Wednesday, February 09, 2011

Ethio-Canada Sues Subcontractors for 11m Br

Source: Addis Fortune, 02/07/2011
Ethio-Canadian Business Group Plc sued CGC Overseas Construction Ethiopia Ltd and CGC Nigeria Ltd for 11 million Br on January 18, 2011, for defaulting on its sub contractual agreement.

The two defendants had been subcontracted for the construction of roads at a cost of a little over 28 million Br in an area called Gerado around Dessie in South Wollo, and in a place called Gemba in East Wollo.

They had agreed that the design for the roads would be submitted within four months of signing the deal, the plaintiff claimed. However, it took the defendants two and a half years to complete the job, during which time the plaintiff claimed that it had incurred salary costs for employees and rent for 45 machines.

Ethio-Canadian Business Group also claimed damages for the gains it would have made if it had been in operation during the extended design period.

The defendants did not respond to notices from the plaintiff nor did they accept the last warning offered to them, according to the charge file submitted to Federal High Court, Eighth Civil Bench.


Judge Habtamu Worku, who presided over the initial hearing, froze more than 17.4 million Br deposited in the accounts of the defendants, at Commercial Bank of Ethiopia (CBE). He also ordered the name of the first defendant, CGC Overseas Construction Ethiopia, to be corrected.

The case was adjourned to February 24, 2011.

The defendants have another contract from the Ethiopian Roads Authority (ERA), that was signed in 2004, to construct the roads from Kombolcha to Mekaneselam.

Ethio-Canadian Business Group Plc was established by Rahel Taddes and Yosef Aserat, citizens of Canada and the US, respectively, with a capital of 9.3 million Br.

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