Entrepreneur of several Ethiopian businesses and founder of Access Real Estate (ARE) S.C has been arrested by Ethiopian government although he returned back to Ethiopia on February 19, 2015 after months of negotiation from America that he won’t be arrested.
State TV, EBC tonight reported that Ermias was arrested and investigation is now underway regarding his bankrupt Real Estate and undelivered houses.
Local press reported last year that Ermias was promised by from the government through the Ministry of Justice (MoJ), “to suspend a total of 81 criminal charges lodged against him and his firm for one year, he also earned a one-year legal guarantee and protection until he agreed to settle shareholders’ woes and homebuyers’ losses within the period he was granted.”
Auditors in 2012 found that ARE was unable to deliver over 2000 houses the company sold to home buyers. In 2013 Ermias left for the U.S.A. via another African country. It was after months of negotiation that Ermias returned to Ethiopia, when the government gave him exceptional immunity for one year and he proposed to deliver the houses.
However, ahead of the year, Ermias has been detained at the beginning of this week.
Ermias was briefly arrested in 2013 for an alleged cheque issuing crime.
Ermias studeid his undergraduate and postgraduate studied in the U.S., where he also worked in the U.S. finance industry for several years. Returning to Ethiopia in 1996 to start his own companies, Ermias has been famouly known for creating, funding and developing some innovative companies and ideas such as the first bottled water in Ethiopia Highland Water, Access Capital, profitable Access Bank, and Jano Music Band.
His first company was the Royal Crown Mineral Water Factory, which was liquidated soon after launch in late 1990s.