Police Arrest Four Alleged Accomplices in NBE Phoney Gold Scandal

29 January, 2008

In the latest developments of the National Bank of Ethiopia’s (NBE) phoney gold scandal, the Federal Police arrested four brothers for allegedly acting as accomplices to one of the suspects accused of swindling 158 million Br by supplying fake gold to the Bank.

Apprehended on January 16, 2008, the businessmen now under custody are Kaf Mohammed, owner of Sofam Fashion; Sultan Mohammed, owner of Day and Night Multi Choice boutique; Fuad Mohammed, owner of WOW Fashion; and Nuredin Mohammed, owner of Nur Building.

The police charged the suspects at the First Instance Court of the Arada Criminal Bench, accusing them of covering up for Mukemil Sheriff a.k.a. Mohammed Awel, who is a fugitive also indicted for cheating 65 million Br from the Bank by supplying 13 boxes of gold-plated steel to NBE.

Their other brother, Mudesir Mohammed, was also arrested a month ago by the police.

The federal police had earlier investigated the residence of Sultan Mohammed in Woreda 28, Kebele 04 and a store in Woreda 03, Kebele 31, of the Kirkos District with the warrant it obtained on January 15 from the Court.

Requesting the warrant, the police stated that it aimed to seize pieces of steel, fake documents, money and gold from the suspect’s house.

The suspects’ attorney requested bail rights claiming the suspects are only accused of being accomplices, and not directly involved.

The police argued that they would help the accused escape if released.

The Bench refused bail, however, and has instructed the suspects to follow their cases in custody.

In a letter the police wrote to the Bench on January 23, 2008, it requested the closure of the file it opened claiming that it has been verbally communicated by the Federal Ethics and Anticorruption Commission that the case involves corruption, which has to be seen by the Federal High Court. Subsequently, the file was closed at the First Instance Court.

The scheduled time for the suspects that were apprehended earlier to appear before the Court was also cancelled. The cases of these NBE suspects - Mohammed Said, Alemayehu Kassahun, Chimdessa Hirpa and Fekadu Lulu - has been closed and transferred to the Federal High Court. The cases of the experts from the Geological Survey - Sisay Engida, Belachew Berissa and Yasin Yimam - have also been moved to the jurisdiction of the High Court.

In connection with the fraud, the Commission in December 2007 has requested the court to freeze vehicles, leased land, a house and other properties including gold that belong to Mohammed Awel (Mukemil Sheriff), Kefyalew Umeta, Mudesir Mohammed, Bahredin Nursebo, Mekdes Gebremichael and Solomon Gebremichael.

By ISSAYAS MEKURIA - FORTUNE STAFF WRITER