its current anti-Ethiopia stance, has harmed Ethiopia over the years. While direct proof has not been presented, some of these accusations have been emanating from senior/retired Ethiopian government officials who we should all be listening to. This adds more weight to the argument that Mr. Al Amoudi�s actions be more thoroughly looked into/observed.

In his response to criticisms, Mr. Al Amoudi has indicated that his foreign-based critics can learn from the democratic rights that they enjoy. It is also true that he could learn from his peers in the West and run more transparent business operations. 

4. Lack of Leadership 
Mr. Al Amoudi�s partisan actions are actually a welcome move from my point of view as they allow us to debate openly the role of business men and women in Ethiopia. To date, his has been a domicile group that has not strongly expressed and enforced its will. Mr. Al Amoudi is a prime example. I for one welcome and support his foray into politics. He should continue to try and shape Ethiopian policy. He should not retreat. He should improve on his dismal record of leadership thus far. 

A. Mr. Al Amoudi is seen as the premier business man in Ethiopia. If he is indeed a business man and is interested in helping Ethiopia, he should start a business lobby to express better the needs of the business community. Just like he did not hesitate to support EPRDF at a critical juncture (elections), he should not hesitate lead the business community. He should lobby for policy issues such as lower taxes, less regulation and sovereign sea access. If not, why not? He owes the Ethiopian public an explanation. 

B. Mr. Al Amoudi should be front and center fighting corruption and running transparent companies. He should voluntarily publish his companies� revenues, profits, taxes, interest paid on loans, composition of senior management, etc. If not, why not? He owes the Ethiopian public an explanation.

C. Mr. Al Amoudi should be in front of the public more often. We would like to see more of him in front of the Parliament giving testimony on policy issues for the record instead of ribbon cutting ceremonies. We want to see where he stands as the leader of the Ethiopian business community. He should, once again as a leader of the Ethiopian business community, weigh in on sensitive legislation such as the World Bank/IMF loans, Right to Bail for Corruption-Related Crimes, the Algiers Treaty etc. If not, why not? He owes the Ethiopian public an explanation.

D. Mr. Al Amoudi should also be leading on the public ownership front. Given the enormous clout of Mr. Al Amoudi�s companies in Ethiopia (relatively speaking), it would be nice if his main holding company could be converted into a share company that the public could buy into. That seems to work rather well in the West. Why not in Ethiopia? If not, why not? He owes the Ethiopian public an explanation. 

I think/hope that we are all in agreement that Mr. Al Amoudi should remain engaged in public life and improve his record of leadership.

5. In Conclusion 
In trying to defend Mr. Al Amoudi�s foray into Ethiopian politics at such a critical juncture, some individuals have suggested that he should be thanked for his employment practices. Apparently, forty percent of Mr. Al Amoudi�s companies� employees are female and he employs individuals regardless of religion and ethnicity. Although I would like to note that this is the first time that I have read such data on Mr. Al Amoudi�s companies (and it was not satisfactorily cited), I have no reason to doubt the accuracy of such data. What I have a problem with is the idea of thanking Mr. Al Amoudi for this fact! Can someone in Ethiopia employ thousands of people and insist they be just males? Just Muslims? I hope not I would like to think, if not Ethiopian sensibilities, that Ethiopian law would not allow such discriminatory practice. And for that, let us please take the time to thank the many Ethiopians (and the many foreigners) who over three thousand years paid a huge sacrifice to build a tolerant society.

In the U.S. election in 2004, former Vice President Al Gore, when endorsing Howard Dean for the Democratic nomination, uttered that he wanted to endorse Dean early enough in the process to ensure that his endorsement had a noticeable effect in the nomination process. Voters in the Primaries responded by electing John Kerry by a wide margin. This is very similar to Mr. Al Amoudi�s endorsement of EPRDF. Ethiopia�s access to the sea, so critical to its national security, is not worth a few Sheratons. (There are many other points but not enough time to cover them.) The voters, most familiar with Mr. Al Amoudi, those in Addis Ababa, made that statement clearly and unequivocally. One can only hope that Mr. Al Amoudi learned a lesson.

I am also in agreement with Abegaz Bellete that indeed Mr. Al Amoudi is not a �Sacred Cow�. Far from it, if (when) a more rational, pro-Ethiopia government comes to mind, Mr. Al Amoudi can expect some though questions about (please note that no one is saying that Mr. Al Amoudi is guilty of anything): 
A. Why he may be running unprofitable businesses?
B. What associations, if any, he has with foreign governments? 
C. What dealings, if any, he may have had with current government officials?
D. etc.

I am also hopeful that Mr. Al Amoudi will not retreat into a plush cocoon somewhere but would remain engaged and lead the Ethiopian business community by better expressing its needs to Ethiopia�s political leaders. END

Hannah Yohannes
June 26, 2005