Ethiopia: Woman Files One of Highest Civil Suits Ever, 300m Br

One of the most expensive litigations in Ethiopia's judicial history has been filed by a prominent businesswoman, Mekia Mamio Sikessa, who is claiming compensation worth 300 million Br from two expatriates who allegedly provided faulty consultancy services to her agro-business company.

Mekia filed the civil suit on May 8, 2009, at the Federal High Court, Civil First Instance Eighth Division, a bench presided by Judge Abas Mohamed.

Mekia, known for her pioneering involvement in commercial agriculture and agro machineries in the Arsi area, Oromia Regional State, claims Elkuizen Constantus Maria and Elkuizen P. Q. Maria, misled a company where she has played a key role in developing a flower farm.

Mekia established Top Flower Company in March 2004, with a registered capital of 10 million Br; 50pc of the company is owned by her husband, Kamil Abdulkadir, managing director of the company, who also represents the plaintiff in the litigation.

Top Flower is one of the three flower companies around Holleta area, 34Km north of Addis Abeba, in Oromia Regional State, obtained through a lease four years ago. It has a plot of eight hectares. Mekia also manages two other flower farms: A Flower, with around 12hct, in Holleta, and Super Arsiti Flowers, with 10hct plot, in Awash area.

Top Flower hired the services of FLODAC B.V., a Dutch company with a strong foothold in Zimbabwe in the late 1980s and early 1990s, to advise it on the development of one of their farms in Holleta. Top flower sought consultation regarding marketing roses to the European market.

Mekia alleged that the two defendants, introducing themselves as directors of the Netherlands' based Finn Flower Africa PV Company, which is a 50pc shareholder at the ET Flora Highland Plc located in Sebeta, Oromia Regional State, persuaded her that her business plan was feasible and they had expertise in the field. The plaintiff, however, stated she came to realize that the defendants had no such expertise and experience in the flower sector; their advice convinced her company to import "unproductive seeds and fertilizers, and plant seeds suitable for highland climate on a plot where there is lowland climate."

The plaintiff produced material evidence in the form of an audit report conducted by Getenet & Associates, as well as three witnesses, including Kamil and Tsegaye Abebe, chairman of Ethiopia's Horticultural Producers Association, which represents over 81 flower farms in Ethiopia.

Mekia claims the audit report shows Top Flower suffered a loss as a result of the firms deceptive consultation practices, and appealed to the court to order the defendants to pay her company 300 million Br.

Currenty, the case is wedged in a procedural fight over her appeal to the court for forma pauperis, pauperism access, a legal phrase meaning the court should wave its fee amounting to three million Birr. The claim is perhaps one of the highest made so far.

Previously, an attempted civil suit worth close to 400 million Br had been filed by businessman Temesgen Mehari against the state owned Commercial Bank of Ethiopia (CBE). However, Temesgen was unable to pursue the case due to his inability to pay the court fee - usually one per cent of the value of the claim.

Mekia also appealed to the court to prevent the defendants from leaving the country. One of the defendants, Elkuizen Constantus Maria, attempted to leave Ethiopia a day after Judge Abas ordered the defendants not to do so.

Sources told Fortune that Elkuizen P. Q. Maria was arrested for a couple of hours at the Bole International Airport by law enforcement officers with the Security and Immigration Authority, on May 15, 2009.

His lawyers brought an appeal to the court on May 27, 2009, urging the Judge to allow him to leave the country, and to return his passport. The defendant's lawyer argued that the ruling was made before the plaintiff paid the court fee required by law. He also said the defendant should be allowed to present bail bond, taking into account the amount of money the plaintiff is demanding.

The case was adjourned until June 2, 2009.

Ethiopian flower specialist - Elfora.com