How Abiy Ahmed’s Political Revenge Turned Sidama into Ethiopia’s Corruption Hub

An Investigative Report

18 June 2026

  1. Introduction

The Sidama National Regional State was established in June 2020 following a referendum on regional statehood on 20 November 2019 in which 98% of the over 2.3 million voters supported the establishment of the Regional State. The founding of the regional state heralded the culmination of over 130 years of relentless struggle for regional self-determination by the Sidama people who deployed both armed struggle and peaceful resistance to achieve their inalienable right to self-rule. The armed struggle led by the Sidama Liberation Movement (SLM) against the socialist -cum- military regime from 1977-1986 cost the nation thousands of civilian lives. The renewed peaceful campaign in 2018 focused on the demand for a referendum on statehood in accordance with Articles 39(1) and 47(2) of the 1995 constitution of the Federal Democratic Republic of Ethiopia. Nevertheless, in contravention to the constitutional provisions, Abiy Ahmed, who is vehemently opposed to the right of nations and nationalities to self-rule vowed to crush the Sidama campaign for regional statehood in parliament on a national television. He subsequently deployed the federal and regional security forces that massacred over 163 young people across Sidama in July 2018.

Nevertheless, the massacre and intimidation never deterred the Sidama nation from pursuing its constitutional right to regional self-rule. Due to the relentless campaign by the Sidama people, international diplomatic pressures and widespread solidarity by the federalist forces in the country, the referendum was conducted on 20 November 2019. Angered by the defeat of his unitarist ideology, Abiy Ahmed unleashed a political revenge on the Sidama people by appointing the most incompetent, and corrupt anti-Sidama cadres to rule the new regional state which was officially established in June 2020. Since day one of their appointment, in 2020, these cadres have been involved in colossal corruption, fraud, nepotism, cronyism and abuse of basic human and democratic rights of the people of the region. Through large scale embezzlement of the financial resources of the region, they have essentially deprived the people of the region the right to access basic economic and social services, justice, poverty alleviation, and improvements in their livelihoods through gainful employments.

This investigative report which draws partly from the public appeal submitted by Sidama civilians to the dictator Abiy Ahmed in 2023 and partly from the 2026 investigative report ironically prepared by the Sidama Regional State “Anti-Corruption Commission” regarding the massive corruption in the Sidama Development Corporation, presents colossal evidence of maladministration, corruption, nepotism, and cronyism by key prosperity party cadres who currently rule Sidama. These include Desta Ledamo, the ruler of the Sidama region, Abraham Marshallo, the head of the Sidama region prosperity party office, Fantaye Kebede, the speaker of the Sidama regional assembly, and Tariku Lema, the head of the Sidama Development Corporation (SDC), a public development agency, established in 1998 with the initial support of foreign aid to foster socio-economic development and reduce poverty and unemployment in the Sidama Region.

  1. Colossal Corruption, Nepotism and a Total Breakdown in Law and Order in the Sidama Region
  • Widespread Corruption

The Sidama National Regional State has been turned into a failed state through a deliberate policy of political revenge by Abiy Ahmed and his theocratic prosperity party regime. Abiy Ahmed has deliberately and systematically used his political power, laws and institutional authority to punish the Sidama nation for campaigning for regional statehood which challenged his preferred unitary state structure in the country.  As a result, he deployed the most incompetent and corrupt lackeys to reinforce his retributive governance against the people of the region as a punishment. This section investigates the scale of corruption perpetrated by the four top cadres of the prosperity party in Sidama Region, namely, (i) Desta Ledamo, (ii) Abrham Marshallo, (ii) Fantaye Kebede and (iv) Tariku Lema.

  • Massive Corruption by Desta Ledamo, the Ruler of the Sidama Region

Desta Ledamo has spent his entire career as a government employee and appointee, yet he has amassed wealth of highly questionable origin through corruption. According to his own declaration to the Sidama National Regional State Ethics and Anti-Corruption Commission, he possesses 86 million birr in cash and 250 million birr in assets, despite having no known source of private non-salary income. This raises the fundamental question: how could a lifelong government official acquire such vast wealth? The answer is obvious.  It is through massive corruption, embezzlement, bribery, extortion and nepotism.

