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Education Sector Corruption in Ethiopia 83
However, there are also some suggestions of malpractice. For example,
although central officials indicated that the main factors affecting budget
allocations are objective, and budget administration procedures well
defined, they expressed concern that the practical implementation of
those procedures is not well supervised and followed. More specifically, a
minority considered planned allocations to be based in part on political
ties or affiliations, regional preferences, and influential connections in the
institution.
Examples were given of distortions of the process. In one reported
case, funding allocated for the recruitment of new teachers was diverted
to the payment of per diems for woreda staff. In two other cases, Woreda
Education Offices (WEOs) considered their Woreda Offices of Finance
and Economic Development (WOFEDs) to be involved in malpractice in
budget administration.
Corruption in budget planning from the center to the regional and local
levels—risk: low. The budget planning process, from the center down to
the regional and local levels, can also be influenced by corrupt actions
such as interministerial bribery for allocation of funds, bribery in the
selection or project approval processes, or the misuse of funds. In
Ethiopia, three main areas of risk were identified, albeit within the context
of a general perception that budget planning is based on a welldefined
system:
• Distortions to the system of block grant allocations, even when supposedly
based on established formulae, as described above
• Relatively lax monitoring and related controls at the level of some regions,
and many woredas, due in part to capacity constraints
• Perceived shortcomings in the accountability mechanisms associated with
pooled support to the education sector, according to some observers. 9
(It was noted that although such mechanisms are robust at sector level
in that continued disbursement depends on some broad assessments of
sector performance, they can be less effective at the detailed level,
where weaknesses have been reported in the timely flow of accurate
data.) This risk has been recognized and is being addressed through
capacity-building measures included under Protection of Basic Services
(PBS) II and ESDP III.
These risks are compounded by an evident tendency to engage in
needs-based (as opposed to resource-constrained) planning, which can