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Two days after Arega Yirdaw submitted a resignation letter as CEO of MIDROC Technology Groups, Saudi Ethiopian billionaire Al Amoudi lets him go. Getachew Hagos will take over as interim CEO.
MIDROC Ethiopia, whose owner is Ethiopian-born Saudi billionaire Mohamed Al Amoudi, has been experiencing challenges in terms of investment environment, especially after political reform measures since Abiy Ahmed became prime minister in April 2018.
The pressure was strong in the Oromo region of Ethiopia. The MIDROC investment group has around 26 investments in the country and one of the lucrative businesses was gold mining. But his license was suspended shortly after Abiy Ahmed assumed power, for alleged contamination reasons. Political pressure from ethno-nationalist groups was a key factor, as it was in the news sometime in 2018.
However, there appeared to be no disagreement between MIDROC management and the owner, Mohammed Al-Amoudi, who was released from Suadi prison in January 2019.
The letter of resignation from the CEO, Arega Yirdaw, to Al-Amoudi indicates that there were round-trip talks between the first and the second.
In the letter of April 25, 2020, the CEO expressed his gratitude for the owner for providing him the opportunity to “serve his country” as CEO of MIDROC Investments.
He used to live in the United States about 22 years ago, and Al Amoudi approached him to return to his country and manage investments on his behalf, as stated in the letter. He has served as CEO for the past 20 years.
Arega Yirdaw then described what he described as challenges in managing the 25 investments under MIDROC. While he noted that he overcame the challenges in his management job without imposing himself as a boss, those he faced in the past two years were strong and manifested as “pressures” from different directions as he expressed them. “
“People who named themselves through MIDROC,” whom he described as “disrespectful” to management and members of the management team, proved difficult, even posing security challenges.
He specifically cited challenges related to the Adola (Lege Demi) gold mine project and Elfora Agro’s business in the Beshilo area. In the latter case, unemployed youth in the region were claiming part of the land that was handed over to Al-Amoudi with an investment license. The administration expressed that it cannot give the land indicating that it is the owner who is the right person to do it. According to the CEO’s narrative, the situation put him in a difficult situation, as he was considered standing between the land claimants and the owner, Al-Amoudi.
Arega wanted the owner to personally respond to the lawsuit, which had also become a government position, which appears to be part of the reason for the gap between him and Alamoudi.
Citing those and other challenges, Arega requested the approval of this resignation as CEO of 25 MIDROC investments. But he asked to remain as president of the Unity University, of which he is co-owner.
Al Amoudi’s response
Al-Amoudi’s response to the resignation came on April 27. An alleged letter from him is circulating on social media.
“… You have served as CEO of the MIDROC Group for a long time. However, right now you are getting older and I understand that you need to rest. Also, we couldn’t agree on some important issues and you’re afraid to do your job … I’ve decided to end your role as CEO of MIDROC companies, except your role as president of Unity University. ”
Arega’s authority to manage bank accounts for these is to cease immediately.
Getachew Hagos will replace him as interim CEO of MIDROC, Al-Amoudi has decided.
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