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The demonetization announcement came out of the dark and impenetrable night and fell on the money changers, hoarders, thieves, and crooks like a thunderbolt! (Photo: @combankethiopia)

BY PROF. AL MARIAM

On September 13, 2020, two days into the Ethiopian New Year, H.E. Prime Minister Dr. Abiy Ahmed dropped a thunderbolt on Ethiopia! He announced in an unscheduled, nationally televised address demonetization of the current notes and introduction of new Birr notes for 10, 50, and 100 denominations and a novel Birr 200. Within 90 days, the old notes will no longer serve as a legal tender.

PM Abiy said the new currency has been in planning for some time under what he called “Project X”.

Few people knew about “Project X” and even fewer expected demonetization. Those who knew were not talking. Even the know-nothing, do-nothing, empty barrel YouTube clicking vultures of social media had a clue.

Amazingly, in a political world that leaks like a sieve, not an inkling about demonetization got out.

Maintaining a complete information blackout on such a vital issue testifies to the extraordinary team PM Abiy has assembled to deal with Ethiopia’s economic problems and put an end to the kleptocratic thugtatorship of the Tigrean People’s Liberation Front (TPLF).

The demonetization announcement came out of the dark and impenetrable night and fell on the “money changers” like a thunderbolt!

In retrospect, it should have been called “Project Thunderbolt.”

To me, demonetization is the equivalent of cleansing the Ethiopian Temple from the merchants of death and economic doom and casting out parasitic dens of thieves and thugs who have been bleeding dry the poor people of Ethiopia for decades.

Woe to the TPLF that stole and counterfeited over 100 billion Birr!

Woe to the corrupt money hoarders who stashed cash under their mattresses, in their backyards, underground vaults and secret locations and neighboring countries!

Woe to the money launderers who kept multiple bank accounts to conceal their stolen loot!

Woe to the tax evaders and cheats who secreted billions of Birr to avoid paying their fair share!

Woe to smugglers, counterfeiters, and money changers!

In 2013, I prophesied, “Meles and his worshippers have profoundly troubled the Ethiopian house and they shall inherit the wind!”

In a single act, a coup de grace, PM Abiy cleaned the Ethiopia Temple/House and cast the criminals that had troubled the Ethiopia House for 27 years like chaff into the wind.

I am glad to announce the TPLF is gone with the wind and into the trash bin of history just like I predicted in October 2017!

Why doesn’t PM Abiy starve the Beast?

I must confess one of the questions I am frequently asked is, “Why doesn’t PM Abiy change the currency? The TPLF is using the billions of Birr it stole and counterfeited to destabilize the country. Why doesn’t he starve the TPLF beast of cash?”

What I know for sure and remember is a speech PM Abiy made less than two weeks after he took office, which I documented in my April 29, 2018 commentary.

On April 17, 2018, PM Abiy pleaded with those who have sucked Ethiopia dry and appealed to their sense of patriotism:

… We have a big problem generating foreign exchange. I want to appeal to you now to bring back the money [dollars, Euros] you have stashed away in Dubai. We are facing severe hard currency problems. We have the problem not as a government but as a country. We want you to help us now. If you ask me why, [let me use a metaphor to explain it to you]. If your mother is sick and her children do not help her get better, it makes no sense for them to show up at her funeral. Our country is in deep trouble, specifically with hard currency. The government will do what it can, but I’m appealing to you to bring back the money [you have illicitly transferred out of the country]. It does not matter if bring it back from the friends and relatives you have kept it with or from wherever you have stashed it. You understand exactly what I mean when I say bring it back. If you don’t, the problem is not going to be solved easily. That is why we are coming to you and saying we are in big trouble, help us. We are not saying give us money. What we are saying is return the money you moved out of the country [and make it available for hard currency and help the people]. If you help us now, at another time you can say to us you helped us when we were most in need and you should expect us to help you [in your time of need]. You have to help us very much right now. [It is futile] for you to be just asking the government to give you [hard currency we do not have], you must also give back…

[There are many] Ethiopians who have stashed away a lot of money in Dubai and China. Huge amounts of wealth. We are asking them to return the money back to the country. By the way, the Chinese when their citizens have stashed away money outside the country, they use whatever power they have to go into those countries and get the money back to China. We have not reached that point, but we’ll get there. Those who are ripping off the country and accumulating wealth in other countries, it is only a matter of time before we get to them. It is only a matter of time before a proper solution is found… That money if it’s returned will alleviate a lot of problems…

Over the past year, PM Abiy continued to plead with the money changers, hoarders, thieves, and crooks to bring it back the billions of Birr they stole into the banking system and help the country.

No questions asked!

The crooks just did not believe PM Abiy.

They mistook his pleadings for peace, reconciliation, forgiveness, and love of each other and country for weakness.

They mistook his patience and tolerance of their nonsense for fear and lack of self-confidence.

They underestimated him terribly in every respect.

In August 2018, I advised everyone not to mistake the velvet glove for the iron fist. I warned, “When push comes to shove, PM Abiy will take off the velvet glove and everyone will see the iron fist.”

As I explained in my July 2019 commentary, “Abiy Ahmed means what he says and says what he means. There is no BS with him. He is a straight talker. He will say what can and cannot be done. He does not sugarcoat the bitter truth. He does not mince and dice the truth to make it more palatable.” What you see is what you get with Abiy Ahmed!

Behold the iron fist today!

The empty barrels who bragged about taking over government in “24 hours” are now cooling their heels in jail awaiting justice.

Behold the thunderbolt today!

The crooks and thieves who stole billions from the Ethiopian people can now use their demonetized currency for read end wiping purposes in the bathroom.

Well, the money changers, counterfeiters, thieves, smugglers, tax cheats and scumbag residents of Axum Hotel in Mekele now know “what time it is.”

Outta luck, outta ideas, outta cash, outta hope, they know it is time to pack it up and crawl under the rocks from whence they escaped in May 1991.

Bleeding Ethiopia Dry

I have always been concerned about corruption and capital flight from Ethiopia.

I first wrote about it in my December 2011 commentary, “Ethiopia: The Art of Bleeding a Country Dry”.

Global Financial Integrity in 2009 reported, “The people of Ethiopia are being bled dry. No matter how hard they try to fight their way out of absolute destitution and poverty, they will be swimming upstream against the current of illicit capital leakage.”

Ethiopia lost USD 11.7 billion in illegal capital flight from 2000 through 2009. Net official development assistance (ODA) to Ethiopia in 2009 totalled USD 3.8 billion.

Illicit financial flows out of Ethiopia “nearly doubled to US$3.26 billion in 2009 over the previous year, with corruption, kickbacks and bribery accounting for the vast majority of that increase.”

The annual average outflow from Ethiopia for the period 2008–2012 was US$3.55 billion. During same period, “Ethiopia’s illicit outflows were 1,355 percent of the foreign direct investment flowing into the country.”

A 2016 study showed the “stock of capital flight from Ethiopia stood at $29.9 billion in 2010,including interest earnings on past outflows, which is well above the stock of external debt of $7 billion in 2010.”

In 2017, the European Union listed Ethiopia as a major criminal center for money laundering on the African continent and subjected money originating in Ethiopia to strict banking scrutiny.