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244 Diagnosing Corruption in Ethiopia
registration, professional certification, finance, equipment, or
materials.
• Delayed implementation. Delays can arise as a result of a lack of capacity
or accountability of the contractor, who fails to mobilize when awarded
the contract or lacks the resources needed to respect the specified program.
This in turn raises questions about the integrity of the processes
of registering, shortlisting, awarding contracts to, and monitoring the
performance of, contractors. Another effect can be that the contractor
experiences cash flow problems because payments were withheld in
the expectation of facilitation payments. More generally, any trust deficits
in project relationships are likely to result in delays.
• Neglected maintenance. The connection here is less direct but nonetheless
common. Corrupt arrangements tend to favor high-value, new construction
contracts where major companies are involved and deals can
be arranged, sometimes offshore. Therefore, the limited available funds
tend to be spent on new construction instead of on maintenance—
which normally involves a large number of smaller contracts on which
corrupt deals can sometimes be more difficult to hide. In the absence
of appropriate safeguards, even such smaller contracts remain prone to
corruption risks.
Indirect warning signs. Indirect warning signs do not necessarily mean
that corruption is occurring but would tend to allow corruption to flourish.
Such signs include the following:
• Unequal relationships between parties to the contract. If one party to a
construction-related contract is in a position to exert undue influence
over the other party, there is a strong risk of corrupt practices.
Such a situation could arise when, for instance, the government is a
contractor’s only client. It can also arise when contractual provisions
are insufficiently defined and rely too heavily on the engineer’s interpretation.
• Poor enforcement of professional standards. For an engineer to engage in
corrupt practices is not only illegal and unethical but also unprofessional.
The prospect of being debarred from practice as an engineer is a
powerful deterrent for those tempted by corruption. For such a deterrent
to work, however, there must be a strong sense of what is meant
by professional standards and a powerful professional body with the