Ethiopian prosecutors on December 27, 2024, announced serious financial crime charges against two prominent figures from Web Sprix IT Solutions PLC: Dawit Berhanu Ambaye, the General Manager, and Mekdes Aklilu Temesgen, the board chair.
The duo were facing allegations of tax evasion, money laundering, and facilitating illegal imports.
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Allegations against Websprix executives
The charges against Dawit include:
Tax Evasion: Prosecutors claim he evaded taxes amounting to 51.9 million birr.
Smuggling: He is accused of importing software without proper customs clearance.
Falsifying Records: Dawit allegedly manipulated financial records to hide undeclared profits from 2017 to 2020.
Mekdes is facing serious accusations as well:
Concealing Funds: She is charged with hiding money linked to terrorism financing.
Misusing Company Assets: Mekdes allegedly inflated the company’s share capital and diverted funds for personal use.
Background of the Company and its Founder
Web Sprix IT Solutions PLC was established to offer innovative IT services in Ethiopia.
Dawit Berhanu Ambaye, the founder and general manager, has significantly contributed to the company’s growth.
However, these recent allegations have raised questions about his leadership and corporate governance at Web Sprix.
The Ethiopian government is taking a strong approach to combating financial crimes. This case underscores the importance of accountability in business and efforts to ensure integrity within Ethiopian companies.