Mekele city council has not paid more than 2 billion birr in annual fees from leased land.

Over 2 billion birr in lease arrears will be paid in December, the city’s revenue office said.
Mulgeta Gebreyesus, Head of Municipal Revenue Process at the city municipality, said there are a number of arrears of leases issued since the first lease proclamation was introduced in 1987 EC.
He said a number of lands in the city have been given for investment, schools, health institutions, hotels, agricultural towns, banks, lodges, malls, construction equipment and construction blocks without paying annual lease fees.
Those who entered the lease system through sale and gift should be paid the lease arrears, he said.
There is also a widespread problem in paying the annual lease fees after signing the contracts in the lands allocated for national and regional benefits, he said.
Therefore, it has been decided to pay the lease arrears within one month from December 8, 2017. There will be a system where administrative, interest penalties and land banking will be paid according to the lease proclamation.
Senior Lease Officer at the Land Use and Management Office, Desta Kahsay Bisrat, said the rent and lease of the land transferred to the beneficiaries should be paid by December 30 from the beginning of the fiscal year.
Desta said there is a widespread problem in paying annual lease fees for land transferred to users, especially factories and large investments.
There is also a serious distribution problem with 54 to 70 of the leases awarded through tender, he added.
Desta Kahsay said there is a large number of lease arrears and it is important to provide awareness and education before taking action.
Action will be taken against those who fail to pay the bill within the stipulated one-month period, he said.
The community has been urged to pay the unpaid lease arrears within the stipulated time frame as they have wide significance in the development of the city.