IL&FS OKs a month’s pay to Ethiopia staff, expats still hostage

NEW DELHI: The IL&FS hostage crisis in Ethiopia appeared far from over despite the distressed group on Monday transferring money to pay one month’s salary. The Indian expats held hostage were not released as the local workers are demanding that IL&FS Transportation Network Ltd-Elsamex clear dues for two months — October and November.

Sources told TOI the company is in contact with local authorities and Ethiopian police to arrange for a safe passage for its Indian employees who are under house arrest in their camps, while IL&FS arranges for more funds to settle the salary dues.

At least five Indian expats working for two road projects in Ethiopia have now been captive for over a week as ITNL and Elsamex have failed to clear salary and other statutory payments for several months. The Indian expats also have unpaid salary claims since July with some of the arrears dating back to April.


An IL&FS spokesperson declined to comment.

Sources, however, said that efforts have been mounted to arrange funds at a war footing. On Friday, Exim Bank of India asked Commercial Bank of Ethiopia to come to the rescue of IL&FS.

“Exim Bank is agreeable to permit the withdrawal from the accounts, after they are adequately funded, towards meeting immediate pressing dues, that is, payment of salary, statutory and local dues in Ethiopia,” Exim Bank deputy managing director Debasish Mallick told TOI.

Exim Bank had invoked guarantee amount $31.7 million and guarantee commission of over $285,000 due to the problems at the IL&FS Group, which have led to a series of repayment defaults. But the amount in the bank account was not sufficient with just around $230,000 at the end of November.