Diagnosing Corruption in Ethiopia - Ethiomedia

Overview 11
Chapter 8: Telecommunications Sector Corruption in Ethiopia
The telecommunications sector is examined; of all the sectors studied, it
appears to be at the highest risk of corruption. Despite a strong policy and
regulatory framework, a high perceived level of corruption has resulted
from weak accountability mechanisms and the monopolization of the
sector by a state-owned enterprise: the Ethiopian Telecommunications
Corporation (ETC).
To examine this perception, document analysis, stakeholder interviews,
and workshops are used to map seven areas of perceived risk, which are
ranked in terms of the value of the perceived corruption in the sector. The
results identify the appointment of equipment suppliers, delivery and
installation of equipment, and construction of telecom facilities as the
areas most vulnerable to corruption. Of these, the supply of equipment
to the ETC is considered the area at highest risk.
Despite a strong framework of procedural safeguards around ETC
procurement, apparent breaches in regulating equipment supplies (where
most of the spending occurs) has contributed to the deterioration of public
and market confidence in the sector. If market confidence is to
improve, corrective actions in the telecom sector must address both the
risks and the perceptions of corruption.
To help restore trust, it is recommended that the government take the
following actions:
Commission an independent audit and public inquiry into the ETC’s
largest agreement (in 2006, worth US$1.5 billion) to address issues
surrounding the supply of telecom equipment and facilitate the development
and implementation of targeted reforms.
Apply standards to the ETC that are equivalent to those established
under Ethiopia’s Public Procurement Proclamation, which regulates
other government agencies.
Establish a working group to assess the ETC’s current procedures.
Establish an ETC-supplier forum to improve communication, understanding,
and trust among stakeholders.
Chapter 9: Mining Sector Corruption in Ethiopia
The mining sector is examined; although corruption appears to be low,
the ongoing rapid expansions in the sector could increase both the risk of
corruption and the amounts of money potentially lost. The analysis maps
corruption risks across the sector value chain based on data from surveys,
workshops, and interviews with senior government and private sector
representatives of mining operations.