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Diagnosing Corruption in Ethiopia - Ethiomedia

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148 <strong>Diagnos<strong>in</strong>g</strong> <strong>Corruption</strong> <strong>in</strong> <strong>Ethiopia</strong><br />

Box 4.4 (cont<strong>in</strong>ued)<br />

Box Figure 4.4.2 <strong>Corruption</strong> Risks Identified by Drill<strong>in</strong>g Contractors <strong>in</strong> the<br />

<strong>Ethiopia</strong>n Water Sector<br />

proportion of drill<strong>in</strong>g companies<br />

100<br />

80<br />

60<br />

40<br />

20<br />

0<br />

tender payment licens<strong>in</strong>g supervision supervision<br />

risk area<br />

level of risk<br />

quality<br />

high low<br />

Source: Author.<br />

Note: “Tender” refers to the tender<strong>in</strong>g and procurement process. “Payment” refers to f<strong>in</strong>al payment for<br />

completed work. “Licens<strong>in</strong>g” refers to the licens<strong>in</strong>g procedure for drill<strong>in</strong>g companies. “Supervision”<br />

relates to corrupt practices <strong>in</strong> on-site supervision and sign-off by government staff. “Supervision quality”<br />

refers to (noncorrupt) failures <strong>in</strong> on-site supervision (for example, officials’ failure to arrive on site at<br />

agreed-upon time and poor technical knowledge of supervis<strong>in</strong>g officials.<br />

N<strong>in</strong>e of the 10 contractors <strong>in</strong>terviewed stated that corruption <strong>in</strong> tender<strong>in</strong>g<br />

and procurement was not a problem, aga<strong>in</strong> cit<strong>in</strong>g the volume of work available<br />

and the low <strong>in</strong>centive for corrupt practice. However, the contractors were less<br />

enthusiastic about field supervision and sign-off by zonal and regional officials,<br />

highlight<strong>in</strong>g delays <strong>in</strong> approval and not<strong>in</strong>g that small bribes were occasionally<br />

offered or solicited. Several also remarked on delays <strong>in</strong> payment follow<strong>in</strong>g contract<br />

completion and <strong>in</strong>voice approval as well as the need to “speed th<strong>in</strong>gs along”<br />

occasionally with small payments or large lunches.<br />

Construction and Payment: The Borehole Story<br />

After the contracts are awarded, corruption can also be prevalent <strong>in</strong> the<br />

construction of <strong>in</strong>frastructure and <strong>in</strong> f<strong>in</strong>al <strong>in</strong>voic<strong>in</strong>g for work completed—or<br />

not completed. In construction, bribery and fraud resembles

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