The city administration of Addis Ababa is preparing to transfer kebele administered shops and recreational centers to consumer associations in the next six months.
The City Council issued a regulation to enact the transfer of the businesses in July. The establishments to be transferred too consumer associations have a collective capital of 104 million birr and fixed assets of 35.45 million birr and more than 64.85 million birr in cash.
The transfer are expected to resolve challenges allowing the establishments to be managed as publicly responsible, accountable and transparent institutions said Mulugeta Mengistu, Head of the Cooperatives Development Office.
Kebele administrations have been in operation since 1976 and were transferred to a trustee board set up by the city administration.There 304 kebele shops and 170 recreational centers as well as 102 shower houses, 71 flour mills, 33 halls, 16 kindergarten, 57 warehouses among other businesses making up a total of 1,069 establishments.
More than 50% of these businesses have been rented to third parties. In all districts, execpt in Gulele institutions managed revenues with their board of trustees and are more inclined to comply with the wishes of the board then with the consumer.
Studies also revealed that problems with management, and accounting systems explained Belayneh Woldesenbet, Leader of the Communication Affairs Processes with the city.
The estimated 4759 employees will be treated according to the labor law according to the regulation facilitating the transfer.
The 140 consumer associations that will be the new owners of the business possess 100 million birr in capital and employ 1081 people.
Source: Addis Fortune
