ERCA to Seize Huawei's $13M worth of Equipment

The Ethiopian Revenues and Customs Authority (ERCA) is to confiscate 13 Million dollars worth of equipment imported in late 2012 by the Chinese telecom company, Huwawi Technologies. The Equipment was allegedly imported in the name of ethiotelecom without the latter's knowledge.

The measure came following successive investigation by the Ethiopian Shipping & Logistics Service Enterprise (ESLSE), Ethiopian Cargo (ET Cargo) and the House of People's Representatives (HPR). The investigation finally pointed out that the company had imported the equipment on behalf of ethiotelecom. The latter signed an 800M dollar telecom expansion deal three months ago with Huwawei.

Huwawi imported a total of 235 items, which included energy storage units and various types of battries through the ESLSE, on Nov 19 and 20, 2012. These were described on the commercial invoice as for 'ethiotelecom network expansion project.

On the other hand, other equipment, including microwave telecommunication products, with a gross wight of 11,334kg, were brought into the country through ET Cargo by the company on behalf of ethiotelecom, on Dec 8, 2012.

The equipment has been stuck at ET Cargo and the Modjo Dry Port since late November 2012. This is about nine months before the company signed the deal with ethio telecom.