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Diagnosing Corruption in Ethiopia - Ethiomedia

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

telephone penetration rate <strong>in</strong> Africa. It once led the regional field <strong>in</strong> the<br />

lay<strong>in</strong>g of fiber-optic cable, yet suffers from severe bandwidth and reliability<br />

problems. And it boasted the first privately owned public telecoms<br />

service <strong>in</strong> Africa, yet is now the only nation on the cont<strong>in</strong>ent still<br />

permitt<strong>in</strong>g a state-owned company to ma<strong>in</strong>ta<strong>in</strong> a monopoly on all telecoms<br />

services.<br />

Amid its low service delivery, an apparent lack of accountability, and<br />

multiple court cases, some aspects of the sector are perceived by both<br />

domestic and <strong>in</strong>ternational observers to be deeply affected by corruption.<br />

To date, however, no exposition of the scope and nature of this perceived<br />

corruption has been developed for public understand<strong>in</strong>g. This chapter<br />

attempts to contribute to such an understand<strong>in</strong>g, while offer<strong>in</strong>g recommendations<br />

aimed at rebuild<strong>in</strong>g confidence <strong>in</strong> the sector.<br />

The result<strong>in</strong>g risk map provides an overview of typical corruption risks<br />

<strong>in</strong> the sector, together with an assessment of the perceived prevalence of<br />

these practices <strong>in</strong> <strong>Ethiopia</strong>.<br />

Methodology<br />

The approach adopted is diagnostic and <strong>in</strong>tended neither as an audit nor<br />

as a political economy assessment, though the latter may be warranted.<br />

By mapp<strong>in</strong>g areas seen to be at high, and low, risk of corruption, attention<br />

is then focused on those that warrant further study.<br />

Us<strong>in</strong>g <strong>in</strong>formation obta<strong>in</strong>ed from document analysis, stakeholder<br />

<strong>in</strong>terviews, and consensus build<strong>in</strong>g workshops, key risks are unpacked for<br />

seven def<strong>in</strong>ed areas of activity with<strong>in</strong> the sector:<br />

Licens<strong>in</strong>g<br />

Design<br />

Appo<strong>in</strong>tment of equipment suppliers<br />

Delivery and <strong>in</strong>stallation of equipment<br />

Construction of facilities<br />

Theft<br />

Public <strong>in</strong>terface of service delivery.<br />

Chapter Structure<br />

The next section provides an <strong>in</strong>ternational overview of corruption risk <strong>in</strong><br />

the telecommunications sector and briefly assesses why it is consid ered to<br />

be particularly prone to corruption. The chapter then proceeds as follows:<br />

“The Context: The <strong>Ethiopia</strong>n Telecoms Sector” describes how the<br />

sector developed; the large <strong>in</strong>vestments to br<strong>in</strong>g <strong>Ethiopia</strong>’s telecoms

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