Some Legal Controversies Regarding Party-affiliated Endowments and Their Participation in Business Activities: The Case of EFFORT and TIRET Endowments

Mamenie Messelu; Professor Costas Markides

doi:10.20372/bdujol.v9i1.1365

Mamenie Messelu (LL. B., LL.M), Lecturer in Law, Bahir Dar University
Professor Costas Markides Professor Costas Markides, David against Goliath: How can Estonian Companies Grow by Challenging Bigger Global Competitors and Conquering New Markets; London Business School

DOI: https://doi.org/10.20372/bdujol.v9i1.1365

Keywords: Business Entities Charity Laws; EFFORT endowments; TIRET endowments; Party affiliated endowments; Registration.

Abstract

Social service needs in no way can be fulfilled by the government alone.
That is why governments are giving due consideration for Civil Society
Organizations (hereinafter CSOs) and incorporating them in their legal
frameworks. Charitable endowment is among the different classifications
of CSOs, which play a significant role in every walk of life as they fill the
gaps that the government fails or is unable to discharge its responsibility
in various dimensions including human rights protection and socioeconomic development. In Ethiopia, party affiliated endowments such as
Endowment Fund for the Rehabilitation of Tigray (EFFORT), Amhara
National Regional State Rehabilitation and Development Fund (TIRET),
Endowment Foundation for the Development of Oromia (TUMSA), and
Endowment Fund for the Development of Southern Nation Nationalities
and Peoples (WENDO) are established by Tigray Peoples Liberation
Front (TPLF), Amhara National Democratic Movement (ANDM),
Oromia Peoples Democratic Organization (OPDO), and Southern Nation
Nationalities and Peoples Democratic Movement (SEPDM) respectively,
on the assumption that the wider public of each regional state community
is the beneficiary of these endowments. This article examined the legality
of formation, registration, and operation of these endowments and their
participation in business by using EFFORT and TIRET endowments as a
case study. The article upholds doctrinal legal research which is based
on the identification, synthesis and analysis of the law defining
endowment and their participation in business. The finding shows that
there is defective formation of EFFORT and TIRET endowments, and
also that their involvement in business activities is contrary to the
provisions of the laws regarding commerce, tax, competition, and CSOs.