The city administration of Addis Ababa transferred 419 kebele administered shops and recreational centers to consumer cooperative societies. The transfer of 650 more is still underway.
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 transfers 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.
There are 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, except 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.
However, the transfer has been delayed from the intended July 2012 timing due to audit procedures and raising awareness as to the transfer within communities explained Tamrat Hailemichael, Deputy Manager of Kirkos District 20/21/15 Kebele Recreation Centre.
Source: Fortune