Property acquisition in Sidama region

His accumulation of property is extensive. In Hawassa city alone, he has illegally obtained multiple plots of land:

  • In Menheriya district, Guwe Stadium kebele: 300 m² plot, an 800 m² house, and 2,000 m² near Alation Hospital.
  • In Tabor district: 400 m² commercial space near Wolde Amanuel Square, and a 1,200 m² building in Fara kebele (rented without bidding to the regional water, minerals, and energy bureau, generating 7 million birr annually in rent).
  • A villa on 400 m² in Hixata kebele, Tabor district.
  • Additionally, he owns a Ground plus 3 (G+3) building in Bole Sub-City, Addis Ababa) which is further evidence of unexplained and corrupt wealth accumulation.
  • Beyond these, he has appropriated at least 10 plots of land in Fara kebele under the names of associates and relatives, including Pastor Henok Banata, Galifato, Tekamo,  Zenebech Kera, and others. Similar schemes were carried out in Koti Jawesa kebele, Addis Ababa, using proxies such as Yared Bekele and his wife.

Property acquisition abroad:

In United States, he purchased a property worth Birr 300 million in Seatle. Similar property purchases were reported in Turkey where his relatives reside.

Fraudulent ownership of agro-processing industries 

When Desta Ledamo was the administrator of Sidama Zone in 2018-2020, he bypassed legal procedures to issue licenses. For example, he ordered the Head of Zonal Agriculture Department to grant a license to Coffee Washing Industry without a due legal process and proper application and administrative procedures.  In 2020, he unlawfully approved 42 industrial sites without feasibility studies or environmental assessments, collecting bribes of 1–5 million birr per site, totalling over 144 million birr. Eight of these coffee industry sites were later transferred to his family members.

Wealth accumulation through illegal gift collections including gold

His corruption extended even to farmers. Through staged conferences and field visits, he extracted “gifts” of wheat and dairy cows from district offices and poor farmers, valued at more than 50 million birr. Moreover, he has accumulated gold gifts worth over Birr 80 million from districts through corrupt district appointees.

Desta Ledamo’s Corruption verified by Regional Audit Bureau 

The Regional Audit Bureau has confirmed at least 4.4 million birr has been embezzled under his leadership. Despite such glaring evidence of colossal corruption by Desta Ledamo, Abiy Ahmed protects this criminal because he fulfils his retributive governance project against the Sidam nation with out hesitation.

Desta Ledamo has pledged to handover the administration of Hawassa, the capital city of Sidama Region, to the federal government  

Desta Ledamo has confirmed to the Sidama public time and again that he was appointed by Abiy Ahmed to crush the Sidama people as a revenge for their campaign for regional statehood. Desta has fulfilled his commitment to Abiy Ahmed to crush the Sidama people by denying them opportunities for socio-economic development by siphoning the regional budget for his own benefits and the benefits of his cronies, grossly violating their basic human and democratic rights. His pledge to handover the administration of the Hawassa city to the federal government is the last outstanding action of the policy of political revenge by Abiy Ahmed on the Sidama people.  The Sidama people unequivocally reject any attempt to alter the legal status of the Hawassa city by Abiy Ahmed’s regime or any regime. The Sidama people will ensure that their constitutional right to live, work and administer the Hawassa city, their land, is protected at all times by their sons and daughters.

2.1.2 Immense corruption by Abraham Marshallo Etso, the head of the prosperity party office in the region

Abraham Marshallo Etso is the head of the prosperity party office in Sidama Regional State and has been involved in colossal corruption activities. He illegally and through corrupt practices acquired the following properties:

Property Acquisitions by Abraham Marshallo

Illegal property acquisition in Sidama region and Addis Ababa

  • 14 commercial and residential properties in Hanxaxe the capital of the Loka Abaya district (in own and others’ names)
  • 560 hectares of investment land in Bukkito Kebele in Lokka Abbaya district
  • Owns multiple houses in Hawassa (Tabor district, Fara Qebele, Hixata Qebele)
  • Owns condominium and land in Hawassa under the names of his son and wife
  • Owns two plots of land in Hawassa (Chicken Farm area) under the name of Esther Gabiso, his wife
  • Built or purchased Ground plus 3 (G+3) house in Bole District, Addis Ababa, worth 46 million birr in wife’s name.
  • Built a residential Ground Plus 2 (G+2) residential building next to an equally corrupt prosperity party official Tesfaye Beljige’s neighbourhood in Hawassa.

