Karma of the poor will get you!
Notice folks how the TPLF junta was financing the sale of Ethiopia’s land while displacing the indigenous natives of the land. They were borrowing to “buy” and farm the land that’s being handed to them.
Karuturi Global, which earlier agreed with the Ministry of Agriculture (MoA) to grow wheat on 300 thousand hectares of fertile land has fell to deliver its promises of becoming a leading agricultural company.Karuturi was almost foreclosed after failing to repay a 65 million birr (a little over USD three million) loan extended via overdraft facility from the state-owned Commercial Bank of Ethiopia (CBE). However, the company immediately settled the minimum, 25 percent of the debt. But government officials told The Reporter that Karuturi is no longer reputed in Ethiopia.Abera Mulat, director of agricultural investment and land administration agency, at the MoA told The Reporter that Karuturi no longer a reputable company in Ethiopia. According to Abera, the Indian giant has failed to deliver. The official went on to say that Karuturi is on the verge of collapsing in Ethiopia. “Karuturi has gone bankrupt following internal management crisis,” Abera said.
In a telephone interview from Bangalore, India, Ram Karuturi, CEO of the company, told The Reporter that he will continue investing in Ethiopia. Currently, he is selling out machineries and equipment worth some 15 million birr to repay debts the company has incurred here. Karuturi is known for borrowing from CBE, Dashen and Zemen banks. The loan extended to the company exceeds 170 million birr and the CEO said that his company is set to settle the debts by the end of this month.
The multimillion dollar company has been flouting stock shares at the international market intending to raise capital. Officials reason out that the rift among the 19 figures of the Karuturi Group at global level is the result for Karuturi to go down. But Karuturi pointed at government officials for some of the challenges his company is facing. The recent announcement of Karuturi’s selling out of machineries and equipment and other accessories prompted the concerns of local officials. However, Ram Karuturi denied that selling out those machineries is based on the intention of settling debts. Furthermore, he said that the company is selling out the surplus equipment it had in the farms. According to the CEO, the company has a USD 70 million worth of machineries in Ethiopia.