15 November 2010

http://allafrica.com/stories/201011160129.html

Investigators at the Federal Police have raided offices of several businesses on Tuesday, November 9, 2010, before they have arrested 47 people suspected of money laundering.

The arrests came after investigators raided various businesses around Addis Abeba, including some located in the Merkato, Piazza, and Kasanchis areas. It covered shops suspected of conducting hawala, a practice of exchanging foreign currency into Birr, as well as in the parallel market. One of the raided shops were a sales outlet in Merkato of Aal-Sam Trading, owned by the family of Saber Argaw, a prominent businessman.

The suspects, including Saber's son, Mohammud, have appeared before the judges at the First Instance Court, at Arada, on Thursday, November 11, after remaining under police custody for 48 hours.

"I don't know why they searched our shop," Saber told Fortune. "We operate legally; we have done nothing wrong. I believe they will come to find out the innocence of my son."

Police officers at the Federal Police Department declined to comment, for they believe this will hamper their investigations.

However, suspects were listed under nine files.

Judges have granted police investigators the right of custody up until Thursday, November 18, 2010. One suspect, however, was released after the court granted him a bail for 500 Br bond.

This is only the second raid on businesses suspected of operating in illegal money exchange in two years. Close to 40 people suspected of similar conducts were arrested in March 2008.