Land Deals by Abraham Marshallo

  • He acquired a sub-city sized land in Abala in Lokka Abbaya district in his father’s name
  • Owns 2,200 square meters of land in Meneharia Sub-City in Hawassa.
  • Owens 14,300 square meters in Hanxaxe town

Financial corruption by Abraham Marshallo

  • He was involved in Coffee Washing Industry licensing scandal which was linked to his luxury home purchase in Maryland, USA (250 million birr)
  • As a board chairperson of the Sidama Bank: He controls US dollar transactions, requiring bribes for the allocation of the foreign currency to importing private businesses
  • Prosperity Party office buildings: 9 offices were constructed with out a due process of contract awarding. He negotiated contract without any bidding process earning 90 million birr in bribes from the contractors.

Other reported cases of corruption and extortion

  • Transfer of government villa house in Lake Dar sub-district to his personal ownership
  • Sale of houses in Southern Military Command site in Hawassa under his son’s name
  • Receiving bribes for leadership appointments in the region (up to 500,000 birr per appointment)
  • Sending his child abroad (Canada) through embezzlement of funds worth Birr 15 million from the Sidama Coffee Producers Union. While the Sidama coffee farmers were denied the back payments after the annual coffee exports earning were declared, Abraham Marshallo embezzles Birr 15 million to fund his sons education abroad.

2.1.3 Brazen Corruption by Fantaye Kebede, the Speaker of Sidama Regional Assembly  

Fantaye Kebede is the current Speaker of the Sidama Regional State assembly. Previously, she served in zonal roles such as head of Women and Children Affairs and Trade and Industry bureaus. She engaged in corruption from her earlier positions, accepting bribes in the form of commodity gifts such as rice, barley, and charcoal.

Expansion of Fantaye Kebede’s Corruption Scandal

From receiving rice, barely and charcoal as bribes when she was the head of various institutions, Fantaye has expanded corruption into other more lucrative activities. These include:

  • The coffee industry and land grabbing across the region.
  • Spending millions of Birr from the government budget reportedly for personal and group interests.
  • Works closely with Desta Ledamo, her relative and the mastermind of the massive theft in the Sidama Region.

Political Manipulation by Fantaye Kebede

  • Fantaye Kebede uses her Alliance with Desta Ledamo who appointed her as a Speaker through nepotism, to threaten to:
    • Imprison MPs opposing Desta Ledamo’s
    • Sow division among the people in the administration.
  • Her husband, Mathews Dido, a moneylender, manages illicit wealth accumulation.

Land Grabbing and Exploitation by Fantaye Kebede

  • Fantaye displaced 17 farmers in Shaicha Kebele in Alata Wondo district to acquire land for her coffee washing industries.
  • The children of displaced farmers are forced into street begging.
  • She secured Specialty coffee licenses under her son, Mesfin Mathewos’ name, without owning any agricultural land.
  • She purchased land for warehouses and transferred ownership through the Regional Land and Investment Bureau.

Expansion into Coffee Industries using corruption proceeds

  • She also built coffee industries in Bansa and Chabe Gambeltu
  • She received livestock shed and 24 dairy cows from Tekle Jonba, a corrupt prosperity party cadre.
  • In return, Tekle Jonba was briefly appointed as a Mayor of Hawassa City.

Fantaye Kebede’s illicit wealth accumulation and corruption in Hawassa City

  • In Hawassa city, Fantaye Kebede currently owns:
    • 5 houses.
    • Several industries in Hawassa alone
  • During Hawassa’s 5th development project, four individuals fraudulently claimed that they were displaced and Fantaye acquired 800 square meters of land in the name of these four fraudulent individuals
  • She owns and runs a distribution service in Hawassa’s old town, earning up to 200,000 birr daily.

