Diagnosing Corruption in Ethiopia - Ethiomedia

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416 Diagnosing Corruption in Ethiopia Recommendation 7: Establish a licensing authority and mining company forum. A forum should be established made up of senior members of MOM, the regional and city licensing authorities, the FEACC, and mining companies. This forum should meet periodically (such as once every quarter) to discuss how to improve license issuing, license management, and anticorruption mechanisms. The Ethiopian mining sector is currently a relatively small part of Ethiopia’s economy. Therefore, the extent of corruption in the mining sector appears to be lower—both in occurrence and in value—than in other Ethiopian sectors such as construction and telecommunications. However, the sector’s rapid expansion will increase both the risk of corruption and the amounts potentially lost to corruption. Effective anticorruption action is imperative. The implementation of effective actions not only reduces the extent of corruption but also reduces the perception that corruption is occurring. Notes 1. For further information on corruption in the construction sector, see chapter 6 of this volume—“Construction Sector Corruption in Ethiopia”—as well as the Global Infrastructure Anti-Corruption Centre’s free online resource, http://www.giaccentre.org. 2. The Ministry of Mines and Energy was reorganized and renamed the Ministry of Mines in 2010. 3. Five licenses were issued for prospecting, 109 for exploration, 19 for smallscale mining, and 27 for large-scale mining 4. Federal Democratic Republic of Ethiopia (FDRE) Mining Proclamation No.52/1993; Mining (Amendment) Proclamation No.22/1996; Mining (Amendment) Proclamation No.118/1998; Mining Operations Council of Ministers Regulations No. 182/1994; Mining Operations Council of Minister (Amendment) Regulations No. 27/1998; Mining Income Tax Proclamation No.53/1993; Mining Income Tax (Amendment) Proclamation No. 23/1996. 5. An attempt has been made in relation to each risk area to rate the potential degree of corruption risk at the federal mining license level (for example, low, medium, or high). Obviously, the rating is subjective without hard data on which to base this assessment. No attempt has been made to rate the risk at the city and regional levels because there are likely to be major discrepancies in the degree of effective control between the different cities and regions. However, it is likely that the risk level will be higher at the city and regional
Corruption in the Mining Sector: Preliminary Overview 417 levels than at the federal level primarily because of the more limited resources and lower capacity at the city and regional levels. 6. http://eiti.org/. References FEACC (Federal Ethics and Anti-Corruption Commission). 2008. “Annual Report.” FEACC, Addis Ababa. TI (Transparency International). 2008. TI Bribe Payers Index 2008. Periodic survey report, TI, Berlin. http://archive.transparency.org/policy_research/surveys_ indices/bpi/bpi_2008. MOME (Ministry of Mines and Energy). 2009. “National Report on Mining.” Report to the United Nations Commission on Sustainable Development, Addis Ababa.
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Public Disclosure Authorized Public
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Diagnosing Corruption in Ethiopia P
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Contents Foreword xiii Preface xv A
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Contents vii Chapter 6 Construction
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Contents ix Map 3.1 Ethiopian Regio
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Contents xi 3.6 Summary of Corrupti
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Foreword The government of the Fede
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Preface Although many would argue t
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Preface xvii Goldie-Scot, Piers Cro
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xx About the Editor and Authors bil
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xxii About the Editor and Authors g
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xxiv Abbreviations GAC Governance a
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CHAPTER 1 Overview Janelle Plummer
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Overview 3 Focusing on Ethiopia, th
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Overview 5 for their knowledge of c
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Overview 7 and group discussion wit
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Overview 9 analysis, Goldie-Scot ge
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Overview 11 Chapter 8: Telecommunic
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Overview 13 might be explained by t
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Overview 15 The perceptions of corr
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Overview 17 Given the Ethiopian gov
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20 Diagnosing Corruption in Ethiopi
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44 Figure 2.4 Corruption Vulnerabil
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154 Table 4.4 Corruption Risk in Bo
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172 Annex 4.1 Ethiopian RWS Borehol
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CHAPTER 5 Justice Sector Corruption
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Justice Sector Corruption in Ethiop
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Table 5.1 (continued) Justice Secto
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205 Table 5.2 Disposition of Civil
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CHAPTER 6 Construction Sector Corru
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Construction Sector Corruption in E
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Table 6.3 (continued) Construction
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263 Table 6.7 Overview of Perceived
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Figure 6.2 Trends in Unit Cost of D
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Box 6.1 (continued) Construction Se
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277 Figure 6.5 Drivers of Corruptio
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292 Table 7.1 Value Chain Analysis
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