TMCnet News
Pos Land License On the Verge to Be Cancelled(AllAfrica Via Acquire Media NewsEdge) The issue stems from complaints from three shareholders that they had not received their share of profits The Ethiopian Revenues & Customs Authority (ERCA) is going to cancel the license of POS Land Software Development Plc - one of eight companies allowed to install software to cash register users for their fiscal printers. This decision comes following the company's delay in delivering services and maintenance to its customers for the past six months. This was due to an internal problem between shareholders of the company, according to Tewdros Woldemariam, sales register machines technology team leader. The Authority licensed POS Land, a company established by six shareholders, along with CNET Technology Software Plc, Maraki Software Plc and Haron Computers Plc, in 2011, and instructed all sales register users to reinstall the software for their fiscal printers with the software from these companies by making a deal with the companies to deliver maintenance, training and software upgrade services. POS Land's software was developed by local engineers at a cost of 2.5 million Br, for four cash register models. While securing the license, POS Land submitted a one million Birr bank guarantee, valid for five years, to cover the expense of testing and the demonstration of the software, to notify the Authority whenever the software is edited and for any damage caused by the software. After getting the license, the company sold its software to 2,000 businesses. But, in March 2013, the company went to court because of a disagreement, following a claim by three shareholders that they did not get their share of profits for 2010/11 and 2011/12 fiscal year, and that they had managerial issues. The three, Seare Amdemariam, Kirubel Eshetu and Gezahgne Fikadu, asked the court to dissolve the company, according to the official website of the Company. Continuous attempts by Fortune to talk to POS Land failed. A year ago, after reviewing the case, the court ruled the company should not be dissolved and should continue the service with the three shareholders, as it has a deal with the ERCA. "After the Court ruling we were expecting that the company would continue delivering the services to its clients, but we are continuously receiving complaints from branch offices and tax payers," said Tewdros. A supermarket business was forced to use normal receipts for one month before it changed to another software, following ERCA's recommendation. "Our software installed by the POS Land two years ago failed last month and we requested them to fix the problem, but they did not respond to us until now. So I am forced to buy new software with 13,500 Br," he claims. "We are suggesting to the taxpayers to buy new software from other licensed software developers and advising and helping them how to transfer their data to the new system," said Tewdros. Currently, the top management of the ERCA is reviewing the case to cancel the license of the company and how to proceed with the case legally, according to Tewdros. The decision of the management includes how to mange the one million Br deposited by the company and how to refund the taxpayers who are now buying another software for the second time, said Tewodros. POS Land has been selling its software since 2011, with a client base of 2,000 currently, whose fate will also be decided by the ERCA's management. An email to POS Land's address brings an automatic reply, telling customers that there is no guarantee from POS Land regarding new projects or works. "So it's up to you, the client, to choose whether or not choose on work with us," it reads. Stating an ongoing court dispute at the High Court between the shareholders and the management, the email reply speaks of an "unsolvable dispute between the shareholders", which could lead to the dissolution of the Company. Copyright Addis Fortune. Distributed by AllAfrica Global Media (allAfrica.com). |