Family Privileges

  • She uses funds earned through corruption to finance the education of her two daughters in Europe and America.
  • She appointed her brother, Bereket Kebede, as a government employee to drive her family without following the due recruitment procedures.

2.1.4 Large scale corruption and embezzlement by Tariku Lema, Head of the Sidama Development Corporation

Tariku Lema symbolizes an epic betrayal of the struggle of the Sidama nation for regional self rule for over a century. He was one of the several infiltrators of the peaceful campaign for regional statehood by the Sidama nation in 2018-2020. He was ironically detained with some of the youth coordinators to spy on those genuinely committed to the regional self-rule and finally succeeded to acquire the political power he was craving for and exact Abiy Ahmed’s retributive governance (revenge) on the Sidama people together with his corrupt mentors Desta Ledamo and Abraham Marshallo. This section presents a summary of an “investigative” report by the “Anti-Corruption Commission” in Sidama Region released in May 2026.

Tariku Lema’s incompetence in SDC leadership resulted in an epic institutional failure

  • Leadership incompetence: Despite the institution’s long history, Tariku Lema’s poor management has hindered growth and left SDC vulnerable to corruption and theft.
  • Lack of asset management: Tariku has put no asset management policy in place for the past six years.
  • Absence of committees: He never established a purchasing, market research, or grievance committees leaving decisions concentrated in his hands to embezzle the finances of the corporation
  • Human resources mismanagement: The HR department lacks organized documentation, does not know the number of employees, and hires professionals without defined roles.
  • Audit failures: Internal audit work has been obstructed, and no external audit has been conducted in six years.

Financial Mismanagement by Tariku Lema

  • Misuse of public funds: The government allocated 30 million birr to SDC but its use remains unaccounted for.
  • Illegal purchases: All purchases made in the past six years under Tariku Lema are considered unlawful.
  • Unrecorded assets: No system exists to track income, expenses, or the condition of purchased assets leaving doors open for corruption and embezzlement
  • Outstanding loan: A 50 million birr loan for the purchase of cement has not been repaid. This most likely used by Tariku Lema to purchase properties in Hawassa, Addis Ababa or US like his mentors Desta Ledamo and Abraham Marshallo.
  • Tax evasion: The Federal Revenue Service has filed a lawsuit against SDC and is moving to freeze the corporation’s bank accounts.

Leasing and Property Issues

  • Unlawful leasing: Under Tariku Lema’s corrupt leadership, commercial properties have been leased without bidding for six years.
  • Private negotiations: Rental prices for the Hawassa Gudumaale shopping centre and the Yayye Hotel are set through undisclosed negotiations without market research or bidding processes to benefit the manager and his cronies.
  • Fraudulent contracts: For the Hawassa Gudumaale shopping centre, square footage in shopping spaces is deliberately reduced in contracts, with excess space used for personal gain. The payments for the extra spaces are believed to be deposited in Tariku Lema’s personal accounts
  • Unmonitored rentals: In Hawassa Gudumaale shopping centre, shops leased for commercial purposes are transferred to third parties without oversight highlighting a total breakdown in governance of SDC under the corrupt and incompetent prosperity party cadre Tariku Lema.
  • Illegal lease renewals: A six-year lease continues to be renewed unlawfully each year.

Further Cases of Corruption by Tariku Lema

  • Yayye Hotel:
    • Rent of 35,000 birr/month since 2016 EC has not been deposited in SDC accounts with high probability that it has been deposited in Tariku Lema’s personal accounts.
    • One (1) million birr was spent on renovations on Yayye hotel without contracts; Birr 500,000 was unaccounted for.
    • Yayye hotel losses amount to 6,270,000 birr over five years due to corruption.
  • Yayye Guest House: Generates no revenue and is deteriorating due to poor maintenance.
  • Cement scandal: Over 50 million birr worth of cement disappeared before reaching the corporation; profits remain unaccounted for.
  • Altena Wondo building initially meant for a shopping complex:
    • Rented for 10 years at 3,500 birr/month, never deposited in SDC accounts
    • Tenant claims to have paid 15,000 birr/month since 2015.
    • Birr 11,500 per month was stolen by Tariku Lema and his predecessors for the past 10 years.
  • Gudumaale Gas Station corruption and fraud:
    • At the SDC Gudumaale Gas Station, revenue and expenditure system is opaque.
    • No proper financial statements documenting income and expenses of the Gas Station are maintained.
    • In 2017–2018 EC, 119 barrels of gasoline and 97 barrels of diesel were sold illegally, valued at over 60 million birr. These funds were believed to be deposited in Tariku Lema’s private accounts.

