Ethiopian bank head shown the door by the board
Oct 14, 2006 (ADDIS ABABA) — Kebede Temesgen, the president of Abyssinia Bank who sparked a power struggle with the bank’s board of directors since three years, had been ousted from his position.
The president was removed by a decision from the board of directors following differences with the board on the general orientations and reluctance to adhere to the bank’s work manual, the Ethiopian reporter said.
At its December 5, 2003 meeting, the annual general assembly of the bank had decided that pursuant to the Commercial Code, board members be paid five percent of the bank’s profit as emolument after tax is paid and legal and special reserve is set aside as emolument. The president’s authorization of payment of over two million birr to board members in the years 2003-2005 before legal and special reserve were set aside was, one of the reasons for his dismissal.
The president had also clashed with the board over its assertion of authority to approve certain types of loans and his objection to the board’s position, on this issue.
Temesgen had proposed that the bank install an information technology program while the board rejected the idea on the ground that the bank should not embark on this before it had sufficient personnel and undertook adequate research into such a project, the sources further said.
Eight out of the nine board members approved the decision to remove the president from his position.
The members of the board of directors include Kebede Temsegen, president of the bank, Philipos Wolde-Mariam, chairperson, Assistant Professor Tilahun Teshome, Dr. Tilahun Teklu, Dr. Berhane Gebray, Ato Fikremariam Yifru, Ato Minwyelet Kassa, W/ro Alemtsehay Meseret and Ato Almaw Gari.
Founded in February 15, 1906 by Emperor Menelik II, the authorized capital of Abyssinia Bank is currently Birr 530 million, its subscribed capital Birr 265 million , paid up capital Birr 166 million, Capital including Legal Reserve & Special Reserve 188 million . (1$ = 8,7464 ETB)
(ST/Reporter)