Tariku Lema was appointed to lead SDC not because he had the requisite skills and capacity but as a reward for his unwavering support to Abiy Ahmed’s political revenge on the Sidama nation and his betrayal of the struggle of the Sidama nation for self-rule.

2.2. Nepotism, cronyism and total breakdown in law and order

 Further to the mind-boggling levels of corruption, embezzlement, bribery and extortion by Desta Ledamo, Abraham Marshallo, Fantaye Kebede, and Tariku Lema, nepotism and cronyism is rife in Sidama today. While about 80% of the 2 million Sidama youth aged 15-34 is currently unemployed or underemployed, job opportunities are reserved solely for the family members of these corrupt prosperity party cadres and their henchmen in various districts. University graduate young men from Sidama have to join the military as cannon fodders amid raging civil wars in Oromia and Amhara and many had lost their lives at a prime age.

Poor peasant farmers have reported selling their cattle, their only assets, to pay bribes to  Abiy Ahmed’s corruption squad in Sidama Region. No basic public services can be accessed in Sidama without paying bribes to prosperity party cadres and officials.

Private businesses are required to pay large bribes to Desta Ledamo, Abraham Marshallo and their cronies to acquire licenses and invest in any development projects. Bad governance in Sidama Region has made the private business climate one of the worst in the country hindering investment, economic growth, job creation and poverty alleviation virtually unattainable. Only crony businesses that voluntarily participate in corruption can survive in the Sidama Region.  In sum, the region has witnessed a total breakdown in governance, low and order as planned and perfectly executed by Abiy Ahmed to exact political revenge on the Sidama people.

  1. Implications of systemic corruption on human and democratic rights of the Sidama people.

The colossal corruption perpetrated by the Sidama ruling elites of the dictatorial and theocratic prosperity party has denied the Sidama nation their basic human rights to socio-economic development. Access to basic social and economic services is a fundamental human right. By embezzling the public finance meant to deliver these services to the dwellers of the region, Abiy Ahmed and his appointees Desta Ledamo, Abraham Marshallo, Fantaye Kebede, Tariku Lema and many others have denied the Sidama people their fundamental human rights. In effect, therefore, the prosperity party rulers have committed crimes against humanity in Sidama in the past 8 years.

The regime stifled the democratic rights of the Sidama people by dismantling its vanguard political party, the Sidama Liberation Movement (SLM) by bribing Dukale Lamisso who previously usurped the leadership of SLM for his private economic gains. Dukale Lamisso dismantled SLM for plots of land in Hawassa and 10 million birr from Abiy Ahmed, another ultimate betrayal of the martyrs of the century old Sidama struggle for self-determination.

  1. Conclusion

This report assessed how the political revenge directed against the Sidama nation for daring to demand its constitutional right to regional statehood, turned the region into Ethiopia’s worst corruption hub. The level of corruption, embezzlement, bribery, extortion, nepotism, and cronyism in Sidama by Desta Ledamo and his henchmen is unprecedented and beyond comprehension. The Sidama nation had never hitherto witnessed this level of maladministration, corruption, poverty and unemployment since its annexation into the wider Ethiopian empire in 1892.

It is now clear that the suffering of the Sidama people can never be addressed by the prosperity party regime which deliberately imposed these miseries on it in the first place. It can only be addressed when this dictatorial regime is dismantled and replaced by all inclusive and democratic government that recognises the diversity of nations and nationalities and their inalienable rights to regional self-determination. The Sidama people will work hand in hand with all like minded nations and peoples in the country to achieve freedom, justice and genuine regional self rule.

 

 


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